Tempus AI, Inc. (TEM)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Tempus AI, Inc. (TEM) trades at $45.53 with AI Score 59/100 (Hold). Tempus AI, Inc. is a healthcare technology company focused on precision medicine through data analytics and next-generation sequencing. Market cap: 8B, Sector: Healthcare.
Last analyzed: Feb 8, 2026Tempus AI, Inc. (TEM) Healthcare & Pipeline Overview
Tempus AI is revolutionizing healthcare with its AI-powered precision medicine platform, offering next-generation sequencing and data analytics to personalize treatment and accelerate drug discovery, positioning it as a key player in the future of healthcare with a $9.49B market cap.
Investment Thesis
Tempus AI presents a notable research candidate due to its pioneering role in precision medicine and its robust technology platform. The company's focus on next-generation sequencing and data analytics positions it to capitalize on the growing demand for personalized healthcare solutions. With a gross margin of 61.4%, Tempus demonstrates strong potential for profitability as it scales its operations. Key growth catalysts include expanding its partnerships with pharmaceutical companies and healthcare providers, further developing its AI-powered diagnostic tools, and increasing adoption of its clinical trial matching services. The company's strategic collaborations with AstraZeneca and Pathos AI, Inc. also provide significant upside potential. While the company currently has a negative P/E ratio of -47.12 and a negative profit margin of -18.4%, the long-term growth prospects and potential for market leadership in precision medicine make Tempus AI an attractive investment.
Based on FMP financials and quantitative analysis
Key Highlights
- Market Cap of $9.49B reflects investor confidence in Tempus AI's growth potential and market position.
- Gross Margin of 61.4% indicates strong pricing power and efficient cost management in its diagnostic and analytical services.
- Strategic collaborations with AstraZeneca and Pathos AI, Inc. signal validation of Tempus AI's technology and potential for future revenue streams.
- Focus on AI-powered precision medicine aligns with the growing trend towards personalized healthcare solutions.
- Comprehensive suite of services, including next-generation sequencing, data analytics, and clinical trial matching, provides multiple avenues for revenue generation.
Competitors & Peers
Strengths
- Proprietary AI-powered platform for precision medicine.
- Extensive library of linked clinical, molecular, and imaging data.
- Strategic collaborations with leading pharmaceutical companies.
- Comprehensive suite of services, including diagnostics, analytics, and clinical trial matching.
Weaknesses
- Negative P/E ratio and profit margin indicate current lack of profitability.
- High beta of 5.23 suggests high volatility and sensitivity to market fluctuations.
- Reliance on partnerships for growth may create dependency risks.
- Complex business model may be difficult for investors to fully understand.
Catalysts
- Ongoing: Continued expansion of partnerships with pharmaceutical companies for drug discovery and development.
- Ongoing: Further development and commercialization of AI-powered diagnostic tools.
- Upcoming: Potential regulatory approvals for new diagnostic tests and services.
- Ongoing: Increasing adoption of Tempus AI's clinical trial matching services by pharmaceutical companies.
- Upcoming: Publication of research studies validating the effectiveness of Tempus AI's platform.
Risks
- Potential: Intense competition in the healthcare technology industry may limit market share gains.
- Potential: Rapid technological advancements may render current technologies obsolete.
- Ongoing: Regulatory changes and data privacy concerns may impact business operations.
- Potential: Economic downturn may reduce healthcare spending and demand for services.
- Ongoing: Negative profitability and high beta indicate financial instability.
Growth Opportunities
- Expanding Partnerships with Pharmaceutical Companies: Tempus AI can leverage its existing collaborations with AstraZeneca and Pathos AI, Inc. to forge new partnerships with other pharmaceutical companies. By offering its data analytics and clinical trial matching services, Tempus AI can help pharmaceutical companies accelerate drug discovery and development, generating significant revenue streams. The market for pharmaceutical R&D is estimated to be over $200 billion annually, providing a substantial opportunity for Tempus AI to capture a larger share of this market. Timeline: Ongoing.
- Developing AI-Powered Diagnostic Tools: Tempus AI can further enhance its AI-powered diagnostic tools to improve the accuracy and efficiency of disease detection and treatment selection. By leveraging its vast database of clinical and molecular data, Tempus AI can develop algorithms that can identify patterns and predict patient outcomes, enabling healthcare providers to make more informed decisions. The market for AI in healthcare is projected to reach $34 billion by 2025, presenting a significant growth opportunity for Tempus AI. Timeline: Ongoing.
- Increasing Adoption of Clinical Trial Matching Services: Tempus AI's clinical trial matching services can help pharmaceutical companies accelerate patient enrollment and reduce the time and cost of clinical trials. By leveraging its network of healthcare providers and its database of patient data, Tempus AI can identify eligible patients for clinical trials more efficiently than traditional methods. The market for clinical trial matching services is estimated to be over $2 billion annually, providing a substantial opportunity for Tempus AI to expand its market share. Timeline: Ongoing.
- Geographic Expansion: Tempus AI can expand its operations to new geographic markets, both domestically and internationally. By establishing partnerships with healthcare providers and pharmaceutical companies in new regions, Tempus AI can increase its customer base and revenue streams. The global market for precision medicine is projected to reach $141.7 billion by 2028, presenting a significant growth opportunity for Tempus AI to expand its global footprint. Timeline: 2026-2028.
- Data Monetization: Tempus AI possesses a vast and valuable library of linked clinical, molecular, and imaging de-identified data. The company can further monetize this data by offering it to researchers, pharmaceutical companies, and other healthcare organizations for research and development purposes. The market for healthcare data analytics is projected to reach $75 billion by 2026, providing a substantial opportunity for Tempus AI to generate revenue from its data assets. Timeline: Ongoing.
Opportunities
- Expanding partnerships with pharmaceutical companies and healthcare providers.
- Developing new AI-powered diagnostic tools and algorithms.
- Increasing adoption of clinical trial matching services.
- Geographic expansion into new markets.
Threats
- Intense competition from established healthcare companies.
- Rapid technological advancements may render current technologies obsolete.
- Regulatory changes and data privacy concerns may impact business operations.
- Economic downturn may reduce healthcare spending and demand for services.
Competitive Advantages
- Proprietary Data Library: Tempus AI's extensive library of linked clinical, molecular, and imaging data provides a significant competitive advantage.
- AI-Powered Platform: The company's AI-powered platform enables more accurate and efficient diagnostic testing and data analysis.
- Strategic Collaborations: Partnerships with industry leaders like AstraZeneca and Pathos AI, Inc. enhance Tempus AI's credibility and market reach.
- Comprehensive Service Offering: Tempus AI's suite of services, including diagnostic testing, data analytics, and clinical trial matching, provides a comprehensive solution for its customers.
About TEM
Tempus AI, Inc., founded in 2015 and headquartered in Chicago, Illinois, is a healthcare technology company at the forefront of precision medicine. The company was formerly known as Tempus Labs, Inc. and changed its name to Tempus AI, Inc. in January 2023. Tempus AI's core business revolves around providing next-generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing services. These services are offered to a diverse clientele, including healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. Tempus AI's offerings extend beyond diagnostics. The company provides Insights, a licensed library of linked clinical, molecular, and imaging de-identified data. They also offer a suite of analytical services with analytic and cloud-and-compute tools to pharmaceutical and biotechnology companies. Trials, another key offering, provides clinical trial matching services to pharmaceutical companies, streamlining the process of patient enrollment and accelerating clinical research. The company also operates Next, Algos, Hub, and Lens. Algos is a suite of algorithmic tests in oncology. Hub is a desktop and mobile platform for ordering, managing, and receiving tests and patient results. Lens is a platform for researchers and scientists to find, access, and analyze Tempus data. Tempus AI has established strategic collaborations with industry leaders such as AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology, further solidifying its position in the precision medicine landscape. With 2,400 employees, Tempus AI continues to expand its reach and impact on healthcare through its innovative technology and data-driven approach.
What They Do
- Provides next-generation sequencing diagnostics to healthcare providers.
- Offers polymerase chain reaction profiling and molecular genotyping services.
- Delivers anatomic and molecular pathology testing.
- Offers Insights, a licensed library of linked clinical, molecular, and imaging data.
- Provides analytical services with analytic and cloud-and-compute tools.
- Offers Trials, which provides clinical trial matching services to pharmaceutical companies.
- Operates Next, Algos, Hub, and Lens platforms for various healthcare applications.
Business Model
- Generates revenue through diagnostic testing services provided to healthcare providers.
- Earns revenue from licensing its Insights data library to pharmaceutical and biotechnology companies.
- Charges fees for its analytical services and cloud-and-compute tools.
- Receives payments for clinical trial matching services provided to pharmaceutical companies.
Industry Context
Tempus AI operates within the rapidly evolving healthcare information services industry, driven by the increasing adoption of precision medicine and personalized healthcare. The market for next-generation sequencing and data analytics in healthcare is experiencing significant growth, fueled by advancements in technology and the growing need for more effective and targeted treatments. Tempus AI competes with companies like CNC (Centene Corporation), COO (CooperCompanies), DOCS (Global Document Solutions), FMS (Fresenius Medical Care), and HOLX (Hologic), all vying for market share in various segments of the healthcare industry. Tempus AI differentiates itself through its integrated platform, combining diagnostic testing, data analytics, and clinical trial matching services.
Key Customers
- Healthcare providers (hospitals, clinics, and physicians)
- Pharmaceutical companies
- Biotechnology companies
- Researchers
- Other third parties in the healthcare industry
Financials
Chart & Info
Tempus AI, Inc. (TEM) stock price: $45.53 (-1.23, -2.63%)
Latest News
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Tempus AI Reinforces Market Position With Collaborations in 2026
Zacks · Mar 26, 2026
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Tempus (TEM) Down 12.9% Since Last Earnings Report: Can It Rebound?
Zacks · Mar 26, 2026
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How The Tempus AI (TEM) Narrative Is Shifting On Growth Potential Versus Execution Risk
Simply Wall St. · Mar 26, 2026
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Cathie Wood Chooses Medical AI Over Mark Zuckerberg: Ark Loads Up On TEM Stock, Dumps Meta Shares
benzinga · Mar 26, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TEM.
Price Targets
Consensus target: $85.80
MoonshotScore
What does this score mean?
The MoonshotScore rates TEM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Tempus AI Reinforces Market Position With Collaborations in 2026
Tempus (TEM) Down 12.9% Since Last Earnings Report: Can It Rebound?
How The Tempus AI (TEM) Narrative Is Shifting On Growth Potential Versus Execution Risk
Cathie Wood Chooses Medical AI Over Mark Zuckerberg: Ark Loads Up On TEM Stock, Dumps Meta Shares
TEM Healthcare Stock FAQ
What does Tempus AI, Inc. do?
Tempus AI, Inc. is a healthcare technology company focused on advancing precision medicine through data analytics and next-generation sequencing. The company offers a comprehensive suite of services, including diagnostic testing, data analytics, and clinical trial matching, to healthcare providers, pharmaceutical companies, and researchers. Tempus AI's core business involves analyzing molecular and clinical data to identify patterns and insights that can be used to personalize treatment and accelerate drug discovery. The company's AI-powered platform and extensive data library position it as a key player in the evolving healthcare landscape.
Is TEM stock worth researching?
TEM stock presents a mixed investment profile. The company's strong gross margin of 61.4% and strategic collaborations suggest potential for future growth. However, the negative P/E ratio of -47.12 and profit margin of -18.4% indicate current financial challenges. The high beta of 5.23 also suggests significant volatility. Investors should carefully consider their risk tolerance and investment horizon before investing in TEM. The company's long-term growth prospects in precision medicine and its innovative technology platform make it an interesting opportunity, but the current financial metrics warrant caution.
What are the main risks for TEM?
The main risks for TEM include intense competition in the healthcare technology industry, which could limit market share gains. Rapid technological advancements may render current technologies obsolete, requiring continuous innovation and investment. Regulatory changes and data privacy concerns could impact business operations and increase compliance costs. An economic downturn may reduce healthcare spending and demand for TEM's services. Additionally, the company's negative profitability and high beta indicate financial instability and sensitivity to market fluctuations, posing risks for investors.
What are the key factors to evaluate for TEM?
Tempus AI, Inc. (TEM) currently holds an AI score of 59/100, indicating moderate score. Analysts target $85.80 (+88% from $45.53). Key strength: Proprietary AI-powered platform for precision medicine.. Primary risk to monitor: Potential: Intense competition in the healthcare technology industry may limit market share gains.. This is not financial advice.
How frequently does TEM data refresh on this page?
TEM prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven TEM's recent stock price performance?
Recent price movement in Tempus AI, Inc. (TEM) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $85.80 implies 88% upside from here. Notable catalyst: Proprietary AI-powered platform for precision medicine.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider TEM overvalued or undervalued right now?
Determining whether Tempus AI, Inc. (TEM) is overvalued or undervalued requires examining multiple metrics. Analysts target $85.80 (+88% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying TEM?
Before investing in Tempus AI, Inc. (TEM), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and financial circumstances.