| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 7 | — | 17.3x | Bottom tier | |
Growth | 76 | 50.4% | 7.1% | Top tier | |
Quality | 33 | -18.2% | 4.4% | Bottom tier | |
Safety | 23 | — | 2.6x | Bottom tier | |
Capital Return | 0 | 0.00% | 0.06% | Bottom tier | |
Momentum | 66 | -6.6% | -1.7% | Top tier | |
Sentiment | 45 | 9 | 3 | Around median |
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Tempus AI combines genomic diagnostics, medical data licensing, and the development of models and applications for pharmaceutical companies. It generates revenue from oncology and hereditary cancer tests, and from granting customers licenses to use data and modeling tools within its Lens platform. In quarter 2 of fiscal year 2026 (ended 2026-06-30), the diagnostics segment generated revenue of $289.3 million, compared with $93.2 million for the data and applications segment, making testing the largest revenue base, with a faster-growing contribution from the data business.
Tempus AI's revenue in quarter 2 of fiscal year 2026 was approximately $382.5 million, up 21.6% from the same quarter of the previous fiscal year, with net income of $5.6 million and diluted earnings per share of $0.03. However, the operating margin remained negative at -19.8%, compared with -19.6% in quarter 2 of fiscal year 2025; net profit therefore did not reflect a shift to operating profitability, particularly as it included $98.5 million in unrealized gains on marketable securities in quarter 2 of fiscal year 2026.
The figures for the last 12 months through 2026-06-30 show that sustainable profitability and cash generation remain the central test: revenue was $1.4 billion and the net loss was $254.4 million, while operating cash flow according to EL7 data was negative at -$237.4 million. Nevertheless, operating cash flow according to EL7 data improved to -$7.5 million in quarter 2 of fiscal year 2026, compared with -$73.3 million in quarter 1 of fiscal year 2026. The path to improvement is linked to rising oncology test volumes, expanding data contracts, and translating regulatory approvals into higher reimbursement rates for tests.
Q2 FY2026
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-06-30
When: 2026-11-02
Revenue growth compared with the same quarter of the previous fiscal year at the 21.6% threshold
Operating margin at the -19.8% threshold
Operating cash flow according to EL7 data at the -$7.5 million threshold
The median analyst price target is $73, within a range of $50 to $92 across 4 analysts, providing a low-confidence indicative estimate that reflects their expectations for growth and future performance. This median is close to the consensus average of $72.6, but the wide range reveals clear differences in assessments of Tempus AI's ability to convert diagnostics and data growth into earnings and cash. Analyst price targets inherently tend toward optimism, while no other calculated values are available to allow a numerical comparison between valuation methods. In the data for the period ended 2026-06-30, EL7's valuation pillar, which measures the relative attractiveness of valuation multiples, scored 11 out of 100 within the industry and ranked 42 out of 47, placing it behind most peers on this pillar.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
The company generated $289.3 million from diagnostics and $93.2 million from data and applications in quarter 2 of fiscal year 2026 (ended 2026-06-30). Its diagnostics business includes oncology and hereditary cancer tests, while the data business enables medical information licensing and the use of modeling tools within Lens. On the 2026-07-30 call, management explained that some customers build models within its environment and use its graphics processing units, expanding the relationship beyond simply delivering data files. Increased algorithm use does not automatically mean direct revenue, as their attachment rate to solid tumor tests reached 45% in quarter 2 of fiscal year 2026, with many still provided free of charge.
Tempus AI recorded net income of $5.6 million in quarter 2 of fiscal year 2026 (ended 2026-06-30), but the result included $98.5 million in unrealized gains on marketable securities. The operating margin remained at -19.8% in the same quarter, despite adjusted earnings before interest, taxes, depreciation, and amortization of $8.0 million. The net loss totaled $254.4 million for the last 12 months through 2026-06-30, making it necessary to distinguish between quarterly net profit and sustainable operating profitability. Management expects adjusted earnings before interest, taxes, depreciation, and amortization of approximately $65 million for fiscal year 2026, but this remains forward-looking guidance.
On the 2026-07-30 call, management announced that the tumor-only xT CDx test had received FDA approval, enabling the solid tumor DNA testing portfolio to transition to unified ADLT pricing. It expected a $200 increase in the average test price and an annual revenue impact of approximately $85 million beginning in fiscal year 2027. xF was under FDA review, and management expected approval and market availability in the second half of fiscal year 2027 and a $550 increase in the average test price. Management estimated the combined impact of the two tests at approximately $400 million in incremental revenue in fiscal year 2028, with the xF portion remaining conditional on approval and the realization of pricing assumptions.
The agreement to acquire Personalis was announced on 2026-07-20 to expand minimal residual disease MRD testing and enrich cancer recurrence monitoring data used in pharmaceutical research. MRD test volumes reached approximately 9,000 in quarter 2 of fiscal year 2026 (ended 2026-06-30), compared with approximately 6,500 in quarter 1 of fiscal year 2026, up 38% from the previous quarter. Management explained that approximately 10% of the sales team was selling these tests, and that broader expansion was linked to improved reimbursement and test economics approaching breakeven. The agreement was structured with stock consideration and an option to pay up to 50% in cash, so its potential impact combines business expansion with financing, dilution, and closing risks.
During the ninety days through 2026-10-19, 101 open-market sales by 9 insiders were recorded, with a total value of $84.5 million. The sales included $75.6 million under prearranged 10b5-1 trading plans and $8.9 million outside such plans. No open-market purchases were recorded during the same period, and the largest seller was an executive who sold $69.7 million. These figures alone do not establish the motives behind the transactions or the trajectory of the company's operating performance.