Tempus AI (TEM) opened Q1 2026 with revenue of US$348.1 million and a basic EPS loss of US$0.70, while trailing 12 month figures show US$1.4 billion in revenue and a basic EPS loss of US$1.72. This keeps the focus firmly on scaling rather than profitability. Over recent quarters the company has seen revenue move from US$255.7 million in Q1 2025 to US$348.1 million in Q1 2026, with basic EPS losses ranging between US$0.25 and US$0.70 per quarter across that period. For you as an investor, this mix of expanding top line and persistent losses puts margins and the path to more efficient operations at the center of the latest results.

See our full analysis for Tempus AI.

With the headline numbers on the table, the next step is to see how this mix of strong revenue scale and ongoing losses lines up with the prevailing growth driven narratives around Tempus AI, and where those stories may need to be adjusted.

Losses widen to US$125.9 million on trailing US$1.4b revenue base

• Net income for Q1 2026 was a loss of US$125.9 million on revenue of US$348.1 million, while over the last 12 months Tempus AI generated US$1.4b of revenue with a total net loss of US$302.9 million, showing that the company is operating at scale but still spending heavily relative to what it brings in.
• Consensus narrative points to strong volume growth and biopharma partnerships as support for future earnings power, yet the trailing 12 month loss of US$302.9 million shows that, so far, the cost of building out genomics, MRD and data platforms is still outweighing that growth.
  • Analysts expect revenue growth of about 22.1% per year, which lines up with the progression from US$200.7 million in Q4 2024 to US$348.1 million in Q1 2026. However, no profitability is forecast over the next three years, so the current earnings profile fits more with a long build phase than a near term earnings story.
  • The consensus view that discipline in investment is supporting improving adjusted profitability has to be set against quarterly net losses that have ranged from US$42.8 million to US$125.9 million since Q2 2025. This keeps the timing of any sustained net income improvement as a key issue for you to watch.

Q1 EPS loss of US$0.70 versus bears focus on ongoing unprofitability

• Basic EPS has moved from a loss of US$0.07 in Q4 2024 to losses between US$0.25 and US$0.70 over the last five quarters, with the trailing 12 month EPS loss now at US$1.72. This fits with analysis that losses have expanded over the past five years and are not expected to turn to profit in the next three years.
• Bears argue that sustained investment in large AI clusters and MRD capabilities could keep net margins under pressure, and the recent quarterly pattern of EPS losses between US$0.25 and US$0.70 per share reinforces that concern rather than easing it.
  • The bearish narrative highlights that even with revenue forecast to grow about 20.4% annually, profitability is not expected within three years. This lines up with the trailing 12 month net loss of US$302.9 million and the absence of any positive EPS quarter in the data you are seeing here.
  • Critics also point to ongoing spend on over 1,000 H200s and 500 GB200 chips for foundation models. While the filings do not break out those costs, the step up in quarterly net losses from US$11.8 million in Q4 2024 to US$125.9 million in Q1 2026 is consistent with a business still absorbing large fixed costs relative to current earnings.

On this earnings print, skeptics will focus on the jump from a US$0.07 EPS loss in late 2024 to US$0.70 now as evidence that profitability remains distant, and that is exactly the type of context they use when building the more cautious narrative around Tempus AI. 🐻 Tempus AI Bear Case

P/S at 7x with DCF fair value of US$108.71

• The stock trades on a P/S of 7x against peer and US Life Sciences averages of 3.9x and 3.4x, while the analysis cites a DCF fair value of US$108.71 versus the current share price of US$53.50. This means the shares are priced at a premium to sales but sit well below that model driven value estimate.
• Bullish investors argue that the combination of fast expected revenue growth and a strong data position justifies paying that higher P/S multiple today, and the gap between US$53.50 and the DCF fair value of US$108.71 is central to that thesis.
  • The bullish narrative looks for revenue to grow around 31.7% annually and for margins to move from a loss of about 18.4% toward positive territory. If that plays out, a P/S of 7x against today’s trailing 12 month revenue of US$1.4b would reflect expectations of much higher future earnings than current net losses suggest.
  • What stands out is that this growth focused view must also factor in that the company is forecast to remain unprofitable over the next three years even as revenue is expected to outpace the wider US market. As a result, the premium P/S and the DCF fair value both lean heavily on what happens beyond the current loss making phase.

For investors drawn to that long term upside case, the tension between a 7x P/S today, a DCF fair value of US$108.71, and ongoing losses is exactly what the bullish narrative tries to unpack in more detail. 🐂 Tempus AI Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Tempus AI on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between optimism on growth and concern over losses, this may be a useful moment to review the numbers yourself and decide where you stand, starting with the 2 key rewards and 2 important warning signs.

See What Else Is Out There

Tempus AI is growing revenue but still carries sizeable net losses and an EPS loss of US$1.72 over the last 12 months, with no near term profitability expected.

If you want ideas that focus less on heavy losses and more on quality at a reasonable price, it is worth checking out the 45 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.