Tempus AI reported better-than-expected third-quarter earnings Monday as demand for its cancer-testing services surged.
The healthcare technology company also made progress toward completing an acquisition aimed at expanding its cancer-detection capabilities.
Shares of Tempus rose 3.9% to $75.03 in premarket trading Monday after falling 7.2% on Friday. The stock has climbed 30% in 2026, though it remains about 26% below its all-time closing high of $103.25 in October 2025, according to Dow Jones Market Data.
The company posted adjusted earnings of 7 cents a share, compared with consensus analyst calls for a loss of 8 cents, according to FactSet. Revenue rose 23% year over year to $411.5 million, exceeding Wall Street's forecast of $409.4 million.
Tempus' oncology testing volumes grew 32% year over year, accelerating from 31% growth in the second quarter. Testing for minimal residual disease, which can help detect signs of cancer returning after treatment, surged 300% year over year to about 12,000 tests.
The results came as Tempus has expanded its partnerships with major pharmaceutical companies, including Bristol Myers Squibb, Merck, and Moderna, while moving closer to completing its $1.5 billion acquisition of cancer diagnostics company Personalis.
In October, Tempus announced an expanded agreement with Bristol Myers Squibb to provide oncology data through 2031, as well as a multiyear collaboration with Merck and Moderna supporting the potential commercialization of a personalized cancer vaccine.
Revenue from Tempus' data and applications business, which includes providing clinical and genomic data to pharmaceutical companies for drug research and development, increased 33% year over year to $108.1 million in the third quarter.
Tempus disclosed Monday that the Personalis deal has cleared regulatory review. The company said in July the transaction would strengthen its position in the growing market for tests that detect residual cancer and monitor patients for recurrence.
The company also raised the lower end of its full-year revenue forecast to $1.6 billion from $1.595 billion, while maintaining the upper end at $1.605 billion. Tempus reaffirmed its outlook for about $65 million in adjusted Ebitda.
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