Tempus AI, Inc. Class A (TEM)
NASDAQ:TEM
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Tempus AI, Inc. Class A
(NASDAQ:TEM)
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Rating:49Neutral
Price Target:
$47.00
▼(-0.82% Downside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak financial quality (ongoing losses and material cash burn) and bearish technicals (price below major moving averages with negative MACD). Offsetting these, the latest earnings call was notably positive with strong 2026 growth and adjusted EBITDA guidance plus solid Diagnostics/Data indicators, but valuation is hard to justify on earnings due to the negative P/E.
Positive Factors
Revenue & Margin Improvement
Sustained high revenue growth with a materially higher gross margin demonstrates improving unit economics and operating leverage. This durable mix improvement supports a path to sustained profitability and cash conversion if revenue growth and margin trends continue over the next several quarters.
Negative Factors
Persistent Cash Burn
Ongoing negative operating and free cash flow is a structural weakness that increases dependence on external financing. Persistent cash burn limits strategic flexibility, raises dilution risk, and means the company must convert improving EBITDA to cash quickly to avoid repeated capital raises within the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Sustained high revenue growth with a materially higher gross margin demonstrates improving unit economics and operating leverage. This durable mix improvement supports a path to sustained profitability and cash conversion if revenue growth and margin trends continue over the next several quarters.
Read all positive factors
Tempus AI, Inc. Class A (TEM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.47B
Dividend YieldN/A
Average Volume (3M)5.14M
Price to Earnings (P/E)―
Beta (1Y)3.12
Revenue Growth72.58%
EPS Growth76.81%
CountryUS
Employees2,400
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding173,729,900
10 Day Avg. Volume4,601,491
30 Day Avg. Volume5,139,839
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 Cap1.00
Enterprise Value/Revenue6.64
Enterprise Value/Gross Profit9.53
Enterprise Value/Ebitda-37.97
Forecast
1Y Price Target
$76.00Price Target Upside60.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)-0.39
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 Key Performance Indicators (KPIs)
Tempus AI, Inc. Class A Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasized robust multi-year growth drivers: strong diagnostic unit growth (Oncology +29%, MRD +56% Q/Q), accelerating data business with >$1.1B in TCV and 126% net revenue retention, positive 2026 guidance ($1.59B) and a path to higher ASPs and adjusted EBITDA. Key near-term constraints are reimbursement gating for MRD, moderation and lumpiness in Hereditary growth, and one-time impacts to some reported data growth figures. Overall, the positive revenue, contract backlog, AI/foundation-model progress, and strong customer retention materially outweigh the execution and reimbursement risks highlighted.Positive Updates
Strong Overall Revenue and Positive Guidance
Core business total revenue up over 33% (factoring Ambry). Management guided 2026 revenue to $1.59 billion, consistent with a ~25% long-term growth expectation, and projected approximately $65 million of positive adjusted EBITDA.
Negative Updates
Hereditary Growth Moderation and Lumpiness
Management expects Hereditary growth to moderate versus recent quarters — targeting high-teens longer-term growth with potential near-term lumpiness and the possibility of lower growth in Q1 as the company laps prior share gains.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Overall Revenue and Positive Guidance
Core business total revenue up over 33% (factoring Ambry). Management guided 2026 revenue to $1.59 billion, consistent with a ~25% long-term growth expectation, and projected approximately $65 million of positive adjusted EBITDA.
Read all positive updates
Company Guidance
Tempus guided to $1.59 billion of revenue for 2026 (about 25% growth consistent with long‑term targets) and roughly $65 million of positive adjusted EBITDA, driven by a fast‑growing Data business and an accelerating Diagnostics franchise; Diagnostics core revenue was up over 33% (incl. Ambry), with Oncology unit growth of 29%, Hereditary unit growth of 23%, MRD up 56% quarter‑over‑quarter (≈4,700 MRD tests in Q4 and management said MRD could be ~20x higher if fully unblocked), and Q4 ASPs about $1,640 (up ~$40 QoQ) with >$500 of upside potential toward >$2,200 ASPs as xT migrates to FDA‑approved CDx (majority volume targeted on CDx by end‑2026); Data bookings/TCV exceed $1.1 billion (with a portion—~$350M—tied to 2026), net revenue retention was 126%, and Insights/licensing growth is expected to be ~40% in the quarter.Tempus AI, Inc. Class A Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.27B | 693.40M | 531.82M | 320.67M | 257.85M |
| Gross Profit | 885.69M | 381.11M | 286.18M | 130.19M | 83.64M |
| EBITDA | -222.36M | -610.42M | -133.33M | -236.85M | -219.52M |
| Net Income | -245.03M | -705.81M | -214.12M | -289.81M | -259.19M |
Balance Sheet | |||||
| Total Assets | 2.27B | 926.12M | 564.05M | 631.36M | 531.35M |
| Cash, Cash Equivalents and Short-Term Investments | 755.00M | 448.26M | 197.57M | 302.94M | 277.69M |
| Total Debt | 815.71M | 468.09M | 488.14M | 433.03M | 238.95M |
| Total Liabilities | 1.78B | 869.78M | 1.95B | 1.76B | 1.34B |
| Stockholders Equity | 491.33M | 56.34M | -1.38B | -1.13B | -807.49M |
Cash Flow | |||||
| Free Cash Flow | -239.14M | -211.17M | -248.95M | -186.58M | -223.75M |
| Operating Cash Flow | -218.09M | -189.04M | -214.34M | -168.20M | -211.98M |
| Investing Cash Flow | -398.36M | -130.39M | -40.31M | -57.94M | -21.72M |
| Financing Cash Flow | 884.12M | 494.33M | 117.55M | 251.39M | -2.04M |
Tempus AI, Inc. Class A Technical Analysis
Negative
47.39
Price Trends
53.66
Negative
61.45
Negative
68.28
Negative
Market Momentum
-2.48
Negative
44.42
Neutral
53.40
Neutral
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 47.39 is below the 20-day moving average (MA) of 48.43, below the 50-day MA of 53.66, and below the 200-day MA of 68.28, indicating a bearish trend. The MACD of -2.48 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.21B | 33.71 | 22.89% | ― | 20.21% | 44.14% | |
62 Neutral | $702.28M | 31.72 | 4.84% | ― | 1.30% | ― | |
54 Neutral | $1.55B | 1,014.72 | 0.17% | ― | 10.67% | ― | |
54 Neutral | $12.31B | -30.76 | 164.85% | ― | 30.38% | 24.17% | |
52 Neutral | $940.15M | ― | -14.24% | ― | -2.37% | 77.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $8.47B | -47.49 | -59.95% | ― | 72.58% | 76.81% |
* Healthcare Sector Average
TEM
Tempus AI, Inc. Class A
47.39
4.69
10.98%
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34.15
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93.83
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GDRX
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DOCS
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-56.54%
Tempus AI, Inc. Class A Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Tempus AI Reports Strong Preliminary 2025 Revenue Growth
Positive
Jan 12, 2026
On January 11, 2026, Tempus AI announced select preliminary, unaudited financial results for the fourth quarter and full year ended December 31, 2025, highlighting a sharp acceleration in both its Diagnostics and Data and Applications businesses. ...
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.