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Tempus AI, Inc. Class A
(NASDAQ:TEM)
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Rating:56Neutral
Price Target:
$83.00
▲(20.76% Upside)
Action:Reiterated
Date:09/18/26
The score is held back primarily by weak financial quality (ongoing losses, negative free cash flow, and high leverage) despite strong revenue growth and gross margins. Technicals are a major positive with clear bullish trend strength, while valuation remains challenging given negative earnings and no dividend support. Corporate events are supportive (raised outlook and strategic acquisition), but the deal size and conditions introduce meaningful execution and approval risk.
Positive Factors
Strong revenue scale and gross margin
Rapid revenue expansion combined with gross margin near 70% indicates strong demand and attractive underlying economics in Tempus’s diagnostics and data businesses. If maintained, this gross profit base can support continued investment in technology, clinical capabilities, and commercial expansion.
Negative Factors
Persistent operating and net losses
Despite strong top-line growth and high gross margins, Tempus remains materially unprofitable below the gross-profit line. Continued operating losses could delay self-funded expansion and make the company’s ability to convert scale into durable earnings a key execution challenge.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue scale and gross margin
Rapid revenue expansion combined with gross margin near 70% indicates strong demand and attractive underlying economics in Tempus’s diagnostics and data businesses. If maintained, this gross profit base can support continued investment in technology, clinical capabilities, and commercial expansion.
Read all positive factors
Tempus AI, Inc. Class A Key Performance Indicators (KPIs)
Any
Net Revenue by Segment
Breaks down the company’s revenue across its business lines (for example clinical sequencing and analytics, pharma partnerships, software/subscriptions, and research services). Reveals which segments drive growth, which are higher-margin or recurring, and whether revenue depends on a few large contracts or one-time projects — key for judging sustainability, profit potential, and exposure to reimbursement or partner risks.
Breaks down the company’s revenue across its business lines (for example clinical sequencing and analytics, pharma partnerships, software/subscriptions, and research services). Reveals which segments drive growth, which are higher-margin or recurring, and whether revenue depends on a few large contracts or one-time projects — key for judging sustainability, profit potential, and exposure to reimbursement or partner risks.
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The Fly
The FlyTempus AI, Inc. Class A (TEM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.50B
Dividend YieldN/A
Average Volume (3M)7.31M
Price to Earnings (P/E)―
Beta (1Y)2.90
Revenue Growth50.43%
EPS Growth-21.05%
CountryUS
Employees3,800
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.43
Shares Outstanding175,390,960
10 Day Avg. Volume6,298,282
30 Day Avg. Volume7,309,067
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)20.94
Price to Sales (P/S)8.09
P/FCF Ratio-41.94
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$66.56Price Target Upside-3.15% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$1.60B
Tempus AI, Inc. Class A Business Overview & Revenue Model
Company Description
Tempus AI, Inc. operates as a healthcare technology company in the United States. It offers the Tempus platform, a closed-loop, full-stack, bi-directional integrations between a clinician's desktop and its laboratory diagnostic capabilities, analy...
How the Company Makes Money
Tempus AI primarily makes money through (1) selling diagnostic and testing services and (2) monetizing its data and analytics capabilities with life sciences partners.
1) Clinical/diagnostic testing revenue: Tempus generates revenue by providing ...
Tempus AI, Inc. Class A Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong topline momentum and durable demand in both diagnostics and data/applications: revenue growth (~36% YoY), robust Data & Insights growth (40.5% YoY; Insights >44%), expansion of large pharma collaborations (Merck, Gilead), rising bookings/TCV and an upgraded full-year revenue guide to $1.59B–$1.60B with adjusted EBITDA targeted at ~$65M. Key risks and near-term headwinds include Q1 cash-flow timing effects, slower hereditary volumes early in the year, MRD reimbursement and scaling constraints, and some regulatory timing uncertainty. Overall the positives (strong growth, expanding high-value contracts, improving EBITDA trajectory and sizable data assets) outweigh the transitory operational and reimbursement challenges.Positive Updates
Strong Overall Revenue Growth and Upgraded Guidance
Total revenue of $348.1M, up a little over 36% year-over-year. Company raised full-year revenue guidance to $1.59B–$1.60B and expects adjusted EBITDA of about $65M for FY2026.
Negative Updates
Q1 Cash Flow and Free Cash Variability
Cash flow from operations was down (management referenced roughly a $70M decline in operating cash flow for the quarter) and free cash approximated the small EBITDA loss in Q1. Company called out timing-driven issues (payables, bonuses, contract payment timing) and expects improvement in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth and Upgraded Guidance
Total revenue of $348.1M, up a little over 36% year-over-year. Company raised full-year revenue guidance to $1.59B–$1.60B and expects adjusted EBITDA of about $65M for FY2026.
Read all positive updates
Company Guidance
Management raised 2026 revenue guidance to $1.59–$1.60 billion with adjusted EBITDA of about $65 million; that follows Q1 revenue of $348.1 million (up ~36% YoY), diagnostic revenue of $261.1 million (≈35% YoY) with oncology unit growth of ~28%, and data & applications revenue of $87 million (40.5% YoY) with Insights growth >44% and three straight quarters of bookings north of $100 million. They noted about $350 million of TCV tied to 2026 (and that TCV increased in Q1), added large deals with Merck and expanded Gilead, and said the connected database now exceeds 500 petabytes. Q1 adjusted EBITDA was roughly a $3 million loss (about a $13 million YoY improvement), free cash approximates EBITDA with Q1 seasonality expected to normalize in Q2, current ASPs are about $17.20–$17.40 with an illustrative ~$500 incremental ASP lift over 1–2 years (slides also showed a possible 30% ASP upside), MRD volume was up ~500% to ~6.5k tests, and management reiterated a target roughly in line with ~25% top‑line growth over the next three years.Tempus AI, Inc. Class A Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.27B | 693.40M | 531.82M | 320.67M | 257.85M |
| Gross Profit | 916.19M | 797.90M | 381.11M | 286.18M | 130.19M | 83.64M |
| EBITDA | -90.90M | -118.51M | -610.42M | -133.33M | -236.85M | -219.52M |
| Net Income | -254.43M | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M |
Balance Sheet | ||||||
| Total Assets | 2.37B | 2.27B | 926.12M | 564.05M | 631.36M | 531.35M |
| Cash, Cash Equivalents and Short-Term Investments | 815.99M | 755.00M | 448.26M | 197.57M | 302.94M | 277.69M |
| Total Debt | 1.44B | 1.33B | 468.09M | 488.14M | 433.03M | 238.95M |
| Total Liabilities | 1.92B | 1.78B | 869.78M | 1.95B | 1.76B | 1.34B |
| Stockholders Equity | 444.93M | 491.33M | 56.34M | -1.38B | -1.13B | -807.49M |
Cash Flow | ||||||
| Free Cash Flow | -272.97M | -245.35M | -211.17M | -248.95M | -186.58M | -223.75M |
| Operating Cash Flow | -237.43M | -218.09M | -189.04M | -214.34M | -168.20M | -211.98M |
| Investing Cash Flow | -34.19M | -398.36M | -130.39M | -40.31M | -57.94M | -21.72M |
| Financing Cash Flow | 687.93M | 884.12M | 494.33M | 117.55M | 251.39M | -2.04M |
Tempus AI, Inc. Class A Technical Analysis
Positive
68.73
Price Trends
57.06
Positive
54.14
Positive
56.15
Positive
Market Momentum
4.25
Negative
67.82
Neutral
89.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEM, the sentiment is Positive. The current price of 68.73 is above the 20-day moving average (MA) of 66.49, above the 50-day MA of 57.06, and above the 200-day MA of 56.15, indicating a bullish trend. The MACD of 4.25 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 89.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEM.
Tempus AI, Inc. Class A Risk Analysis
Tempus AI, Inc. Class A disclosed 108 risk factors in its most recent earnings report. Tempus AI, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tempus AI, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.74B | 29.34 | 16.95% | ― | 11.18% | -28.59% | |
66 Neutral | $1.16B | 64.26 | 2.61% | ― | -1.83% | -48.77% | |
63 Neutral | $1.49B | 37.70 | 3.13% | ― | 8.45% | 72.08% | |
60 Neutral | $24.57B | -51.40 | 211.46% | ― | 42.74% | -4.60% | |
56 Neutral | $14.50B | -54.43 | -54.70% | ― | 50.43% | -21.05% | |
52 Neutral | $1.14B | -6.36 | -13.08% | ― | -2.08% | 16.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TEM
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Tempus AI, Inc. Class A Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Tempus AI Posts Strong Q2 Results, Raises 2026 Outlook
Positive
Jul 30, 2026
Tempus reported strong second-quarter 2026 results on July 30, 2026, with revenue rising 22% year over year to $382.5 million and gross profit up 26% to $246.5 million, driven by 31% oncology diagnostics volume growth and a 36% increase in data li...
Business Operations and StrategyM&A Transactions
Tempus AI Announces Merger Agreement to Acquire Personalis
Positive
Jul 20, 2026
On July 20, 2026, Tempus AI, Inc. signed a definitive merger agreement to acquire genomics company Personalis, Inc. through a two-step merger structure that will leave Toucan Development, LLC, a Tempus subsidiary, as the surviving entity. The boar...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Tempus AI to Acquire Personalis, Expanding Precision Oncology
Positive
Jul 20, 2026
Tempus AI, Inc. (NASDAQ: TEM) is a technology company focused on advancing precision medicine and patient care through artificial intelligence in healthcare. Leveraging one of the world’s largest libraries of multimodal clinical and molecula...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.