Tempus AI (TEM) Stock Price Edges Lower After Q3 Earnings Progress

Tempus AI came into this Q3 2026 report on a tear, with the share price up sharply over the past three months. Yet the stock slipped 0.9% to about US$77.80 in the first full session after the numbers. That small pullback masks what actually mattered. Revenue reached US$411.5m and adjusted EBITDA turned positive at US$25.6m, which is a key moment for a business still reporting losses on a basic earnings per share basis.

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Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): US$411.5m vs. US$334.2m (up about 23%)
• Net Income/Loss (Q3 2026 vs. Q3 2025): loss of US$14.9m vs. loss of US$80.0m (loss narrowed materially)
• Basic EPS (Q3 2026 vs. Q3 2025): loss of US$0.08 per share vs. loss of US$0.46 per share (per share loss reduced)
• Adjusted EBITDA (Q3 2026): positive US$25.6m vs. loss in the prior year period (profitability on this measure for the first time in the dataset provided)

Data & Applications jumped 33% on long-term pharma deals. Ask Charlie what makes Tempus AI’s data deals so sticky.

Tempus AI Flywheel Claims Meet Operating Data

Tempus AI’s core promise is that its data loop is turning into a real business engine, not just a story.

"Every new test and partnership adds more data, making its AI models more valuable and creating opportunities to cross-sell additional products and services. This data moat is what makes the business interesting."

Q3 shows that idea starting to show up in numbers. Diagnostics revenue of US$303.5m and Data & Applications revenue of US$108.1m both moved higher, while adjusted EBITDA swung to a US$25.6m profit. Raised 2026 revenue guidance to about US$1.6b indicates that management expects that loop to continue scaling.

Stress Testing Tempus AI’s Risk Concerns

On the flip side, the original worries around leverage, execution, and AI hype need to be checked against this quarter.

"There are still meaningful risks. Tempus carries significant debt, is not yet consistently profitable, and expectations for AI remain high."

The latest figures partly ease, but do not erase, those concerns. Losses narrowed to US$14.9m and basic EPS loss improved to US$0.08, yet profitability is not steady. Personalis remains loss making at the test level and will weigh on margins until reimbursement and volumes improve. With the stock up about 67% over 90 days, expectations still run hot.

Not everyone reads the same price the same way. → See the lower figure this Narrative lands on, and how it gets there.

Hunt For Mispriced Earnings Stories

Tempus AI recently highlighted how sentiment can adjust when reported results align with expectations. The real opportunity could sit in stocks that could be undervalued before the market closes that gap.

• Company 1 - 45% below our estimate - embeds design and engineering expertise into complex hardware programs that customers depend on for reliability.
• Company 2 - 29% below our estimate - scales a digital banking platform as customers deepen usage and markets work toward breakeven on lean operating costs.
• Company 3 - 31% below our estimate - expands workplace retirement and benefits relationships while guiding institutional clients toward private credit and loan strategies.

That is three of the list. See the full list of 34 companies trading below our fair value estimates →

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