Can You Still Buy Tempus AI Stock Today?

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Shares of Tempus AI (TEM) have risen 73.6% over the past three months, outpacing the 5.8% gain for the S&P 500. On October 27, the stock still closed 21.2% below its highest close of the past year, yet if you watched that run from the sidelines, the worry is that buying now is too late. That run began at the stock’s lowest close of the past year on July 29, a level below where shares stood at the end of June. So how much more are you paying for each dollar of Tempus AI’s sales than you were at the end of June?

How Much Are You Paying For Tempus AI’s Sales?

At the October 27 close, you were paying 9.1 times Tempus AI’s revenue for the twelve months to June 2026, compared with 7.3 times on that same revenue at the end of June. Sales serve as the yardstick here because Tempus AI lost money over those twelve months, leaving no earnings to price the stock against.

A year earlier, each dollar of sales cost more. At the end of June 2025, the stock was priced at 11.6 times its twelve-month revenue. Since then, Tempus AI has lost less on each dollar it sells. The company’s operating loss came to 19.8% of sales in the twelve months to June 2026, down from 24.7% a year before. You are therefore paying more than in June, but less than a year ago, for a business that is closer to breaking even.

What Growth Are You Paying For At Tempus AI?

Analysts expect faster growth than Tempus AI delivered in its latest quarter. They project revenue of about $413 million for the third quarter, which is about 24% more than a year earlier. Tempus AI grew 21.6% in the second quarter, down from 36.1% in the first. Management said the second quarter was the first period compared against a year-earlier quarter that already fully included Ambry, a testing business whose results Tempus AI already fully included a year earlier.

In July, management raised its 2026 revenue guidance to a range of $1.595 billion to $1.605 billion, reflecting about 25% growth. Management said it expects hereditary cancer testing, which grew only 5% in the second quarter, to reach mid-teens growth by the end of the year. The company’s data licensing and modeling business, Insights, is already growing faster, at 36% in the same quarter.

Management has also promised a turn in cash. Free cash flow was an outflow of $18.6 million in the second quarter, smaller than the $83.3 million outflow in the first, and management expects it to turn positive by year-end.

Tempus AI Reports Its Third Quarter In November

Tempus AI will report its third-quarter 2026 results on November 2. It also still has a pending deal, announced July 20, to buy Personalis for about $1.5 billion in stock, with an option to pay up to half in cash. The stock has made large moves in both directions following recent reports. Over the two trading days after each of its last six reports, the moves ranged from a fall of 14.7% after the November 2025 report to a rise of 25.0% after the May 2025 one. The latest move was a 4.0% rise after the July 2026 report, which followed falls after each of the three preceding reports.

Two figures in that report will show whether Tempus AI has caught up with its price: third-quarter revenue against what analysts expect, and free cash flow against the second quarter’s outflow. If revenue falls short of the forecast, it would mean the run got ahead of the business, and the worry about buying too late would be fair. Revenue at or above that forecast, combined with a smaller cash outflow or positive free cash flow, would mean the business is keeping pace with the price you pay today. Revenue at or above the forecast alongside a larger outflow would leave the question open.

How To Act On TEM?

Now you know Tempus AI better. Our purpose is to inform you so you can decide for yourself, and acting on one stock, in either direction, carries its own risk.

If you would rather own a portfolio built to spread that risk, the Trefis High Quality (HQ) Portfolio holds 30 quality companies in equal weight. Since its inception in September 2020 it has returned 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000.

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