Yes it does. You can place the pullup at the Arduino or close to it, between 5V (or 3.3 if your Arduino is 3.3V) and the DQ pin of the sensor. This sensor works very well. It is stable even with a longer cable.
My first application used the TMP36. I quickly abandoned that sensor. While it is good for monitoring a temperature inside an enclosure, it is too susceptible to noise when remote. The DS18B20 on the other hand is awesome for remote sensing and is offered in a nice probe for you. All that extra code is well worth it.