Tempus AI, Inc. (TEM) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Tempus AI, Inc. (TEM) Healthcare & Pipeline Overview

Tempus AI, Inc. is a healthcare technology company providing next-generation sequencing and molecular pathology testing, coupled with analytical services and tools for healthcare providers, pharmaceutical companies, and researchers. Their platform leverages clinical and molecular data to facilitate precision medicine and drug discovery, operating within the rapidly evolving healthcare information services sector.

What Is the Investment Thesis for TEM?

The company's integrated platform, which combines next-generation sequencing, data analytics, and AI, offers significant value to healthcare providers and pharmaceutical companies. With a gross margin of 71.7%, Tempus demonstrates strong pricing power and efficient operations. Key growth catalysts include expanding its partnerships with pharmaceutical companies and increasing adoption of its AI-driven diagnostic tools. However, the company's negative profit margin of -22.2% and high beta of 4.90 indicate significant financial risk and market volatility. Successful execution of its growth strategy and achieving profitability are crucial for long-term value creation.

Based on FMP financials and quantitative analysis

TEM Key Highlights

Market capitalization of $10.4B reflects investor confidence in Tempus AI's growth potential in the healthcare technology sector.

• Gross margin of 71.7% indicates strong pricing power and efficient cost management in its diagnostic and analytical services.
• Strategic collaborations with AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology, enhancing its market position.
• The company's focus on AI-driven solutions is expected to drive future growth and innovation in precision medicine.
• Operating in the rapidly expanding healthcare information services industry, Tempus AI is well-positioned to capitalize on the increasing demand for data-driven insights.

Who Are TEM's Competitors?

TEM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TEM's Key Strengths?

Proprietary data assets and AI-driven platform.

• Strong partnerships with pharmaceutical companies.
• Comprehensive suite of diagnostic and analytical services.
• Experienced management team.

What Are TEM's Weaknesses?

Negative profit margin.

• High beta indicates market volatility.
• Reliance on partnerships for growth.
• Limited geographic presence.

What Could Drive TEM Stock Higher?

Expansion of partnerships with pharmaceutical companies to drive revenue growth.

• Launch of new AI-driven diagnostic tests to enhance cancer diagnosis and treatment.
• Increasing adoption of Tempus AI's platform by healthcare providers and researchers.
• Continued development of its data library (Insights) to improve drug discovery.
• Strategic collaborations to develop therapeutic programs in oncology.

What Are the Key Risks for TEM?

Negative return on equity (-54.7%) — the business is not currently generating profit on shareholder capital.

• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Insider selling — insiders were net sellers of roughly $67.6M recently.
• Intense competition from established players and emerging technology companies.
• Regulatory changes impacting diagnostic testing and data privacy.
• Data security breaches and privacy concerns.
• Economic downturn affecting healthcare spending.
• Negative profit margin and high operating expenses.

What Are the Growth Opportunities for TEM?

• Expanding partnerships with pharmaceutical companies: Tempus AI can leverage its existing collaborations with AstraZeneca and Pathos AI, Inc. to secure additional partnerships with pharmaceutical companies. These partnerships can drive revenue growth through increased demand for its clinical trial matching services and data analytics tools. The market for clinical trial matching services is projected to reach $2.5 billion by 2028, offering a significant growth opportunity for Tempus AI.
• Increasing adoption of AI-driven diagnostic tools: Tempus AI's suite of algorithmic tests in oncology (Algos) has the potential to transform cancer diagnosis and treatment. By expanding the availability and adoption of these tools, Tempus AI can drive revenue growth and improve patient outcomes. The market for AI in healthcare is projected to reach $45 billion by 2026, providing a substantial growth opportunity.
• Geographic expansion: Tempus AI can expand its operations beyond the United States to capitalize on the growing demand for precision medicine in international markets. This expansion can be achieved through strategic partnerships, acquisitions, or direct investment. The global market for precision medicine is projected to reach $141 billion by 2028, offering a significant growth opportunity.
• Development of new diagnostic tests and analytical services: Tempus AI can invest in research and development to create new diagnostic tests and analytical services that address unmet needs in the healthcare market. This innovation can drive revenue growth and enhance its competitive advantage. The market for new diagnostic tests is projected to grow at a CAGR of 8% over the next five years.
• Leveraging data assets for drug discovery: Tempus AI's extensive library of linked clinical, molecular, and imaging data (Insights) can be leveraged to accelerate drug discovery and development. By providing access to this data to pharmaceutical companies and researchers, Tempus AI can generate revenue through licensing agreements and data analytics services. The market for drug discovery is projected to reach $84 billion by 2027, offering a significant growth opportunity.

What Are TEM's Competitive Advantages?

• Proprietary data library (Insights) provides a unique and valuable asset.
• Integrated platform combining sequencing, data analytics, and AI creates a competitive advantage.
• Strategic collaborations with AstraZeneca and Pathos AI, Inc. enhance its market position.
• Strong brand recognition and reputation in the healthcare technology sector.

What Does TEM Do?

Tempus AI, Inc., founded in 2015 and headquartered in Chicago, Illinois, operates as a healthcare technology company focused on advancing precision medicine through data and artificial intelligence. Originally named Tempus Labs, Inc., the company rebranded to Tempus AI, Inc. in January 2023 to reflect its increasing focus on AI-driven solutions. Tempus provides next-generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing services. These services are offered to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. Tempus AI's key offerings include Insights, a licensed library of linked clinical, molecular, and imaging data; Trials, a clinical trial matching service for pharmaceutical companies; Next, Algos, a suite of algorithmic tests in oncology; Hub, a platform for managing tests and patient results; and Lens, a platform for researchers to access and analyze Tempus data. The company has a strategic collaboration agreement with AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology. Tempus aims to integrate data-driven insights into clinical decision-making and drug development, positioning itself as a key player in the healthcare technology landscape.

What Products and Services Does TEM Offer?

• Provides next-generation sequencing diagnostics to healthcare providers.
• Offers polymerase chain reaction profiling and molecular genotyping services.
• Develops and licenses a library of linked clinical, molecular, and imaging data (Insights).
• Offers clinical trial matching services to pharmaceutical companies (Trials).
• Operates a suite of algorithmic tests in oncology (Algos).
• Provides a platform for managing tests and patient results (Hub).
• Offers a platform for researchers to access and analyze Tempus data (Lens).

How Does TEM Make Money?

• Sells next-generation sequencing diagnostics and molecular pathology testing services.
• Licenses its data library (Insights) to pharmaceutical and biotechnology companies.
• Provides clinical trial matching services to pharmaceutical companies.
• Generates revenue from its suite of algorithmic tests in oncology (Algos).

What Industry Does TEM Operate In?

Tempus AI operates within the healthcare information services industry, a sector experiencing rapid growth driven by the increasing adoption of data analytics, AI, and precision medicine. The market is characterized by intense competition, with companies vying to provide integrated solutions that improve patient outcomes and streamline drug development. Tempus AI's focus on next-generation sequencing and AI-driven diagnostics positions it to capitalize on the growing demand for personalized healthcare solutions. The company competes with established players like Hologic, Inc. (HOLX) and emerging technology companies, all striving to capture a share of the expanding market.

Who Are TEM's Key Customers?

• Healthcare providers (hospitals, clinics, and physicians).
• Pharmaceutical companies.
• Biotechnology companies.
• Researchers and scientists.

Company Profile

Tempus AI, Inc. operates in the Medical - Healthcare Information Services industry within the Healthcare sector. It is headquartered in Chicago, US. The company is led by CEO Eric Lefkofsky. TEM has traded publicly since 2024.

Return on equity for Tempus AI, Inc. stands at -54.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -10.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -2.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.30 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -2.2%, the inverse of the P/E and a quick read on earnings relative to price.

TEM Valuation & Market Position

With a $10.4B market cap, Tempus AI, Inc. sits in the large-cap segment of the market. Analyst price targets span from $50.00 to $80.00, with a consensus of $68.00. At the current price of $59.25, that implies approximately 15% upside potential. Relative to its peer group, TEM's quantitative score of 31/100 is below the peer average of 77/100.

Quarterly Financial Performance: Tempus AI, Inc.

Revenue for Tempus AI, Inc. came in at $382.5M during Q2 FY2026, a 9.9% improvement versus the preceding quarter. The company recorded net income of $5.6M, with diluted EPS of $0.03. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Healthcare. Across the four most recent quarters, TEM averaged $-0.36 in diluted EPS.

Tempus AI, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 2.65 places it in the grey zone, a middle ground that warrants monitoring.

Tempus AI, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 19.1% above estimates on average.

Over the past six months, Tempus AI, Inc. insiders filed 100 SEC Form 4 transactions — 97 sales and 3 purchases. On net that is roughly 1.2M shares disposed (about $67.6M), a signal worth weighing alongside the fundamentals.

TEM Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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