Tempus AI, Inc. (TEM) Stock Price & How to Invest

Tempus AI (NASDAQ: TEM) is a Chicago-based technology company that applies artificial intelligence to precision medicine, primarily in oncology but increasingly across cardiology, neuropsychiatry, and hereditary conditions. It operates two interconnected business lines: a diagnostics segment that performs next-generation sequencing (NGS), PCR profiling, molecular pathology, and hereditary genetic tests through CAP-accredited, CLIA-certified laboratories, charging on a per-test basis; and a Data and Applications segment that licenses de-identified, linked clinical, molecular, and imaging datasets to life sciences companies (Insights), offers clinical trial matching (Trials), and deploys AI-powered algorithm products for physicians (Algos) and an AI platform called Next. Approximately 95% of the top 20 pharmaceutical companies use Tempus data or trial services, and the platform has integrations across more than 7,000 physicians and hundreds of research partners, creating a self-reinforcing network where clinical volume generates data that improves AI models and attracts more customers.

Tempus was founded in 2015 by Eric Lefkofsky, a Chicago technology entrepreneur, after his wife's 2014 breast cancer diagnosis exposed how underutilized data and AI were in cancer care. The company initially focused on oncology genomics before expanding into cardiology (through the 2023 acquisition of Mpirik), radiology AI (through the 2022 acquisition of Arterys), digital pathology AI (through the 2025 acquisition of Paige AI), pharmacogenomics (through the 2025 acquisition of OneOme), and hereditary genetics (through the early-2025 acquisition of Ambry Genetics for approximately $600 million). Tempus went public on the Nasdaq in June 2024 under the ticker TEM. Eric Lefkofsky continues to serve as Founder and CEO.

Tempus remains unprofitable on a GAAP basis, with a full-year 2025 net loss of $245 million (which included $136 million in stock-based compensation), and the path to sustained GAAP profitability is long; Q1 2026 showed a net loss of $125.9 million, widening 85% year-over-year, and EPS missed analyst estimates by 34%. Reimbursement risk is material: a significant portion of Tempus's diagnostics revenue depends on favorable coverage decisions from CMS and private payers, and adverse rulings on NGS tests or laboratory-developed tests (LDTs) could reduce revenue per test sharply. Regulatory scrutiny of LDTs by the FDA, ongoing data privacy obligations under HIPAA, and the risk that competitors such as Guardant Health, Illumina, Roche, or PathAI develop comparable datasets or lower-priced tests could compress both volume growth and pricing power over time.

14 analysts publish price targets on TEM, averaging $64.93 against a $43.87 price as of August 2026, or +48.0%. The published targets run from $35.00 to $100.00, a wide spread, and the ratings split 8 buy, 6 hold, 1 sell. Over the last six months there have been 2 raises and 3 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full TEM forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Tempus AI, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Explosive Revenue Growth with a Clear Path to Profitability. Tempus grew full-year 2025 revenue roughly 83% year-over-year to approximately $1.27 billion, then guided for $1.59 billion in 2026, representing continued strong growth. The most optimistic published target, $100.00, assumes this works close to its best case.

The case against. Tempus remains unprofitable on a GAAP basis, with a full-year 2025 net loss of $245 million (which included $136 million in stock-based compensation), and the path to sustained GAAP profitability is long; Q1 2026 showed a net loss of $125.9 million, widening 85% year-over-year, and EPS missed analyst estimates by 34%. The most pessimistic target, $35.00, is roughly what TEM is worth if this bites instead.

Read the full bull and bear case on TEM, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Tempus AI, Inc.'s investor relations page or your broker.

• Revenue (FY2025, reported): ~$1.27 billion
• Revenue (TTM, as of Q1 2026): ~$1.36 billion
• Q1 2026 Revenue (most recent quarter): ~$348 million (up 36% YoY)
• Gross Margin (FY2025): ~63%
• Net Loss (FY2025): ~($245) million (GAAP)
• Adjusted EBITDA (FY2025): ~($7.4) million (near breakeven)
• Market Capitalization: ~$9.0 billion
• Price / Sales (TTM): ~6.6x
• P/E Ratio (TTM): Not meaningful (company not yet profitable)
• 2026 Revenue Guidance: ~$1.59 billion

Tempus trades at roughly 6.6 times trailing twelve-month revenue, a premium that reflects the market pricing in a future where its data-licensing flywheel generates high-margin recurring revenue at scale. The P/E ratio is not meaningful today because the company is not yet GAAP profitable, but consensus estimates suggest the first meaningful earnings could arrive by 2028, and the company's own guidance calls for positive Adjusted EBITDA of approximately $65 million in 2026. The gross margin of approximately 63% is already at software-like levels and has expanded significantly as the higher-margin Data and Applications segment grows faster than diagnostics.

If you want TEM exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to TEM: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get TEM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (ARKG, ARKK, ROBT), which spreads the position across many companies. Or build it into a focused thematic portfolio, so TEM sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where TEM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Tempus AI is, right now, a high-growth healthcare data and diagnostics platform: its diagnostics segment delivered $955 million in 2025 revenue (growing 111% including the Ambry Genetics acquisition) while its higher-margin Data and Applications segment added $316 million (up 31%), and the company exited 2025 with Adjusted EBITDA of roughly negative $7 million, a dramatic improvement from negative $104 million in 2024. If you believe that the combination of the largest multimodal oncology dataset, embedded physician workflows, and expanding pharma partnerships creates compounding network effects that will convert scale into profitability, then the question becomes sizing and overlap with other healthcare AI names, not timing; the risk is that a slower path to GAAP profitability, ongoing dilution from stock-based compensation, or an adverse shift in genomic test reimbursement policy could erode the valuation well before earnings materialize.

Whether TEM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TEM a buy or a sell?, and where the stock could go from here in the TEM stock forecast.

For income investors, whether TEM pays a dividend and how the payout looks is covered in does TEM pay a dividend? And to weigh TEM against a peer, read the full side-by-side comparisons: TEM vs GH and TEM vs ILMN.