Tempus AI (NASDAQ:TEM) Announces Quarterly Earnings Results

Tempus AI (NASDAQ:TEM) released its quarterly earnings results on Tuesday. The company reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.21) by $0.08, FiscalAI reports. The firm had revenue of $348.12 million for the quarter, compared to analysts’ expectations of $345.44 million. Tempus AI had a negative net margin of 19.27% and a negative return on equity of 53.30%. The business’s revenue was up 36.1% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.24) EPS.

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

• Tempus raised full-year guidance to $1.59–$1.60 billion in revenue with ~$65 million adjusted EBITDA after reporting Q1 revenue of $348.1M, up ~36% year‑over‑year.
• The data & applications business showed strong momentum with $87M revenue (+40.5% YoY), third straight quarter of bookings >$100M, growing TCV, and new/expanded strategic collaborations including Merck and Gilead.
• Diagnostics performance was mixed: therapy‑selection oncology revenue and units were strong (~28% unit growth), hereditary testing slowed but is expected to return to mid‑teens growth in H2, and MRD volumes are rising but ramp is being paced by reimbursement dynamics.
• Operationally, Q1 free cash flow was impacted by timing and payables but management expects significant improvement in Q2, continuing EBITDA improvement across the year, and says the company does not need additional financing.

Tempus AI Stock Performance

Shares of TEM traded down $1.74 during mid-day trading on Tuesday, hitting $54.07. 5,701,474 shares of the company’s stock were exchanged, compared to its average volume of 5,470,119. Tempus AI has a 52 week low of $41.73 and a 52 week high of $104.32. The stock’s 50-day simple moving average is $50.56 and its 200-day simple moving average is $62.91. The firm has a market cap of $9.67 billion, a price-to-earnings ratio of -38.35 and a beta of 3.99. The company has a quick ratio of 3.00, a current ratio of 3.13 and a debt-to-equity ratio of 2.52.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Stifel Nicolaus set a $60.00 price target on shares of Tempus AI in a report on Wednesday, February 25th. Mizuho assumed coverage on shares of Tempus AI in a report on Thursday, February 19th. They issued an “outperform” rating and a $100.00 price target on the stock. Guggenheim lowered their price target on shares of Tempus AI from $95.00 to $60.00 and set a “buy” rating on the stock in a report on Monday, March 30th. Wall Street Zen cut shares of Tempus AI from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Finally, Morgan Stanley lowered their target price on shares of Tempus AI from $85.00 to $70.00 and set an “overweight” rating on the stock in a report on Tuesday, March 3rd. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Tempus AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $71.36.

Insider Activity at Tempus AI

In other news, CEO Eric P. Lefkofsky sold 166,250 shares of the firm’s stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $51.13, for a total transaction of $8,500,362.50. Following the transaction, the chief executive officer directly owned 8,841,783 shares of the company’s stock, valued at approximately $452,080,364.79. This trade represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Erik Phelps sold 9,464 shares of the firm’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $59.43, for a total transaction of $562,445.52. Following the transaction, the executive vice president directly owned 79,816 shares in the company, valued at $4,743,464.88. This represents a 10.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 563,471 shares of company stock valued at $29,837,342. 24.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Advisory Services Network LLC acquired a new position in Tempus AI during the third quarter valued at approximately $256,000. Empowered Funds LLC acquired a new position in Tempus AI during the fourth quarter valued at approximately $231,000. Orion Porfolio Solutions LLC acquired a new position in Tempus AI during the third quarter valued at approximately $231,000. Hilltop Holdings Inc. acquired a new position in Tempus AI during the fourth quarter valued at approximately $216,000. Finally, Rhumbline Advisers acquired a new position in Tempus AI during the first quarter valued at approximately $116,000. 24.22% of the stock is currently owned by institutional investors and hedge funds.

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.