Tempus AI, Inc. (TEM) Stock Analysis 2026
BriMind AI Score
ProprietaryScore based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.
AI scores and price targets are for informational and educational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making investment decisions. Full Disclaimer →
About Tempus AI, Inc.
Tempus AI combines clinical genomic sequencing with a large library of linked clinical and molecular data. It sequences patient tumours to guide treatment decisions and simultaneously builds a de-identified dataset connecting molecular profiles to real-world treatment outcomes, which it licenses to pharmaceutical companies for research, trial design, and regulatory evidence. The dual model means every clinical test also enriches a data asset.
How Tempus AI Makes Money
Two revenue lines: genomics, from sequencing tests billed to payers and providers, and data and services, from licensing de-identified datasets and analytical services to pharmaceutical and biotechnology customers. Genomics provides volume and dataset growth; data licensing carries considerably better margins. The strategic logic is a flywheel — more tests produce a richer dataset, which commands higher licensing value, which funds clinical expansion.
Tempus AI Revenue & Profitability Breakdown
This chart shows how Tempus AI's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.
Key Financial Metrics
Tempus AI, Inc. doesn't carry a meaningful trailing P/E right now, generates $-93.5M in free cash flow, runs a debt/equity ratio of 324.58, and converts shareholder equity into profit at a -67.4% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.
Wall Street Analyst Consensus
Wall Street analysts covering Tempus AI, Inc. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $66.73 (+3.1% vs the current price). Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.
Technical Price Signals
TEM is currently in a short-term uptrend, trading above its 50-day average of $54.97 and above its 200-day average of $56.47. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.
TEM Investment Case: Bull vs Bear
TEM's investment case breaks down into 4 bull points and 4 bear points below. The bull case outlines the key reasons the stock could outperform — competitive advantages, growth catalysts, and market tailwinds. The bear case highlights the most significant risks. A strong bull case with manageable bear risks typically makes for a more compelling investment.
Bull Case (Reasons to Buy)
- The linked clinical-molecular dataset is a compounding asset that becomes more valuable and harder to replicate as it grows.
- Data licensing to pharmaceutical companies carries far higher margins than sequencing and is not dependent on insurance reimbursement.
- Real-world evidence is increasingly used in drug development and regulatory submissions, expanding demand for exactly this data.
- Clinical sequencing volume and data value reinforce one another, creating a genuine network effect in a diagnostics business.
Bear Case (Key Risks)
- Genomics reimbursement rates constrain profitability on the sequencing side, which is the volume engine.
- Data licensing revenue can be lumpy and concentrated, since large pharmaceutical contracts are negotiated individually.
- Competition comes from both dedicated sequencing companies and large diagnostics players with their own data ambitions.
- The company has not established sustained profitability, so valuation rests on the data business scaling as promised.
What to Watch: TEM Key Metrics
TEM Stock — Frequently Asked Questions
Compare TEM with Peers
More Healthcare Stock Analysis
In-depth reports on companies operating alongside TEM — business models, bull and bear cases, and the metrics that matter.
Unlock the Full TEM Analysis
Interactive price charts, real-time AI signals, advanced DCF models, portfolio tracking, earnings analysis, and side-by-side peer comparisons. Start your 14-day free trial — no credit card required.