Tempus AI, Inc. (TEM) - Stock Analysis
Last updated: Mar 9, 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 flow ⢠High leverage TEM has strong unit economics and cash buffers but persistent operating losses, negative free cash flow, high leverage and extreme market valuation make it a risky investment until profitability and cash-flow turn positive.
Price Behavior
Key Price Behavior Insights: ⢠Flat short-term ⢠Elevated volatility ⢠Support at $50.78 Support Level: $50.78 Resistance Level: $59â$60 TEM is essentially flat over the last month (52.44 â 52.26) after a ~17.6% intraperiod swing, showing elevated short-term volatility, resistance in the highâ50s/â$60 and support near $50.78 that must hold for a mean reversion;
Sentiment & News
Key News Insights: ⢠Rapid revenue growth ⢠Widened GAAP loss ⢠AI product roadmap Tempus AI is showing blistering revenue growth and improving adjusted metrics alongside new AI diagnostics, but wider-than-expected GAAP losses, missed full-year profitability targets and a sharp post-earnings share drop highlight valuation and execution risk.
AI Summary
Tempus has shifted from a pure topâline genomics growth story to an executionâdependent investment where converting rapidly growing enterprise/diagnostics bookings into sustained adjusted EBITDA and positive operating cash flow is the makeâorâbreak catalystâfailure to do so amid high leverage, heavy R&D/SG&A and acquisitive risk likely leads to severe downside.
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% |