GET DAILY SIGNALSWhy Is Tempus AI (TEM) Stock Down -7.81% Today?
Key Takeaways
- TEM shares fell roughly 7.81% intraday to about $73.23, down from Tuesday's close of $79.43.
- The decline extends a post-earnings fade, as traders booked profits following strong third-quarter results and a raised full-year outlook.
- Fresh analyst caution — including a newly initiated Neutral rating with a $75 price target — added to selling pressure.
- Insider share sales by the CEO and other executives weighed on sentiment.
- Broader weakness across AI-enabled healthcare and diagnostics names compounded the pullback.
- Traders are watching for deal milestones on the pending Personalis acquisition and the next earnings report.
- For additional detail on valuation and technicals, explore Price Targets, Earnings, and Forecast pages for this ticker.
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Opening Summary
Tempus AI, Inc. (TEM), the Chicago-based healthcare technology company that applies artificial intelligence to precision medicine, diagnostics, and biopharma data licensing, is trading sharply lower on Wednesday. After closing the prior session at $79.43, the stock fell about $6.20, or 7.81%, to roughly $73.23 in midday action. The move extends a multi-day retreat that has seen the shares give back a substantial portion of a strong year-to-date rally, with markets citing profit-taking after earnings, cautious new analyst coverage, and a broader risk-off tone across AI-healthcare names.
Post-Earnings Profit-Taking
The pullback follows a third-quarter report that was fundamentally solid but failed to sustain momentum. Tempus delivered revenue of roughly $411.5 million, up about 23% year over year, while narrowing its net loss by more than 80% to approximately $14.85 million. Management also raised its full-year 2026 revenue guidance to a range of $1.60 billion to $1.605 billion and reiterated an adjusted EBITDA target near $65 million. Several analysts responded positively, including one firm that lifted its price target to $100 from $80.
Despite those results, the shares have faded in the sessions since the report. After a powerful advance earlier in the year, the stock has been vulnerable to "sell-the-news" dynamics, with investors locking in gains even as the operating story improves. This pattern is common for high-multiple growth names that have already priced in significant upside.
Analyst Caution and a Fresh Neutral Rating
Selling pressure on Wednesday coincided with newly cautious commentary from Wall Street. Goldman Sachs initiated coverage of TEM with a Neutral rating and a $75 price target, implying limited near-term upside from current levels. The firm's thesis highlights the company's strong diagnostics franchise and improving reimbursement backdrop, but flags uncertainty around the renewal of large data-licensing contracts as a question mark hanging over the valuation.
Because Tempus's higher-margin data and applications segment depends heavily on a concentrated set of major pharmaceutical clients, any perceived risk to contract renewals can weigh disproportionately on sentiment, even when near-term fundamentals remain intact.
Insider Selling Weighs on Sentiment
The decline has also been accompanied by a series of disclosed insider sales. Chief Executive Officer Eric Lefkofsky and other senior executives have reported selling shares in recent days, in several cases under pre-arranged 10b5-1 trading plans. While such sales are often scheduled well in advance and do not necessarily signal a change in management's outlook, they can nevertheless contribute to negative sentiment during periods of market weakness.
Sector Pressure and the Personalis Overhang
Tempus is not moving in isolation. AI-enabled diagnostics and precision-medicine stocks have been under pressure this week as investors rotate away from high-beta growth themes. The company also continues to trade with an overhang from its pending acquisition of cancer-testing firm PSNL (Personalis) in an all-stock deal valued at about $1.5 billion. The stock-based structure of that transaction has raised concerns about shareholder dilution, even as the strategic rationale — adding Personalis's ultrasensitive minimal residual disease (MRD) testing to Tempus's oncology platform — is widely viewed as sound over the long term.
Market Context and Trading Activity
Trading has been marked by elevated volatility. Recent sessions have seen below-average volume relative to the stock's longer-term average, suggesting the move has been driven more by repositioning and sentiment than by heavy institutional liquidation. The pullback has taken the shares further below their late-September 52-week high, with the stock now trading closer to key moving-average support levels. The decline is occurring alongside a broader softness in AI and healthcare-technology equities, indicating that sector-wide risk appetite, rather than a single company-specific shock, is amplifying the downside.
What Comes Next for TEM
Looking ahead, investors will focus on several factors. The company's ability to convert its growing diagnostics volume and improving reimbursement dynamics into sustained revenue and margin expansion remains central to the investment case. Progress on the Personalis transaction — expected to close in late 2026 or early 2027 — will also be closely watched, particularly any updates on regulatory approvals and the shareholder vote. In addition, the renewal of major data-licensing agreements with large pharmaceutical partners represents both a risk and a potential catalyst. The next quarterly earnings release will offer a fresh checkpoint on guidance, cash-flow trajectory, and the pace of MRD test adoption. As with any high-multiple growth stock, the shares carry meaningful risks tied to execution, valuation, and broader market sentiment.
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Momentum Indicator for TEM turns positive, indicating new upward trend
TEM saw its Momentum Indicator move above the 0 level on October 27, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator turned positive. In 34 of the 36 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TEM just turned positive on October 28, 2026. Looking at past instances where TEM's MACD turned positive, the stock continued to rise in 19 of 23 cases over the following month. The odds of a continued upward trend are 83%.
TEM moved above its 50-day moving average on November 06, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEM crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 8 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +19.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in 117 of 132 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
TEM broke above its upper Bollinger Band on November 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TEM entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TEM's P/B Ratio (31.032) is slightly higher than the industry average of (4.477). TEM has a moderately low P/E Ratio (-52.812) as compared to the industry average of (13.414). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.133). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (8.696) is also within normal values, averaging (6.065).
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. TEM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 97, placing this stock worse than average.
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