Tempus AI Stock (TEM) Q2 Earnings Preview: Buy or Sell?

Tempus AI (TEM) is set to report Q2 earnings this week, with Wall Street expecting a Q2 EPS of -$0.25 per share and revenues of $297 million. The company has a strong track record of beating estimates and reported a 75.4% YoY increase in Q1 revenue. TEM has raised its full-year 2025 revenue guidance to $1.25 billion and has announced several deals and collaborations, including a three-year, $200 million data and modeling license agreement with AstraZeneca. Despite economic challenges, the TEM share price has held up well this year. On TipRanks, TEM has a Moderate Buy consensus based on 5 Buy and 3 Hold ratings, with a highest price target of $75.

Tempus AI, Inc. (TEM) is scheduled to report its second-quarter 2025 earnings on August 8. Analysts expect a Q2 EPS of -$0.25 per share and revenues of $297 million, according to Zacks Investment Research [1]. The company has a history of beating estimates, with two out of the last four quarters exceeding expectations, averaging a negative earnings surprise of 2.07% [1].

In the first quarter of 2025, Tempus AI reported a 75.4% year-over-year (YoY) increase in revenue. The company has raised its full-year 2025 revenue guidance to $1.25 billion, reflecting strong growth prospects. Tempus AI has also announced several strategic deals and collaborations, including a three-year, $200 million data and modeling license agreement with AstraZeneca (AZN) [1]. This deal is expected to contribute to the company's data monetization trajectory and is anticipated to start generating revenues in the second quarter [1].

Despite economic challenges, including escalating trade tensions, Tempus AI has shown strong momentum in the healthcare technology sector. The company's stock has outperformed the broader industry and the S&P 500 index during the second quarter of 2025. Tempus AI has also surpassed other players in the health infotech field, such as 10x Genomics (TXG) and SOPHiA GENETICS (SOPH) [1].

However, Tempus AI remains unprofitable, with an adjusted EBITDA loss of $16.2 million in the first quarter. The company's stock is currently overvalued compared to its industry peers, trading at a forward 12-month price-to-sales (P/S) ratio of 6.86, a premium to the broader industry's average of 5.80X [1]. The stock is also trading below its one-year median of 8.00X, suggesting that it has moderated somewhat from its historical highs [1].

On TipRanks, TEM has a Moderate Buy consensus based on 5 Buy and 3 Hold ratings, with a highest price target of $75 [2]. Despite the company's recent upsides, its premium valuation and lack of near-term profitability are limiting this Zacks Rank #3 (Hold) stock's near-term gains. Current shareholders should hold their positions, while new investors should wait for the stock to retract some of its recent gains, providing a better entry point [1].

References:
[1] https://finance.yahoo.com/news/tempus-ai-stock-q2-earnings-190000578.html
[2] https://www.tipranks.com/stocks/tempus-ai-inc-tem