Tempus Q3 Revenue Hits $411.5M with 32% Oncology Unit Growth and 33% Data & Apps Growth

What happened

Tempus reported third quarter 2026 revenue of $411.5 million, a record quarter driven by 32% growth in oncology units and 33% revenue growth in Data & Applications. This follows Q2 2026 revenue of $382.5 million and keeps the company on track toward its full-year guidance of $1.595-$1.605 billion. The strong Data & Applications growth, above the 28% threshold previously identified as an upgrade trigger, signals continued demand for its diagnostics-to-data platform. However, the release did not provide details on adjusted EBITDA, the Personalis acquisition, or any changes to 2026 guidance. The market will look for evidence that top-line momentum translates into durable profitability and successful integration of the pending $1.5 billion acquisition.

Implication

Investors should view the Q3 report as confirming demand strength, particularly in Data & Applications where 33% growth is above the 28% threshold that would trigger an upgrade. However, the report does not address the key uncertainty: whether the Personalis acquisition will close without additional debt or EBITDA guidance cuts. The company's profitability remains unproven, with 1H26 net loss of $120.3 million and positive adjusted EBITDA of only $8 million in Q2. The stock at around $44 is above the attractive entry of $38 but below the trim level of $52, suggesting no immediate action. Waiting for either a pullback to $38 or post-deal clarity on funding and synergies remains prudent.

Thesis delta

The strong Q3 top-line growth does not shift the thesis; Tempus still needs to prove that Data & Applications growth converts to high-margin revenue and that the Personalis acquisition does not reset the path to profitability. The WAIT rating, attractive entry at $38, and trim above $52 remain unchanged.