Tempus AI (NASDAQ:TEM) shares climbed almost 10% on Monday after the healthcare technology company reported third-quarter revenue and adjusted earnings ahead of Wall Street expectations, while raising its full-year guidance.
The company generated revenue of US$411.5 million in the third quarter of 2026, up 23% year over year and ahead of analyst estimates of US$409 million.
Adjusted earnings came in at US$0.07 per share, compared with expectations for a loss of US$0.08 per share. Adjusted EBITDA was US$25.6 million.
Tempus raised its full-year 2026 revenue forecast to between US$1.60 billion and US$1.61 billion, above the analyst consensus of US$1.59 billion. It also forecast adjusted EBITDA of approximately US$65 million.
Growth was supported by both of the company's main business segments. Diagnostics revenue increased 20% year over year to US$303.5 million, while its Data & Applications business recorded 33% growth to US$108.1 million.
Oncology was a particular source of strength, with unit growth accelerating to 32%, according to founder and CEO Eric Lefkofsky.
"Q3 was another record quarter, as we delivered $411.5 million of revenue, led by accelerating unit growth of 32% in our oncology business and increasing momentum of 33% revenue growth in Data & Applications," Lefkofsky said.
The company also highlighted progress in its data licensing business, reporting more than US$550 million in bookings year to date, including agreements with Bristol Myers Squibb valued at up to US$137.5 million and US$55 million.
Tempus said its acquisition of Personalis has cleared regulatory review, marking another step in expanding its precision medicine and genomic data capabilities.
Separately, the US Food and Drug Administration granted two 510(k) clearances for its ECG-PH and ECG-MR products.
The company also outlined plans to expand its research platform to include 100,000 whole genomes.
Lefkofsky said the latest results demonstrate the strength of Tempus' integrated diagnostics and data model, with its diagnostic platform supporting the development of its data and artificial intelligence offerings.
