Tempus AI Stock Is Tumbling Tuesday: What's Happening?

Tempus AI Inc TEM shares are trading lower Tuesday after the company reported mixed fourth-quarter financial results. JPMorgan also downgraded the stock following the print.

• Q4 Revenue: $200.68 million, versus estimates of $203.12 million

• Q4 EPS: Loss of 18 cents, versus estimates for a loss of 20 cents

Revenue was up 35.8% year-over-year as data and services revenue grew 44.6% to $80.2 million. Genomics revenue grew 30.6% year-over-year to $120.4 million and unit growth came in at 22.5%.

Tempus AI ended the quarter with $940 million in total remaining contract value and 140% net revenue retention. The company had approximately $340.95 million in cash and equivalents at quarter's end.

"We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives,” said Eric Lefkofsky, founder and CEO of Tempus AI.

“We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive adjusted EBITDA in 2025."

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Tempus AI expects full-year 2025 revenue of approximately $1.24 billion for its consolidated Tempus and Ambry Genetics business, versus estimates of $1.02 billion, according to Benzinga Pro.

Following the company’s quarterly results, JPMorgan analyst Rachel Vatnsdal downgraded Tempus AI from Overweight to Neutral and raised the price target from $50 to $55. Needham analyst Ryan MacDonald maintained a Buy rating and raised the price target from $56 to $70.

TEM Price Action: Tempus AI shares were down 10.1% at $62.56 at the time of publication Tuesday, according to Benzinga Pro.

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