TEM stock forecast, quote, news & analysis
Tempus AI Inc is a technology company... Show more
Tempus AI (TEM) Stock Analysis: AI Precision Medicine Momentum
Key Takeaways
- Tempus AI reported Q1 2026 revenue growth of 36% year-over-year to $348.1 million, driven by diagnostics and data applications.
- Company raised full-year 2026 revenue guidance to $1.59–$1.60 billion, targeting ~$65 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
- Recent collaborations with Bristol Myers Squibb and Lucent Diagnostics expand AI applications in oncology and Alzheimer’s testing.
- Upsized $400 million convertible senior notes offering to optimize capital structure and reduce debt costs.
- Stock has traded within a 52-week range of $41.73–$104.32 amid volatile price action in recent weeks.
- Analyst consensus leans "Buy" with average price targets around $69, implying potential upside.
Current Market Snapshot
Tempus AI (TEM) stock has navigated choppy waters in recent trading sessions, reflecting broader volatility in AI-driven healthcare names. Shares have pulled back from earlier highs near $104, finding support around the $42–$46 range amid heightened trading volumes. This price action follows strong fundamentals, including robust revenue expansion and strategic partnerships, tempered by capital raises and ongoing losses typical for growth-stage tech firms. Investor sentiment balances optimism over AI precision medicine adoption against concerns over profitability timelines and market rotations away from high-valuation stocks. Elevated volumes signal active interest from institutions like ARK Invest, positioning TEM at a potential inflection point in the ongoing market cycle.
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Recent Developments Driving TEM Price Action
Tempus AI, a leader in AI-powered precision medicine, has seen its stock price influenced by a series of operational and financial updates over recent weeks. On May 5, the company released Q1 2026 results, posting revenue of $348.1 million, up 36.1% year-over-year, surpassing estimates. Diagnostics revenue grew 34.7% to $261.1 million, fueled by oncology testing volumes including solid tumors, liquid biopsies, and minimal residual disease (MRD) assays, while Data & Applications surged 40.5% to $87.0 million on licensing and AI tool demand. Gross profit rose 43.1% to $222.0 million, though net loss widened to $125.9 million due to investments; adjusted EBITDA loss narrowed to $2.8 million. Management raised 2026 revenue guidance to $1.59–$1.60 billion (~25% growth) and projected ~$65 million adjusted EBITDA, citing Merck collaboration momentum and operating leverage.
These beats initially supported shares, but post-earnings volatility emerged as investors digested margin pressures implied in guidance. Shares dipped around 4-7% in subsequent sessions amid profit-taking. On May 7, Tempus announced a proposed $350 million (upsized to $400 million by May 8) 0% convertible senior notes due 2032 offering, netting ~$384 million to repay $307.7 million in senior secured loans, cutting interest expense, funding capped calls to limit dilution, and supporting general purposes. This debt optimization bolstered liquidity to $643.8 million but triggered dilution fears, contributing to a ~7.5% drop that day.
Strategic expansions countered some pressure. A May 6 collaboration with Lucent Diagnostics integrates blood-based Alzheimer’s biomarker testing (LucentAD Complete) into Tempus workflows, marking a push beyond oncology. Tempus also unveiled a new AI initiative with Bristol Myers Squibb (BMY) leveraging multimodal real-world data for oncology clinical trials, enhancing trial optimization. Analyst reactions were mixed: BTIG cut target to $80 from $90 (Buy), HC Wainwright to $64 from $95 (Buy), Baird to $59 from $68, but TD Cowen raised to $68; consensus holds "Buy" at ~$69. ARK Invest bought shares on May 7 and 11, signaling conviction. Overall, positive fundamentals clashed with financing dilution and sector rotation, driving ~14% weekly declines from $53+ peaks, with volumes 2-3x average underscoring conviction shifts.
2026 Outlook and Key Factors to Monitor
As Tempus AI advances through 2026, investors should track execution on elevated revenue guidance amid intensifying AI adoption in healthcare. Core growth drivers include diagnostics expansion in oncology and emerging areas like Alzheimer’s, alongside data licensing from pharma partnerships (e.g., Merck, BMS). Operating leverage from AI efficiencies could support adjusted EBITDA positivity, but sustained gross margins hinge on volume scaling and cost controls in R&D (research and development) and sales.
Risks encompass regulatory scrutiny on AI diagnostics, reimbursement dynamics for molecular testing, and competition from Illumina or Guardant Health in precision oncology. Macro factors like healthcare spending and biotech funding availability will influence sentiment. Opportunities lie in clinical trial AI tools accelerating pharma timelines and real-world evidence datasets fueling drug discovery. Competitive positioning via proprietary multimodal data and Chicago-based hub strengthens moat, but debt servicing post-notes and cash burn trajectory warrant vigilance. Balanced monitoring of quarterly beats, partnership depth, and path to GAAP profitability will shape trajectory.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
Aroon Indicator for TEM shows an upward move is likely
TEM's Aroon Indicator triggered a bullish signal on June 29, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 50 similar instances where the Aroon Indicator showed a similar pattern. In of the 50 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 22, 2026. You may want to consider a long position or call options on TEM as a result. In of 29 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TEM just turned positive on June 24, 2026. Looking at past instances where TEM's MACD turned positive, the stock continued to rise in of 19 cases over the following month. The odds of a continued upward trend are .
TEM moved above its 50-day moving average on June 24, 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 June 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 5 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in of 111 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 of 62 cases within the following month. The odds of a continued downward trend are .
TEM broke above its upper Bollinger Band on June 25, 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.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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: P/B Ratio (20.619) is normal, around the industry mean (7.366). P/E Ratio (39.298) is within average values for comparable stocks, (50.081). TEM's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.153). Dividend Yield (0.000) settles around the average of (0.045) among similar stocks. P/S Ratio (6.188) is also within normal values, averaging (5.651).
The Tickeron SMR rating for this company is (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 (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 99, placing this stock worse than average.
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