Tempus AI Stock Before Q4 Earnings Release: To Buy or Not to Buy?

Core Insights - Tempus AI, Inc. (TEM) is set to report its fourth-quarter 2025 results on February 24, with expectations of an 82.8% year-over-year revenue increase to $366.8 million [2][7] - The company reported an adjusted loss of 11 cents per share in the last quarter, which was better than the Zacks Consensus Estimate of a loss of 16 cents [1] - Tempus has seen a share price decline of 32.9% in the fourth quarter due to macroeconomic challenges, despite strong momentum from strategic acquisitions and product launches [3][7] Financial Performance - The Zacks Consensus Estimate for loss per share has remained unchanged at 2 cents over the past 30 days [2] - The company's earnings estimate revision trend shows consistent expectations for the current quarter and the next, with losses projected at -0.02 for Q4 and -0.13 for Q1 2026 [3] - In the previous quarter, Tempus achieved a gross profit improvement of 98.4% year-over-year, and adjusted EBITDA turned positive, indicating progress towards profitability [14] Market Position and Competitive Landscape - Tempus trades at a forward price-to-sales (P/S) ratio of 5.82X, which is above the industry average of 5.66X and higher than competitors like 10x Genomics (3.83X) and SOPHiA GENETICS (3.69X) [16] - The Zacks Medical Info Systems industry experienced a loss of 21.6% during the same period, while the S&P 500 gained 3.3% [4] Strategic Developments - Recent collaborations include a multi-year partnership with Whitehawk Therapeutics for oncology treatments and a selection by the Advanced Research Projects Agency for Health to provide testing services [8] - The Genomics segment is expected to show improvement due to growth in oncology testing and hereditary sequencing, while the Data and Services business is likely to benefit from strong demand for proprietary data licensing and AI solutions [9][10] - Tempus has enhanced its capabilities through the acquisition of Paige, an AI leader in digital pathology, and expanded its collaboration with Northwestern Medicine to integrate AI into clinical workflows [12] Future Outlook - The AI market is anticipated to grow rapidly, positioning Tempus to capitalize on emerging opportunities in healthcare [17] - Despite recent upsides, the company's premium valuation and lack of near-term profitability may limit immediate gains [18]