Tempus AI Q3 2026: revenue up 23% to $411.5M, net loss of $14.9M including a $42.8M unrealized investment gain

Tempus AI sells diagnostic tests, with oncology volume driving its Diagnostics growth, and licenses de-identified multimodal data to drug companies, along with AI-based applications. It reports two revenue lines: Diagnostics, the tests, and Data and Applications, which includes its Insights data-licensing business.

Both lines grew this quarter, and gross margin widened. The headline improvement in the bottom line, though, has a different source. Both of the last two quarters’ bottom lines depended on gains on investments Tempus holds: in Q2, other income turned a loss from operations into a small net profit, and in Q3 it took the net loss to $14.9 million. This piece separates the operating trend from those gains and then looks at cash, debt and the outlook.

Tempus AI Q3 2026 results at a glance

$ millions, except per share	Q3 2026	Q2 2026	Q3 2025
Diagnostics revenue	303.5	289.3	252.9
Data and Applications revenue	108.1	93.2	81.3
Total revenue	411.5	382.5	334.2
Gross profit	266.7	246.5	209.9
Loss from operations	(56.9)	(75.9)	(61.0)
Other income, net	47.1	102.8	2.6
Net income (loss)	(14.9)	5.6	(80.0)
Net income (loss) per share	$(0.08)	$0.03	$(0.46)
Adjusted EBITDA	25.6	8.0	1.5

The Q2 column is from the second-quarter release.

Diagnostics up 20%, Data and Applications up 33%

Diagnostics revenue rose 20% to $303.5 million. The release attributes it to oncology volume growth of 32%, up from 31% in Q2, offset by Hereditary revenue growth of 3%. Minimal residual disease (MRD) volume was about 12,000 tests, up 300%.

Data and Applications revenue rose 33% to $108.1 million, with Insights, the data-licensing business, up 29%. In October, Tempus announced a collaboration with BMS that the release says brings total data licensing bookings to more than $550 million for the year to date; the BMS oncology deal is worth up to $137.5 million over five years. Data and Applications revenue grew about 16% from Q2, and total revenue about 8% (our arithmetic).

Gross profit rose 27% to $266.7 million, a gross margin of about 64.8% against 62.8% a year earlier (our arithmetic), and the release says gross profit growth was led by Data and Applications.

The loss from operations barely changed

Total costs and operating expenses rose about 19% to $468.4 million, against 23% revenue growth (our arithmetic). Selling, general and administrative expense, the largest line, rose about 23% to $231.9 million, about 56% of revenue in both years (our arithmetic). The loss from operations was $56.9 million, against $61.0 million a year earlier and $75.9 million in Q2.

Between the operating line and the $14.9 million net loss sit $47.1 million of other income, $6.7 million of interest expense, $4.0 million of interest income and a $2.4 million loss from equity method investments. The release says the quarter’s net loss “included $50.8 million of stock-based compensation expense and related employer payroll taxes and $42.8 million in unrealized gains on marketable securities”. Without the unrealized gains, the net loss would have been about $57.7 million (our arithmetic). Tempus holds marketable equity securities of $259.2 million at September 30 (our arithmetic: $46.9 million current and $212.3 million non-current), so changes in their fair value can keep moving reported results.

Adjusted EBITDA, which excludes stock compensation, depreciation, amortization and fair-value changes on those securities, was $25.6 million, against $1.5 million a year earlier and $8.0 million in Q2.

Cash, convertible debt and the Personalis deal

Cash and marketable securities were $854.4 million at September 30. For the nine months, operating activities used $71.6 million of cash, against $181.3 million a year earlier. In 2026 Tempus issued convertible senior notes for $443.1 million of net proceeds and repaid $207.7 million of long-term debt and its $100.0 million revolving credit facility. Convertible senior notes were $1,174.9 million on the balance sheet, plus a $176.0 million convertible promissory note.

The release says the pending acquisition of Personalis has cleared regulatory review and that Personalis shareholders are scheduled to vote on November 30, 2026. It also reports two FDA 510(k) clearances for its ECG-based AI cardiology tools.

What Tempus guided for 2026

Tempus raised its 2026 revenue guidance to $1.60–1.605 billion, about 25% growth, from $1.595–1.605 billion in July; the change lifts the bottom of the range by $5 million. It still expects 2026 adjusted EBITDA of about $65 million. Nine-month revenue was $1,142.1 million, so the range implies Q4 revenue of about $458–463 million (our arithmetic). The July release said its guidance assumed no impact from the Personalis transaction, which it then expected to close in late Q4 2026 or early 2027.

What to watch in Q4

• Operating loss. $56.9 million in Q3, against $75.9 million in Q2.
• Investment gains. $42.8 million of unrealized gains in Q3 and $102.8 million of other income in Q2 shaped net results; $259 million of equity securities remain.
• Hereditary. 3% revenue growth, down from 5% in Q2.
• Data licensing. More than $550 million of bookings year to date, per the release.
• Personalis. Shareholder vote planned for November 30.

Quick answers

What was Tempus AI’s revenue in Q3 2026?

Revenue was $411.5 million, up 23% from $334.2 million a year earlier. Diagnostics contributed $303.5 million (+20%) and Data and Applications $108.1 million (+33%).

Is Tempus AI profitable?

Not on a GAAP basis. The net loss was $14.9 million, or $0.08 per share, after $42.8 million of unrealized gains on marketable securities; the loss from operations was $56.9 million. Adjusted EBITDA was $25.6 million, and non-GAAP net income, as the release defines it, was $13.4 million, or $0.07 per share.

What is Tempus AI’s 2026 guidance?

Tempus guided 2026 revenue to $1.60–1.605 billion, about 25% growth, and expects adjusted EBITDA of about $65 million.

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Sources and method. Every company figure is Tempus AI’s own disclosure, read directly from SEC EDGAR and linked above. Third-quarter and year-ago revenue by segment, volume and growth highlights, the income statement, the stock compensation and unrealized-gain amounts, adjusted EBITDA, the September 30 balance sheet, the nine-month cash flow statement, the BMS and Personalis updates and the 2026 guidance come from Exhibit 99.1 to the Form 8-K filed 2026-11-02 (accession 0001193125-26-442619) for the quarter ended 2026-09-30. Second-quarter figures, Q2 oncology volume and Hereditary growth, and the guidance issued in July come from the second-quarter release (Form 8-K, Exhibit 99.1, filed 2026-07-30, accession 0001193125-26-326083). The results were filed with the SEC at 7:00 am ET on 2026-11-02 (Form 8-K acceptance time on the EDGAR filing index), before the US market opened; the release scheduled its call for 8:45 a.m. ET the same day.

No consensus estimate is included, so this piece makes no claim that the quarter beat or missed expectations. Guidance comparisons are against Tempus’s own published outlook only. This piece makes no claim about the share-price reaction.

Our arithmetic, labelled as such: the net loss shrinking by about $65 million from a year earlier; Data and Applications growth of 16% and total revenue growth of 8% from Q2; the $5 million lift to the bottom of the guidance range; gross margins of 64.8% and 62.8%; operating cost growth of 19% and SG&A growth of 23% and its 56% share of revenue; the net loss of about $57.7 million excluding the $42.8 million of unrealized gains; marketable equity securities of $259.2 million; and implied Q4 revenue of about $458–463 million. These are approximations, not reported numbers. The 23%, 20%, 33%, 29%, 27%, 32%, 3% and 300% figures are as printed in the release. The interpretation (that the improvement in net results came mainly from investment gains rather than operations) is our analysis, not a company statement or a forecast.

Related: Tempus AI Q2 2026, the prior quarter; Hims & Hers Q2 2026 and UnitedHealth Q3 2026, other health-care companies we cover.