Tempus AI's performance guidance exceeded expectations but the stock price declined due to lackluster outlook

LootboxPhobia · 2026-02-25T08:47:29+00:00

Tempus AI Inc. announced its Q4 earnings, with an adjusted loss of $0.04 per share, revenue up 83% year-over-year to $367.2 million, beating expectations. However, the stock fell 3.4% due to the 2026 revenue guidance being slightly above market expectations. Revenue growth was mainly driven by diagnostics and data services, with the company's net loss amounting to $54.2 million.

LootboxPhobia

2026-02-25 08:47:29

Abstract generation in progress

Investing.com – Tempus AI Inc. (NASDAQ:TEM) reported Q4 earnings that exceeded analyst expectations, but due to the company’s 2026 revenue guidance not significantly surpassing Wall Street estimates, the stock fell 3.4% after hours on Tuesday.

This precision medicine technology company’s adjusted Q4 loss was $0.04 per share, better than the expected loss of $0.20. Revenue surged 83% year-over-year to $367.2 million, driven by strong growth in diagnostic and data & application businesses. Diagnostic revenue reached $266.9 million, up 121.6% year-over-year, with tumor testing volume increasing 29% and genetic testing volume up 23%. Data and application revenue totaled $100.4 million, a 25.1% increase year-over-year.

The company’s 2026 revenue guidance is approximately $1.59 billion, slightly above the analyst consensus of $1.581 billion, representing about 25% annual growth. Tempus also expects full-year 2026 adjusted EBITDA of around $65 million. This slightly above-expected guidance seems to disappoint investors hoping for a more substantial upward revision.

Tempus founder and CEO Eric Lefkofsky said, “Strong unit growth in our diagnostic business, combined with accelerating growth in our data business, demonstrates our unique position in this field.”

Adjusted EBITDA for Q4 improved to $12.9 million from a loss of $7.8 million in the same period last year. The company’s minimal residual disease (MRD) testing volume reached approximately 4,700 tests this quarter, a 56% increase quarter-over-quarter. Tempus’s total remaining contract value at year-end exceeded $1.1 billion, with a net revenue retention rate of 126%.

The company reported a GAAP net loss of $54.2 million for this quarter, including $48.7 million in stock-based compensation and related employer payroll taxes.

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