Tempus AI, Inc. Class A (TEM) AI Stock Analysis

• Market Cap: $12.33B
• Dividend Yield: N/A
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.07
• Revenue Growth: 72.58%
• EPS Growth: 76.81%
• Country: US
• Employees: 2,400
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.11
• Shares Outstanding: 172,863,460
• 10 Day Avg. Volume: 5,552,993
• 30 Day Avg. Volume: 4,166,649
• PEG Ratio: -0.05
• Price to Book (P/B): 97.15
• Price to Sales (P/S): 7.89
• P/FCF Ratio: -25.92
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 13.30
• Enterprise Value/Gross Profit: 21.67
• Enterprise Value/Ebitda: -163.81
• 1Y Price Target: $86.00
• Price Target Upside: 24.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -0.22
• Revenue Forecast (FY): $1.57B

• Rating: 51 Neutral
• Price Target: $69.00 ▲(0.12% Upside)

The score is held back primarily by weak profitability, high leverage, and negative operating/free cash flow. Technicals are mixed-to-weak with negative MACD and the stock below key moving averages. These are partly offset by a positive earnings-call outlook highlighting strong operating growth and a milestone of positive adjusted EBITDA with constructive guidance.

Positive Factors

Accelerating Revenue Growth

Sustained, large revenue acceleration across Diagnostics and Data lines demonstrates durable market demand and scale economics. Higher revenue run-rate improves operating leverage potential, supporting investment in product development and long-term commercial expansion.

Large Contract Backlog / Data Licensing Traction

A >$1.1B TCV and 70+ customer data agreements indicate sticky, multi-year revenue streams from data licensing. This backlog provides durable revenue visibility, strengthens pricing leverage, and increases switching costs for customers building drug discovery workflows around Tempus data.

Foundation Model & Pharma Partnerships

Progress on a foundation model with major pharma partners signals structural differentiation: exclusive training data and collaborative R&D can create defensible IP, accelerate product commercialization, and deepen enterprise relationships over multiple years.

Negative Factors

High Financial Leverage

Elevated debt-to-equity (~1.61) constrains financial flexibility for strategic investments or acquisitions, raises refinancing risk in stressed markets, and increases interest burden, all of which can pressure margins and slow execution over the coming quarters.

Negative Operating and Free Cash Flow

Persistently negative operating and free cash flow undermines the firm's ability to self-fund growth and requires external financing. Over a multi-quarter horizon this raises dilution/refinancing risk and limits capacity to invest in infrastructure or absorb integration costs.

Execution Drag: Sales Disruption and Acquisition Costs

Sales-force reorganization disruptions and near-term acquisition costs (Paige) reduce go-to-market effectiveness and compress margins. If not fully resolved, these operational frictions can delay contract conversion and impair the sustainability of recent revenue gains.

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 healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. The company offers Insights, a license library of linked clinical, molecular, and imaging de-identified data, as well as a suite of analytical services to analytic and cloud-and-compute tools to pharmaceutical and biotechnology companies; and Trials that provides clinical trial matching services to pharmaceutical companies. In addition, it operates Next; Algos, a suite of algorithmic tests in oncology; Hub, a desktop and mobile platform for ordering, managing, and receiving tests and patient results; and Lens, a platform for researchers and scientists to find, access, and analyze Tempus data. The company has a strategic collaborations agreement with AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology. The company was formerly known as Tempus Labs, Inc. and changed its name to Tempus AI, Inc. in January 2023. Tempus AI, Inc. was incorporated in 2015 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Tempus AI generates revenue primarily through the sale of its AI-driven software solutions and analytics services. The company's revenue model includes subscription-based pricing for its software platforms, which provides clients with ongoing access to updates and support. Additionally, Tempus AI offers consulting services that help organizations integrate AI technologies into their operations, creating another significant revenue stream. Key partnerships with healthcare providers and financial institutions also contribute to its earnings, as these collaborations often lead to long-term contracts and joint ventures that expand the company's market reach.

Tempus AI, Inc. Class A Financial Statement Overview

Summary

Tempus AI, Inc. shows strong revenue growth but struggles with profitability and financial stability. High leverage and negative cash flows pose risks, although improvements in gross profit margin and debt management are positive signs.

Income Statement

Tempus AI, Inc. shows a strong revenue growth rate of 16.1% TTM, indicating positive momentum. However, the company struggles with profitability, evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin has improved to 64.05% TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 1.61 TTM, although improved from previous years. The negative return on equity and low equity ratio highlight financial instability and potential risks associated with high debt levels.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in cash usage relative to net losses. However, the negative growth in free cash flow TTM suggests ongoing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	693.40M	531.82M	320.67M	257.85M	188.00M
Gross Profit	678.21M	381.11M	286.18M	130.19M	83.64M	28.71M
EBITDA	-89.71M	-610.42M	-133.33M	-236.85M	-219.52M	-169.37M
Net Income	-203.88M	-705.81M	-214.12M	-289.81M	-259.19M	-209.85M
Balance Sheet
Total Assets	2.28B	926.12M	564.05M	631.36M	531.35M	751.92M
Cash, Cash Equivalents and Short-Term Investments	759.64M	448.26M	197.57M	302.94M	277.69M	513.44M
Total Debt	1.34B	468.09M	488.14M	433.03M	238.95M	251.45M
Total Liabilities	1.77B	869.78M	1.95B	1.76B	1.34B	1.26B
Stockholders Equity	507.82M	56.34M	-1.38B	-1.13B	-807.49M	-512.98M
Cash Flow
Free Cash Flow	-248.10M	-211.17M	-248.95M	-186.58M	-223.75M	-219.98M
Operating Cash Flow	-220.55M	-189.04M	-214.34M	-168.20M	-211.98M	-206.56M
Investing Cash Flow	-395.60M	-130.39M	-40.31M	-57.94M	-21.72M	-13.42M
Financing Cash Flow	887.55M	494.33M	117.55M	251.39M	-2.04M	506.11M

Tempus AI, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 68.92 is above the 20-day moving average (MA) of 65.27, below the 50-day MA of 69.96, and above the 200-day MA of 68.60, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEM.

Tempus AI, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	73 Outperform	$7.58B	32.74	24.61%	―	20.21%	44.14%
OMCL	71 Outperform	$2.28B	119.56	1.62%	―	10.67%	―
GDRX	60 Neutral	$933.44M	31.20	4.90%	―	1.30%	―
GH	58 Neutral	$14.05B	-34.85	―	―	30.38%	24.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	51 Neutral	$12.33B	-58.23	-72.61%	―	72.58%	76.81%
TDOC	47 Neutral	$1.17B	-5.10	-15.42%	―	-2.37%	77.85%

Tempus AI, Inc. Class A Corporate Events

Tempus AI Reports Strong Preliminary 2025 Revenue Growth

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. For full year 2025, the company reported estimated revenue of about $1.27 billion, up roughly 83% year over year, including about 30% organic growth excluding its Ambry acquisition; Diagnostics revenue was approximately $955 million, up around 111% year over year on oncology testing volume growth of about 26% and hereditary testing growth of about 29%, while Data and Applications revenue reached roughly $316 million, an increase of about 31% driven by around 38% growth in data licensing. In the fourth quarter of 2025, Tempus generated an estimated $367 million in revenue, also up about 83% year over year, with Diagnostics revenue of roughly $266 million growing about 121% and Data and Applications revenue of approximately $100 million rising around 25% year over year, including an estimated 68% jump in Insights (data licensing) when adjusted for a prior-year AstraZeneca warrant impact. Management characterized 2025 as an exceptional year and said both core product lines are entering 2026 with accelerating growth and improving financial leverage, underscoring Tempus’s strengthening position in AI-driven precision medicine; the company noted these figures are preliminary and unaudited and may change when it reports full fourth-quarter and 2025 results in February 2026.

The most recent analyst rating on (TEM) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Tempus AI, Inc. Class A stock, see the TEM Stock Forecast page.

Tempus AI Reports Strong Q3 2025 Financial Growth

Tempus AI, Inc. reported significant financial growth for the third quarter of 2025, with revenue increasing by 84.7% year-over-year to $334.2 million and gross profit improving by 98.4%. The company delivered 217,000 clinical tests, with notable growth in oncology and hereditary testing. Despite a net loss of $80 million, Tempus achieved a positive adjusted EBITDA of $1.5 million, marking an important milestone. The company also expanded its operations by acquiring Paige, an AI company specializing in digital pathology, and received FDA clearance for several AI-powered medical devices. Tempus increased its full-year revenue guidance to $1.265 billion, representing approximately 80% growth year-over-year.

The most recent analyst rating on (TEM) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Tempus AI, Inc. Class A stock, see the TEM Stock Forecast page.