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PREMIUM RESEARCH REPORT
Outlook: Neutral

Tempus AI (TEM) In-Depth Stock Report

An AI-driven precision medicine company combining genomic testing with a large clinical data library, priced on growth and the path to profitability.

Published 2026-09-21·Updated 2026-09-21·HealthcareHealth Information Services

Investment Summary

Every headline number this report produces, collected in one place before the analysis that derives them. All figures are computed live at page load, so this block reflects the market as of the moment you opened the page.

Current Price
$78.03
Outlook
Neutral
(directional lean, see note below)
Valuation Verdict
Within fair value
(vs. our relevance-weighted range)
Fair Value Range
$2 – $13,838
12-Month Price Target
$79.99
(model + consensus blend)
Expected Return to Target
+2.5%
AI Score
35 / 100
(vs. our covered universe)
Risk Rating
High
(risk factor 4/100, lower is riskier)
Target Confidence
High
Horizon
12 months
(target and scenarios)
Why we hold this view
  • Testing volume grows.
  • Data revenue scales.
  • Margins improve.
  • Pharma contracts expand.
"Outlook" is a plain-language summary of our expected return to the 12-month price target (Bullish ≥ 8% upside, Bearish ≤ 8% downside, Neutral in between; falls back to the fair-value comparison when no target is available) — it is a restatement of the figures above, not a new signal, and like them is not a buy or sell recommendation. "Valuation Verdict" compares the live price to our relevance-weighted fair-value range and is a statement about our own model's output, not a buy or sell recommendation — see the Investor Decision Framework near the end of this report. The risk rating is derived from AI Score risk factor rather than assigned by hand. Expected return measures the gap to the 12-month blended target only; it is not a forecast of total return and excludes any dividend.
TEM in 60 Seconds
  • Tempus AI combines genomic testing with a large clinical data library.
  • Testing volume, data deals, and margins drive results.
  • Reimbursement and losses are the main concerns.
  • Revenue growth, gross margin, and adjusted EBITDA are the key numbers.
What's inside this report
  • Tempus AI offers genomic testing for cancer patients and licenses de-identified clinical and molecular data.
  • Its data library, built from tests and partner health systems, is used by drug developers.
  • The company sells software tools that help doctors and researchers use the data.
  • It has grown by acquisition, including a genetic testing company.
  • The equity debate is whether the data and AI strategy can lift margins and drive sustained growth.

Executive Summary

Tempus combines two revenue engines: genetic testing for patients and data licensing for pharma.

Testing volume creates more data, which in turn makes the data offering more valuable.

Pharma customers pay for access to data and analytics for drug discovery and trials.

The company has reported losses while trying to reach profitability through scale and mix.

The realistic thesis: a data-and-diagnostics platform with real growth, where margins and reimbursement determine value.

Industry & Market Backdrop

The broader competitive and macro environment TEM operates in — context a pure valuation table can't convey on its own.

Precision oncology testing is growing as targeted therapies expand.

Reimbursement from insurers and Medicare shapes testing economics.

Pharma companies spend heavily on data and AI for drug development.

Regulatory oversight of diagnostics and AI is evolving.

Competition includes established genomic testing firms and data companies.

Live Key Statistics

Pulled live from BriMindInvest's market-data pipeline at page load — the same feed that powers /analysis/TEM. Fields the pipeline doesn't return this load are omitted rather than shown blank.

Current Price
$78.03
Market Cap
$14.08B
Forward P/E
-9609.60
52-Week High
$104.32
52-Week Low
$40.77
Beta
3.72
Revenue Growth (YoY)
+21.6%
Operating Margin
-20.1%
Return on Equity
-67.4%
Debt / Equity
324.58

Business Overview

Genomic testing for cancer and other conditions.

Data licensing to pharmaceutical companies.

Software and clinical decision support tools.

Acquired testing and lab capabilities.

Segment Deep Dive

A closer look at each reporting segment individually, rather than treating the business as a single undifferentiated revenue line.

Genomics

Sells tests to doctors and patients. Volume and reimbursement drive results.

Data and services

Licenses data and analytics to pharma. It typically has higher margins and lumpier revenue.

Software and applications

Provides tools for clinicians and researchers. It aims to add recurring revenue.

Capital Allocation & Balance Sheet Philosophy

How management has historically chosen to deploy cash — buybacks, dividends, R&D, and acquisitions — and what that reveals about capital discipline.

The company has raised capital through equity and borrowing.

It has been unprofitable but is targeting improved margins.

Acquisitions added scale and debt.

Dilution and leverage are watched.

Management & Governance

Leadership, incentive alignment, and governance structure — factors that shape execution risk independent of the underlying business model.

Founder-led leadership emphasizes data and AI.

Management has set targets for growth and profitability.

Governance is conventional; review the proxy for details.

Demonstrating margin progress is the main test.

See exactly how we get TEM's fair-value range

Unlock the premium content below
Table: Method, Relevance, Implied Value
MethodRelevanceImplied Value
Our P/E BasedMedium
Our Book Value BasedMedium
ROIC BasedMedium

Forecast Revenue and Free Cash Flow

5-Year Monte Carlo Simulation

Included with a subscription or a one-time purchase of this Tempus AI report:

  • Fair value from 7 methods, weighted by relevance to this business
  • 5-year financial forecast and DCF/earnings sensitivity grids
  • Decomposed AI Score, Monte Carlo simulation, and institutional/analyst data

$3.99 is less than one bad options trade — see the model before you commit real money. And it goes straight to the small team building this, not a hedge fund's marketing budget.

Bull Case vs. Bear Case

Bull Case
  • Testing volume grows.
  • Data revenue scales.
  • Margins improve.
  • Pharma contracts expand.
  • Reimbursement is supportive.
Bear Case
  • Losses persist.
  • Reimbursement is cut.
  • Pharma cuts data spending.
  • Competition intensifies.
  • Debt weighs.

Related Reports

In-depth reports for other names in Tempus AI's comparable set.

Veeva Systems
VEEV In-Depth Report
Palantir
PLTR In-Depth Report

4 catalysts and 4 risks we're tracking for TEM

Unlock the premium content below
Table: Catalyst, Expected Impact, Timeframe
CatalystExpected ImpactTimeframe

Included with a subscription or a one-time purchase of this Tempus AI report:

  • Catalyst list, each tagged with expected impact and timing
  • Risk register scored by probability and severity
  • 4 key metrics to watch before the next earnings report

$3.99 is less than one bad options trade — see the model before you commit real money. And it goes straight to the small team building this, not a hedge fund's marketing budget.

What Would Change Our Mind?

Specific, falsifiable triggers — not vague sentiment — that would move us toward or away from the bull case above.

Would Turn Us More Bullish
  • Data deals scale
  • Margins improve
  • Testing volume grows
Would Turn Us More Cautious
  • Reimbursement cuts
  • Losses persist
  • Pharma spending slows

Competitive Positioning

Tempus's edge is a large linked clinical and molecular data set and physician relationships.

Guardant, Exact Sciences, Natera, Illumina, and data firms compete.

Data scale is hard to replicate.

The vulnerability is reimbursement, competition, and losses.

Investor Decision Framework

A process for using this report, not a recommendation — how to weigh valuation, scenario spread, and your own risk tolerance.

  • Own it if you want AI-driven precision medicine exposure with growth.
  • Skip it if you dislike unprofitable growth stories.
  • Track gross margin and EBITDA.

The BriMindInvest Edge

Why this report is different from asking a general-purpose AI chatbot about the stock.

  • Every valuation number on this page is computed live from current market data through our own DCF, scoring, and Monte Carlo engines — not summarized or paraphrased from other analysts' reports the way a general chatbot would.
  • The relevance-weighted fair value, reverse-DCF market-implied growth, fundamentals-based Monte Carlo, and scenario tables above are proprietary calculations you cannot get by asking a general-purpose AI for "TEM fair value" — those answers come from web summaries of other people's price targets, not a live, disclosed-assumption model.
  • Our 1-year price-target model has a real, published backtest (see Model Track Record above where covered) — we show our work and our error rate rather than asserting accuracy.
  • Numbers here are refreshed every time you load the page, not cached from a training cutoff months or years in the past.

Data Sources & Methodology

Valuation, price, and financial-statistics data in this report are fetched live from our production market-data pipeline (Yahoo Finance and Finnhub) at the time you loaded this page. The AI Score is a percentile ranking against our full covered stock universe, recomputed nightly. The fundamentals-based Monte Carlo and Bull/Base/Bear scenarios randomize growth rate, discount rate, and terminal growth around the same disclosed DCF assumptions used in the valuation table — they are not derived from resampled historical stock returns. The secondary historical-volatility simulation (2,000 bootstrap paths, seeded for reproducibility) uses the stock's own historical monthly returns and is shown separately because it measures a different thing (volatility) than the fundamentals-based model (intrinsic value).

This report is for informational and educational purposes only and does not constitute financial, investment, or tax advice, or a recommendation to buy or sell any security. All valuation models, price targets, and simulations are estimates based on historical and current data; actual results will differ, potentially substantially. Investing involves risk, including loss of principal. See our full Methodology and Disclaimer.

Free vs. Premium: What You're Getting

Free Article
  • Narrative overview and general bull/bear framing
  • Headline price and basic company facts
  • No live valuation model, AI Score, or forecast table
This Premium Report
  • Relevance-weighted fair value range and reverse-DCF market-implied growth
  • 5-year financial forecast, DCF sensitivity grid, and Bull/Base/Bear scenario table
  • Fundamentals-based Monte Carlo and decomposed AI Score with sub-factor components
  • Real, published backtested accuracy where TEM is in our coverage set

Glossary of Key Terms

Plain-English definitions for the terms used throughout this report, for readers newer to equity valuation.

Genomic testing
Analyzing DNA to guide diagnosis and treatment.
Data licensing
Selling access to de-identified data for research.
Reimbursement
Payment from insurers or government for a test or service.

Frequently Asked Questions

What does Tempus AI do?
It offers genomic testing and licenses clinical data.
Who buys the data?
Mostly pharmaceutical and biotech companies.
Is Tempus profitable?
Not yet on a full basis.
What is the main risk?
Reimbursement, competition, and losses.
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Data sources & disclosures: Financial data and metrics cited in this article are sourced from company SEC filings, earnings releases, and investor relations materials. Market prices and fundamental data are provided by financial market data providers. Market size estimates and industry projections are sourced from industry research and analyst reports. Figures reflect information available at the time of writing and may have changed. AI scores and price targets are proprietary estimates — see our Methodology. This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investing involves risk, including the possible loss of principal. Please read our full Disclaimer and consult a licensed financial adviser before making investment decisions.