Tempus AI (Tempus AI (TEM)) shares are trading lower after the company reported first-quarter financial results on Tuesday after market close. The stock is down 7.2% to $50.16 in after-hours trading, well below its 52-week high of $104.32.

So what happened? Let's dig into the numbers.

Tempus AI Q1 Financials

Tempus reported first-quarter revenue of $348.12 million, up 36.1% year-over-year. That beat the Street consensus estimate of $345.46 million, according to market data.

Diagnostics revenue came in at $261.1 million, up 34.7% year-over-year, with oncology volume growing 28%. Data and Applications revenue hit $87 million, up 40.5%, and Insights revenue within that segment jumped 44.1%.

The company reported a loss of 13 cents per share, better than the expected loss of 19 cents per share. MRD volume — a key metric — was around 6,500 tests in the quarter, up roughly 500% year-over-year. Tempus ended the quarter with $643.8 million in cash.

“Our strong financial and operational performance this quarter underscores the accelerating demand for our AI-driven diagnostics platform and the immense value of our multimodal data and corresponding AI models,” said Tempus AI founder Eric Lefkofsky.

What's Next for Tempus AI

The company raised its full-year 2026 sales guidance to a range of $1.59 billion to $1.60 billion, up from the prior $1.59 billion. The Street consensus is $1.592 billion, so the new guidance is essentially in line. Tempus also guided for fiscal 2026 adjusted EBITDA of around $65 million.

“We continue to see strong momentum as we deploy more sophisticated algorithms across our platform,” Lefkofsky added.

The stock has attracted investments from Cathie Wood and Nancy Pelosi in recent years as the company pushes to grow its AI platforms in healthcare. Despite the after-hours dip, the company's fundamentals remain strong — revenue growth is robust, losses are narrowing, and the guidance suggests management sees continued momentum.

For investors, the key takeaway is that Tempus is executing well, but the market may have wanted a bigger guidance raise. Still, with a cash-rich balance sheet and accelerating MRD volume, the long-term story remains intact.