Tempus AI, Inc. Class A (TEM)
NASDAQ:TEM
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Tempus AI, Inc. Class A
(NASDAQ:TEM)
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Rating:47Neutral
Price Target:
$46.00
▼(-17.67% Downside)
Action:Reiterated
Date:05/14/26
Overall score is held down primarily by weak financial quality (ongoing operating losses, high leverage, and negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by a strong earnings-call outlook (raised revenue guidance and improving EBITDA trajectory with bookings/TCV visibility) and a positive financing event that reduced secured debt.
Positive Factors
Large revenue scale & rising gross margins
Tempus has scaled revenue to over $1.3B with gross margins expanding to ~72%, showing materially improved unit economics. Durable high gross margins support reinvestment in data, R&D and platform infrastructure, increasing long-term operating leverage potential as volumes grow.
Negative Factors
Persistent negative cash flow
Continued negative OCF and FCF mean the business remains reliant on external financing to fund growth and operations. That reliance elevates execution risk: any slowdown or tougher financing conditions could constrain investments, slow product rollouts and delay self-funded profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Large revenue scale & rising gross margins
Tempus has scaled revenue to over $1.3B with gross margins expanding to ~72%, showing materially improved unit economics. Durable high gross margins support reinvestment in data, R&D and platform infrastructure, increasing long-term operating leverage potential as volumes grow.
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
$7.83B
Dividend YieldN/A
Average Volume (3M)6.23M
Price to Earnings (P/E)―
Beta (1Y)3.05
Revenue Growth69.82%
EPS Growth62.77%
CountryUS
Employees2,400
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.71
Shares Outstanding174,520,980
10 Day Avg. Volume7,767,159
30 Day Avg. Volume6,234,293
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)20.94
Price to Sales (P/S)8.09
P/FCF Ratio-43.03
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue6.08
Enterprise Value/Gross Profit8.75
Enterprise Value/Ebitda-41.60
Forecast
1Y Price Target
$65.19Price Target Upside16.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$1.59B
Tempus AI, Inc. Class A Business Overview & Revenue Model
Company Description
Tempus AI, Inc. operates as a healthcare technology company. It engages in providing next generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing to healthcar...
How the Company Makes Money
Tempus primarily makes money through a combination of (1) diagnostics-related offerings and (2) data/analytics services provided to biopharmaceutical and life-sciences customers. On the diagnostics side, the company generates revenue when healthca...
Tempus AI, Inc. Class A Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 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
44
Neutral
Balance Sheet
38
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36B | 1.27B | 693.40M | 531.82M | 320.67M | 257.85M |
| Gross Profit | 948.83M | 885.69M | 381.11M | 286.18M | 130.19M | 83.64M |
| EBITDA | -199.52M | -222.36M | -610.42M | -133.33M | -236.85M | -219.52M |
| Net Income | -302.91M | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M |
Balance Sheet | ||||||
| Total Assets | 2.14B | 2.27B | 926.12M | 564.05M | 631.36M | 531.35M |
| Cash, Cash Equivalents and Short-Term Investments | 639.07M | 755.00M | 448.26M | 197.57M | 302.94M | 277.69M |
| Total Debt | 814.63M | 815.71M | 468.09M | 488.14M | 433.03M | 238.95M |
| Total Liabilities | 1.72B | 1.78B | 869.78M | 1.95B | 1.76B | 1.34B |
| Stockholders Equity | 416.40M | 491.33M | 56.34M | -1.38B | -1.13B | -807.49M |
Cash Flow | ||||||
| Free Cash Flow | -216.50M | -239.14M | -211.17M | -248.95M | -186.58M | -223.75M |
| Operating Cash Flow | -185.74M | -218.09M | -189.04M | -214.34M | -168.20M | -211.98M |
| Investing Cash Flow | -32.60M | -398.36M | -130.39M | -40.31M | -57.94M | -21.72M |
| Financing Cash Flow | 591.04M | 884.12M | 494.33M | 117.55M | 251.39M | -2.04M |
Tempus AI, Inc. Class A Technical Analysis
Negative
55.87
Price Trends
49.46
Negative
54.78
Negative
66.46
Negative
Market Momentum
-1.72
Positive
40.50
Neutral
11.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEM, the sentiment is Negative. The current price of 55.87 is above the 20-day moving average (MA) of 50.30, above the 50-day MA of 49.46, and below the 200-day MA of 66.46, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEM.
Tempus AI, Inc. Class A Risk Analysis
Tempus AI, Inc. Class A disclosed 99 risk factors in its most recent earnings report. Tempus AI, Inc. Class A reported the most risks in the "Tech & Innovation" 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.67B | 22.23 | 19.36% | ― | 13.05% | -12.34% | |
72 Outperform | $846.69M | 142.74 | 3.31% | ― | -1.19% | -21.87% | |
66 Neutral | $2.03B | 33.30 | 1.64% | ― | 7.86% | -2.92% | |
56 Neutral | $1.15B | ― | -12.37% | ― | -1.50% | 83.75% | |
56 Neutral | $12.68B | ― | 184.27% | ― | 39.56% | -0.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $7.83B | ― | -70.24% | ― | 69.82% | 62.77% |
* Healthcare Sector Average
TEM
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Tempus AI, Inc. Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Tempus AI Completes Convertible Notes Offering, Retires Secured Debt
Positive
May 13, 2026
On May 7, 2026, Tempus AI announced a private offering of $350 million in Convertible Senior Notes due 2032, with an option for an additional $52.5 million, aimed at optimizing its capital structure and reducing interest expense. The notes, which ...
Business Operations and StrategyFinancial Disclosures
Tempus AI Lifts 2026 Outlook on Robust Q1 Growth
Positive
May 5, 2026
Tempus AI reported on May 5, 2026 that first-quarter 2026 revenue rose 36.1% year-over-year to $348.1 million, driven by strong growth in diagnostics and data and applications, while gross profit climbed 43.1% and adjusted EBITDA loss narrowed to ...
Business Operations and StrategyFinancial Disclosures
Tempus AI Reports Strong Q4 Growth and Positive EBITDA
Positive
Feb 24, 2026
Tempus AI, Inc., a technology company applying artificial intelligence to precision medicine, reported robust growth for the quarter and year ended December 31, 2025, with 2025 revenue up 83.4% year over year to $1.27 billion. The business is anch...
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.