Trading Analysis Report: TEM
- Analysis date: 2026-06-01
- Processed decision: Buy
- Price Target: 65
I. Analyst Team Reports
Market Analyst
Market Report
Tempus AI (TEM) traded at $50.47 on May 29, 2026. yfinance showed a 52-week range of $41.73-$104.32, a 50-day average of $49.07, and a 200-day average of $66.04.
The stock is stabilizing near the 50-day average but remains far below the 200-day average and the 52-week high. The local yfinance history showed a -8.5% one-year return and -19.1% YTD return.
TEM fits the AI queue because Tempus is an AI-enabled precision medicine and diagnostics platform using multimodal healthcare data, modeling, AI clinical insights, diagnostics, and data applications.
Market read: Buy with a $65 target because revenue growth and guidance are improving while the stock remains below analyst targets, but losses and cash-flow risk keep the target disciplined.
Sentiment Analyst
Sentiment Report
Sentiment is constructive after Q1 2026 results.
Revenue was $348.1 million, up 36.1% year over year. Diagnostics revenue was $261.1 million, up 34.7%, and Data and Applications revenue was $87.0 million, up 40.5%.
MRD volume was approximately 6,500 tests, up about 500% year over year. Insights data licensing and modeling grew 44.1%.
The company increased 2026 revenue guidance to $1.59-$1.60 billion and expects full-year adjusted EBITDA of approximately $65 million.
Sentiment read: Buy because growth, AI relevance, and guidance are positive, but the company remains unprofitable on GAAP metrics.
News Analyst
News Report
The key current source is Tempus' Q1 2026 results release.
Q1 2026 revenue was $348.1 million, up 36.1% year over year. Diagnostics revenue was $261.1 million, driven by Oncology volume growth of 28%. Data and Applications revenue was $87.0 million, with Insights growing 44.1%.
Tempus reported $643.8 million in cash and marketable securities as of March 31, 2026. Adjusted EBITDA improved to -$2.8 million, compared with -$16.2 million in Q1 2025.
Management increased 2026 revenue guidance to $1.59-$1.60 billion, representing approximately 25% annual growth, and expects full-year adjusted EBITDA of about $65 million.
On May 29, 2026, Tempus announced initial results from multimodal foundation model work for scalable oncology insight generation, reinforcing the AI and multimodal data thesis.
News read: TEM has clear AI and healthcare data catalysts, with an improving profitability trajectory but still meaningful execution risk.
Fundamentals Analyst
Fundamentals Report
TEM fundamentals are high-growth but still loss-making.
yfinance showed market cap of approximately $9.06 billion, enterprise value of approximately $9.74 billion, total revenue of approximately $1.36 billion, total cash of approximately $639.1 million, total debt of approximately $1.32 billion, operating cash flow of approximately -$185.7 million, and free cash flow of approximately -$55.8 million.
The same snapshot showed revenue growth of 36.1%, gross margin of 63.4%, operating margin of -24.3%, profit margin of -22.2%, and price/sales of 6.64x.
The 2025 Form 10-K describes Tempus as an AI-enabled health technology company advancing precision medicine and patient care through multimodal data, diagnostics, data licensing, modeling, and clinical workflows.
Fundamental read: Buy because growth and adjusted EBITDA improvement are strong, but leverage, GAAP losses, and healthcare regulatory risk prevent a more aggressive target.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is that Tempus is building one of the more differentiated AI healthcare data platforms in public markets.
Q1 revenue increased 36.1% year over year, Data and Applications revenue rose 40.5%, and Insights grew 44.1%. MRD volume increased about 500% year over year, showing strong adoption of a high-growth diagnostics workflow.
The company raised 2026 revenue guidance to $1.59-$1.60 billion and expects full-year adjusted EBITDA of approximately $65 million. Adjusted EBITDA improved by more than $13 million year over year in Q1.
The multimodal foundation model work adds a direct AI catalyst in oncology insight generation.
Bull conclusion: TEM can re-rate if it sustains 25%+ growth, moves adjusted EBITDA positive, and proves its multimodal AI data platform has durable pricing power.
Bear Researcher
Bear Research
The bear case is that TEM remains expensive, unprofitable, leveraged, and exposed to healthcare-specific execution risk.
yfinance showed operating margin of -24.3%, profit margin of -22.2%, operating cash flow of -$185.7 million, free cash flow of -$55.8 million, and total debt of approximately $1.32 billion.
The stock trades at 6.64x sales despite GAAP losses. Healthcare AI also carries reimbursement, clinical adoption, regulatory, data privacy, model governance, and payer/provider integration risk.
The 10-K risk profile includes competition, AI regulation, data privacy and security, debt/refinancing, acquisitions, and the need to manage growth and expenses.
Bear conclusion: TEM could underperform if adjusted EBITDA improvement stalls, if reimbursement pressure emerges, or if AI/modeling revenue growth decelerates.
Research Manager
Research Manager Synthesis
The bull case is strong Q1 revenue growth, raised 2026 guidance, improving adjusted EBITDA, fast MRD volume growth, and direct AI healthcare platform relevance.
The bear case is GAAP losses, negative cash flow, debt, healthcare regulatory and reimbursement risk, and valuation at more than 6x sales.
The correct conclusion is Buy, but with a target close to consensus. The $65 target is near the yfinance median target of $64.00 and below the mean target of $67.20.
Synthesis: assign Buy with a $65 target.
III. Trading Team Plan
Trader
Trader View
TEM is near the $49.07 50-day average but below the $66.04 200-day average and far below the $104.32 52-week high.
Upside trigger: 2026 revenue tracking above $1.60 billion, adjusted EBITDA above $65 million, stronger Data and Applications growth, MRD adoption acceleration, or new foundation-model oncology evidence.
Downside trigger: revenue below guidance, cash burn above expectations, reimbursement pressure, debt/refinancing concerns, slower Insights growth, or regulatory scrutiny of AI in healthcare.
Trading plan: Buy with a $65 6-12 month base-case target.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors can buy TEM for exposure to AI-driven precision medicine and multimodal healthcare data.
The risk is that the business is still transitioning toward profitability and depends on continued adoption across diagnostics and data products.
Aggressive conclusion: Buy.
Conservative Analyst
Conservative Risk View
Conservative investors should recognize the loss-making profile and debt load.
TEM has strong growth, but reimbursement, regulation, and cash-flow risks are not trivial.
Conservative conclusion: Hold for risk-sensitive accounts; Buy only with high volatility tolerance.
Neutral Analyst
Neutral Risk View
The neutral view is constructive.
The company has a real AI healthcare platform and improving guidance, but the stock requires confidence in revenue durability and margin expansion.
Neutral conclusion: Buy with disciplined sizing.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Buy Price Target: 65
Horizon: 6-12 months Current Price Reference: $50.47 on 2026-05-29
Tempus AI is rated Buy. TEM is included in the web-researched AI queue because it is an AI-enabled precision medicine platform using multimodal healthcare data, diagnostics, data licensing, modeling, clinical insights, and workflow tools to support patient care and life sciences research.
The latest major financial update is Q1 2026 results. Revenue was $348.1 million, up 36.1% year over year. Diagnostics revenue was $261.1 million, up 34.7%, driven by Oncology volume growth of 28%. MRD volume was approximately 6,500 tests, up about 500% year over year.
Data and Applications revenue was $87.0 million, up 40.5% year over year. Insights, which includes data licensing and modeling, grew 44.1%.
Tempus reported $643.8 million in cash and marketable securities as of March 31, 2026. Adjusted EBITDA improved to -$2.8 million, compared with -$16.2 million in Q1 2025.
Management increased full-year 2026 revenue guidance to $1.59-$1.60 billion, representing approximately 25% annual growth, and continues to expect full-year 2026 adjusted EBITDA of approximately $65 million.
The AI catalyst is direct. Tempus describes itself as an AI-enabled health technology company advancing precision medicine and patient care, and on May 29, 2026 announced initial results from multimodal foundation model work for scalable oncology insight generation.
yfinance showed a latest price of $50.47, market cap of approximately $9.06 billion, enterprise value of approximately $9.74 billion, 52-week range of $41.73-$104.32, total revenue of approximately $1.36 billion, revenue growth of 36.1%, gross margin of 63.4%, operating margin of -24.3%, profit margin of -22.2%, operating cash flow of approximately -$185.7 million, free cash flow of approximately -$55.8 million, total cash of approximately $639.1 million, total debt of approximately $1.32 billion, price/sales of 6.64x, mean analyst target of $67.20, and median analyst target of $64.00.
The main risks are GAAP losses, negative operating cash flow, debt and refinancing risk, reimbursement risk, regulatory scrutiny of AI and healthcare data, clinical adoption risk, competition, data privacy and cybersecurity risk, acquisitions/integration, and the possibility that Data and Applications growth slows.
The $65 target is close to the yfinance median target and below the mean target. Buy is appropriate because Q1 growth, raised guidance, MRD growth, Data and Applications growth, and AI platform positioning create attractive upside, while the disciplined target reflects loss-making operations and healthcare execution risk.