Health-tech mid-cap firm Tempus AI (TEM) is set to report its second-quarter results for 2026 today, July 30, after the market closes. Ahead of the earnings release, investors are assessing a pending massive acquisition.
The United States healthcare market is rapidly transforming due to advances in AI capabilities. AI healthcare market is projected to reach $868 billion by 2030, with AI’s impact in healthcare more than doubling by then. Tempus AI is part of this major health-tech movement with more than 500 petabytes of data stored in its cloud environment and 95% of the top 20 pharma companies comprising its clientele.
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We take a closer look at Tempus ahead of its earnings…
About Tempus AI Stock
Based in Chicago, Illinois, Tempus AI is a health‑tech company that builds AI‑driven infrastructure for precision medicine, centered on one of the largest clinical and molecular data libraries in healthcare. It runs a full-stack platform that integrates next‑generation genomic testing, multimodal data ingestion, and clinical‑grade models to help physicians select therapies, close care gaps, and match patients to trials at the point of care.
Alongside tools like its Tempus OS and AI assistants embedded in EHRs, the company provides data and analytics services to researchers and drug developers to accelerate biomarker discovery and therapeutic design. The company has a market capitalization of $7.7 billion. Tempus went public in 2024, raising $410 million at an approximately $6 billion valuation.
However, Tempus has had a volatile time on Wall Street over the past year, as investors remain concerned about its continued lack of profitability (despite solid revenue growth) and macroeconomic challenges, primarily stemming from trade tensions affecting the healthtech sector. Over the past 52 weeks, Tempus’ stock dropped 28.72%, while it is down 29.64% year-to-date (YTD). The company’s shares reached a 52-week low of $40.77 on July 28, but are up 1.9% from that level.
www.barchart.com Despite the sell-off, Tempus’ stock is still trading at a premium. Its forward-adjusted price-to-sales ratio of 4.85 times is higher than the industry average of 3.66 times.
Tempus AI’s Acquisition Of Personalis
Tempus AI is all set to acquire Personalis (PSNL), a seller of advanced cancer genomics tests, for $16.25 per share in stock-based consideration, representing a total enterprise value of $1.5 billion (net of Tempus’ existing ownership interest).
This is expected to expand Tempus’ capabilities in the minimal residual disease (MRD) market. The companies have already had a relationship since November 2023, when Tempus invested in Personalis to commercialize the NeXT Personal MRD test. The deal is expected to close in late 2026 or early 2027.
After the acquisition, Tempus’ multimodal data platform and oncology portfolio will be integrated with Personalis’ MRD technology, which is expected to expand access to longitudinal monitoring and enhance personalized cancer care. With about 2.1 million new cancer diagnoses in the U.S. this year and more people living longer after the initial diagnoses, long-term monitoring is becoming important, which might serve Tempus’ interests better.
However, Tempus’ investors have not reacted particularly positively after the announcement. In fact, after the news release, the stock dropped 7.74% intraday on July 20. The reason for this negative reaction has been dilution fears, as the stock trades near its 52-week low, and uncertainty about the deal's integration is also weighing on it.
Tempus AI Reported Better-Than-Expected Q1 Results
Tempus’ first-quarter results surpassed expectations based on the company’s strength in its oncology diagnostic business and data and modeling business. Its revenue increased by a solid 36.1% year-over-year (YOY) to $348.12 million, exceeding the $345.50 million expected by Street analysts. Diagnostics revenue climbed 34.7% YOY to $261.10 million, driven by oncology volume growth of 28% and hereditary volume growth of 54%. Non-GAAP net loss per share improved from $0.24 to $0.13.
Ahead of the Q2 results, Wall Street analysts expect Tempus’ quarterly loss per share to deepen 13.9% YOY to $0.41. However, for the current year, loss per share is expected to decline by 2.9% to $1.35, followed by another 22.2% improvement to a $1.05 loss per share in the next year.
What Analysts Are Saying About Tempus AI
This month, Needham analysts reaffirmed a “Buy” rating and a $75 price target on Tempus AI following the company's announcement of its acquisition of Personalis. Needham believes this significantly increases Tempus’ offerings in the minimal residual disease market.
Freedom Capital initiated coverage of Tempus with a “Hold” rating and a $59 price target (although the coverage was initiated before the acquisition announcement). Despite the neutral rating. Freedom Capital analysts acknowledged that healthcare AI is one of the fastest-growing tech segments.
Wall Street analysts hold a soundly bullish view on Tempus AI, awarding the stock a “Moderate Buy” rating based on the consensus of 18 analysts. The rating comprises seven “Strong Buys,” two “Moderate Buys,” eight “Holds,” and one “Moderate Sell.” Analysts have set a consensus price target of $66.75, which indicates a 60.7% upside from current levels, while the Street-high price target of $100 reflects a 140.7% upside.
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www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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