Summary

• Tempus AI, Inc. is positioned as a data-driven precision medicine leader, leveraging AI and a vast multi-modal patient database to drive diagnostics and biopharma partnerships.
• TEM’s dual business model—genomic diagnostics and data licensing—creates network effects, with diagnostics feeding a proprietary data moat that underpins high-margin, scalable growth.
• Despite a 50% share price decline from highs and ongoing unprofitability, TEM’s rising revenues, expanding gross margins, and robust contract pipeline support a strong buy rating for long-term investors.
• Key forward metrics include total contract value ($1.1B), net retention rate (126%), and accelerating Data & Applications revenue, with TEM management raising 2026 guidance to $1.59–1.6B.

Tempus AI, Inc. (TEM) is headquartered in Chicago, IL, and was founded by Eric Lefkofsky in 2015. Tempus describes itself as a "health technology" company. It is at the forefront of the movement to harness AI and big data

1.07K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TEM, GH either through stock ownership, options, or other derivatives. 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.