Tempus AI: Revenue Mix and 2026 Growth Outlook Explained

Tempus AI TEM operates at the intersection of clinical genomics and AI-driven insights. Its testing and data products are gaining traction with providers and biopharma partners. With revenue up sharply in 2024 and margins improving, investors are watching how its mix and execution translate into earnings power.

What Tempus AI Does and Why It Matters

Tempus AI is a healthcare technology company focused on advancing precision medicine through artificial intelligence. The company aggregates and structures multimodal clinical and lab data, then provides AI-enabled solutions to physicians, researchers, payers, and biopharma companies. Operating lines include Genomics and Data and services. Genomics spans oncology testing and hereditary testing, including DNA-based xT, liquid biopsy xF, and RNA-based xR assays used for therapy selection and disease monitoring. Hereditary testing addresses inherited cancer risk with broader rare disease coverage. Data and services commercialize de-identified datasets, clinical trial services, and analytics, supporting life sciences partners and provider use cases.

How Sales Are Trending

For 2024, Tempus generated about $693 million in revenue, up roughly 30% from 2023. Genomics contributed about $451.7 million, or around 65% of total, while Data and services delivered about $241.6 million, or 35%. The Sales Hist and Est visuals indicate a continuing ramp toward about $1.6 billion by 2026, with interim growth in 2025 supported by both testing volumes and scaled data products.

Profit Path and Earnings Quality

Management reached a key milestone by becoming profitable on a non-GAAP basis in the third quarter, aided by disciplined MRD expansion, ADLT progress and operating focus. GAAP EPS remains negative but is improving, with the EPS Hist and Est trajectory pointing toward a loss of 17 cents per share in 2027 after a deeper loss in 2024 and a narrower loss in 2025. The mix shift and operating leverage from the data platform underpin the path to better earnings over time.

Near-term Scorecard for Investors

Recent execution has been solid. The last EPS surprise was about 31%, while the last sales surprise was about 2.4%. Positive surprises of that magnitude can reinforce confidence in the scaling model and sustain interest from momentum-oriented holders. Conversely, a miss on either line could pressure sentiment given the premium growth profile and the market’s focus on operating leverage. With a catalyst calendar that includes regulatory and reimbursement milestones, quarterly prints may continue to drive outsized stock reactions.

Tempus AI, Inc. Price and Consensus

Tempus AI, Inc. price-consensus-chart | Tempus AI, Inc. Quote

What the Stock's Indicator Suggests

Shares carry a Zacks Rank 3-Hold with Style Scores of Value F, Growth C, and Momentum B. The setup is neutral in the near term, with momentum screening better than valuation and growth. For investors using the Zacks framework, that combination argues for patience until estimate revisions or new datapoints tilt the risk-reward more decisively.

Risks to the Thesis

Key watch-items include reimbursement pressure relative to peers, the timing of regulatory processes that can shift near-term uplift, and persistent GAAP losses that can mask progress in underlying unit economics. Management also notes non-cash charges and moderating hereditary growth that temper the short-term impact from data catalysts. These factors could inject volatility into quarterly results even as the strategic direction remains intact.

Bottom line

Tempus AI’s dual-engine model is scaling, with genomics providing the base and AI-enabled data services broadening the opportunity set. The company crossed a non-GAAP profitability milestone, while consensus points to revenue compounding toward the billion-plus range by mid-decade and GAAP EPS trending toward breakeven by 2026. With a Rank 3-Hold and mixed Style Scores, the shares look balanced near term, leaving execution and surprise cadence as the swing factors for the next leg.

Peers to watch include Exact Sciences EXAS, a major player in oncology diagnostics with a broad testing footprint, and Guardant Health GH, which focuses on liquid biopsy and minimal residual disease. Both operate in adjacent markets that help frame competitive dynamics and adoption trends for precision oncology solutions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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