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TEM −4.46% on Nov 12 · Analysis updated Nov 12, 2026, 4:46 PM ET
Why is Tempus AI, Inc. (TEM) stock down?
Tempus AI is trading after a strong Q3 report. Revenue was $411.5M (+23%), oncology volume growth accelerated to 32%, and adjusted EBITDA reached $25.6M. Full-year revenue guidance was raised to $1.60-$1.605B. Analysts followed with target increases (BTIG to $100, Cantor to $92) and a Jefferies upgrade to Hold. The stock jumped from about $67 on Oct 26 to a $84.44 close on Nov 9, near its 52-week high of $89.09. It then fell back to about $75.89 on Nov 12, a drop of roughly 4.5% on the day, as it gave up part of the gains. The moves are large and volume is uneven, with 17M shares on Nov 2 against an 8.1M average. A beta of 3.61 shows how volatile the stock is. Fundamentals are improving: adjusted EBITDA is positive, cash is $854M and a Bristol Myers Squibb deal adds validation. Against that, the company is still loss-making, valued at about 9.9x sales, and consensus ratings are mixed (Hold to Buy).
News behind the analysis
- Tempus Reports Third Quarter 2026 ResultsQ3 revenue was $411.5M, up 23%, with oncology volume growth of 32% and MRD volume up 300%. Full-year revenue guidance was raised to $1.60-$1.605B.
- Tempus AI Form 8-K: Q3 2026 resultsThe SEC filing confirms Q3 revenue of $411.5M and cash and marketable securities of $854.4M. Full-year adjusted EBITDA is expected at about $65M.
- Tempus AI beats Q3 2026 EPS forecast, lifts outlookAdjusted EPS was $0.07 against a $0.01 forecast. Management said it reinvests about two-thirds of incremental gross profit.
- Tempus AI Posts Strong Q3 Results, Raises 2026 Revenue GuidanceAdjusted EBITDA rose to $25.6M from $1.5M a year earlier. Valuation signals are mixed because the company is still loss-making.
- Tempus AI Reports Strong Q3 2026 Results Amid Strategic PartnershipA Bristol Myers Squibb partnership is potentially worth up to $137.5M over five years. The price-to-sales ratio is about 9.9.
- Weekly Research Analysts' Ratings Changes for Tempus AIAfter earnings, BTIG raised its target to $100 and Cantor to $92. Jefferies upgraded the stock to Hold from Underperform.
- AI Biotech Stocks to Watch: TEM, RXRX, and IBBThe article describes Tempus as the AI biotech name closest to cash revenue. MarketBeat shows a consensus Hold rating and a $79.37 target.
- Tempus AI (TEM) Stock Price & OverviewThe average analyst target is $86.56. The 52-week range is $40.77-$89.09 and beta is 3.61.
- Tempus AI: TEM Stock Price Quote & NewsOn Nov 11 the stock traded between $79.25 and $85.10, on volume of 4.17M against an 8.1M average. Market cap was about $14.5B.
About Tempus AI, Inc. Class A Common Stock
Tempus AI is a Chicago-based company that runs genomic and molecular tests, mainly for cancer patients, and uses AI on the large clinical and molecular dataset it builds to support precision medicine. It stands out because it pairs a fast-growing diagnostics lab with a business that licenses de-identified patient data and AI tools to drug companies. It was founded by Eric Lefkofsky, who is also its CEO.
How it makes money
Most revenue (roughly three-quarters) comes from Diagnostics: oncology genomic sequencing tests, minimal residual disease (MRD) tests that look for cancer left after treatment, and hereditary testing. These are billed to insurers, Medicare and providers. The rest (roughly a quarter) comes from Data and Applications, mainly licensing de-identified multimodal data and insights to pharma and biotech firms for drug discovery and clinical trials. Management guides to about $1.6 billion in 2026 revenue (roughly 25% growth) and has recently moved to around break-even on an adjusted basis.
What usually moves TEM
- Oncology and MRD test volume growth
- Reimbursement and Medicare coverage decisions
- Pharma demand for data licensing
- Progress toward sustained profitability
- Sentiment toward AI and high-growth stocks