Tempus AI Delivers Exceptional Q2 2026 Results, Bolstered by Strong Growth in Diagnostics Business and Significant Milestones in Data and Modeling Capabilities
Tempus AI, a leading provider of artificial intelligence and machine learning solutions for the healthcare industry, today reported exceptional second quarter (Q2) 2026 results, driven by strong growth in its diagnostics business and significant milestones in its data and modeling capabilities.
In a conference call to discuss its Q2 2026 financial results, Eric Lefkofsky, Founder and Chief Executive Officer of Tempus AI, highlighted the company's exceptional quarter, with revenues increasing 22% to $382.5 million. The diagnostics business delivered $289.3 million of revenue, an increase of 20% year-over-year, as slower growth in hereditary cancer testing was offset by higher growth in Comprehensive Genomic Profiling (CGP) testing due to acceleration in the business.
"Q2 was an exceptional quarter for Tempus," said Lefkofsky. "Our diagnostics business delivered strong growth, and we achieved several significant milestones in our data and modeling capabilities."
One of the key highlights of the quarter was the receipt of FDA approval for tumor-only xT CDx, which allows the migration of Tempus' entire solid tumor DNA portfolio to be under unified Advanced Diagnostics Laboratory Test (ADLT) pricing. This approval is expected to result in an estimated $200 uplift in Average Selling Price (ASP), equating to approximately $85 million on an annual basis beginning in 2027.
Tempus also received FDA clearance for its liquid biopsy, xF, and expects the incremental ASP lift to be an additional $550. Between xT CDx and xF approvals, the company anticipates approximately $400 million of revenue uplift in 2028.
In addition to its diagnostics business, Tempus AI reported significant growth in its data and apps revenues, which increased 28% year-over-year to $93.2 million. The company's data licensing and modeling business, Insights, grew at 36% in the quarter, with notable highlights including the successful delivery of its foundation model to AstraZeneca and a large multi-year data licensing and modeling agreement with BioNTech.
"We're thrilled to have achieved these significant milestones in our data and modeling capabilities," said Lefkofsky. "Our data and modeling business is becoming instrumental to pharma, and we're excited about the potential for future growth."
Tempus AI also reported strong cash performance, with GAAP net income of $5.6 million and adjusted EBITDA of $8 million, a $13.6 million year-over-year improvement. The company finished the quarter with $820.7 million of cash equivalents and marketable securities compared to $643.8 million last quarter.
"We're pleased with our strong cash performance in Q2," said Lefkofsky. "Our focus on managing costs and improving operational efficiency is paying off, and we expect to achieve positive free cash flow by year-end."
