TEM Stock Risk & Deep Value Analysis
Tempus AI Inc
Healthcare • Health Information Services
DVR Score
out of 10
What You Need to Know About TEM Stock
We analyzed Tempus AI Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran TEM through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
TEM Risk Analysis & Red Flags
What Could Go Wrong
Without current financial updates, a primary risk is that the positive adjusted EBITDA trajectory from Q4 2025 might not have been sustained, potentially leading to a return to significant cash burn or requiring highly dilutive capital raises, which could severely impact share price.
Risk Matrix
Overall
Moderate
Financial
Medium
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Explicit lack of specific current financial filings (10-Q/K, earnings reports) or analyst data in the provided real-time market intelligence for a detailed up-to-date assessment.
- ⚠
High P/S ratio (6.9x per previous analysis) requires sustained high growth and a clear path to significant GAAP profitability to justify valuation.
- ⚠
Intense competition in the AI and precision medicine sector could erode market share or pricing power.
Upcoming Risk Events
- 📅
Failure to sustain positive adjusted EBITDA or achieve GAAP profitability
- 📅
Increased regulatory scrutiny on AI in healthcare or data privacy concerns
- 📅
Key competitor launches a superior AI-driven platform
When to Reconsider
- 🚪
Material and sustained deceleration in revenue growth (e.g., below 30% YoY for two consecutive quarters)
- 🚪
Return to negative adjusted EBITDA for two consecutive quarters without a clear, immediate plan to restore profitability
- 🚪
Significant loss of a major strategic partnership or failure to attract new key partners
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What Does Tempus AI Inc (TEM) Do?
Market Cap
$8.36B
Sector
Healthcare
Industry
Health Information Services
Employees
2,400
Tempus AI, Inc. operates as a healthcare technology company. It engages in providing next generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. The company offers Insights, a license library of linked clinical, molecular, and imaging de-identified data, as well as a suite of analytical services to analytic and cloud-and-compute tools to pharmaceutical and biotechnology companies; and Trials that provides clinical trial matching services to pharmaceutical companies. In addition, it operates Next; Algos, a suite of algorithmic tests in oncology; Hub, a desktop and mobile platform for ordering, managing, and receiving tests and patient results; and Lens, a platform for researchers and scientists to find, access, and analyze Tempus data. The company has a strategic collaboration agreement with AstraZeneca and Pathos AI, Inc. to develop therapeutic programs in oncology, as well as strategic collaboration with Personalis, Inc. and Whitehawk Therapeutics, Inc. The company was formerly known as Tempus Labs, Inc. and changed its name to Tempus AI, Inc. in January 2023. Tempus AI, Inc. was incorporated in 2015 and is headquartered in Chicago, Illinois.
Visit Tempus AI Inc WebsiteInvestment Thesis
Tempus AI is a high-growth company poised to transform precision medicine by leveraging its unique AI platform and extensive multi-modal data library. Its recent achievement of positive adjusted EBITDA, coupled with strong revenue growth and strategic partnerships, underscores its potential to capture significant market share within a vast and critical healthcare segment, making it a compelling candidate for 10x growth within 3-5 years, provided it sustains its execution.
Is TEM Stock Undervalued?
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TEM Price Targets & Strategy
12-Month Target
$NaN
Bull Case
$NaN
Bear Case
$NaN
Valuation Basis
Cannot provide a specific valuation rationale or price target due to the explicit lack of current financial data, analyst estimates, or SEC filings in the provided real-time intelligence.
Entry Strategy
N/A (Without current financial or technical data, specific entry points cannot be recommended.)
Exit Strategy
N/A (Without current financial or technical data, specific exit points cannot be recommended.)
Portfolio Allocation
N/A (Cannot provide a recommendation without current risk-adjusted data.)
Price Targets & Strategy
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Is TEM Financially Healthy?
Valuation
P/E Ratio
-33.16
Price/Sales
6.60
Profitability
Gross Margin
61.73%
Operating Margin
-21.37%
Net Margin
-18.45%
Return on Equity
-72.61%
EPS
$-1.19
Balance Sheet
Current Ratio
3.28
Quick Ratio
2.99
Debt/Equity
2.63
Total Debt
$1.34B
Cash & Equivalents
$759.64M
Cash Flow
Operating Cash Flow
-$220.55M
Free Cash Flow
-$244.81M
EBITDA
-$170.57M
Other
Beta (Volatility)
5.29
Does TEM Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Expanding
Moat Sources
3 Identified
Tempus's moat is primarily driven by its expanding, unique, and integrated multi-modal data library, which serves as a powerful input for its proprietary AI algorithms. This data-driven advantage creates a virtuous cycle and high switching costs for partners who rely on Tempus's insights, making it increasingly difficult for new entrants to compete effectively on data scale and quality.
Moat Erosion Risks
- •Rapid technological advancements by competitors potentially leapfrogging Tempus's AI capabilities
- •Strict regulatory changes regarding health data privacy or AI in clinical use
- •Challenges in continued data acquisition or integration with diverse healthcare systems
TEM Competitive Moat Analysis
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TEM Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (No specific data available in current intelligence to gauge retail sentiment beyond general market trends.)
Institutional Sentiment
Neutral (No specific analyst upgrades, downgrades, or target changes provided in current intelligence.)
Insider Activity (Form 4)
No specific Form 4 insider trading data was provided in the current intelligence.
Options Flow
Normal options activity (No specific data provided to indicate unusual options activity or significant institutional positioning beyond typical trading volumes.)
Earnings Intelligence
Next Earnings
Estimated early May 2026 for Q1 2026 (exact date not provided in current intelligence)
Surprise Probability
Medium
Historical Earnings Pattern
Based on the previous analysis, the market reacted positively to strong revenue growth and the achievement of positive adjusted EBITDA, suggesting a tendency for the stock to appreciate on fundamental improvements.
Key Metrics to Watch
Competitive Position
Top Competitor
Other AI-driven precision medicine companies (Specific competitor names not provided in current intelligence, but could include larger diagnostic/genomic firms or specialized AI biotechs).
Market Share Trend
Gaining (Inferred from previous analysis indicating solidification of position as a leader and expansion of moat.)
Valuation vs Peers
N/A (Cannot provide current valuation comparison without specific peer data and TEM's updated financials.)
Competitive Advantages
- •Proprietary multi-modal data library (clinical, genomic, imaging)
- •Advanced AI and machine learning algorithms for data analysis
- •Strategic partnerships with leading healthcare institutions and pharma companies
Market Intelligence
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What Could Drive TEM Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings Report (estimated early May 2026, exact date not provided)
- •Potential new strategic partnerships or data licensing agreements
Medium-Term (6-18 months)
- •Expansion into new therapeutic areas leveraging AI platform
- •Deepening integration with existing pharmaceutical partners for drug discovery
Long-Term (18+ months)
- •Achieving dominant market share in AI-driven precision oncology and beyond
- •Establishing the industry standard for AI-powered clinical decision support
Catalysts & Growth Drivers
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What's the Bull Case for TEM?
- ✓
Sustained acceleration in organic revenue growth and expanding gross margins
- ✓
Consistent achievement of positive free cash flow and GAAP profitability
- ✓
Announcement of new major partnerships or successful expansion into new disease areas
Bull Case Analysis
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Competing with TEM
See how Tempus AI Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Tempus AI Inc TEM | $8.4B | 9.1 | -33.2 | $1.1B | -18.4% | 0.0% | |
AbbVie Inc ABBV | $403.8B | 0.1 | 171.8 | — | — | — | Compare → |
Johnson & Johnson JNJ | — | 1.0 | — | — | — | — | Compare → |
Eli Lilly and Co LLY | $965.0B | 0.5 | 52.6 | — | — | — | Compare → |
Pfizer Inc PFE | $161.1B | 0.2 | 20.2 | $17.6B | 12.4% | -1.7% | Compare → |
UnitedHealth Group Inc UNH | $300.6B | 0.5 | 17.3 | — | — | — | Compare → |
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How Tempus AI Inc Makes Money
Tempus AI Inc. functions as an 'operating system' for precision medicine, utilizing artificial intelligence to analyze vast quantities of clinical and molecular data (including genomics, pathology images, and patient records). They primarily serve healthcare providers by offering advanced diagnostic insights to guide personalized treatment decisions, and pharmaceutical/biotech companies by accelerating drug discovery and clinical trials. Their core value proposition lies in making complex, diverse healthcare data actionable for better patient outcomes and faster therapeutic development.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Tempus AI Inc (TEM)?
As of April 10, 2026, Tempus AI Inc has a DVR Score of 9.1 out of 10, placing it in the "Hidden Gem" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Tempus AI Inc?
Tempus AI Inc's market capitalization is approximately $8.4B. The company operates in the Healthcare sector within the Health Information Services industry.
What ticker symbol does Tempus AI Inc use?
TEM is the ticker symbol for Tempus AI Inc. The company trades on the NMS.
What is the risk level for TEM stock?
Our analysis rates Tempus AI Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of TEM?
Tempus AI Inc currently has a price-to-earnings (P/E) ratio of -33.2. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Tempus AI Inc's revenue growing?
Tempus AI Inc has reported revenue growth of 0.0%. Revenue has been declining, which warrants closer examination.
Is TEM stock profitable?
Tempus AI Inc has a profit margin of -18.4%. The company is currently unprofitable.
How often is the TEM DVR analysis updated?
Our AI-powered analysis of Tempus AI Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 10, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for TEM (Tempus AI Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.