How Tempus AI (NASDAQ:TEM) Hit $411 Million in Q3 Revenue With 300% MRD Volume Growth

Sonal Goyal

03 November 2026 08:29 PM AEDT

How Tempus AI (NASDAQ:TEM) Hit $411 Million in Q3 Revenue With 300% MRD Volume Growth

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Revenue Growth: Total Revenue for Q3 2026 reached $411.5 million, a 23% increase from the same quarter in 2025.
MRD Volume Surge: Minimal Residual Disease test volume grew approximately 300% year over year to roughly 12,000 tests in the quarter.
Guidance Increase: Full-year 2026 revenue guidance was raised to $1.60–$1.605 billion, with expected adjusted EBITDA of approximately $65 million.
Strategic Partnerships: Multi-year collaborations announced with Merck, Moderna, and Bristol Myers Squibb, bringing total data licensing bookings to more than $550 million year to date.

Tempus AI, Inc.(NASDAQ:TEM), a technology company focused on applying artificial intelligence to advance precision medicine, reported its third consecutive record quarter with $411.5 million in total revenue for the three months ended September 30, 2026, representing 23% growth over the same period in 2025.

Q3 2026 Financial Results

Oncology testing volumes accelerated to 32% growth in the quarter, underpinned by expanding adoption of the company's diagnostic platform. The Minimal Residual Disease segment — which involves detecting traces of cancer remaining after treatment — saw particularly rapid expansion, with approximately 12,000 tests performed in Q3 2026, representing a 300% increase from Q3 2025. The Data and Applications segment, which packages Tempus's aggregated clinical and genomic data for pharmaceutical and research customers, posted 33% revenue growth, with its Insights product line contributing a 29% increase.

Management raised full-year revenue guidance to a range of $1.60 to $1.605 billion for 2026, up from prior expectations, and projected full-year adjusted EBITDA of approximately $65 million. The revised guidance signals increased confidence in the durability of Demand across both Business segments through the end of the year.

CEO Eric Lefkofsky attributed the consistency of results to what he described as a differentiated model: the company's diagnostic capabilities directly feed its data and AI offerings, creating a reinforcing cycle that he argued separates Tempus from competitors who operate in one segment or the other but not both simultaneously.

Partnership Activity and Revenue Bookings

Beyond the operating results, Q3 2026 was notable for a series of high-profile commercial agreements. Tempus announced a multi-year strategic collaboration with Merck and Moderna to support the commercialization of their individualized neoantigen therapy class of treatments — a category of personalized cancer immunotherapy that relies heavily on genomic data of the kind Tempus generates. The agreement reflects the growing role of precision diagnostics in the development and deployment of next-generation cancer treatments.

In October, the company also announced a strategic collaboration with Bristol Myers Squibb. With that agreement included, Tempus reported that its cumulative data licensing bookings for 2026 surpassed $550 million — a figure that represents committed revenue from pharmaceutical and biotech partners accessing the company's clinical data assets. These bookings provide visibility into future revenue that extends beyond the current quarter's results.

Risks

Tempus AI operates in a high-growth, high-investment environment where profitability remains a work in progress. While the company is now guiding for positive adjusted EBITDA, it continues to generate accounting losses on a GAAP basis. Sustaining growth at current rates will require ongoing Investment in sales infrastructure, laboratory capacity, and data systems. If revenue growth moderates while investment continues, the path to profitability could lengthen.

Regulatory risk is also present — Tempus's diagnostic tests are subject to oversight by the FDA and other agencies, and any change in the regulatory framework for laboratory-developed tests could affect the company's product pipeline. The concentration of the Data and Applications segment among a relatively small number of large pharmaceutical clients also creates revenue risk if any major partner reduces spending.

What to Watch Next

The $550 million in year-to-date data licensing bookings will be scrutinized for conversion to recognized revenue in future quarters. Analysts will be watching whether MRD volume growth sustains its trajectory into Q4 2026, and whether the accelerating oncology test volumes reflect durable market penetration or earlier-stage adoption curves that could plateau.

The collaborations with Merck, Moderna, and BMS are structured as multi-year arrangements, and future disclosure on the financial terms and scope of these agreements will help investors understand their contribution to long-term revenue.

Sector Context

The precision medicine sector has seen accelerating demand for molecular diagnostic tools that can guide treatment selection and measure treatment response at a genomic level. Oncology represents the most commercially developed application area, driven by the FDA's expanding approval of companion diagnostics and targeted therapies. Tempus has built its platform at the intersection of diagnostics and data commercialization, positioning itself in both the clinical service and pharmaceutical intelligence markets simultaneously. As personalized cancer therapy becomes more central to oncology treatment protocols, the demand for genomic data at scale continues to grow.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.