Tempus AI Stock Soars 108% in 2025 Amid Mixed Q4 Earnings and Future Prospects

Tempus AI Stock Has Soared 108% Already in 2025; Is It a Buy Now? | The Motley Fool

Only time will tell if the market enthusiasm that drove artificial intelligence (AI) stocks higher in 2024 will extend through 2025. But one ticker that may be less recognizable among the AI crowd is certainly off to a roaring start since the ball fell on New Year's Eve. Skyrocketing 108% since the start of 2025, Tempus AI (TEM 1.12%), a company applying AI solutions to healthcare, has seen its stock perform exceptionally well this year. Investors have found the company's use of AI to enhance physicians' abilities to diagnose patients (thereby improving patient care) enticing. The company does this with the help of its proprietary technology for developing what it characterizes as "one of the largest libraries of clinical and molecular oncology data in the world." Many potential investors, however, are likely left wondering if the stock has gotten ahead of itself and is better left alone right now, or if today is still a good time to click the buy button. Completing its initial public offering on June 14, Tempus AI stock closed at $40.25, and while it rose above this mark from time to time in the second half of 2024, the stock ended the year on a sour note, closing at $33.76. The catalyst for the stock's rise in 2025 came in mid-January, when investors recognized that Cathie Wood's Ark Invest had taken a decisively bullish view on the stock. Undeterred by the company's Jan. 13 announcement of preliminary fourth-quarter 2024 financial results that projected revenue short of analysts' estimates, both the Ark Innovation ETF and the Ark Genomic Revolution ETF added to their positions in Tempus AI. Several days later, both exchange-traded funds built up their positions even further. Now, Tempus AI features prominently in the Ark Innovation ETF and Ark Genomic Revolution ETF, where it holds the seventh- and second-largest positions, respectively. More recently, investors celebrated the company's announcement that it's working with the Institute for Follicular Lymphoma Innovation to create a library of follicular lymphoma data, which researchers could use to gain insights into the disease. Following the announcement of this collaboration, shares of Tempus AI closed 13% higher. While Tempus AI stock received a lift from the Ark Innovation ETF and Ark Genomic Revolution ETF buying activity, the company needs to show the market that its AI solutions are receiving continued -- and growing -- interest from customers. To assess this, investors should look for a couple of signals. One green flag, for example, is if the company is reporting growth in its genomics business, which provides next-generation sequencing (NGS). In 2022 and 2023, Tempus AI reported year-over-year growth in its oncology NGS tests delivered of 53% and 48%, respectively. Should the company report a further decline in 2024 and the subsequent quarters, it would certainly be an inauspicious sign for a core part of its business. Another important metric for investors to monitor is the company's net revenue retention. Tempus AI has achieved success recently in furthering its relationships with current customers. In this regard, Tempus AI had a net revenue retention rate of 125% in 2023. If the company reports net revenue retention in 2024 that dips below 100%, it would represent a warning sign that customers are finding Tempus AI's offerings inadequate. Of course, the company's attempt to achieve profitability should also be on investors' radars. While prospective investors will want to see Tempus AI achieve its 2024 guidance and report 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative $65 million, they will also want to see that management remains committed to its belief that the company will generate positive EBITDA on an adjusted basis in 2025. After seeing Tempus AI stock soar over the past two months, the knee-jerk reaction may be to conclude that it's too late to initiate a position. Dig a little deeper, and investors will find that the stock's recent rise hasn't resulted in an exorbitant valuation. Since the growth company is still unprofitable, the price-to-earnings ratio isn't much use. Assessing the stock's price tag in terms of sales, however, shows that shares are reasonably valued, trading at a price-to-sales ratio of 22.8. It's critical to acknowledge that a growth stock such as Tempus AI is sure to endure some volatility in the days ahead, but those with a higher tolerance for risk may find that they're substantially rewarded in the future.

Tempus AI Earnings: Growth Is Here, But So Are The Risks (NASDAQ:TEM)

Looking for a helping hand in the market? Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Learn More " Investment Thesis Tempus AI (NASDAQ:TEM) delivered a very mixed Q4 2024 earnings report that saw its shares sell off about 15% after hours. The main takeaway here is that Tempus' core business is expected to grow at Strong Investment Potential My Marketplace highlights a portfolio of undervalued investment opportunities - stocks with rapid growth potential, driven by top quality management, while these stocks are cheaply valued. I follow countless companies and select for you the most attractive investments. I do all the work of picking the most attractive stocks. Investing Made EASY As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Deep Value Returns' Marketplace continues to rapidly grow.Check out members' reviews.High-quality, actionable insightful stock picks.The place where value is everything. Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year. With a focus on tech and "the Great Energy Transition (including uranium)", Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outstanding professional experience in tech and energy and a following of over 40K on Seeking Alpha. Michael is the leader of the investing group Deep Value Returns Features of the group include: Insights through his concentrated portfolio of value stocks, timely updates on stock picks, a weekly webinar for live advice, and "hand-holding" as-needed for new and experienced investors alike. Deep Value Returns also has an active, vibrant, and kind community easily accessible via chat. Learn more Seeking FCF is an associate of Michael Wiggins De Oliveira Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Tempus AI Stock Gears Up For Q4 Earnings After 101% YTD Surge - Tempus AI (NASDAQ:TEM)

Tempus AI Inc TEM will be reporting its fourth-quarter earnings on Monday. Wall Street expects a loss of 20 cents per share and $203.12 million in revenues as the company reports after market hours. The stock is up over 70% over the past year, 101% YTD. Let's look at what the charts indicate for Tempus AI stock and how the stock currently maps against Wall Street estimates. Read Also: Tempus AI Executives Sell $20 Million In Stock As Cathie Wood Buys And Nancy Pelosi Eyes Options Tempus AI Stock Technicals Mixed Ahead Of Q4 Earnings Chart created using Benzinga Pro Tempus AI stock is showing a mixed technical picture, with a moderately bearish trend and ongoing selling pressure, indicating potential downside risk. The stock, at $69.85, sits well below its eight-day simple moving average of $78.67, a bearish signal suggesting near-term weakness. However, the stock remains above its 20-day and 50-day simple moving averages of $68.19 and $50.50, both bullish indicators pointing to underlying support. The 200-day simple moving average is unavailable, but the Moving Average Convergence Divergence (MACD) reading of 7.67 reinforces the bullish outlook, while the Relative Strength Index (RSI) at 54.48 suggests neutral momentum without signaling overbought or oversold conditions. For investors, Tempus AI stock appears to be at a crossroads, with short-term bearish pressure but enough technical support to warrant cautious optimism. Tempus AI Analysts See 13.5% Upside Ratings & Consensus Estimates: The consensus analyst rating on Tempus AI stock stands at a Buy currently with a price target of $59.60. TD Cowen, Loop Capital and Needham's recent ratings imply a 13.52% downside for Tempus AI stock, with an average $60.67 price target. TEM Price Action: Tempus AI stock was up 1% at $68.96 at the time of publication Monday. Read Next: Tempus AI Sees Surge In Institutional Holdings In Q4: Cathie Wood's Ark Invest, JPMorgan, And BlackRock Load Up On TEM Stock Image created using artificial intelligence via Midjourney. TEMTempus AI Inc$68.851.12%OverviewMarket News and Data brought to you by Benzinga APIs

Tempus AI Costs, Outlook Send Stock Sharply Lower

Tempus AI gave weaker-than-expected guidance for full-year adjusted EBITDA. Shares of Tempus AI (TEM) sank 17% Tuesday, a day after the provider of artificial intelligence medical technology reported worse-than-anticipated results and guidance, with costs rising as the company expanded. Tempus posted a fourth-quarter adjusted net loss of $0.18 per share, $0.02 more per share than estimates by analysts surveyed by Visible Alpha. Revenue jumped 36% year-over-year to $200.7 million, but that also was below expectations. Sales at the genomics unit were up more than 30% to $120.4 million, and they increased nearly 45% to $80.2 million at the data and services business. The company's non-GAAP operating expenses grew 6.5% to $142.5 million. In a letter to shareholders, founder and CEO Erik Lefkofsky and CFO Jim Rogers explained that while Tempus reduced its ramp up in hiring during 2024, "a portion of the year-over-year increases in Non-GAAP operating expenses was driven by increases in the salesforce related to expanding territories to account for growth in overall testing volume and the launch of our MRD assays, along with modest increases in our technology and R&D staff." Tempus sees full-year adjusted EBITDA of $5 million, while the Visible Alpha outlook was for nearly $6 million. It sees revenue at $1.24 billion, slightly above forecasts. Tempus AI shares only began being traded publicly last June, and despite today's drop they're still about 45% above their initial price.

Tempus AI Q4 Earnings: Revenue Miss, EPS Beat, Strong Guidance, Shares Move Lower - Tempus AI (NASDAQ:TEM)

Tempus AI Inc TEM reported fourth-quarter financial results after the market close on Monday. Here's a look at the key metrics from the quarter. Q4 Earnings: Tempus AI reported fourth-quarter revenue of $200.68 million, missing estimates of $203.12 million. The AI-focused precision medicine and patient care company reported a fourth-quarter adjusted loss of 18 cents per share, beating analyst estimates for a loss of 20 cents per share, according to Benzinga Pro. Total revenue was up 35.8% year-over-year as data and services revenue grew 44.6% to $80.2 million. Genomics grew 30.6% year-over-year to $120.4 million and unit growth came in at 22.5% year-over-year. Tempus AI said it ended the quarter with $940 million in total remaining contract value and 140% net revenue retention. The company had approximately $340.95 million in cash and equivalents at quarter's end. "We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025," said Eric Lefkofsky, founder and CEO of Tempus AI. Check This Out: Salesforce & Google Supercharge AI: New Partnership Unlocks Next-Gen Business Automation Guidance: Tempus AI expects full-year 2025 revenue of approximately $1.24 billion for its consolidated Tempus and Ambry Genetics business, which represents approximately 79% annual growth. Analysts are looking for full-year revenue of $1.02 billion, according to Benzinga Pro estimates. The company said it anticipates a full-year 2025 adjusted EBITDA of $5 million, versus a full-year adjusted EBITDA loss of $104.7 million in full-year 2024. Management will further discuss the company's quarterly performance on a conference call that kicks off at 4:30 p.m. ET. TEM Price Action: Tempus AI shares were up more than 105% year-to-date heading into the print. The stock has seen increased attention in recent weeks since former House Speaker Nancy Pelosi disclosed the purchase of several call options that don't expire until 2026. Tempus AI shares were down 7.63% after hours, trading at $64 at the time of publication Monday, according to Benzinga Pro. Photo: Courtesy of Tempus AI. TEMTempus AI Inc$61.81-9.22%OverviewMarket News and Data brought to you by Benzinga APIs

What's Going On With Tempus AI Shares Monday? - Tempus AI (NASDAQ:TEM)

Tempus AI, Inc. TEM shares are moving higher on Monday. The company may be moving higher ahead of its 2024 fiscal-year fourth-quarter earnings report, which is scheduled to be released after the market closes. What To Know: Analysts estimate a loss per share of 20 cents and revenue of $203.12 million, according to data from Benzinga Pro. In its preliminary earnings report for the quarter, the company guided revenue of about $200 million. It also expects the trend of sequential improvement in adjusted EBITDA to continue. "We concluded 2024 with continued strength in our core businesses, as genomics revenue is expected to grow at ~30% in Q4 and our data and services revenue is expected to grow at ~45%, such that we expect to deliver ~99% of our revenue guidance for 2024 and ~100% of our adjusted EBITDA guidance," said Eric Lefkofsky, Founder and CEO of Tempus. "Despite some softness in our CRO revenues, our core businesses gained momentum throughout the year." For the 2024 fiscal year third quarter, the company reported a loss of 25 cents per share, missing analysts' estimate of a loss of 21 cents. In addition, Tempus reported revenue of $180.93 million, missing analysts' estimate of $207.82 million. See Also: Dollar Dips As Fed Holds Line, But JPMorgan Says Floor Is Near TEM Price Action: At the time of writing, Tempus stock is trading 3.76% higher at $70.67, per data from Benzinga Pro. Image: via Tempus TEMTempus AI Inc$72.035.79%OverviewMarket News and Data brought to you by Benzinga APIs

Tempus AI Stock Is Tumbling Tuesday: What's Happening? - Tempus AI (NASDAQ:TEM)

Tempus AI Inc TEM shares are trading lower Tuesday after the company reported mixed fourth-quarter financial results. JPMorgan also downgraded the stock following the print. Q4 Revenue: $200.68 million, versus estimates of $203.12 million Q4 EPS: Loss of 18 cents, versus estimates for a loss of 20 cents Revenue was up 35.8% year-over-year as data and services revenue grew 44.6% to $80.2 million. Genomics revenue grew 30.6% year-over-year to $120.4 million and unit growth came in at 22.5%. Tempus AI ended the quarter with $940 million in total remaining contract value and 140% net revenue retention. The company had approximately $340.95 million in cash and equivalents at quarter's end. "We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives," said Eric Lefkofsky, founder and CEO of Tempus AI. "We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive adjusted EBITDA in 2025." Check This Out: Intel Deploys ASML's Advanced EUV Machines, Aims to Challenge Taiwan Semiconductor's Lead Tempus AI expects full-year 2025 revenue of approximately $1.24 billion for its consolidated Tempus and Ambry Genetics business, versus estimates of $1.02 billion, according to Benzinga Pro. Following the company's quarterly results, JPMorgan analyst Rachel Vatnsdal downgraded Tempus AI from Overweight to Neutral and raised the price target from $50 to $55. Needham analyst Ryan MacDonald maintained a Buy rating and raised the price target from $56 to $70. TEM Price Action: Tempus AI shares were down 10.1% at $62.56 at the time of publication Tuesday, according to Benzinga Pro. Photo: Shutterstock. TEMTempus AI Inc$64.36-7.49%OverviewMarket News and Data brought to you by Benzinga APIs

The Analyst Verdict: Tempus AI In The Eyes Of 7 Experts - Tempus AI (NASDAQ:TEM)

Tempus AI TEM underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish. The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 4 1 2 0 0 Last 30D 0 0 1 0 0 1M Ago 1 0 0 0 0 2M Ago 2 0 0 0 0 3M Ago 1 1 1 0 0 Insights from analysts' 12-month price targets are revealed, presenting an average target of $60.71, a high estimate of $74.00, and a low estimate of $52.00. This current average has increased by 12.95% from the previous average price target of $53.75. Interpreting Analyst Ratings: A Closer Look The standing of Tempus AI among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets. Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target Rachel Vatnsdal JP Morgan Raises Neutral $55.00 $50.00 Dan Brennan TD Cowen Announces Buy $74.00 - Mark Schappel Loop Capital Lowers Buy $52.00 $57.00 Ryan MacDonald Needham Maintains Buy $56.00 $56.00 Michael Ryskin B of A Securities Raises Neutral $54.00 $52.00 Doug Schenkel Wolfe Research Announces Outperform $60.00 - Subbu Nambi Guggenheim Announces Buy $74.00 - Key Insights: Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Tempus AI. This offers insight into analysts' perspectives on the current state of the company. Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Tempus AI compared to the broader market. Price Targets: Understanding forecasts, analysts offer estimates for Tempus AI's future value. Examining the current and prior targets provides insight into analysts' changing expectations. Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Tempus AI's market standing. Stay informed and make data-driven decisions with our Ratings Table. Stay up to date on Tempus AI analyst ratings. Delving into Tempus AI's Background Tempus AI Inc is a technology company. It has built the Tempus Platform, which comprises both a technology platform to free healthcare data from silos and an operating system to make the resulting data useful. Its Intelligent Diagnostics use AI, including generative AI, to make laboratory tests more accurate, tailored, and personal. Tempus AI's Economic Impact: An Analysis Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale. Revenue Growth: Tempus AI displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 32.98%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers. Net Margin: Tempus AI's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -41.92%, the company may face hurdles in effective cost management. Return on Equity (ROE): Tempus AI's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -99.8%, the company may face hurdles in generating optimal returns for shareholders. Return on Assets (ROA): Tempus AI's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -8.26%, the company may encounter challenges in delivering satisfactory returns from its assets. Debt Management: Tempus AI's debt-to-equity ratio is notably higher than the industry average. With a ratio of 8.78, the company relies more heavily on borrowed funds, indicating a higher level of financial risk. What Are Analyst Ratings? Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter. Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights. Breaking: Wall Street's Next Big Mover Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details. This article was generated by Benzinga's automated content engine and reviewed by an editor. TEMTempus AI Inc$59.01-15.2%OverviewMarket News and Data brought to you by Benzinga APIs