Tempus AI (NASDAQ:TEM) Announces Quarterly Earnings Results

Tempus AI (NASDAQ:TEM) posted its quarterly earnings data on Tuesday. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.01, FiscalAI reports. Tempus AI had a negative net margin of 19.27% and a negative return on equity of 53.30%. The company had revenue of $367.21 million for the quarter, compared to analyst estimates of $362.55 million. During the same period in the previous year, the business posted ($0.18) earnings per share. Tempus AI’s quarterly revenue was up 83.0% on a year-over-year basis.

Here are the key takeaways from Tempus AI’s conference call:

• Tempus reported a strong 2025 with its core business revenue up >33%, guided 2026 revenue to $1.59 billion (~25% growth) and ~ $65 million of adjusted EBITDA, and said the balance sheet is in great shape.
• The data/licensing business is accelerating — Insights grew ~69% in the quarter, total contract value is >$1.1 billion and net revenue retention is 126%, giving unusually high visibility into 2026 revenue.
• Diagnostics momentum remains robust with oncology unit growth of 29% (MRD up 56% quarter‑over‑quarter) and hereditary units up 23%; MRD demand is described as highly constrained today but could be materially larger once reimbursement and go‑to‑market gating are removed.
• AI investments are advancing — Tempus says it met AstraZeneca benchmarks for its first oncology foundation model, has deployed large GPU clusters, and expects these models to accelerate diagnostic insights and the data product roadmap.
• Timing and reimbursement remain key risks — ASPs were ~$1,640 in Q4 with ~+$500 upside possible from FDA xT CDx migration and other initiatives, but MolDx/CRC reimbursement and lumpiness in hereditary revenue create near‑term variability and uncertain gross‑margin timing.

Tempus AI Trading Down 4.0%

Shares of Tempus AI stock traded down $2.21 during mid-day trading on Friday, hitting $53.20. 1,645,603 shares of the stock were exchanged, compared to its average volume of 5,765,563. The stock has a market capitalization of $9.46 billion, a price-to-earnings ratio of -37.80 and a beta of 5.22. Tempus AI has a twelve month low of $36.22 and a twelve month high of $104.32. The company has a current ratio of 3.13, a quick ratio of 3.12 and a debt-to-equity ratio of 2.52. The company has a 50-day simple moving average of $61.57 and a 200 day simple moving average of $73.33.

Wall Street Analysts Forecast Growth

TEM has been the subject of several recent analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of Tempus AI from $80.00 to $60.00 and set a “neutral” rating for the company in a research note on Wednesday. Needham & Company LLC decreased their price target on Tempus AI from $100.00 to $75.00 and set a “buy” rating on the stock in a research note on Wednesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Tempus AI in a research note on Thursday, January 22nd. Piper Sandler reduced their price objective on Tempus AI from $105.00 to $80.00 and set a “neutral” rating for the company in a report on Tuesday, November 11th. Finally, BTIG Research dropped their price target on Tempus AI from $105.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday. Eight analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Tempus AI presently has an average rating of “Moderate Buy” and a consensus price target of $79.31.

Key Headlines Impacting Tempus AI

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Q4 / FY update beat and guidance shows path to EBITDA inflection — Tempus reported strong revenue and margin improvement (Q4 upside, full‑year 2026 guidance that targets an inflection to positive adjusted EBITDA), supporting a longer‑term growth/profitability narrative. Tempus AI, Inc. Q4 2025 Earnings Call Summary
• Positive Sentiment: New diagnostics and partnerships expand product pipeline — Tempus launched an HRD‑RNA oncology algorithm and expanded lung‑cancer screening distribution via a partnership with Median Technologies, strengthening its diagnostics/data moat and future revenue drivers. Tempus AI Deepens Precision Oncology Role With New HRD And Lung Tools
• Neutral Sentiment: Analyst valuation view trimmed but not dramatically altered — One independent fair‑value estimate was reduced slightly (from ~$87.92 to ~$86.71), reflecting modest valuation tightening while still leaving upside for some investors tracking targets. How The Tempus AI (TEM) Investment Story Is Evolving With New Data And Valuation Views
• Neutral Sentiment: Investor access / management visibility — CEO Eric Lefkofsky will participate in the Morgan Stanley TMT conference (March 3), which could provide additional management detail and a near‑term catalyst if commentary reassures the market. Tempus to Participate in the Morgan Stanley Technology, Media & Telecom Conference
• Negative Sentiment: Analyst downgrades / price‑target cuts pressured the stock — Multiple firms trimmed targets (JPMorgan cut to $60 and moved to neutral; Needham and BTIG lowered targets as well), amplifying selling pressure after the report. Tempus AI (NASDAQ:TEM) Shares Down 7.4% After Analyst Downgrade
• Negative Sentiment: ESOP shelf registration raises dilution concerns — The company filed an ESOP‑related shelf (~$343.4M), which investors are viewing as a potential near‑term dilution source and a reason for caution despite the operational beat. Why Tempus AI (TEM) Is Down 7.5% After 2025 Results, 2026 Outlook And ESOP Shelf Registration – And What’s Next
• Negative Sentiment: Market reaction focused on profitability cadence & execution risk — Despite strong organic growth and data advantages (large proprietary dataset), some investors remain concerned about the timing of sustained profitability, leverage and execution risk — factors cited in sell‑side commentary and follow‑up pieces after the earnings release. Tempus AI Posts 83% Revenue Growth Yet Stumbles on Full Year Profitability Target

Insider Activity

In other news, CFO James William Rogers sold 10,084 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $59.05, for a total transaction of $595,460.20. Following the completion of the transaction, the chief financial officer owned 101,166 shares of the company’s stock, valued at $5,973,852.30. This represents a 9.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Andrew Polovin sold 10,949 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $60.31, for a total transaction of $660,334.19. Following the completion of the sale, the executive vice president directly owned 126,918 shares in the company, valued at $7,654,424.58. This represents a 7.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 596,035 shares of company stock valued at $37,505,125 in the last 90 days. Insiders own 26.27% of the company’s stock.

Institutional Trading of Tempus AI

A number of institutional investors have recently modified their holdings of the company. JPL Wealth Management LLC purchased a new stake in Tempus AI during the 3rd quarter worth $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Tempus AI during the fourth quarter valued at about $27,000. Harvest Fund Management Co. Ltd purchased a new stake in shares of Tempus AI during the third quarter worth about $38,000. EverSource Wealth Advisors LLC lifted its stake in shares of Tempus AI by 88.8% in the second quarter. EverSource Wealth Advisors LLC now owns 691 shares of the company’s stock worth $44,000 after acquiring an additional 325 shares in the last quarter. Finally, Danske Bank A S acquired a new position in shares of Tempus AI in the third quarter worth about $48,000. Hedge funds and other institutional investors own 24.22% of the company’s stock.

About Tempus AI

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company’s core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.