Tempus AI Delivers 83% Q4 Revenue Growth and Positive EBITDA
In Q4, Tempus AI’s revenues rose 83% year-over-year to $367.2 million, with Diagnostics sales up 121.6% and adjusted EBITDA turning positive at $12.9 million. The company’s oncology testing volume grew 29% and net revenue retention hit 126%, while 2026 guidance targets $65 million adjusted EBITDA.
1. Strong Q4 Revenue Performance
Tempus AI reported Q4 revenues of $367.2 million, up 83% year-over-year, driven by Diagnostics segment growth of 121.6% and a 25.1% increase in Data and Applications revenues.
2. Profitability Turnaround
The company achieved positive adjusted EBITDA of $12.9 million, reflecting scale and cost discipline, although GAAP net loss was $54.2 million due to $48.7 million in stock-based compensation and related charges.
3. Key Operational Metrics
Oncology testing volume rose 29% year-over-year, while net revenue retention reached 126%, signaling strong customer demand and recurring revenue strength.
4. Outlook and Valuation
Guidance for 2026 forecasts $65 million in adjusted EBITDA with revenue growth moderating to 25%. Analysts assign an average price target of $86.71, implying roughly 49.6% upside, and the stock trades at a forward P/S of 5.92 versus its 7.81 median.