Tempus AI and Tower Semiconductor Both Beat Q3 Estimates and Raise Guidance

Tempus AI reported third-quarter 2026 revenue of $411.5 million, up 23% year-on-year and ahead of the Wall Street consensus of $409 million. The company swung to adjusted earnings per share of $0.07, well above analyst expectations of a loss of $0.08, while adjusted EBITDA came in at $25.6 million. CEO Eric Lefkofsky credited 32% unit growth in oncology and 33% revenue growth in the Data and Applications segment, which contributed $108.1 million to the total. Management raised full-year 2026 revenue guidance to $1.60 billion to $1.61 billion, above the prior consensus of $1.59 billion, and lifted its adjusted EBITDA outlook to approximately $65 million.

Tempus also disclosed regulatory and strategic progress in the quarter. The FDA granted two 510(k) clearances for ECG-PH and ECG-MR diagnostic tools, and the company said its research platform is advancing plans to sequence 100,000 whole genomes. Data licensing bookings exceeded $550 million year-to-date, including new research agreements with Bristol Myers Squibb valued at up to $137.5 million and $55 million. The acquisition of Personalis cleared regulatory review during the period.

Tower Semiconductor posted third-quarter 2026 revenue of $526 million, a 33% year-on-year gain that topped the consensus estimate of $520 million. Adjusted EPS of $1.15 jumped 109% year-on-year, beating expectations of $1.08, while GAAP EPS stood at $1.05 and net profit reached $120 million. Operating cash flow was $185 million against capital expenditures of $191 million in property and equipment, with cash reserves of $250.7 million. Fourth-quarter revenue guidance was set at approximately $600 million, surpassing the consensus of $575 million, and the company projected full-year 2026 revenue of $2 billion, implying a $2.4 billion annualized run rate. Silicon photonics is now generating a $1.1 billion annualized run rate, representing a fivefold increase over 2025. Tower also said its Japan 300mm manufacturing facility buildout is progressing ahead of schedule, with customer contracts secured through 2029.