Tempus AI (NASDAQ:TEM) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

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

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

NASDAQ:TEM traded down $1.74 on Tuesday, hitting $54.07. The company’s stock had a trading volume of 5,701,474 shares, compared to its average volume of 5,470,119. The company has a current ratio of 3.13, a quick ratio of 3.00 and a debt-to-equity ratio of 2.52. The stock has a fifty day moving average of $50.56 and a two-hundred day moving average of $62.91. The firm has a market capitalization of $9.67 billion, a P/E ratio of -38.35 and a beta of 3.99. Tempus AI has a one year low of $41.73 and a one year high of $104.32.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. JPMorgan Chase & Co. decreased their target price on Tempus AI from $80.00 to $60.00 and set a “neutral” rating for the company in a research note on Wednesday, February 25th. Robert W. Baird started coverage on Tempus AI in a research note on Tuesday, February 17th. They issued an “outperform” rating and a $59.00 target price for the company. HC Wainwright boosted their target price on Tempus AI from $89.00 to $95.00 and gave the company a “buy” rating in a research note on Monday, March 9th. Mizuho started coverage on Tempus AI in a research note on Thursday, February 19th. They issued an “outperform” rating and a $100.00 target price for the company. Finally, Jefferies Financial Group started coverage on Tempus AI in a research note on Monday, April 13th. They issued an “underperform” rating and a $35.00 target price for the company. Nine equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Tempus AI presently has a consensus rating of “Moderate Buy” and an average target price of $71.36.

Insider Transactions at Tempus AI

In other news, CFO James William Rogers sold 10,084 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $59.05, for a total value of $595,460.20. Following the transaction, the chief financial officer owned 101,166 shares of the company’s stock, valued at approximately $5,973,852.30. This represents a 9.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Andrew Polovin sold 10,949 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $60.31, for a total value of $660,334.19. Following the completion of the transaction, the executive vice president directly owned 126,918 shares in the company, valued at $7,654,424.58. The trade was a 7.94% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 563,471 shares of company stock valued at $29,837,342. Company insiders own 24.26% of the company’s stock.

Hedge Funds Weigh In On Tempus AI

Institutional investors and hedge funds have recently made changes to their positions in the company. Advisory Services Network LLC acquired a new stake in Tempus AI during the third quarter worth approximately $256,000. Empowered Funds LLC acquired a new stake in Tempus AI during the fourth quarter worth approximately $231,000. Orion Porfolio Solutions LLC acquired a new stake in Tempus AI during the third quarter worth approximately $231,000. Hilltop Holdings Inc. acquired a new stake in Tempus AI during the fourth quarter worth approximately $216,000. Finally, Rhumbline Advisers acquired a new stake in Tempus AI during the first quarter worth approximately $116,000. Institutional investors and hedge funds own 24.22% of the company’s stock.

Tempus AI Company Profile

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.