Tempus AI (NASDAQ:TEM) Upgraded by The Goldman Sachs Group to Hold Rating

Key Points

• Goldman Sachs upgraded Tempus AI to “Hold,” while analyst sentiment overall remains mixed: 11 analysts rate it a Buy, nine a Hold and two a Sell. The consensus rating is Hold with an average price target of $69.63, below the stock’s $78.03 opening price.
• Tempus AI reported quarterly revenue of $382.49 million, up 21.6% year over year, and an adjusted loss of $0.04 per share that exceeded expectations. However, the company remains unprofitable, with a negative net margin of 17.77%.
• Insiders sold more than 1.25 million shares worth approximately $73.9 million during the quarter, including sales by executives under a 10b5-1 plan and for tax obligations. The activity may weigh on investor sentiment amid valuation concerns and elevated stock volatility.

Tempus AI (NASDAQ:TEM - Get Free Report) was upgraded by stock analysts at The Goldman Sachs Group to a "hold" rating in a research report issued on Monday, Zacks reports.

Other research analysts have also recently issued research reports about the stock. TD Cowen restated a "buy" rating on shares of Tempus AI in a report on Wednesday, July 15th. Roth Capital began coverage on shares of Tempus AI in a report on Tuesday, September 8th. They issued a "neutral" rating and a $67.00 target price on the stock. Wall Street Zen raised shares of Tempus AI from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. BTIG Research boosted their price target on shares of Tempus AI from $70.00 to $80.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Finally, Piper Sandler upgraded shares of Tempus AI from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $56.00 to $76.00 in a research report on Tuesday, September 1st. Eleven analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $69.63.

Tempus AI Trading Up 0.2%

TEM opened at $78.03 on Monday. The company has a current ratio of 3.30, a quick ratio of 3.16 and a debt-to-equity ratio of 3.06. The firm has a 50-day moving average price of $57.63 and a two-hundred day moving average price of $53.09. Tempus AI has a 1-year low of $40.77 and a 1-year high of $104.32. The stock has a market capitalization of $14.08 billion, a PE ratio of -54.19 and a beta of 3.72.

Tempus AI (NASDAQ:TEM - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.10. The company had revenue of $382.49 million during the quarter, compared to analysts' expectations of $379.69 million. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. Tempus AI's revenue was up 21.6% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.22) EPS. As a group, equities analysts anticipate that Tempus AI will post -1.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Tempus AI

In other news, CEO Eric P. Lefkofsky sold 250,000 shares of the stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total transaction of $10,515,000.00. Following the completion of the sale, the chief executive officer owned 200,000 shares of the company's stock, valued at $8,412,000. This represents a 55.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ryan Fukushima sold 41,095 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $49.61, for a total transaction of $2,038,722.95. Following the sale, the chief executive officer owned 562,463 shares in the company, valued at approximately $27,903,789.43. The trade was a 6.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 1,254,701 shares of company stock valued at $73,877,392. 24.26% of the stock is currently owned by corporate insiders.

Institutional Trading of Tempus AI

Several hedge funds and other institutional investors have recently modified their holdings of TEM. WINTON GROUP Ltd acquired a new stake in Tempus AI in the 2nd quarter valued at approximately $342,000. Engineers Gate Manager LP acquired a new position in Tempus AI during the second quarter worth $637,000. Integrated Wealth Concepts LLC acquired a new stake in Tempus AI in the 2nd quarter valued at $145,000. Baird Financial Group Inc. increased its stake in Tempus AI by 3.4% in the 2nd quarter. Baird Financial Group Inc. now owns 30,434 shares of the company's stock valued at $1,763,000 after buying an additional 994 shares during the last quarter. Finally, Arizona State Retirement System grew its holdings in shares of Tempus AI by 13.3% in the 2nd quarter. Arizona State Retirement System now owns 28,867 shares of the company's stock valued at $1,672,000 after acquiring an additional 3,384 shares in the last quarter. Institutional investors and hedge funds own 24.22% of the company's stock.

More Tempus AI News

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Operating growth supports the bullish case. Tempus AI’s oncology testing volumes increased 31% year over year in the second quarter, while minimal residual disease testing volumes have nearly doubled since the fourth quarter of 2025. The data and applications segment grew 28%, supported by bookings and AI innovation, potentially improving long-term revenue growth and margins. Tempus AI: Data And Applications Will Unlock More Upside
• Positive Sentiment: Expanded strategic partnerships could strengthen its data business. Tempus AI and Recursion extended their data license agreement and amended the fee structure, signaling continued commercial use of Tempus’s healthcare data and potentially supporting recurring data-related revenue. Tempus AI, Recursion Extend Data License, Amend Fee Structure
• Positive Sentiment: Government-backed AI development adds a growth option. ARPA-H selected Tempus to develop an autonomous AI agent for heart-failure care, with funding of up to $9.5 million. Although modest relative to the company’s quarterly sales, the project could enhance Tempus’s credibility in clinical AI and expand its addressable market. Tempus Secures Up To $9.5 Million From ARPA-H
• Neutral Sentiment: Analyst coverage is cautious. Goldman Sachs initiated Tempus AI at a Neutral rating with a $75 price target, suggesting limited near-term upside after the stock’s recent advance. Goldman Sachs Initiates Tempus AI at Neutral
• Negative Sentiment: Insider selling may weigh on sentiment. Tempus executives, including the CEO, EVP, and chief accounting officer, sold shares in transactions ranging from approximately $221,000 to $16.1 million. These sales do not necessarily indicate deteriorating fundamentals, but they can raise concerns about valuation and near-term supply.
• Negative Sentiment: Valuation remains a key risk. Critical commentary argues that the market may be pricing in uncertain future growth too aggressively, particularly after the recent 60% rally. Tempus AI: Market Is Hyping On An Uncertain Number

About Tempus AI

Tempus AI, Inc is a healthcare technology company focused on applying artificial intelligence and data analytics to precision medicine. The company combines molecular testing, clinical data and machine learning to help physicians make more informed treatment decisions and support the development of new therapies.

Tempus provides genomic and diagnostic testing services, including testing intended to identify clinically relevant mutations and other biomarkers. Its technology platform also organizes and analyzes clinical and molecular data, while its AI-enabled tools are designed to assist healthcare professionals with patient care, research and workflow management.

The company serves healthcare providers, patients, pharmaceutical companies and biotechnology researchers, primarily in the United States.

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