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Is Tempus AI Stock (TEM) a Buy Ahead of Q2 Earnings?

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TEM reports its Q2 earnings this week. What should investors expect?

Is Tempus AI Stock (TEM) a Buy Ahead of Q2 Earnings?

Health technology company Tempus AI (TEM) is set to report Q2 earnings later this week. This has some investors wondering whether it’s a good idea to buy shares of TEM beforehand.

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What Wall Street Expects

Wall Street expects TEM to report a Q2 EPS of -$0.25 per share, which would mark a 96% hike from the same period last year. The company’s revenues are tipped to come in at $297 million, which would be 79% healthier than 12 months ago.

Will TEM be able to beat these estimates? As one can see below, it has a strong track record of doing just that.

Key Issues Ahead of Earnings

TEM reported a strong set of Q1 results. Its quarterly revenue grew 75.4% year-over-year to $255.7 million. Genomics revenue saw an 89% increase year-over-year, reaching $193.8 million. Oncology testing grew 31% year-over-year with a 20% increase in volume, while hereditary testing contributed $63.5 million with a 23% growth in units.

The company reported an adjusted EBITDA loss of $16.2 million, an improvement from a $43.9 million loss in Q1 2024. Tempus raised its full-year 2025 revenue guidance to $1.25 billion, representing approximately 80% growth.

A major highlight was a three-year, $200 million data and modeling license agreement with AstraZeneca (AZN) and Pathos.

Similar deals are expected to give a lift to TEM in Q2. Back in June, it announced a collaboration with The Abrams Research Center on Neurogenomics at Northwestern University Feinberg School of Medicine. This multi-year collaboration aims to harness AI for rapid discovery and innovation in Alzheimer’s disease research.

It also recently announced that it has received 510(k) clearance from the U.S. Food and Drug Administration for its Tempus ECG-Low EF software, which uses AI to identify certain patients who may have a low left ventricular ejection fraction in their hearts.

Indeed, the company is expected to continue to benefit from the growth of AI-driven precision medicine.

That is why, despite economic challenges – including escalating tariff trade tensions impacting the healthcare technology sector – the TEM share price has held up well this year.

Is TEM a Good Stock to Buy Now?

On TipRanks, TEM has a Moderate Buy consensus based on 5 Buy and 3 Hold ratings. Its highest price target is $75. TEM stock’s consensus price target is $70.29, implying a 26.58% upside.

See more TEM analyst ratings

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