Tempus AI
TEM
$64.04
-9.41%
Tempus AI, Inc. is a healthcare technology company that leverages artificial intelligence to unlock and utilize clinical and molecular data, primarily through its Tempus Platform, which aims to make laboratory tests more precise and personalized. As a leader in AI-driven precision medicine, Tempus differentiates itself by combining a proprietary data network with AI-powered diagnostics and therapeutic development tools. The current investor narrative centers on the company's rapid revenue growth and expanding AI capabilities, alongside persistent profitability challenges and a highly volatile stock price that has recently surged on strong quarterly results and broader AI enthusiasm.…
TEM
Tempus AI
$64.04
Related headlines
Investment Opinion: Should I buy TEM Today?
Rating: Hold. The stock is a high-growth but high-risk investment, with a consensus 'Buy' rating but an average target price of $62.64, implying -13.8% downside. The thesis is that Tempus AI's strong revenue growth and margin expansion are offset by its premium valuation and unprofitability, making it a hold for most investors.
Sign up to view all
TEM 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Tempus AI's strong revenue growth and margin expansion are positive, but the high valuation and persistent losses create uncertainty. The stock's future performance hinges on its ability to sustain growth and move toward profitability. If the company can achieve positive operating income within the next 12 months, the stance would upgrade to bullish. Conversely, if growth decelerates or losses widen, the stance would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Tempus AI's 12-month outlook, with a consensus price target around $63.36 and implied upside of -1.1% versus the current price.
Average Target
$63.36
0 analysts
Implied Upside
-1.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$35 - $100
Analyst target range
Tempus AI is covered by 14 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.19 (where 1 is Strong Buy and 5 is Sell). The average target price is $62.64, which implies a downside of -13.8% from the current price of $72.69, indicating that the stock has recently surged above analyst expectations. The target price range is wide, from a low of $35.00 to a high of $100.00, reflecting high uncertainty about the company's future. The high target of $100 assumes continued strong revenue growth and successful AI monetization, while the low target of $35 suggests concerns about profitability and competitive pressures. Recent institutional ratings have been overwhelmingly positive, with multiple firms reiterating Buy ratings in 2026, including Needham, BTIG, and Morgan Stanley, indicating sustained bullish sentiment among analysts despite the stock's volatility.
Bulls vs Bears: TEM Investment Factors
Tempus AI presents a compelling growth story with strong revenue growth, expanding margins, and narrowing losses, but it remains unprofitable and trades at a significant premium to peers. The bull case is supported by the company's unique AI platform and improving operational efficiency, while the bear case highlights valuation risk and high volatility. Currently, the bull case has stronger evidence given the robust growth and margin expansion, but the stock's elevated valuation and analyst downside target create a balanced risk-reward. The most critical tension is whether the company can achieve profitability and sustain growth to justify its premium valuation, as any disappointment could lead to significant downside.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 36.1% YoY to $348.1M, with Diagnostics contributing $261.1M. This outpaces the industry average and demonstrates robust demand for AI-driven precision medicine.
- Expanding Gross Margins: Gross margin improved to 62.7% in Q1 2026 from 45.5% in Q2 2024, reflecting better cost management and scale. This trend supports potential operating leverage as revenue grows.
- Narrowing Losses: Net loss narrowed to $125.9M in Q1 2026 from $552.2M in Q2 2024, a 77% reduction. This indicates improving operational efficiency and a path toward profitability.
- Positive Analyst Sentiment: Consensus rating is 'Buy' with a mean score of 2.19, and recent reiterations from Needham, BTIG, and Morgan Stanley. This reflects confidence in the company's growth strategy.
Bearish
- Persistent Unprofitability: Operating margin is -22.2% in Q1 2026, and the company has negative free cash flow of -$216.5M TTM. Heavy R&D and sales investments continue to pressure profitability.
- High Valuation Premium: PS ratio of 8.09 is 80% above the industry average of 4.5, and EV/Sales of 8.84 is elevated. This leaves little room for error if growth decelerates.
- Analyst Target Downside: Average analyst target of $62.64 implies -13.8% downside from the current price of $72.69. The stock has surged above expectations, creating near-term correction risk.
- High Volatility: Beta of 3.578 and a max drawdown of -59.76% highlight extreme price swings. The stock is highly sensitive to market sentiment and AI-related news.
TEM Technical Analysis
Tempus AI's stock has exhibited a volatile, range-bound pattern over the past year, with a 1-year price change of -5.24%, contrasting sharply with the S&P 500's +20.48% gain. The current price of $72.69 sits at 69.7% of its 52-week range (low $40.77, high $104.32), indicating a recovery from lows but still well below its highs. This positioning suggests the stock is in a recovery phase, having rebounded from a significant drawdown of -59.76% from its peak, yet it remains below its previous highs, reflecting lingering bearish sentiment.
Beta
3.58
3.58x market volatility
Max Drawdown
-59.8%
Largest decline past year
52-Week Range
$41-$104
Price range past year
Annual Return
-13.1%
Cumulative gain past year
| Period | TEM Return | S&P 500 |
|---|---|---|
| 1m | +54.1% | +5.5% |
| 3m | +26.9% | +1.7% |
| 6m | +20.3% | +12.2% |
| 1y | -13.1% | +18.6% |
| ytd | +2.7% | +12.8% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
TEM Fundamental Analysis
Tempus AI's revenue trajectory is robustly growing, with Q1 2026 revenue of $348.1 million, up 36.1% year-over-year, and sequential growth from $367.2 million in Q4 2025 (which was up from $334.2 million in Q3 2025). The company's Diagnostics segment generated $261.1 million in Q1 2026, indicating a strong core business. However, the growth rate has decelerated from the 83% YoY growth seen in Q1 2025, suggesting a maturing but still expanding revenue base. The company remains unprofitable, with a net loss of $125.9 million in Q1 2026, though losses have narrowed from $552.2 million in Q2 2024, reflecting improving operational efficiency. Gross margin has expanded to 62.7% in Q1 2026 from 45.5% in Q2 2024, indicating better cost management, but operating margin remains deeply negative at -22.2%, highlighting the heavy investment in R&D and sales.
Quarterly Revenue
$348116000.0B
2026-03
Revenue YoY Growth
+36.1%
YoY Comparison
Gross Margin
62.7%
Latest Quarter
Free Cash Flow
$-216498000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is TEM Overvalued?
Given Tempus AI's negative net income, the price-to-sales (PS) ratio is the most appropriate valuation metric. The trailing PS ratio stands at 8.09, while the forward PS ratio (based on estimated revenue of $3.26 billion) is approximately 3.16, implying the market expects significant revenue growth to justify the current valuation. The company's EV/Sales ratio of 8.84 is also elevated, reflecting a premium for its AI-driven growth potential. Compared to the healthcare information services industry, Tempus trades at a substantial premium, with a PS ratio of 8.09 versus an industry average of around 4.5, representing an 80% premium. This premium is justified by the company's superior revenue growth (36% YoY) and its unique AI platform, but it also embeds high expectations. Historically, Tempus's PS ratio has ranged from 21.25 to 130.37 over the past five years, with the current 8.09 at the lower end of that range, suggesting the stock is relatively cheaper than its own historical valuation, though still expensive on an absolute basis.
PE
-41.9x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-92.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are substantial: Tempus AI has a debt-to-equity ratio of 2.70, indicating high leverage, and negative free cash flow of -$216.5M TTM. The company's net loss of $125.9M in Q1 2026, though narrowed, still represents a significant cash burn. Revenue concentration in the Diagnostics segment (75% of Q1 revenue) exposes the company to segment-specific risks. The high beta of 3.578 amplifies market volatility, and the stock's 59.76% max drawdown demonstrates potential for severe losses.