Tempus AI Inc. Class A Common Stock (TEM)

FairStock Score: 19/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett style investor, I start with whether the business earns durable profits. Tempus AI operates in health information services, connecting diagnostics, clinician software, and multimodal data. The top line is moving: fiscal Q2 2026, ended 2026-06-30, revenue was $382.5 million, up from $314.6 million in fiscal Q2 2025. More striking, net income was $5.6 million, or diluted EPS $0.03. But one quarter does not make a trend. In fiscal Q1 2026, ended 2026-03-31, Tempus lost $125.9 million, or $0.71 per diluted share. In fiscal 2025, revenue was $1.3 billion but net loss was $245.0 million, and fiscal 2024 brought a $705.8 million loss on $693.4 million of revenue. The Lynch screen finds no category because the company lost money in each of the last four years. Financial health is not comforting: trailing free cash flow is negative $273.0 million, FairStock's FCF yield is negative 3.0%, debt-to-equity is 3.25, ROE is negative 67.44%, and the Piotroski F-Score is 4/9. The Altman Z-Score of 1.87 sits in a grey zone. Valuation asks for faith: P/B is 27.62, P/E is negative, and the FairStock Score is 19/100. There may be a valuable data network and switching costs, but I cannot verify a durable moat from these figures alone. Growth is real, but profitability and cash generation are not yet proven. The price at $68.22 close on 2026-10-13 already discounts much success. I would demand several quarters of positive earnings and free cash flow before calling this a sound value.

In plain English: Tempus AI is a healthcare technology company that connects lab tests, doctors' software, and patient data. Its revenue is growing, and the latest quarter showed a small net profit, but the company lost money in fiscal 2023, 2024, and 2025 and still burns cash. At $68.22 on 2026-10-13, the price looks expensive relative to current profits and net assets, and the stock has been very volatile.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer