Tempus AI, Inc. (TEM) Down 7.3% — Time to Free Up Some Cash?
Tempus AI, Inc. (TEM) gave back a significant portion of its recent gains on Tuesday. The stock closed at $78.30 on the NASDAQ, a $6.14 decline from the prior close of $84.44. The drop leaves the stock about 12.1% below its 52-week high of $89.09, reached on September 29, 2026. Even after the selloff, shares remain roughly 92% above the 52-week low of $40.77, a reminder of how much ground the stock covered before this session's reversal.
Turnover was light for a move of this size. About 3.96 million shares changed hands, compared with a 90-day average of roughly 6.62 million, or about 60% of normal volume.
Why Tempus AI, Inc. Price is Moving Lower
The most plausible driver was a sharp market-wide rotation out of growth stocks, triggered by a hotter-than-expected inflation report. October consumer prices rose 0.4% month over month against the 0.3% economists expected, and core prices climbed 0.3% versus the 0.2% consensus. Treasury yields pushed above 5% as traders priced in the risk of further Federal Reserve rate increases. By midday, the Nasdaq was down 1.6% and the S&P 500 had lost 0.9%. That kind of rate shock hits hardest at unprofitable, long-duration growth names. Tempus, with a forward P/E of -79.21, sits squarely in that group.
The sector felt the same pressure, though TEM fell further than most. Moderna, Inc. (MRNA) dropped 6.75%, close to Tempus's decline. Diagnostics peer Natera, Inc. (NTRA) fell a more modest 2.62%, and Illumina (ILMN) was down 2.4% by early afternoon. The gap between TEM and its closest diagnostics peers likely reflects how far the stock had just run. Tempus gained about 11% in the prior session, which left plenty of room for profit-taking once yields spiked.
The selloff came despite a run of supportive company news. Tempus reported Q3 results on November 2, posting adjusted EPS of $0.07 against an expected loss of $0.09 per share. Revenue of $411.5 million edged past the $411.3 million consensus and rose 23% year over year. Management raised its 2026 revenue outlook to $1.60 billion to $1.605 billion and held adjusted EBITDA guidance at about $65 million. On November 9, the company also announced a precision-oncology collaboration with the SOTERIA foundation focused on U.S. military members and veterans. Neither development was enough to shield the stock from Tuesday's rate-driven repricing.
What is the Tempus AI, Inc. Rating - Should I Sell?
Weiss Ratings assigns TEM a D- rating. The rating was upgraded on 10/13/2026. Current recommendation is Sell. The October upgrade acknowledged some improvement, but the D- rating still points to a risk profile that outweighs the potential reward at current levels. A strong quarter and a raised revenue outlook have not yet changed the underlying economics enough to move the stock out of Sell territory.
The clearest strength is the balance sheet. Tempus is rated Excellent on the Solvency Index, which gives it real flexibility as it keeps funding its push toward sustained profitability. For a company still reporting a loss of $1.07 per share, that financial cushion is a meaningful offset to operating risk. The Fair rating on the Total Return Index reflects the stock's sharp climb off its $40.77 low. That run has rewarded holders over the measurement period even after Tuesday's pullback.
Where the picture turns is in the operating and risk indices. The Weak rating on the Growth Index can look surprising next to 23.14% revenue growth and a 7.6% sequential increase from $382.49 million to $411.54 million. The rating, however, reflects a business whose top-line gains have not yet produced consistent earnings growth. The Very Weak Efficiency Index is the more pointed concern. A -12.54% profit margin shows that Tempus's sequencing labs, data infrastructure, and AI development still consume more than the business generates, even as it scales into a $1.6 billion revenue run rate.
The Weak Volatility Index is easy to see in recent trading. An 11% gain followed by a 7.27% decline as Treasury yields crossed 5% shows how sensitive these shares are to shifts in rate expectations. Within the Health Care sector, Tempus AI sits alongside Moderna, Inc. (MRNA, D-), Natera, Inc. (NTRA, D-), and Revolution Medicines, Inc. (RVMD, D-). It trails IQVIA Holdings Inc. (IQV, D+) and Zoetis Inc. (ZTS, D+), both of which carry somewhat steadier profiles in the Weiss framework.
About Tempus AI, Inc.
Tempus AI, Inc. (TEM) is a healthcare technology business in the United States. Founded in 2015 as Tempus Labs and renamed Tempus AI in January 2023, the Chicago-based company built its model around connecting the clinician's desktop to its own laboratory diagnostics, analytics platform, and large repository of multimodal patient data. Physicians order and manage next-generation sequencing tests through its Hub application. Life sciences researchers use the Lens software application for advanced precision research.
The diagnostics business anchors the platform. Its core clinical assays, xT and xR, deliver large-panel DNA and full-transcriptome RNA profiling, with incidental germline findings drawn from normal blood or saliva samples. Tempus also offers hematologic testing, PCR profiling, anatomic and molecular pathology, and genetic tests for inherited conditions. Its nP assay provides pharmacogenomic testing for patients with depression, anxiety, bipolar disorder, and related psychiatric conditions.
The second revenue engine is data. Through Insights, Tempus licenses libraries of linked, de-identified clinical, molecular, and imaging data. It supplements that business with Organoids for tumor-derived biological modeling, Trials for clinical trial matching, the Next AI platform, and the Algos algorithm-based diagnostics application. The company has strategic collaborations with AstraZeneca, GlaxoSmithKline, Merck, Recursion Pharmaceuticals, and Pathos AI. It is also working with Blood Cancer United to build a pediatric acute myeloid leukemia registry. These partnerships, together with the feedback loop between testing volume and data assets, form the core of Tempus's competitive position.
Investor Outlook
Tempus AI, Inc. (TEM) carries a Weiss Rating of D- (Sell). Tuesday's decline shows how exposed the stock remains to interest-rate expectations, even as the business delivers on revenue. Investors should watch whether Tempus reaches its raised $1.60 billion to $1.605 billion revenue target and its roughly $65 million adjusted EBITDA goal, and whether Treasury yields hold above 5% and keep pressure on unprofitable growth names. See full rankings of all D- rated Health Care stocks inside the Weiss Stock Screener.
--