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Tempus AI (TEM) reported its second-quarter earnings after the bell Thursday, and while the numbers looked solid on the surface, the market isn't cheering. The stock is down about 2.4% in after-hours trading, sitting at $43.25.
Here's what happened and why investors might be hitting the sell button.
Tempus AI posted revenue of $382.5 million for the quarter, up 22% year-over-year and slightly ahead of the Street consensus of $379.7 million. The Diagnostics segment brought in $289.3 million (up 20% YoY), while Data and Applications revenue hit $93.2 million (up 28% YoY).
The company also narrowed its losses: it reported a loss of four cents per share, much better than the expected loss of 14 cents per share. Oncology volume grew 31% YoY, and Data Licensing & Modeling revenue jumped 36% YoY. The company said it signed about $200 million in new data and applications licenses during the quarter.
CEO Eric Lefkofsky sounded upbeat: "Q2 was another exceptional quarter for us. Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses — Oncology Diagnostics and Data Licensing."
So why the sell-off? The likely culprit is the guidance. Tempus AI raised its full-year revenue forecast from a prior range of $1.59 billion to $1.60 billion to a new range of $1.595 billion to $1.605 billion. That's a pretty modest bump — especially after a quarter where revenue beat expectations. It suggests the company expects growth to slow in the second half of the year.
The company also guided for adjusted EBITDA of around $65 million for the full year. And notably, the guidance doesn't include any impact from the planned acquisition of Personalis, which is expected to close in late 2026 or early 2027.
When a company beats estimates but only raises guidance by a hair, the market often reads that as a signal that the growth story is losing steam. That seems to be the case here.
Tempus AI is a stock that gets attention for its high-profile fans. It's owned by former House Speaker Nancy Pelosi (D-Calif.) and is a favorite of Ark Invest CEO Cathie Wood. That star power has made it a popular name among retail investors who follow political and celebrity trades.
But even with that backing, the stock has had a rough year. It's trading near the low end of its 52-week range of $40.77 to $104.32, and Thursday's after-hours move puts it just above the bottom of that range.
For now, investors are waiting to see if the growth story can reaccelerate — or if the second half of 2026 will be as sluggish as the guidance suggests.
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