Tempus AI (TEM) Plunges 3.72% on Earnings Concerns, Marks 18.8% Drop in 8 Sessions

The share price fell to its lowest level since August 2025 today, with an intraday decline of 4.74%.

Tempus AI (TEM) extended its losing streak to eight consecutive sessions, dropping 3.72% on December 19 to mark an 18.8% cumulative decline over the period. The selloff followed mixed Q3 2025 earnings, where the company reported a $334.2 million revenue increase—11.7% year-over-year—but maintained a negative EPS of -$0.11. Despite achieving its first positive adjusted EBITDA, investors remained wary, pricing in prolonged losses through FY 2026.

Strategic moves, including the acquisition of digital pathology firm Paige.AI, added complexity, with analysts flagging integration risks that could delay revenue synergies.

The stock’s volatility reflects broader uncertainties in the AI-driven healthcare sector. While Tempus AI’s genomic and hereditary testing segments posted 33% and 37% year-over-year growth, respectively, competitive pressures from firms like Illumina and Roche, coupled with regulatory hurdles for AI diagnostic tools, dampened optimism. CEO Eric Lefkofsky’s 10-year growth strategy—targeting 25% annual revenue growth—has drawn cautious support from analysts, who revised forecasts upward but remain skeptical about near-term profitability. With the stock now at a multi-month low, the path to sustained momentum will depend on successful execution of strategic bets and navigating sector-specific headwinds.

Investors are keeping a close eye on key financial indicators, particularly as the company moves into a new fiscal year. Amid these developments, the stock’s technical indicators suggest further uncertainty, with mixed signals from RSI and momentum oscillators. Analysts are also monitoring the balance sheet and cash flow forecasts for signs of improved financial resilience. The long-term success of Tempus AI will hinge on overcoming these near-term challenges while maintaining consistent revenue growth in a competitive landscape.