TEM

With central banks lifting interest rates to tackle inflation, investors are hunting for themes that do not rely purely on cheap money to grow. Artificial intelligence in healthcare is one such story. It focuses on software and data rather than heavy assets. This article highlights three Transformative AI Healthcare Stocks from our screener that apply algorithms to diagnostics, treatment decisions, and hospital efficiency. The three stocks that follow are only a starting sample from this theme. The full screen surfaced 35 more companies with equally compelling narratives that are not covered in the article. To go deeper into this opportunity, analyze and identify your own highest conviction ideas directly in the Transformative Artificial intelligence (AI) Healthcare Stocks screener. Pfizer is one of the largest global biopharma companies, discovering, developing, manufacturing and selling treatments across internal medicine, vaccines, oncology, rare diseases and biosimilars. Its direct link to transformative AI comes from the collaboration with Boltz, PBC to build biomolecular AI foundation models aimed at speeding up drug discovery and sharpening precision in how new therapies are designed. The Global Biopharmaceuticals Business generates about US$62.3b in revenue, with only a small part of that tied directly to AI efforts, and Pfizer’s market cap is about US$162.2b. Investors looking at Pfizer get access to a broad late stage pipeline in areas such as oncology and obesity, as well as a clear AI angle through its biomolecular modeling work with Boltz that targets faster, more precise drug development. At the same time, there are real watchpoints, including a heavy patent expiry cycle, regulatory pressure on drug pricing and a recent large one off loss that clouds profit trends. The interest lies in whether this AI enabled R&D push, combined with ongoing cost saving efforts and a strong global commercial footprint, can turn that complexity into a more efficient, higher value portfolio over the rest of the decade. Pfizer’s AI fueled drug design push could reshape a US$162.2b giant; however, patent cliffs and pricing pressure still loom large. Get the fuller picture with the 2 key rewards and 4 important warning signs Tempus AI runs a healthcare data and diagnostics platform that links genomic testing, clinical records and imaging with its Next AI and Algos tools to support precision diagnostics, treatment decisions and trial matching. The company generates about US$1.4b in revenue from Medical Labs and Research, largely tied to diagnostics services such as NGS tests and pathology, which in turn feed its AI models and data products. Tempus AI has a market cap of roughly US$11.4b. Investors watching how AI is reshaping diagnostics may want Tempus AI on their radar. The company combines a growing diagnostics franchise with a large de identified data asset and AI tools that support oncology, cardiovascular risk detection and trial matching, helped by collaborations with big pharma and leading hospitals. At the same time, Tempus is still loss making, carries meaningful debt and has seen insider selling, so expectations around AI driven growth and a move toward profitability within a few years carry execution risk. The key question is whether the data flywheel and higher margin data and application revenue can turn today’s complex story into a more durable healthcare AI platform over time. Tempus AI is building an accelerating data and diagnostics engine, yet the real story sits in how its losses, debt and insider selling line up against the 1 key reward and 2 important warning signs Medtronic is a large global medical device company that supplies hospitals and specialists with everything from cardiac implants and neuromodulation systems to surgical tools and insulin pumps, and now layers AI into key parts of that portfolio. Its clearest tie to transformative AI is the surgical video and analytics platform in the Medical Surgical Portfolio, which uses machine learning on intraoperative video to support decisions and smoother workflows, alongside AI enabled remote monitoring software in cardiovascular care. Medtronic has a market cap of about US$116.0b. Medtronic gives you exposure to AI inside the operating room and at the bedside, where its video analytics, robotic assisted surgery and remote monitoring tools aim to improve how complex procedures are done and how chronic conditions are managed. The potential prize is growth in higher value, data rich platforms as procedure volumes and digital health adoption move forward, backed by a large installed base and a long track record in devices. The catch is that underperforming segments, margin pressure and execution risk around big launches such as Hugo robotics and new diabetes systems could affect returns if adoption is slower than expected. For investors willing to watch those fault lines closely, Medtronic’s AI driven shift could be an important factor in how the next few years play out. Medtronic’s AI push in the operating room could be more than hype, particularly if higher value platforms shift the earnings mix. Scan the analyst forecasts for Medtronic to see what expectations might be missing. Fresh stock themes move fast. By the time most investors notice the breakout momentum, the best entry points can be gone. Scan these curated ideas before the crowd and review them in detail. Hunt for early-stage stories with real balance sheet strength by reviewing the curated 22 elite penny stocks with strong financials before momentum starts and prices move higher. Track where real earnings power meets AI momentum by checking the hand picked 75 profitable AI stocks that aren't just burning cash while expectations are still under the radar. Target reliable cash flows and payout resilience by scanning the curated 12 dividend fortresses before yields change and income opportunities become more widely followed. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Total Revenue: RMB5.0 billion, a 6.8% year-over-year increase. Adjusted Net Profit: RMB851 million, up 9.8% year-over-year, with a margin of 17.1%. Core OTA Business Revenue: RMB4.3 billion, an 8.4% year-over-year increase. Accommodation Reservation Revenue: RMB1.5 billion, up 8.0% year-over-year, driven by ADR growth and a modest increase in room nights sold. Transportation Ticketing Revenue: RMB1.8 billion, a slight decrease of 2.3% year-over-year due to higher fuel surcharges impacting long-haul travel demand. Other Business Revenue: RMB1.0 billion, a 35.7% year-over-year increase, mainly attributable to the hotel management business. Tourism Business Revenue: RMB643 million, a 2.9% year-over-year decrease. Gross Profit: RMB3.3 billion, up 9.6% year-over-year, with gross margin rising to 66.7%. Adjusted EBITDA: RMB1.3 billion, a 7.3% year-over-year increase. Adjusted Basic EPS: RMB0.36, a 5.9% year-over-year growth. International Accommodation Revenue: Accounted for 4% of total accommodation reservation revenue, up from 2.8% in the same period last year. International Air Ticketing Revenue: Accounted for 8.6% of total transportation ticketing revenue, rising by 2.3 percentage points year-over-year. Annual Paying Users: Reached 254 million for the 12 months ended June. 12-Month ARPU: RMB80, representing a year-over-year increase of approximately 10%. Hotels in Operation: Exceeded 3,500 as of June 30, with over 2,000 in the pipeline. Warning! GuruFocus has detected 3 Warning Signs with STU:TEM. Is STU:TEM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tongcheng Travel Holdings Ltd (STU:TEM) delivered solid financial results in Q2 2026, with total revenue up 6.8% year-over-year to RMB5.0 billion and adjusted net profit up 9.8% to RMB851 million, despite market headwinds. International accommodation business showed exceptional growth, with room nights sold increasing by more than 50% year-over-year, and international air ticketing revenue continued robust growth, contributing to a rising share of total transportation revenue. The hotel management business, including Elong Hotel Technology and Wanda Hotels and Resorts, is expanding rapidly, with over 3,500 hotels in operation and more than 2,000 in the pipeline, positioning it as a strong second growth engine. The company completed the acquisition of Dida Inc., a strategic move to enter the carpooling market, which is expected to create synergies and expand its mobility offerings. Tongcheng Travel Holdings Ltd (STU:TEM) is proactively integrating AI across its operations, including customer service and product recommendations, and has partnered with Weixin's AI assistant, positioning itself for long-term technological advantages. The company's focus on high-quality hotels is paying off, with the proportion of 3-star and above hotel room nights increasing by approximately 3 percentage points year-over-year, supporting ADR growth and outperforming the broader industry. The transportation ticketing business faced significant headwinds in Q2 2026, with revenue declining 2.3% year-over-year due to higher fuel surcharges and elevated airfares, which suppressed long-haul travel demand. The tourism business, particularly outbound package tours, experienced a 2.9% year-over-year revenue decline, pressured by rising fuel costs and geopolitical uncertainties. Summer travel demand in Q3 2026 is expected to be softer than anticipated, impacted by frequent extreme weather conditions, leading to a moderation in core OTA business growth. The company incurred one-off expenses of approximately RMB58 million due to organizational restructuring in Q2, which temporarily increased service development and administrative expense ratios. Fuel prices remain an area of uncertainty for the second half of 2026, and the company expects potential continued pressure on travel demand, especially for long-haul trips. The company faces potential regulatory adjustments in the OTA industry, and while no material impact has been observed, there is ongoing uncertainty regarding future compliance requirements. Q: How was travel demand during the summer vacation, and what is the outlook for the upcoming Mid-Autumn Festival and National Day holidays? Excluding the impact of higher fuel and air ticket prices, how is underlying travel demand trending?A: CFO Julian Fan stated that the start of the summer travel season was softer than expected due to extreme weather conditions at major tourism destinations, particularly in mid-July. Demand showed signs of improvement in early August following a reduction in fuel surcharges, but adverse weather in the second week of August caused widespread flight cancellations. The company will closely monitor demand trends through the National Day holiday as a key indicator. Looking beyond the near term, Fan remains confident in the solid long-term fundamentals of China's travel industry, citing structural growth drivers such as experiential travel, short-haul getaways, and government initiatives to stimulate tourism consumption. Q: How do you assess the recent competitive landscape, particularly regarding intensifying competition from AI chatbots and other content platforms?A: Joyce Li, Chief Capital Officer and President of Wanda Hotels & Resorts, acknowledged that other platforms are enhancing the visibility of travel-related services, but views this as reflecting the sector's growth potential rather than a fundamental industry change. She emphasized that long-term competitiveness depends on comprehensive supply capabilities, pricing and inventory management, fulfillment quality, and post-booking customer servicecapabilities that require significant operational experience and system infrastructure. Li noted that travel consumption is low-to-mid frequency and scenario-driven, with users prioritizing reliability and service quality, making retention more closely tied to service capability than traffic exposure alone. Q: Following the reduction in airline fuel surcharges in mid-August, are you seeing any improvement in travel demand or booking trends? What are the performance expectations for each core OTA segment in Q3 and full year 2026?A: CFO Julian Fan provided detailed segment guidance. For accommodation, room nights sold may face near-term year-over-year pressure due to extreme weather, but ADR is expected to be supported by a favorable shift toward 3-star and above hotels. The blended take rate should benefit from optimized marketing strategies. For transportation, revenue may see near-term headwinds due to compliance-related adjustments to the train ticketing business, though air ticket volume is expected to recover in Q3. Other business revenue is expected to grow at a similar pace to Q2, driven by the hotel management business. Fan noted it is too early for Q4 visibility but sees potential for deferred travel demand to be released during the National Day holiday. Q: What will be the trend of cost structure, including selling and marketing costs and G&A, for Q3 and the second half of this year? What will be the margin trend for the core OTA business?A: CFO Julian Fan explained that the company implemented an organizational restructuring in Q2, resulting in a one-off expense of approximately RMB58 million, which temporarily increased the combined ratio of service development and G&A expenses to 17.5% of revenue. Excluding these one-off costs, the ratio would have been 16.4%, and adjusted net profit margin would have been 18.2%. As these restructuring costs are nonrecurring, the combined ratio is expected to benefit from their absence from Q3 onwards. The company will continue disciplined marketing investments and focus on optimizing operating efficiency, deepening AI applications, and refining marketing investment allocation to support stable profitability. Q: After the easing of fuel surcharges in early August, what is the outlook for outbound travel demand for the rest of the year? Has this changed your outbound strategy?A: Joyce Li stated that while higher fuel surcharges created headwinds, the international business remained resilient, with users adjusting destination choices rather than canceling trips. Healthy demand continues across short- and medium-haul destinations including South Korea, Malaysia, Thailand, Singapore, Hong Kong, and Macau. International room nights sold grew more than 50% year-over-year in Q2. Li noted there has been no change in strategy, with continued focus on optimizing product offerings and strengthening cross-selling between outbound transportation and accommodation. She expects outbound revenue contribution to increase to around 9% of core OTA revenue by year-end. Q: How do you view the industry ADR outlook for the second half of this year, and do you expect Tongcheng to continue outperforming the market? Additionally, will adjustments to hotel traffic distribution systems by industry peers affect Tongcheng's hotel take rate or supply chain strategy?A: CFO Julian Fan noted that industry ADR started Q2 solidly but moderated during May and June due to higher airfares weighing on long-haul demand. Tongcheng's ADR continued to outperform the broader industry, driven by an approximately 3 percentage point year-over-year increase in the proportion of 3-star and above hotel room nights. Fan expects ADR improvement to remain a supportive factor for accommodation revenue growth. Regarding the traffic distribution system changes, Fan stated the company has not observed any material impact on hotel operations, user traffic, or financial performance, and does not expect meaningful impact on the accommodation take rate. Q: Could you share the latest progress of your collaboration with Weixin's AI assistant, and what are your expectations for the partnership's potential contribution over the longer term?A: Joyce Li reported that the collaboration with Weixin AI assistant, Xiaowei, is progressing well. As one of the first OTAs to participate in the pilot program, Tongcheng completed initial integration during Q2 and has entered the testing and optimization phase. The current focus is not on driving near-term traffic but on working with Tencent to explore how AI can understand user travel intentions, recommend content, facilitate service invocation, and support transaction completion within the Weixin ecosystem. Li believes AI assistants have the potential to become important intelligent traffic entry points as they evolve from information retrieval to task execution, and Tongcheng is well positioned to participate given its long-standing partnership with Tencent. Q: Can you elaborate on the revenue and profitability expectations for the hotel management business, and share more color on overseas expansion plans?A: Joyce Li outlined the strategy for complementary development of eLong Hotel Technology and Wanda Hotels and Resorts. For eLong, the focus is on high-quality network expansion with well-recognized hotel brands, strengthening technology capabilities through AI-enabled digital solutions, and optimizing the membership ecosystem. For Wanda, the focus is on strengthening leadership in the upscale and luxury segment, accelerating expansion in China while broadening international growth opportunities. Li highlighted the successful integrated resort model, such as the flagship Changbai Mountain Resorts, being replicated across new destinations. Internationally, following recent additions in Southeast Asia and a debut in Africa, Wanda is building a strategic network in global markets. The combined membership For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ryan Fukushima, CEO, Data at Tempus AI, Inc. (NASDAQ:TEM), reported the disposition of 41,095 shares of common stock on August 18, according to an SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($49.61); post-transaction value based on the August 18 market close ($49.36). What was the specific context for this share disposition?The transaction was a non-discretionary "sell to cover" event required to satisfy statutory tax withholding obligations triggered by the vesting of restricted stock units. How does this impact the insider's remaining investment in the firm?Following this transaction, Fukushima continues to hold about 562,000 direct shares and 61,706 indirect shares, ensuring significant remaining alignment with the company's equity performance. What is the company's current financial standing?Tempus AI maintains a market capitalization of $10.7 billion as of the August 19 market close, supported by trailing twelve-month revenue of $1.4 billion and a net loss of $254.4 million. What has been the recent trajectory for the stock?At the time of the August 18 transaction, the stock was priced at $49.36 per share, reflecting a one-year return of -37% as of that date. Tempus AI operates a closed-loop, full-stack healthcare technology platform that integrates clinician workflows with laboratory diagnostic capabilities, advanced analytics, and a comprehensive repository of multimodal data to support precision medicine applications. The company generates revenue through its proprietary Tempus platform and Hub clinical application, which provide next-generation sequencing (NGS) tests and diagnostic services to healthcare providers, with a business model centered on enabling data-driven clinical decision-making. Tempus AI serves physicians, healthcare providers, and clinical laboratories as primary customers, targeting the oncology and precision medicine markets where genomic testing and advanced analytics drive improved patient outcomes. Tempus AI is a healthcare technology company with a market capitalization of $10.7 billion and TTM revenue of $1.4 billion, operating as a leading provider of AI-enabled diagnostic and analytics platforms for precision medicine. The company's integrated platform architecture creates a competitive advantage by combining clinical workflow optimization with proprietary laboratory capabilities and advanced data analytics. With 3,800 employees and headquarters in Chicago, Tempus AI is positioned at the intersection of genomics, artificial intelligence, and clinical diagnostics, though the company is currently in a growth investment phase with negative net income of -$254.4 million TTM. Fukushima's sell-to-cover happened the same day as Tempus' CEO and other execs, tied to the same kind of RSU vesting, and it landed the day before Tempus stock jumped 24% on the Moderna and Merck trial news that revalued the pending Personalis deal. Of course, that's basically just a coincidence given the type of non-discretionary sale, but it's still notable given the rapid surge in prices. He still holds roughly 562,000 shares directly plus another 61,706 indirect, so 41,095 shares is a small piece of a much bigger position.Fukushima's title is the more interesting thread here. As CEO of Tempus's data business, Fukushima runs the segment that grew fastest last quarter. Data and applications revenue rose 28% year over year to $93.2 million, with the Insights product specifically up 36%, and the company signed close to $200 million in new data and application licenses during the quarter. That's the part of Tempus that doesn't depend on lab volume or reimbursement rates, and it's growing faster than the diagnostics side that gets most of the attention. Before you buy stock in Tempus AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tempus AI wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,189!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,330,956!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 22, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tempus AI. The Motley Fool has a disclosure policy. Tempus AI's Data Chief Just Filed a Form 4. His Segment Grew 28% Last Quarter. was originally published by The Motley Fool

Tempus AI, Inc. TEM used its second quarter of 2026 earnings call to frame growth around oncology testing, data demand and reimbursement-driven pricing while outlining a measured approach to molecular residual disease. TEM’s second-quarter 2026 revenues of $382.49 million topped the Zacks Consensus Estimate of $380.95 million. The non-GAAP loss of 4 cents per share was narrower than the Zacks Consensus Estimate loss of 13 cents. Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote CEO Eric Lefkofsky and CFO James Rogers focused on visibility, FDA-linked pricing gains and cash generation. TEM raised 2026 revenue guidance to $1.595 billion-$1.605 billion, representing about 25% growth, while maintaining adjusted EBITDA guidance at roughly $65 million. The forecast excludes the Personalis transaction. TEM’s second-quarter Diagnostics revenues increased 20% to $289.3 million, while Data and Applications revenues climbed 28% to $93.2 million. Lefkofsky cited accelerating comprehensive genomic profiling and data demand. Oncology volume grew 31% year over year, while hereditary revenues increased 5% against what he described as a strong comparison period. The CEO said FDA approval for tumor-only xT CDx should lift average selling prices by an estimated $200, translating to about $85 million of annual revenue uplift beginning in 2027. Lefkofsky said approval of the liquid biopsy test xF — expected in the latter half of 2027 — could add another $550 million of ASP uplift. He anticipates about $400 million of combined xT CDx and xF revenue uplift in 2028. A BTIG analyst asked about xF pricing. CFO James Rogers said TEM is assuming a $7,500 ADLT price, while CEO Eric Lefkofsky linked the higher expectation to pricing for comparable liquid biopsy products. Data Licensing and Modeling revenues grew 36% year over year, and TEM signed roughly $200 million of new Data and Applications licenses. The company delivered the first version of its oncology foundation model to AstraZeneca. Lefkofsky said the model met AstraZeneca's acceptance criteria on response prediction tasks, including blinded clinical-trial data. He said it can now serve as a foundation for broader research and development work. A Mizuho analyst asked about AstraZeneca beyond 2026. The CEO said projects already extend into 2027 and expects the company to remain a large client, with a similar amount of data and revenue next year. MRD volume reached about 9,000 tests in the second quarter, up 38% from roughly 6,500 in the first quarter, although only about 10% of TEM's sales force sells the Personalis test. A Morgan Stanley analyst asked about reimbursement economics. CFO James Rogers said additional covered indications should lift ASPs over time, while broader commercial access can expand volume. CEO Eric Lefkofsky said TEM plans to accelerate selling once ASPs approach breakeven rather than maximize volume while margins are negative. He also said the company intends to use debt for a large portion of the Personalis consideration to limit dilution. TEM completed a $460 million offering of 0.0% convertible senior notes due 2032 and used proceeds to repay an Ares Capital loan. Lefkofsky said the refinancing should save more than $30 million in annual interest expense. Adjusted EBITDA was $8 million, improving $13.6 million year over year, while operating cash use improved to negative $7.5 million. Cash, cash equivalents and marketable securities ended June at $820.7 million. TEM's growing gross profit base gives it room to redirect variable spending toward commercial investment while maintaining progress toward positive EBITDA and free cash flow. CEO Eric Lefkofsky emphasized sustaining oncology and data growth, converting regulatory approvals into better pricing, broadening MRD as reimbursement supports the economics and continuing profitability improvement. CFO James Rogers added specificity around the $7,500 xF pricing assumption and the path to better Personalis ASPs. Key operating milestones center on pricing implementation, xF approval, data-contract execution and MRD reimbursement. TEM currently carries a Zacks Rank #3 (Hold). Under the Zacks Style Scores framework, a #3-ranked stock can be held, but stronger A or B scores are preferable when evaluating value, growth or momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. TEM has an F grade for Value Score, Growth Score, Momentum Score and VGM Score, the weakest grade in the Style Score hierarchy. The Zacks Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Tempus AI, Inc.? Here are five stocks we like better. Tempus AI reported strong second-quarter results, with revenue up 22% year over year to $382.5 million and adjusted EBITDA improving to $8 million. Diagnostics grew 20%, while Data and Apps increased 28%, prompting the company to raise its 2026 revenue outlook to approximately $1.6 billion. Growth was led by accelerating comprehensive genomic profiling volumes and expanding data and AI partnerships, including multiyear agreements with BioNTech and AstraZeneca. The company also launched its GenomeNext rare-disease offering, while its AstraZeneca foundation model met performance criteria in clinical-trial testing. New products and acquisitions could drive future revenue: FDA approval of tumor-only xT CDx may support an estimated $85 million in annualized revenue beginning in 2027, while xF liquid-biopsy approval and the Personalis acquisition are expected to expand Tempus’ presence in the MRD market. Management projects about $400 million of combined revenue uplift from xT CDx and xF approvals in 2028. MarketBeat Week in Review – 02/23 - 02/27 Tempus AI (NASDAQ:TEM) reported second-quarter revenue growth of 22% and raised its full-year outlook, citing accelerating oncology testing volumes, expanding demand for its data and artificial intelligence offerings, and expected reimbursement benefits from newly approved diagnostic products. Revenue for the quarter ended June 30 totaled $382.5 million. Diagnostics revenue rose 20% year over year to $289.3 million, while Data and Apps revenue increased 28% to $93.2 million. The company reported GAAP net income of $5.6 million and adjusted EBITDA of $8 million, representing a $13.6 million year-over-year improvement. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now After a Near 50% Drop, Tempus AI Could Be Ripe for a Rebound Founder and CEO Eric Lefkofsky called the period “an exceptional quarter,” noting that June produced some of the company’s strongest growth across its portfolio to date. Tempus said slower growth in hereditary cancer testing was offset by faster growth in comprehensive genomic profiling, or CGP. Hereditary revenue increased 5% to $107.4 million, which Lefkofsky said was affected by comparisons with an unusually strong second quarter of 2025. → Microsoft Just Flipped the AI Spending Narrative Overnight Tempus AI Sold Off After a Beat—But the Rebound Case Is Building The company said core testing volume growth accelerated to 31% during the quarter. Chief Financial Officer Jim Rogers said the algorithm attachment rate for solid-tumor tests rose to 45%, compared with 40% cited in the first quarter. While many of those algorithms are not yet reimbursed, Rogers said they provide physicians with insights beyond standard test results and support diagnostic-volume growth. Tempus also launched GenomeNext, its whole-genome offering for rare disease. Lefkofsky said initial demand exceeded the company’s first-month expectations, although he characterized the early volume as small and said Tempus has only one month of data following the launch. The company expects hereditary testing growth to reach the mid-teens by year-end. → Carrier Earnings Could Send the Stock to a New All-Time High During the quarter, Tempus received FDA approval for tumor-only xT CDx. According to management, the approval allows the company to move its entire solid-tumor DNA portfolio to unified Advanced Diagnostic Laboratory Test, or ADLT, pricing. Lefkofsky said the company expects the approval to result in an estimated $200 increase in average selling price, representing roughly $85 million in annualized revenue beginning in 2027. Tempus also has its xF liquid-biopsy test before the FDA. Management said it expects a potential approval and commercial launch in the latter half of 2027. The company now estimates that xF could provide an additional $550 increase in average selling price under ADLT pricing, using an assumed $7,500 ADLT price. Lefkofsky said the company’s pricing expectations changed as comparable liquid-biopsy products established higher ADLT pricing. Combined, Tempus expects the xT CDx and xF approvals to provide about $400 million of revenue uplift in 2028. Tempus’ Insights data licensing and modeling business grew 36% in the quarter. The company reported about $200 million in total bookings, supported by a multiyear data licensing and modeling agreement with BioNTech as well as agreements with Daiichi Sankyo, LevelSet Bio and Incyte Pharmaceuticals. The company also delivered the first version of its foundation model to AstraZeneca. Lefkofsky said AstraZeneca accepted the model after it met specified criteria in predicting patient responses across public and blinded clinical trials. The model was evaluated against more narrowly tailored models developed by both companies, he said. Management said its current AstraZeneca agreement has several years remaining and that AstraZeneca has committed projects extending into 2027. Lefkofsky said the pharmaceutical company is expected to remain a significant client next year. Tempus said customers are increasingly seeking to use Lens, its platform for accessing data, provisioning graphics processing units and building models. Lefkofsky said those capabilities are intended to increase customer retention, though he does not expect them to change the company’s revenue-recognition model. Tempus has shifted its data business in recent years toward multiyear licenses, rather than immediate revenue recognition from individual data-file sales. On July 20, Tempus announced an agreement to acquire Personalis. Management described minimal residual disease, or MRD, testing as a more than $20 billion market and one of the fastest-growing areas in oncology diagnostics. Tempus said Personalis’ NeXT MRD test volume increased from about 6,500 tests in the first quarter to roughly 9,000 in the second quarter, a 38% sequential increase. About 10% of Tempus’ sales force currently sells the test, reflecting reimbursed indications currently available. Rogers said Personalis has secured coverage in several indications and has additional indications in development, which could improve average selling prices over time. Lefkofsky said the company plans to expand MRD sales efforts more substantially when reimbursement economics approach break-even or better, rather than aggressively increasing test volume while margins remain negative. The acquisition is structured as an all-stock transaction, though Tempus can elect to pay cash for up to 50% of the consideration. Lefkofsky said the company is working to establish a debt facility and intends, depending on its stock price, to fund a substantial portion of the purchase with debt to limit shareholder dilution. Tempus raised its 2026 revenue guidance to between $1.595 billion and $1.605 billion, representing approximately 25% growth. It expects adjusted EBITDA of about $65 million for the year, an improvement of roughly $72 million from 2025. The company ended the quarter with $820.7 million in cash equivalents and marketable securities, up from $643.8 million in the prior quarter. Cash used in operating activities improved to $7.5 million during the quarter. Tempus also completed a $460 million offering of 0% convertible senior notes due in 2032. Proceeds were used in part to repay a loan from Ares Capital. Lefkofsky said the refinancing is expected to reduce annual interest expense by more than $30 million and enable the company to achieve positive free cash flow by the end of 2026. Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors. The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tempus AI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $382.5 million, up 22% year-over-year. Diagnostics Revenue: $289.3 million, up 20% year-over-year. Hereditary Revenue: $107.4 million, up 5% year-over-year. Data and Apps Revenue: $93.2 million, up 28% year-over-year. Data Licensing and Modeling Revenue: Grew 36% in the quarter. GAAP Net Income: $5.6 million. Adjusted EBITDA: $8 million, a $13.6 million year-over-year improvement. Cash and Marketable Securities: $820.7 million at quarter end, compared to $643.8 million last quarter. Cash Used in Operating Activities: Negative $7.5 million in the quarter. MRD Test Volumes: Approximately 9,000 tests in Q2, up 38% quarter-over-quarter from approximately 6,500 in Q1. 2026 Revenue Guidance: Increased to $1.595 billion to $1.605 billion, representing approximately 25% growth. 2026 Adjusted EBITDA Guidance: Approximately $65 million, an improvement of about $72 million over 2025. Warning! GuruFocus has detected 3 Warning Signs with TEM. Is TEM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tempus AI Inc (NASDAQ:TEM) reported a 22% year-over-year revenue increase to $382.5 million, with Diagnostics revenue up 20% and Data and Apps revenue up 28%. The company received FDA approval for its tumor-only xT CDx, enabling unified ADLT pricing and an estimated $85 million annual revenue uplift starting in 2027. Tempus AI Inc (NASDAQ:TEM) successfully delivered the first version of its foundation model to AstraZeneca, which met acceptance criteria and strengthens its data and modeling partnerships. The company signed a large multiyear data licensing and modeling agreement with BioNTech, adding to a strong quarter with approximately $200 million in total bookings. Tempus AI Inc (NASDAQ:TEM) completed a $460 million convertible notes offering, saving over $30 million annually in interest expense and positioning the company to achieve positive free cash flow by year-end. The acquisition of Personalis is expected to accelerate commercial adoption of MRD testing, with volumes growing 38% quarter-over-quarter to approximately 9,000 tests in Q2. The company raised its 2026 revenue guidance to $1.595-$1.605 billion (25% growth) and expects adjusted EBITDA of approximately $65 million, a $72 million improvement over 2025. Hereditary cancer testing revenue growth slowed to 5% year-over-year, impacted by lapping an abnormally high growth period in Q2 2025. The company's cash used in operating activities was still negative at $7.5 million in Q2, though improved significantly. The Personalis acquisition is structured as a stock transaction, and with shares trading below $46, there is potential for shareholder dilution, though the company plans to use debt to minimize it. The ramp-up of MRD testing sales is intentionally phased, with only about 10% of the sales force currently selling the test, limiting near-term volume growth. The company faces uncertainty in the rare disease segment, with the GenomeNext launch showing early promise but lacking enough data to confirm non-cannibalization of whole exome business. The xF liquid biopsy approval is not expected until the latter half of 2027, delaying the potential $550 ASP uplift and associated revenue benefits. The company's data and apps revenue growth, while strong, relies on a few large pharma clients, and any changes in their contracts could impact future revenue visibility. Q: What are the underlying ASP assumptions for the Personalis acquisition, and how could the incremental MRD data feed back into the data business?A: CFO Jim Rogers noted that Personalis has secured coverage in several indications, with more coming, so ASPs should continue to improve over time. CEO Eric Lefkofsky added that the company has a strong pipeline of studies that will likely turn into approvals, making the economics more favorable in 2027. On the data side, Lefkofsky explained that MRD data is becoming a critical endpoint for biopharma clients, as it can show signs of cancer recurrence 6-12 months before scans. There is a consistent stream of demand to include MRD data with existing licensing and modeling offerings, making it a compelling component of the data flywheel. Q: Can you provide details on the AstraZeneca foundation model delivery and the outlook for that agreement in 2027 and beyond?A: Lefkofsky confirmed that the foundation model met AstraZeneca's acceptance criteria, a major hurdle, as it performed as well as highly tuned internal models in predicting responses to public and private trials. The current agreement with AstraZeneca has several years left (through roughly 2028), and there are already committed projects extending into 2027. Lefkofsky stated he cannot imagine a scenario where AstraZeneca does not lock in for a longer period to avail themselves of discounts, and all indications suggest they will remain a long-term partner. Q: What drove the increase in the xF FDA clearance tailwind estimate from $230 to $550, and is there a risk the Personalis deal could terminate given the stock price?A: CFO Jim Rogers explained that the thinking around ADLT pricing for xF has evolved as other liquid biopsy approvals have set higher price points. CEO Eric Lefkofsky added that the assay is comparable in size and complexity to Guardant's recently approved assay, which has ADLT pricing around $8,300-$8,400, so Tempus must follow that precedent. On Personalis, Lefkofsky said he cannot envision a termination scenario, noting the company has cash and stock as levers, and that Personalis very much wants the deal to close given the disruption a failure would cause. Q: What is the momentum in the Data and Insights business, and how much visibility do you have into hitting the data revenue guidance?A: Lefkofsky described the data business as "on fire," with the best run of 3-4 quarters in years. Clients are not just licensing data but also using Lens to upload data and build models, creating stickiness. He emphasized the company has great visibility into growth rates for 2026 and 2027, targeting long-term growth near 30% for years to come. The strong pipeline and demand give confidence in hitting the implied data revenue guidance. Q: What are the specific pricing assumptions for xF on the Medicare side, and when will you ramp up the sales force for the Personalis MRD test?A: CFO Jim Rogers confirmed the assumption is a $7,500 ADLT price for xF. CEO Eric Lefkofsky explained that the company will time the full ramp of MRD sales efforts to when the test reaches breakeven on an ASP level, as rushing to run more tests while losing money would burn cash. He noted the company does not believe this is "beachfront real estate" that must be procured quickly, and the core business generates enough gross margin to fund investments without negative EBITDA or cash flow. Q: What is the outlook for the rare disease ramp within Ambry following the GenomeNext launch?A: Lefkofsky said the launch exceeded expectations, with volumes 50% higher than anticipated within 2-3 weeks, though the numbers are still small. He noted there is upside potential in the back half of the year for whole genomes, but it is too early to tell if it will be cannibalistic to the whole exome business. The company is being conservative on whole genome estimates but is targeting mid-teens growth for the hereditary business by year-end, and does not need it to hit overall guidance given the strength in oncology testing and data. Q: How do the newer data deals with pharma companies drive revenue recognition and economics for Tempus?A: Lefkofsky explained that the company shifted years ago from upfront revenue to multi-year licenses, which deferred revenue but created excellent long-term visibility. The newer deals involving Lens and GPU access do not change revenue recognition; they add stickiness by locking clients into the ecosystem through long-term contracts and models built in Tempus's environment. The primary driver of retention remains the quality of the data and tools. Q: What is the algorithm attach rate on solid tumor testing, and what is embedded in guidance?A: CFO Jim Rogers reported the algorithm attach rate was 45% in Q2, up from 40% in Q1, and is broad-based across the suite of algorithms. He noted that many algorithms remain unpaid, so there is no revenue impact, but they highlight Tempus's advantage in providing insights beyond test results, which helped drive core volume growth accelerating to 31% in Q2. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CHICAGO, July 30, 2026--(BUSINESS WIRE)--Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine, today reported financial results for the quarter ended June 30, 2026. "Q2 was another exceptional quarter for us," said Eric Lefkofsky, Founder and CEO of Tempus. "Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses - Oncology Diagnostics and Data Licensing." Second Quarter 2026 Highlights Total revenue of $382.5 million, up 22% year-over-year Oncology volume growth of 31% year-over-year, up from 28% last quarter Molecular residual disease (MRD) volume was 9,000 tests, up from 6,500 last quarter Data Licensing & Modeling (Insights) revenue up 36% year-over-year Signed ~$200 million in new Data and Applications licenses FDA approved xT Tumor Only which will migrate tissue testing to ADLT pricing Successfully delivered our first oncology foundation model to AstraZeneca Completed a $460 million offering of 0.0% convertible senior notes due 2032 GAAP net income of $5.6 million and Adjusted EBITDA of $8.0 million Cash and marketable securities of $820.7 million as of June 30, 2026 Increasing revenue guidance to $1.595 to $1.605 billion for 2026 and expect full year Adjusted EBITDA of ~$65 million On July 20, 2026, Tempus also announced an agreement to acquire Personalis, a leader in the tumor-informed MRD space. "Through our existing collaboration with Personalis, we have already demonstrated the strength of combining highly sensitive MRD technology with our commercial infrastructure," said Mr. Lefkofsky. "With clinical adoption and reimbursement momentum building, we believe we are collectively well positioned to capture this opportunity, which makes this acquisition particularly exciting." Second Quarter 2026 Summary Results Revenue increased 22% year-over-year to $382.5 million. Gross profit increased 26% year-over-year to $246.5 million, led by growth in Data and Applications. Net income was $5.6 million, which included $55.6 million of stock compensation expense and related employer payroll taxes and $98.5 million in unrealized gains on marketable securities, compared to a net loss of $(42.8 million) in Q2 of 2025. Adjusted EBITDA was $8.0 million, compared to ($5.6 million) in Q2 of 2025. $820.7 million in cash and marketable securities as of June 30, 2026. Recent Operational Highlights Entered into a definitive agreement to acquire Personalis for $16.25 per share (~$1.5 billion enterprise value), tightly integrating its ultrasensitive NeXT Personal® MRD technology into Tempus' diagnostic platform Received FDA approval for tumor-only xT CDx assay, becoming the first laboratory to hold FDA companion diagnostic (CDx) approval for both tumor-only and tumor-normal comprehensive genomic profiling Launched digital pathology IMS Open-Source Consortium along with Yale New Haven Hospital (YNHH) and Memorial Sloan Kettering Cancer Center (MSK) to accelerate the democratization and standardization of digital pathology Introduced Tempus Preview to provide preliminary results for high impact biomarkers within ~24 hours of tissue receipt Announced a strategic collaboration with the Keck School of Medicine of USC to integrate Tempus' AI platform, molecular diagnostics, and clinical trial matching across more than 1.5 million annual patient visits to accelerate precision oncology care Introduced initial results from and successfully delivered the first version of our foundation model to AstraZeneca Signed large deals with BioNTech, Daiichi Sankyo, Level Set Bio, and Incyte Pharmaceuticals, contributing to ~$200 million in total bookings this quarter Second Quarter Financial Results Financial Outlook and Guidance Tempus is increasing its full year 2026 revenue guidance to $1.595 to $1.605 billion, which represents ~25% annual growth. We continue to expect 2026 Adjusted EBITDA to be ~$65 million. Guidance assumes no impact from the Personalis transaction, which is expected to close in late Q4 2026 or early 2027. For additional information on the quarter, including a letter from our CEO and CFO, please visit our investor relations site at investors.tempus.com. Webcast and Conference Call Information A conference call and webcast will begin today, July 30, 2026 after market close at 4:30 p.m. Eastern Time. Interested parties may access details at: Conference ID: 9053038United States - New York: (646) 307-1963USA & Canada - Toll-Free: (800) 715-9871Live webcast can be accessed here The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to find the company’s latest deck, and commentary on the quarter by Eric Lefkofsky, Founder and CEO, and Jim Rogers, CFO, which will be discussed on the conference call and webcast. About Tempus Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com. Non-GAAP Financial Measures In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures. Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the "stock-based compensation adjustments"). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments, acquisition-related expenses, amortization of intangibles due to acquisition, and franchise taxes related to IPO. Non-GAAP loss from operations is defined as loss from operations, adjusted to exclude (i) the stock-based compensation adjustments, (ii) acquisition-related expenses, (iii) franchise taxes related to IPO, and (iv) amortization of intangibles due to acquisition. Non-GAAP net loss is defined as net income (loss), adjusted to exclude (i) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (ii) the stock-based compensation adjustments, (iii) acquisition-related expenses, (iv) amortization of intangibles due to acquisition, (v) losses from equity method investments, (vi) provision for (benefit from) income taxes, (vii) franchise taxes related to IPO, and (viii) amortization of deferred other income from our IP License Agreement with SB Tempus, and (ix) loss on debt extinguishment. Non-GAAP net loss per share is defined as non-GAAP net loss divided by weighted average common shares outstanding, basic. Adjusted EBITDA is defined as net (income) loss, adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses from equity method investments, (vi) changes in fair value of our marketable equity securities and indemnity-related holdback liabilities, (vii) the stock-based compensation adjustments, (viii) acquisition-related expenses, and (ix) amortization of deferred other income from our IP License Agreement with SB Tempus, (x) franchise taxes related to our IPO, and (xi) loss on debt extinguishment. Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures. Tempus does not provide guidance for net (income) loss, the most directly comparable GAAP measure to Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus’ forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net loss and the respective reconciliations. These forecasted items are not within Tempus’ control, may vary greatly between periods, and could significantly impact future financial results. Other Key Metrics Total Remaining Contract Value (TCV) is equal to the total potential value of signed contracts and assumes the exercise of all contract options, all discretionary opt-ins, and no early termination. Remaining TCV excludes any revenue recognized to date on these contracts or any future adjustments made to the contractual value as a result of amendments or terminations. Net Revenue Retention compares the annual Insights product revenue generated from all customers that made an Insights purchase in one year to the annual Insights product revenue generated from the same cohort of customers in the subsequent year. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected financial results for full year 2026; expectations concerning Tempus' collaborations and partnerships; Tempus' growth expectations; and the pending acquisition of Personalis. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "going to," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release. You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including Tempus' ability to consummate the acquisition of Personalis on the contemplated terms or at all and Tempus’ ability to realize the expected benefits of the acquisition of Paige AI, Ambry Genetics, Deep 6 AI and, if consummated, Personalis; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, trade tensions and tariffs, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled "Risk Factors" in Tempus’ Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("the SEC") on February 24, 2026, as well as in other filings Tempus may make with the SEC from time to time. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730328545/en/ Contacts Investors Elizabeth KrutoholowKendra [email protected] Media Kelli [email protected]

Tempus AI, Inc. TEM is expected to report second-quarter 2026 results on June 30, after market close. In the last reported quarter, the company’s adjusted loss of 13 cents per share was narrower than the Zacks Consensus Estimate of a loss of 21 cents. Tempus went public in June 2024. Its earnings beat estimates in three of the trailing four quarters and missed in one, the average negative surprise being 6.58%. The Zacks Consensus Estimate for revenues is currently pegged at $381.6 million, implying a 21.3% improvement from the year-ago period’s level. The consensus estimate for loss per share has moved south to 12 cents over the past 30 days. Image Source: Zacks Investment Research During the second quarter, Tempus’ share price experienced 23.2% growth, mainly due to a series of strategic acquisitions and partnerships in the field of AI-driven precision medicine, as well as a slew of product launches. Yet, the company is expected to have incurred loss during the second quarter, caused by macroeconomic challenges, including escalating trade tensions that broadly affected the healthcare technology sector. The Zacks Medical Info Systems industry and the S&P 500 benchmark index gained 21.5% and 14.4%, respectively, during the second quarter. Other industry players, such as 10x Genomics TXG and SOPHiA GENETICS SOPH, gained 73.9% and 13.4%, respectively. Image Source: Zacks Investment Research Let’s see how things might have shaped up for TEM prior to the announcement: In the second quarter, we expect Tempus’ Diagnostics segment’s sales to have experienced an improvement from accelerating volume growth in oncology testing and sustained strength in hereditary sequencing. The Data and Applications business is likely to have experienced strong demand for Tempus’ proprietary data licensing and AI solutions. Tempus’ first-quarter gross profit saw a 43.1% year-over-year improvement, while adjusted EBITDA was negative. However, the company expects positive adjusted EBITDA of $65 million in 2026. We expect the company to have progressed meaningfully in the to-be-reported quarter. In the second quarter of 2026, Tempus expanded its multi-year collaboration with Gilead Sciences (GILD), providing enterprise-wide access to its AI-powered Lens platform, broader multi-indication datasets and dedicated analytical services to support Gilead's oncology pipeline and inform clinical decision-making. The company also expanded its partnership with Predicta Biosciences to commercially launch the co-branded GenoPredicta whole-genome sequencing assay for comprehensive genomic characterization of hematologic malignancies and measurable residual disease monitoring. Tempus initiated a collaboration with Bristol Myers Squibb (BMY) to use AI, multimodal real-world data and data science to optimize clinical trial designs and improve the Probability of Technical & Regulatory Success across five initial programs. Separately, Tempus partnered with Angiosarcoma Awareness to advance data-driven research in angiosarcoma, a rare and aggressive cancer. These collaborations might have helped Tempus establish a strong footprint in oncology with an industry-leading technology portfolio. From an R&D perspective, in the second quarter of 2026, the company launched the ArteraAI Prostate Test (mHSPC), a CLIA-certified and CAP-accredited prognostic test integrated into the Tempus platform to help urologists and oncologists personalize therapy intensity for patients with metastatic hormone-sensitive prostate cancer. It also introduced an automated clinical update service through its AI-enabled Hub physician portal, enabling active follow-up, ongoing therapy monitoring and context-aware notifications. Tempus launched Tempus Preview, which delivers preliminary mutation predictions within approximately 24 hours of tissue receipt, bridging the gap between test ordering and final sequencing results. We expect these developments to have boosted the company’s top-line growth. Investments tied to these updates, including product development and collaborations, are likely to have pushed operating expenses higher in the second quarter, putting some pressure on short-term profitability. Broader macroeconomic factors, like tariffs, hospital budget constraints and biotech funding trends, might have also affected adoption rates. Tempus stock is currently discounted compared with its industry, as shown in the chart below. TEM is currently trading at a forward 12-month price-to-sales (P/S) ratio of 4.56X, lower than its industry's median of 4.77X. Image Source: Zacks Investment Research Tempus entered the second quarter of 2026 with solid momentum, supported by strong diagnostics demand, expanding AI-driven collaborations and continued product innovation. While elevated investments and macroeconomic headwinds might have weighed on near-term margins, sustained execution across its oncology and data businesses is expected to have supported healthy revenue growth and progress toward its long-term profitability goals. Given the discounted valuation trend and stock price surge, we advise investors who already hold this Zacks Rank #3 (Hold) stock to maintain their positions, while prospective investors may consider waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 10x Genomics (TXG) : Free Stock Analysis Report SOPHiA GENETICS SA (SOPH) : Free Stock Analysis Report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tempus AI (TEM) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This health care technology company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $381.58 million, up 21.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.59% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Tempus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +21.74%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Tempus will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Tempus would post a loss of$0.21 per share when it actually produced a loss of -$0.13, delivering a surprise of +38.10%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Tempus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research