Tempus AI reported Q1 2026 revenue of $348 million, up 36.1% year over year, with adjusted net loss per share of $0.13, narrowing by 45.8% from the prior year.

Data licensing and modeling revenue (Insights) grew more than 44%, contributing to a third consecutive quarter with bookings exceeding $100 million and higher total contract value.

Diagnostics business generated $261.1 million in Q1, up 34.7% year over year, led by oncology volume and an AI-assisted diagnostic platform gaining traction in oncology.

MRD assay volume grew about 500% year over year but remains modest in unit count, roughly 6,500 tests, with expectations for improved reimbursement and rollout to lift volumes later in the year.

XG assay grew 50% year over year on a small base; MRD volume rose 500% year over year but remains modest at about 6,500 tests, with growth contingent on reimbursement and scale.

Management said there is no need for additional cash or refinancing, and most main assays are expected to gain FDA approval over time, with billing driven by medical necessity; data licensing expansion and ASP uplift are key growth levers.

Oncology remains a major driver, with an attach rate for oncology algorithms around 40% and notable growth in MRD and XG assays from small bases, while late-stage adoption and therapy selection diagnostics are expanding, and neurology contributions are emerging.

Hereditary testing trends slowed in Q1 due to tough year-over-year comparisons, with mid-teens growth expected in the second half of 2026.

Regulatory and product updates include XF and XT assays in play, with XF submission feedback pending and XT amendment for a tumor-only version moving toward a near-term decision; ASP is expected to rise by up to about $500 over 1–2 years as more FDA approvals materialize.

The ASP is currently around $17.20–$17.40, with potential ASP uplift of roughly $500 over the next 1–2 years as FDA approvals accumulate and Alzheimer's data licensing expands the mix.

Strategic pharma collaborations expanded, including a large multi-year data and modeling agreement with Merck and an expanded partnership with Gilead, signaling stronger pipeline visibility.

Data licensing mix remains oncology-dominated, with therapy selection data driving most revenue, while neurology licensing starts to diversify, evidenced by an Alzheimer's modeling project.