What Changed For Tempus AI Stock, And What Did Not?
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Tempus AI (TEM) stock rose 72.8% from mid-May to November 12, 2026, while the S&P 500 returned 3.0% over the same dates. In that stretch the company agreed on July 20 to buy the cancer-monitoring firm Personalis, and on November 2 it raised its 2026 revenue guidance alongside its third-quarter results. So how much of Tempus AI’s business has actually changed since May?
Tempus AI Now Loses Less Relative To Its Sales
In the third quarter of fiscal 2026, Tempus AI’s operating loss came to 13.8% of revenue, against 18.3% in the same quarter a year earlier. Over the twelve months to September 30, 2026, the loss was 18.5% of revenue, the narrowest at any of the 17 quarter ends the data holds from the end of 2021.
Sales kept growing too. Revenue reached $412 million in the quarter, up 23.1% from a year earlier, but that pace was well below the 84.7% of a year before. Tempus AI cut its loss as a share of revenue, but it did not speed up its sales. And the rise was not Tempus AI’s alone: Natera, a peer growing twelve-month revenue at a 37.4% pace against 36.6% for Tempus AI, rose 73.3% over the same dates.
Where Tempus AI Expects New Revenue To Come From
Management points to data. During the November 2 call, management said Tempus AI’s data and applications business brought in $108 million in the third quarter, up 33% from a year earlier. Since the previous call, the company has signed agreements with Bristol Myers Squibb and Pathos. Management expects these deals to add $193 million of data revenue over about five years.
That works out to roughly $39 million a year, less than half of what the data business now sells in a single quarter. Management called one of those agreements, on Alzheimer’s disease, its first really large deal outside cancer. It also raised its 2026 revenue guidance to about $1.6 billion, a forecast rather than a result.
Is Tempus AI Still Losing Money?
Yes. Over the twelve months to September 30, 2026, Tempus AI posted an operating loss of $279 million, which was larger than the $242 million loss reported for the twelve months before. Free cash flow over the same period came in at negative $151 million. At September 30, the company owed $1,432 million of debt against $637 million in cash and short-term investments.
Personalis adds to that. Management said Personalis loses money on each test it runs, and that Tempus AI will have to absorb some of those losses once the deal closes. Management added that it still expects EBITDA, a profit measure it uses, to keep improving with Personalis included. The shares trade at 9.1 times sales, against 3.2 for the S&P 500, so the price appears to assume the loss as a share of revenue keeps shrinking.
Tempus AI still loses money on its operations, just as it did before its shares rose. Its operating margin remains the measure to watch when the company reports again, expected in February 2027.
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