Tempus AI, Inc. (TEM) - Stock Analysis
Last updated: Jun 7, 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: ⢠Strong Margins ⢠Cash Burn ⢠High Leverage TEM has strong gross margins and decent liquidity, but high operating costs, ongoing cash burn, heavy leverage, and rich valuation keep it firmly in loss-making territory and dependent on a turnaround.
Price Behavior
Key Price Behavior Insights: ⢠Mid-$40s Support ⢠Failed Breakouts ⢠Weak Follow-through Support Level: Mid-$40s Resistance Level: Low-$50s TEM was volatile over the last month, with repeated support in the mid-$40s and failed rallies in the low-$50s, leaving the short-term setup neutral to slightly bearish unless support holds.
Sentiment & News
Key News Insights: ⢠Platform expansion ⢠Partnership momentum ⢠Valuation pressure Tempus AI is rapidly expanding its oncology AI platforms and strategic partnerships, but investor sentiment remains cautious amid profitability concerns, financing activity, and a weak share price.
AI Summary
TEM now looks less like a pure AI healthcare momentum trade and more like a capital-intensive platform with real clinical/regulatory traction, but the stock's upside depends on turning strong revenue growth and stable gross margins into operating leverage fast enough to offset heavy cash burn, leverage, and dilution risk.
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% |