With open floor plans, whiteboards covered in genetic data charts, and engineers and biologists working in the same room, Tempus AI occupies office space that resembles a tech startup on a peaceful side street in Chicago’s River North area. From the outside, it is more difficult to characterize what the company has developed over the last ten years. In order to help physicians make better decisions for cancer patients and others, it has put together one of the world’s largest libraries of connected clinical and molecular data, including genomic test results, treatment histories, imaging data, and outcomes. AI technologies have been developed on top of this collection. The concept is that each patient who undergoes testing contributes data that benefits subsequent patients. With each data point, the loop becomes more intelligent.
The tale of Tempus AI stock is more nuanced than that of the expedition. The stock has since dropped to about $47, more than 50% from its peak, after going public and reaching a high of $104 per share in 2025. Even for a healthcare IT business in its growth stage, the 52-week range is remarkably broad, ranging from $36.22 to $104.32. According to GAAP, the business is still losing money. Its creator, Eric Lefkofsky, has a convoluted record that some investors find comforting and others approach cautiously. He previously grew Groupon into a firm that went public at a $12 billion value before imploding. It has been difficult to hold the stock.
Key Information: Tempus AI, Inc. (TEM)
| Field | Details |
|---|---|
| Company Name | Tempus AI, Inc. |
| Stock Ticker | TEM (NASDAQ) |
| Founded | 2015 |
| Headquarters | Chicago, Illinois |
| Founder & CEO | Eric Lefkofsky (co-founder of Groupon) |
| Core Business | AI-driven precision medicine — genomics, radiology, cardiology diagnostics and data |
| Current Stock Price (Apr 9, 2026) | ~$47.50 |
| 52-Week Range | $36.22 – $104.32 |
| Market Cap | ~$8.49 billion |
| 2025 Annual Revenue | $1.27 billion (+83.4% year-over-year) |
| 2026 Revenue Guidance | ~$1.59 billion |
| 2026 Adjusted EBITDA Guidance | ~$65 million |
| Net Revenue Retention | 126% (as of year-end 2025) |
| Total Remaining Contract Value | $1.1 billion+ |
| GAAP EPS | Negative (loss narrowing toward breakeven) |
| Analyst Consensus | Moderate Buy — average price target ~$75.92 |
| Key Partnerships (2026) | Merck (March 2026), Daiichi Sankyo, Medtronic ALERT Trial |
However, the underlying business in 2025 was truly remarkable. Revenue for the entire year was $1.27 billion, an 83.4% increase over the previous year. The Data and Applications division, which grants pharmaceutical and biotech firms access to Tempus’s multimodal datasets, expanded even more quickly. This type of high-margin recurring revenue typically draws significant interest from investors. With a net revenue retention of 126%, current clients were increasing rather than decreasing their spending over time. By the end of 2025, the company had $759 million in cash and marketable securities, as well as over $1.1 billion in remaining contract value—work that had already been committed but not yet completed. These figures point to a company with genuine resilience rather than one that is likely to run out of runway if it is still reporting GAAP losses.
You can learn something about how the pharmaceutical sector has begun to view Tempus from the collaborations that were inked in early 2026. Merck and Tempus signed a multi-year strategic partnership in March 2026 to leverage Tempus’s de-identified patient data and AI techniques to speed up the search for cancer drugs, particularly to identify biomarkers that indicate which patients would respond to certain treatments.
A similar agreement was signed by Daiichi Sankyo, which concentrated on its pipeline of antibody-drug conjugate treatments. Medtronic released the ALERT trial results, which demonstrated that patients with severe valvular heart disease responded better to treatment thanks to Tempus’s AI-driven alerts within electronic health records. These collaborations are neither modest nor hypothetical. These are major pharmaceutical firms and manufacturers of medical devices who are paying actual money to use what Tempus has developed.
The discrepancy between that narrative and the stock price is difficult to ignore. With an average price objective of $75.92, or around 60% above the stock’s current price, the analyst community is in a “Moderate Buy” consensus. Based on the assumption that the Data and Applications segment will continue to compound and that the platform’s value to pharmaceutical partners will only increase as more patient data flows in, some targets approach $100 and above.
In short, the negative case is that the stock has already demonstrated that it may plummet sharply when sentiment shifts, the GAAP losses are genuine, and the route to profitability is uncertain. Because earnings are negative, the P/E ratio is meaningless. Believing in a future-focused narrative is necessary to value Tempus, and future-focused narratives have a tendency to be valued both too high and too low.
2026 feels like a turning point, according to public statements made by Eric Lefkofsky. Although it is not yet the same as GAAP profitability, the company’s first year of positive adjusted EBITDA—about $1.59 billion in revenue and roughly $65 million in adjusted EBITDA—is a significant accomplishment. The advancement is quantifiable.
The timing is accurate. However, for $47.50 a share, investors are being asked to decide whether the healthcare AI infrastructure that Tempus AI has spent ten years developing is as justifiable as its founders think. The answer might be in the affirmative. It’s also feasible that the stock will continue to decline until the market makes a decision. Tempus is one of the more intriguing and uncertain positions in healthcare technology at the moment because of this conflict between a truly attractive business and a price chart that has gone in both ways with equal conviction.