Tempus AI Inc is a technology company... Show more
Tempus AI, Inc. is a healthcare technology company that applies artificial intelligence to precision medicine. Founded by Groupon co-founder Eric Lefkofsky, Tempus builds one of the largest libraries of multimodal clinical and molecular data and provides AI-enabled tools to physicians, health systems, and life-sciences companies. The business operates in two main segments: Diagnostics, which generates revenue from genomic and oncology testing, and Data & Applications, which licenses de-identified clinical, molecular, and imaging data to pharmaceutical and biotechnology firms. Investors follow the stock for its rapid revenue growth, its expanding test portfolio, and its deepening partnerships with large drug developers.
Over the last 30 days, Tempus AI shares declined approximately 13%, falling from a closing level near $77.84 on September 18 to about $67.58. The move was not a straight line; the stock posted sharp intraday swings and a pronounced single-session drop in early October before stabilizing in the high-$60s.
The longer-term picture is notably different. Over the last quarter, Tempus AI advanced roughly 40%, rising from a closing price near $48.41 in late July. That rally lifted the stock from a multi-month low near $41 to an intraday peak above $89 in late September, before the recent pullback trimmed those gains. The contrast between the two time frames highlights that the 30-day decline is primarily a correction within an otherwise strong quarterly uptrend.
The recent decline reflected profit-taking and valuation re-rating after an unusually sharp run-up, rather than a single negative corporate event. The stock entered the period trading well above its key moving averages after management outlined a significantly improved reimbursement outlook in mid-September. That enthusiasm pushed shares to levels that left the equity vulnerable to a pullback in risk-off trading conditions.
Notably, the decline occurred even as the news flow stayed broadly constructive. In early October, Guggenheim maintained a Buy rating and raised its price target, and Bank of America lifted its target to $75 from $52 while keeping a Neutral rating. Canaccord Genuity raised its price target to $95, and Tempus announced an expanded multi-year collaboration with Moderna and Merck to support the potential commercialization of the personalized cancer therapy intismeran autogene. The fact that shares fell despite these developments underscores that the move was driven primarily by positioning and valuation dynamics, with investors locking in gains from the prior rally.
The roughly 40% quarterly advance was anchored in fundamentals. In July, Tempus reported second-quarter 2026 revenue of approximately $382.5 million, up 22% year over year, with growth across both its Diagnostics and Data & Applications segments. The more powerful catalyst, however, was the reimbursement narrative. Management disclosed FDA approval for the tumor-only version of its solid-tumor assay with ADLT pricing near the $4,500 level established for tumor-normal testing, estimating a revenue and margin benefit of roughly $80 million to $100 million. A larger opportunity lies in the company's liquid-biopsy test, which could see reimbursement rise from roughly $3,200 to the mid-to-high $7,000 range if approved.
Analyst activity reinforced the move. Goldman Sachs initiated coverage with a Neutral rating and a $75 target, while Guggenheim and Canaccord raised their targets to $92 and $95, respectively. These developments, combined with the Moderna and Merck collaboration extension, supported the broader uptrend that defined the quarter.
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Investors should monitor several factors in the months ahead. The most immediate is the third-quarter 2026 earnings report, scheduled for November 2, 2026, which will provide updated revenue growth, segment-level performance, and guidance. Execution on the company's reimbursement transition is another key variable, as the shift to ADLT pricing is expected to lift average selling prices and margins beginning in 2027. Progress on the liquid-biopsy (xF) regulatory pathway and FDA approval timeline will also be closely watched, given its larger potential revenue impact.
Additional areas of focus include the cadence of large data-licensing contract renewals, adoption of newer tests such as MRD and xH, and competitive and reimbursement dynamics across the diagnostics sector. Broader macro conditions and risk appetite for high-growth, unprofitable healthcare technology names could also influence sentiment. As with any equity, investors should weigh these catalysts against valuation and execution risk rather than relying on price momentum alone.
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Expect a price pull-back in the near future.
The 10-day RSI Indicator for TEM moved out of overbought territory on September 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 14 similar instances where the indicator moved out of overbought territory. In 12 of the 14 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.
The 10-day moving average for TEM crossed bearishly below the 50-day moving average on October 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 8 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
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 October 28, 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 October 30, 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.
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on TEM as a result. In 29 of 36 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 81%.
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 October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +7.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in 116 of 131 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
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 (29.470) is slightly higher than the industry average of (4.705). TEM has a moderately low P/E Ratio (-50.153) as compared to the industry average of (13.222). 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 40 (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 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 PE Growth Rating for this company is 99 (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 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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Industry ServicestotheHealthIndustry