Abstract
Tempus AI will report fiscal results on November 02, 2026 Pre-MKt; this preview summarizes consensus revenue, margin, net income, and EPS expectations alongside company guidance and recent performance trends.
Market Forecast
Consensus for the current quarter points to revenue of 409.35 million US dollars, an adjusted EPS of -0.08, and EBIT of -8.24 million US dollars, with year-over-year changes of 24.53%, 53.06% improvement for EPS, and 35.79% improvement for EBIT; company-level gross profit margin and net profit margin guidance has not been explicitly disclosed for the quarter, but recent trends imply continued leverage from high margin data and applications revenue. The company’s main business is diagnostics and data-driven applications, with diagnostics remaining the revenue core while data and applications show faster scaling; the most promising segment is data and applications at 93.15 million US dollars last quarter with strong growth dynamics implied by mix shift toward software-like services.
Last Quarter Review
Tempus AI delivered revenue of 382.49 million US dollars, a gross profit margin of 64.45%, GAAP net profit attributable to the parent company of 5.64 million US dollars, a net profit margin of 1.48%, and adjusted EPS of -0.04, with year-over-year gains of 21.57% in revenue and 81.82% improvement in EPS. A notable highlight was a positive swing in profitability metrics, with quarter-on-quarter net profit growth of 104.48% and an EBIT beat against earlier estimates. Main business momentum was anchored by diagnostics at 289.33 million US dollars and supported by data and applications at 93.15 million US dollars, underscoring a favorable revenue mix tilt.
Current Quarter Outlook
Main business: Diagnostics volume scale and payer traction
Diagnostics remains the revenue anchor, and the near-term outcome depends on test volume growth, payer coverage breadth, and price discipline. With last quarter’s diagnostics revenue at 289.33 million US dollars and a company-wide gross margin of 64.45%, incremental volume at stable pricing could keep blended margins elevated even if mix remains diagnostics-heavy. The current quarter’s consensus revenue of 409.35 million US dollars implies sequential growth, which likely assumes continued oncology and precision medicine testing uptake across provider networks. Reimbursement dynamics will be central: expanded coverage and faster adjudication cycles can support cash conversion and reduce working capital friction, while any adverse policy or utilization review changes could pressure order intake or average selling price. Operationally, execution on lab efficiency, turnaround time, and report quality will shape physician adoption, sustaining the core pipeline into 2027.
Most promising business: Data and applications monetization
The data and applications segment, at 93.15 million US dollars last quarter, is best positioned to drive incremental margin given software-like economics and potential for multi-year contracts. Growth here rests on enterprise analytics, clinical decision support tools, and life-sciences partnerships that leverage de-identified datasets and AI models; these arrangements can yield recurring revenue, higher contribution margins, and more resilient unit economics versus transactional diagnostics volumes. As the mix shifts toward data and applications, the blended gross margin can remain above 60%, which provides cushion for continued R&D and commercial investments. In the current quarter, investors will focus on contract wins, expansion within existing accounts, and attach rates from diagnostics customers migrating onto application layers, each acting as a multiplier for lifetime value.
Key stock-price drivers this quarter
Stock performance this quarter is likely to hinge on three factors: revenue scale versus the 409.35 million US dollars consensus, margin cadence relative to last quarter’s 64.45% gross margin, and the degree of operating loss narrowing implied by the -8.24 million US dollars EBIT forecast. Upside could come from faster-than-expected data and applications bookings that both lift revenue and improve mix, driving a more pronounced EPS trajectory than the -0.08 expectation. On the downside, any diagnostics reimbursement headwinds, slower enterprise deal timing, or higher spend to support growth could widen the EBIT loss beyond assumptions, tempering sentiment. The pathway to consistent profitability will be a focal point, with attention on expense discipline, productivity gains in labs, and monetization velocity in software.
Analyst Opinions
The preponderance of recent analyst commentary skews bullish, with a majority expecting revenue growth near the mid-20% range and improved loss ratios as operating leverage builds from data and applications. Analysts highlight that consensus embeds a 24.53% year-over-year revenue rise, a 53.06% improvement in EPS to -0.08, and a 35.79% improvement in EBIT to -8.24 million US dollars, framing a path toward further narrowing of losses if mix continues to improve. Coverage emphasizes the importance of sustained gross margins above 60% alongside expanding enterprise contracts as the core thesis. Several well-known institutions point to upside risk from pipeline conversion in data-driven offerings and a supportive reimbursement environment for core tests, noting that last quarter’s EBIT and EPS outperformance strengthens confidence in sequential momentum. On balance, the bullish view centers on durable top-line expansion, growing contribution from higher-margin software-like revenues, and visible operating leverage through 2027.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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