Tempus AI, Inc. (NASDAQ:TEM) shares traded lower in premarket trading Wednesday after the company reported first-quarter results following Tuesday's closing bell.

The company reported first-quarter 2026 revenue growth of 36.1% on strong demand for its oncology diagnostics and AI-driven data business, while the company widened its net loss and raised its full-year revenue outlook.

Revenue And Earnings Beat Expectations

The Chicago-based precision medicine company posted quarterly revenue of $348.1 million, up from $255.7 million a year earlier. The total topped analyst estimates of $345.5 million. Adjusted loss came in at 13 cents per share, beating estimates for a loss of 19 cents per share.

Diagnostics revenue rose 34.7% to $261.1 million, driven by 28% oncology volume growth, while data and applications revenue climbed 40.5% to $87 million.

The company recorded its third straight quarter of bookings above $100 million, with improving total contract value and record visibility in its data and applications segment.

Profitability, Cash Position And EBITDA Trends

Tempus reported a net loss of $125.9 million, or 70 cents per share, compared with a loss of $68 million, or 40 cents per share, in the prior-year quarter. Adjusted EBITDA loss improved to $2.8 million from a loss of $16.2 million a year earlier.

The company ended the quarter with $643.8 million in cash and marketable securities.

"Our strong financial and operational performance this quarter underscores the accelerating demand for our AI-driven diagnostic platform and the immense value of our multimodal data and corresponding AI models," founder and CEO Eric Lefkofsky said in the earnings release.

Tempus AI Raises Full-Year 2026 Revenue Outlook

Tempus raised its full-year 2026 revenue guidance to a range of $1.59 billion to $1.60 billion from prior guidance of $1.59 billion. The updated outlook compares with analyst estimates of $1.592 billion. The company maintained expectations for adjusted EBITDA of about $65 million.

Oncology Diagnostics And AI Business Gain Momentum

During the earnings call, Lefkofsky said oncology diagnostics remained the primary growth driver, with solid tumor and liquid biopsy testing performing strongly and minimal residual disease test volumes rising about 500% year over year to roughly 6,500 tests.

Hereditary testing softened as expected due to tougher year-over-year comparisons, Lefkofsky said, though the company expects growth in the segment to rebound to the mid-teens range in the second half of the year.

Strategic Pharma Partnerships Expand AI Opportunities

The company also highlighted momentum in its data licensing and AI modeling business, including new strategic collaborations with Merck & Company, Inc. (NYSE:MRK) and expanded work with Gilead Sciences, Inc. (NASDAQ:GILD). Tempus said the Merck agreement focuses on biomarker discovery and development using Tempus' multimodal data and Lens analytical platform.

CEO Lefkofsky said the company's new collaboration with Merck ranks among its largest strategic data and AI modeling partnerships, alongside existing deals with major pharmaceutical companies including AstraZeneca PLC (NASDAQ:AZN), GSK plc (NYSE:GSK) and Bristol Myers Squibb (NYSE:BMY). He said the agreements are designed to create long-term "sticky" relationships through broad data access, dedicated teams and AI model development.

Lefkofsky added that Tempus' expanded partnership with Gilead Sciences, while smaller than the Merck deal, marks a significant increase from prior engagement levels.

Lefkofsky said Tempus now has "almost half a dozen" large pharmaceutical customers signing agreements worth more than $100 million tied to de-identified data licensing and AI model development.

Hospital And Research Collaborations Support Expansion

The company also announced collaborations with Northwestern Medicine and NYU Langone Health aimed at expanding genomic testing access and advancing AI-powered oncology research.

Tempus AI Stock Price Action

TEM Price Action: Tempus AI shares were down 4.98% at $51.38 during premarket trading on Wednesday, according to Benzinga Pro data.

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