Tempus AI (NASDAQ:TEM) Announces Earnings Results, Beats Estimates By $0.01 EPS

Tempus AI (NASDAQ:TEM) posted its quarterly earnings data on Tuesday. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.01, FiscalAI reports. Tempus AI had a negative return on equity of 73.21% and a negative net margin of 18.45%.The firm had revenue of $367.21 million for the quarter, compared to the consensus estimate of $362.55 million. During the same quarter last year, the company earned ($0.18) earnings per share. The business’s revenue for the quarter was up 83.0% compared to the same quarter last year.

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 7.5%

NASDAQ TEM traded down $4.37 on Wednesday, reaching $53.58. The stock had a trading volume of 6,133,365 shares, compared to its average volume of 5,697,141. The company has a quick ratio of 3.12, a current ratio of 3.28 and a debt-to-equity ratio of 2.45. Tempus AI has a 12-month low of $36.22 and a 12-month high of $104.32. The firm has a market capitalization of $9.53 billion, a price-to-earnings ratio of -45.41 and a beta of 5.22. The stock has a fifty day moving average price of $61.92 and a two-hundred day moving average price of $73.59.

Insider Buying and Selling at Tempus AI

In other news, EVP Erik Phelps sold 9,464 shares of the business’s stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $59.43, for a total transaction of $562,445.52. Following the completion of the transaction, the executive vice president directly owned 79,816 shares of the company’s stock, valued at approximately $4,743,464.88. The trade was a 10.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Andrew Polovin sold 10,949 shares of the business’s stock in a transaction 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 transaction, the executive vice president owned 126,918 shares of the company’s stock, valued at approximately $7,654,424.58. The trade was a 7.94% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 596,035 shares of company stock valued at $37,505,125. Insiders own 26.27% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. JPL Wealth Management LLC acquired a new stake in Tempus AI during the 3rd quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Tempus AI in the 4th quarter worth about $27,000. Harvest Fund Management Co. Ltd acquired a new position in Tempus AI during the third quarter valued at approximately $38,000. Danske Bank A S purchased a new stake in Tempus AI during the 3rd quarter worth $48,000. Finally, Sunbelt Securities Inc. purchased a new stake in shares of Tempus AI during the 3rd quarter valued at about $52,000. Hedge funds and other institutional investors own 24.22% of the company’s stock.

Key Tempus AI News

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

• Positive Sentiment: Very strong revenue growth — Q4 revenue jumped ~83% YoY, beating consensus and showing broad strength across Diagnostics, MRD and Data businesses; RCV and retention metrics also look healthy. MarketBeat Q4 recap
• Positive Sentiment: FY‑2026 revenue guide is sizable — management outlined roughly $1.59B in 2026 revenue (≈25% growth guidance), which implies continued top‑line momentum and gives a clear growth runway to model. Seeking Alpha: 2026 revenue target
• Positive Sentiment: Margins improving — management reported narrower losses, higher gross profit and an adjusted EBITDA inflection to positive on a YoY basis, supporting the path to eventual sustained profitability. MarketBeat analysis
• Neutral Sentiment: Product/partnership expansion continues — launches like the HRD‑RNA algorithm and a lung‑screening partnership expand addressable market and could support longer‑term revenue, but near‑term financial impact is incremental. Yahoo Finance: product & partnership update
• Neutral Sentiment: Analysts largely remain constructive — several firms kept Buy/Overweight ratings (Morgan Stanley kept a $85 PT; Canaccord and others reiterated positives), showing institutional support despite the pullback. TipRanks: analyst notes
• Negative Sentiment: Profitability details disappointed some investors — headlines and market reaction focused on a wider‑than‑expected loss / operating shortfall in Q4 and ambiguity on the timing of full‑year profitability inflection, which undercut sentiment. Zacks: earnings miss / reaction
• Negative Sentiment: Price‑target cut and valuation concerns — BTIG trimmed its target from $105 to $90 (still constructive), highlighting mixed near‑term expectations; high leverage and elevated short interest add downside risk in volatile trading. Benzinga: BTIG target cut
• Negative Sentiment: Market reaction: despite beat‑and‑raise elements, investors sold on the mixed profit signal and cautious tone — that combination explains today’s pullback. 247WallSt: mixed reaction

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on TEM. JPMorgan Chase & Co. cut their price objective on shares of Tempus AI from $85.00 to $80.00 and set a “neutral” rating on the stock in a report on Monday, December 15th. Mizuho began coverage on shares of Tempus AI in a report on Thursday, February 19th. They set an “outperform” rating and a $100.00 price target on the stock. Needham & Company LLC cut their price objective on Tempus AI from $100.00 to $75.00 and set a “buy” rating for the company in a research report on Wednesday. BTIG Research reduced their price target on shares of Tempus AI from $105.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Morgan Stanley raised their price objective on Tempus AI from $80.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, December 1st. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Tempus AI has a consensus rating of “Moderate Buy” and an average target price of $82.58.

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.