Tempus AI, Inc. (TEM) - Stock Analysis
Last updated: Apr 12, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Tempus AI exhibits strong near-term growth supported by exceptional Q3 2025 results (85% revenue growth, first positive adjusted EBITDA) and strategic FDA clearances and collaborations. Despite recent price volatility and unresolved litigation risks, accelerating genomics testing and data licensing growth underline concrete short-term return potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High gross margin ⢠Negative cash flows ⢠Leverage risk TEM combines strong gross margins and liquidity with persistent operating losses, negative free cash flow, high leverage and a rich valuation, creating significant solvency and valuation risk.
Price Behavior
Key Price Behavior Insights: ⢠Below SMA ⢠Tight support ⢠High volatility Support Level: $42.37â$42.62 Resistance Level: ~$50.00 (recent highs ~$50.8) TEM is in a short-term downtrend: last month's 21âday SMA â $47.10 vs close $42.94 (â9% below), sitting just above support near $42.37â$42.62 and well below resistance around $50 (recent highs ~$50.8), with a volatile range of about $42.4â$50.9 implying midâteens percent risk if support breaks.
Sentiment & News
Key News Insights: ⢠Accelerating revenue ⢠Strategic partnerships ⢠ALERT trial benefit Tempus is showing accelerating diagnostics and data revenue, strong partnerships and positive ALERT trial results supporting commercial momentum, albeit amid continued profitability and valuation scrutiny.
AI Summary
TEM's transformation into a data-and-AI licensing platform (versus a pure sequencing volume play) materially reframes the investment caseâoffering high-margin upside if large pharma contracts and algorithmic products convert to recurring revenueâbut the stock is highly contingent on near-term evidence of bookings-to-revenue conversion, reimbursement/regulatory wins, and sequential FCF improvement given persistent cash burn and heavy leverage.
Description
Tempus AI, Inc. is a healthcare technology company that performs molecular diagnostics, including next-generation sequencing, PCR profiling, genotyping and anatomic pathology for healthcare providers, pharmaceutical and biotechnology firms, and researchers. It also licenses a de-identified, linked clinicalâmolecularâimaging dataset and offers analytics, cloud compute tools, clinical trial matching, algorithmic oncology tests and software for test ordering and research workflows. The company entered strategic collaborations with AstraZeneca and Pathos AI, was incorporated in 2015, changed its name from Tempus Labs in January 2023, and is headquartered in Chicago, Illinois.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 9 | Dec 16 | TEM | Tempus AI, Inc. | Tempus AI exhibits strong near-term growth supported by exceptional Q3 2025 results (85% revenue growth, first positive adjusted EBITDA) and strategic FDA clearances and collaborations. Despite recent price volatility and unresolved litigation risks, accelerating genomics testing and data licensing growth underline concrete short-term return potential. | Closed | -10.2% |