Tempus AI, Inc. (TEM) AI Stock Analysis

Tempus AI, Inc. Class A focuses on advancing precision medicine by integrating artificial intelligence into healthcare. Its core offering is Intelligent Diagnostics, which utilizes AI technologies, including generative AI, to improve the accuracy, personalization, and customization of laboratory tests. The company operates the Tempus Platform, an operating system and technology architecture created to break down healthcare data silos into actionable insights. This infrastructure has aggregated one of the world's largest clinical and molecular oncology data libraries. Tempus AI has commercialized a broad suite of products from this platform, which have been adopted by approximately 95% of the largest public pharmaceutical companies for research and clinical decisions.

Tempus AI grew revenue from $257.9M in FY2021 to $1.27B in FY2025, representing a 5-year revenue CAGR of 46.6% from FY2020 to FY2025. Annual revenue grew 83.4% in FY2025, following a 30.4% increase in FY2024. Gross margin improved from 32.4% in FY2021 to 62.7% in FY2025. Operating margin was -19.9% in FY2025, an improvement from -99.7% in FY2024 and -94.5% in FY2021. Net loss for FY2025 was -$245.0M, or -$0.61 per share, compared to -$705.8M in FY2024. In the latest quarter ended June 30, 2026, quarterly revenue increased 21.6% year-over-year, while trailing twelve-month revenue reached $1.43B with a net profit margin of -17.8% and EPS of -$1.44.

As of June 30, 2026, Tempus AI held $816.0M in cash and short-term investments against total debt of $1.44B, resulting in net debt of $628.2M. Total assets stood at $2.37B and shareholders' equity was $444.9M. The company reported a current ratio of 3.30 and a debt-to-equity ratio of 3.25. For FY2025, operating cash flow was -$218.1M and free cash flow was -$245.4M. Capital expenditures totaled $27.3M, while share buybacks were $3.0M.

Tempus AI carries a market capitalization of $11.68B and an enterprise value of $14.53B. The stock trades at a price-to-sales ratio of 8.2x, which is above the 4.1x median of its US-listed Healthcare peers. Its EV-to-revenue multiple is 10.1x, and its price-to-book ratio is 31.3x. Over the past year, TEM shares declined 28.9%, trailing the S&P 500 (SPY) return of 16.8%. Year to date, the stock has gained 9.6% and trades 14.0% above its 200-day moving average.

Wall Street analysts hold 8 Strong Buy, 2 Buy, 9 Hold, 0 Sell, and 1 Strong Sell ratings on TEM. The mean price target is $74.94, representing a 15.8% upside relative to the last close of $64.72. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.25 on revenue of $1.60B. For the next fiscal year, 14 analysts project revenue of $1.97B and an EPS of -$0.05. Tempus AI has beaten EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for November 3, 2026.

This page is an AI-written research summary of Tempus AI, Inc. (TEM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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