Should I Buy TEM? TEM 2026 Analysis

Should You Buy Tempus AI Inc (TEM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

63.510

1 Day change

-1.64%

52 Week Range

104.320

Analysis Updated At

2026/01/26

Tempus AI Inc (TEM) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong revenue growth, positive hedge fund activity, and significant institutional interest, particularly from ARK Invest. Despite a slight pre-market price dip and neutral technical indicators, the long-term growth potential and robust fundamentals make it a compelling investment opportunity.

Technical Analysis

The MACD histogram is positive at 0.28, indicating a bullish trend, though it is contracting. RSI is neutral at 42.076, and moving averages are converging, suggesting no clear immediate trend. The stock is trading near its support level of 63.074, with resistance at 68.616 and 74.159. Overall, technical indicators are neutral but show potential for upward movement.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate bullish sentiment among options traders, with higher interest and volume in calls compared to puts.

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds are significantly increasing their positions, with an 884.13% increase in buying activity last quarter.
ARK Invest has purchased over 100,000 shares of Tempus AI across its ETFs, reflecting strong institutional confidence.
The company reported an 84.72% YoY revenue growth in Q3 2025, with gross margins improving to 62.82%.
Analysts expect strong fundamentals and a return to spending by Biopharma, which could benefit Tempus AI's diversified business model.

Neutral/Negative Catalysts

Analysts have been lowering price targets recently, citing headwinds and slower growth expectations in the coming years.
The stock shows a 50% chance of declining by 11.5% in the next month based on historical candlestick patterns.
The company remains unprofitable, with a net income of -$79.98 million in Q3 2025.

Financial Performance

In Q3 2025, Tempus AI reported an 84.72% YoY revenue increase to $334.21 million. Net income improved by 5.46% YoY but remains negative at -$79.98 million. EPS stayed flat at -0.46, while gross margins increased to 62.82%, up 7.38% YoY. The financials indicate strong revenue growth and improving operational efficiency, though profitability remains a challenge.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have mixed ratings, with several maintaining Buy ratings despite lowering price targets. Recent price targets range from $76 to $105, with most firms citing strong fundamentals and potential recovery in 2026. However, some firms remain cautious due to slower growth expectations and headwinds in the sector.

11 Analyst Rating

Wall Street analysts forecast TEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEM is 86 USD with a low forecast of 76 USD and a high forecast of 105 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

6 Hold

0 Sell

Moderate Buy

Current: 64.570

Low

Averages

High

105

Current: 64.570

Low

Averages

High

105

TD Cowen

Hold

downgrade

$88 -> $76

AI Analysis

2026-01-07

Reason

TD Cowen

Price Target

$88 -> $76

AI Analysis

2026-01-07

downgrade

Hold

Reason

TD Cowen lowered the firm's price target on Tempus AI to $76 from $88 and keeps a Hold rating on the shares. The firm adjusted targets in the diagnostics group as part of a Q4 preview. It expects solid results and 2026 outlooks for the sector, saying strong fundamentals remain.

Canaccord

Kyle Mikson

Buy

downgrade

$95 -> $80

2025-12-22

Reason

Canaccord

Kyle Mikson

Price Target

$95 -> $80

2025-12-22

downgrade

Buy

Reason

Canaccord analyst Kyle Mikson lowered the firm's price target on Tempus AI to $80 from $95 and keeps a Buy rating on the shares. The firm previewed its life science tools and diagnostics covereage and believes momentum in the sector which began in the second half of this year, can be maintained in 2026.

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TEM Should I Buy

TEM Should I Buy

Should You Buy Tempus AI Inc (TEM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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