Tempus AI delivers 36% revenue growth and has beaten earnings estimates in all four of the last four quarters with an average positive surprise of 27%, but carries a quality score of 3.2 — below the minimum threshold — with negative free cash flow, 31% short interest, and a 74% revenue concentration in oncology and hereditary testing.
Thesis pillars
- Pre Profitability Quality Deficit→Stable
- Oncology Test Revenue Concentration→Stable
- Strong Earnings Beat With Revenue Growth→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 24, 2026
Tempus AI, Inc. (TEM) Stock Analysis
Breakout setup
Healthcare · Health Information Services
Sell if holding. Engine safety override at $76.61: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 25%; Below-average business quality; Rich valuation.
Tempus AI provides AI-enabled diagnostics through genomic sequencing and data analytics, primarily in oncology, with oncology and hereditary tests accounting for 74% of 2025 revenue. The company operates five NGS labs and a data-licensing business serving pharmaceutical... Read more
Sell if holding. Engine safety override at $76.61: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 25%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Score 4.7/10, moderate confidence.
Passes 5/8 gates (positive momentum, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: aggressive.
About Tempus AI, Inc.
About Tempus AI, Inc.
Tempus AI's Diagnostics product line—led by oncology and hereditary testing that accounted for 74% of total revenue in 2025—operates out of five high-throughput NGS labs in Chicago, Atlanta, Raleigh, Aliso Viejo, and Minneapolis and connects to more than 55% of U.S. oncologists through approximately 700 data integrations at 5,000+ healthcare institution sites. The company reported a net loss of $245.0 million in 2025 (versus $705.8 million in 2024 and $214.1 million in 2023) and carries a $2.4 billion accumulated deficit since its 2015 founding.
Tempus generates revenue through two product lines. The Diagnostics line provides NGS-based solid tumor, liquid biopsy, and hereditary cancer sequencing, with reimbursement from commercial payers and Medicare. The company participates as a network provider for a limited number of commercial payers and frequently operates as a non-participating provider for others, creating inherent reimbursement variability that makes quarterly revenue difficult to predict. In February 2025, Tempus acquired Ambry Genetics, expanding its Diagnostics reach into hereditary cancer screening, pediatrics, rare disease, and cardiology. The Data and applications line licenses de-identified multimodal patient libraries (Insights) to pharmaceutical and biotechnology companies, supports clinical trial matching (Trials), and provides algorithmic diagnostics (Algos) including its TO, HRD, DPYD, and Tempus Purist products. Pharmaceutical customer spending on data licensing may fluctuate based on pipeline priorities, clinical trial outcomes, and financial constraints, exposing the Data and applications line to revenue volatility independent of Diagnostics trends.
Show full overview
Tempus AI markets several tests as laboratory-developed tests under current FDA enforcement discretion. The 10-K identifies a specific risk that future FDA regulatory changes could subject LDT operations to materially more significant requirements, potentially including pre-market clearance obligations that could slow commercialization of the oncology and hereditary testing segment (74% of 2025 revenue). The company also notes that U.S. government plans to regulate lab-developed tests could limit the profitability of commercialized products and may affect the pharmaceutical and biotechnology customers on whom the Data and applications line depends.
See also: Healthcare · Health Information Services
From Tempus AI, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-29Recent Developments — Tempus AI, Inc.
Latest news
- NEWS H.C. Wainwright Maintains Buy Rating and Raises Price Target for Tempus AI — fiscal.ai Oct 26, 2026 positive
- NEWS Tempus AI Receives IVDR Certification for xR RNA Sequencing Assay — fiscal.ai Oct 26, 2026 positive
- NEWS Tempus AI's XR Assay Receives EU Certification As A Class C In Vitro Diagnostic Device — benzinga Oct 26, 2026 positive
- NEWS HC Wainwright & Co. Maintains Buy on Tempus AI, Raises Price Target to $68 — benzinga Oct 26, 2026 positive
- NEWS BTIG Reiterates Buy on Tempus AI, Maintains $80 Price Target — benzinga Oct 26, 2026 positive
Generated 2026-10-29T11:48:40Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductoncology and hereditary tests74%10-K Item 1A: 'clinical oncology and hereditary tests, which collectively accounted for 74%, 63% and 63% of our revenue in the years ended December 31, 2025, 2024 and 2023, respectively'
- HIGHSuppliersole suppliers10-K Item 1A: 'We rely on a limited number of suppliers or, in some cases, sole suppliers, for some of our laboratory instruments and materials'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
5 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Volatile — 7.0% daily ATR makes tight stops impractical. Position-size conservatively.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Unprofitable operations — net margin -17.8%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $76.61: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: High short interest: 25%; Below-average business quality; Rich valuation. Chart setup: Golden cross, above all MAs, RSI 60, MACD bullish. Prior stop was $71.25. Score 4.7/10, moderate confidence.
Analyst target $67.55 reached (−11.8% from $76.61); no take-profit level is published. Prior stop was $71.25. Stop-loss: $71.25.
Concentration risk — Product: oncology and hereditary tests (74.0%); Concentration risk — Supplier: sole suppliers; Target reached (-11.8% upside).
Tempus AI, Inc. trades at a P/E of N/A (forward -1651.4). TrendMatrix value score: 3.2/10. Verdict: Sell.
27 analysts cover TEM with a consensus score of 3.6/5. Average price target: $75.
What does Tempus AI, Inc. do?Tempus AI provides AI-enabled diagnostics through genomic sequencing and data analytics, primarily in oncology, with...
Tempus AI provides AI-enabled diagnostics through genomic sequencing and data analytics, primarily in oncology, with oncology and hereditary tests accounting for 74% of 2025 revenue. The company operates five NGS labs and a data-licensing business serving pharmaceutical companies, connecting to more than 5,000 healthcare institution sites, though it remains unprofitable with a $2.4 billion accumulated deficit.