Tempus AI, Inc. Class A Common Stock logo

Tempus AI, Inc. Class A Common Stock(TEM)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 20 days
PROFIT SINCE LAST BUY
+20.57%
LAST CLOSE
$80.36
09/17/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for TEM

09/17/2026: TEM (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Tempus AI is an innovative health technology company that operates at the intersection of AI and precision medicine. The firm is well-regarded for its massive, multi-modal clinical data library, which serves as a powerful resource for both clinical diagnostics and pharmaceutical drug discovery. While Tempus shows significant growth potential and a unique, data-driven value proposition, it faces risks related to intense competition and the challenges of integrating AI into complex medical workflows. The company is currently prioritizing scaling operations over short-term profitability. It is a suitable consideration for growth-oriented investors who are comfortable with the inherent volatility of the health-tech sector and wish to monitor long-term clinical adoption milestones.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitTempus offers exposure to the rapidly growing intersection of AI and precision medicine.
Momentum investorStrong fit while signal remains positiveThe company captures high interest due to its alignment with AI thematic trends.
Value investorWeak fitThe company is currently in an aggressive growth phase with significant losses.
Dividend investorWeak fitThe company does not pay dividends and prioritizes reinvestment.
Low-risk investorWeak fitThe stock is subject to significant volatility inherent to high-growth tech firms.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is susceptible to sharp price swings based on AI market sentiment.
Valuation riskMedium / highCurrent market valuation relies heavily on long-term growth expectations.
Competition risk (AI/Diagnostic)HighIncreased competition could compress margins for testing and data services.
Business qualityMediumWhile the platform is robust, the company is still achieving sustainable profitability.
Dividend incomeLow / noneNo income stream is provided to shareholders.
Execution riskMedium / highSuccess depends on the complex integration of AI into established medical practices.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -49.77%
Avg. Invested days 20
Today’s Advisory Consider higher Upturn Star rating
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Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

TEM receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by soft unit economics, soft quantitative characteristics, and limited analyst upside.

Company Fundamentals

TEM has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+65.3%) and strong revenue growth (+83.4%) are partially offset by soft cash generation (FCF margin -19.3%), soft profitability (net margin -19.3%).

Financial Health Rating

TEM's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 34.9%). Cash strength is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Revenue growth is TEM's strongest growth driver at +83.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+65.3%, strong) is also strong, while free-cash-flow growth (-16.2%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 59.2% and approximately 66.1% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 36.78% supports management-shareholder alignment.

Top 5 Institutional Investors

ARK Investment Management LLC 5.29%
BlackRock Inc 4.94%
Baillie Gifford & Co Limited. 4.51%
SoftBank Group Corp 2.98%
JPMorgan Chase & Co 2.72%

Unit Economics (Per $1K Revenue)

TEM generates approximately $627 of gross profit, $-199 of operating income, and $-193 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 17.42%

Quantitative Style Profile

TEM has a large-cap, liquid profile. Valuation that is moderately attractive rather than deeply discounted is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

High VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 14.50B USD
Price to earnings Ratio -
1Y Target Price 68.18
Price to earnings Ratio -
1Y Target Price 68.18
Volume (30-day avg) 7.4M shares
Beta 3.72
52 Weeks Range 40.77 - 104.32
Updated Date 09/18/2026
52 Weeks Range 40.77 - 104.32
Updated Date 09/18/2026
Dividends yield (FY) -
Basic EPS (TTM) -1.66

How Company Makes Money

Business areaWhat it includesRetail investor read
Genomics and DiagnosticsClinical genomic testing and patient diagnostic services.The company earns revenue by providing essential medical testing for cancer patients.
Data and Pharma ServicesCollaborations with pharma for drug R&D and licensing of proprietary datasets.Tempus gets paid to share insights from its database to help drug companies invent new therapies faster.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE -
Enterprise Value 13.33B
Price to Sales(TTM) 10.13
Enterprise Value 13.33B
Price to Sales(TTM) 10.13
Enterprise Value to Revenue 9.31
Enterprise Value to EBITDA -
Shares Outstanding 175.39M
Shares Floating 115.90M
Shares Outstanding 175.39M
Shares Floating 115.90M
Percent Insiders 36.78
Percent Institutions 59.25

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Tempus AI, Inc. Class A Common Stock

Exchange NASDAQ
Headquarters Chicago, IL, United States
IPO Launch date 2024-06-14
Co-Founder, CEO, President & Chairman Mr. Eric P. Lefkofsky J.D.
Sector Healthcare
Industry Health Information Services
Full time employees 3800
Full time employees 3800

Tempus AI, Inc. operates as a healthcare technology company in the United States. It offers the Tempus platform, a closed-loop, full-stack, bi-directional integrations between a clinician's desktop and its laboratory diagnostic capabilities, analytics platform, and repository of multimodal data; and Hub, a clinical application for physicians and other healthcare providers for use in the diagnostics product line as an end-to-end application for healthcare providers for NGS tests. The company also provides Lens, a software application for life sciences and advanced precision research; diagnostics services, such as NGS diagnostics, PCR profiling, and other anatomic and molecular pathology tests; and large-panel solid tumor and hematologic testing through multiple assays, with its core clinical assay (xT and xR) offering large panel DNA, RNA full transcriptome, and incidental germline findings through normal blood or saliva analyses. In addition, it provides genetic tests focused on inherited conditions; an nP assay for pharmacogenomic testing for patients with psychiatric conditions, including depression, general anxiety disorder, bipolar disorder, and other relevant diagnoses; Insights, which licenses libraries of linked, de-identified clinical, molecular, and imaging data; Organoids, a tumor derived biological modeling. Further, the company offers Trials for clinical trial matching services; Next, an AI platform; Algos, an algorithm-based diagnostics application. It has Strategic Collaborations with AstraZeneca AB, Pathos AI, Inc., GlaxoSmithKline, Merck, and Recursion Pharmaceuticals, Inc. Additionally, it also has a strategic collaboration with Blood Cancer United to develop registry for pediatric acute myeloid leukemia. The company was formerly known as Tempus Labs, Inc. and changed its name to Tempus AI, Inc. in January 2023. Tempus AI, Inc. was incorporated in 2015 and is headquartered in Chicago, Illinois.