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.
CEO Eric Lefkofsky and CFO James Rogers focused on visibility, FDA-linked pricing gains and cash generation.
TEM Raises 2026 Revenue Outlook
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.
Tempus Quantifies FDA Pricing Upside
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.
TEM Deepens Data and AI Engagement
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.
Tempus Sets a Measured MRD Ramp
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 Targets Cash Flow Improvement
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.
Tempus Keeps Focus on Execution
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's Zacks Rank & Style Scores
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.
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