Assessing Tempus AI (TEM) Valuation After Recent Share Price Weakness And Analyst Target Gap

Simply Wall St

Wed, February 18, 2026 at 2:10 PM GMT+9 3 min read

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TEM

+1.17%

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Why Tempus AI Is On Investors’ Radar

Tempus AI (TEM) continues to attract attention as a healthcare technology name focused on sequencing diagnostics, molecular testing, and data services for pharmaceutical and biotechnology clients, with recent returns showing mixed short term and longer term performance.

See our latest analysis for Tempus AI.

The recent 1 day share price return of 1.17% to US$52.56 comes after a 30 day share price return decline of 25.27% and a 1 year total shareholder return decline of 38.68%. This suggests earlier enthusiasm has cooled as investors reassess growth prospects and risks around Tempus AI’s healthcare data and diagnostics model.

If you are watching how healthcare technology names are repricing, it may be worth widening your search to a curated set of 25 healthcare AI stocks that our screener has surfaced as potential ideas.

With Tempus AI shares showing recent declines, annual revenue of US$1.11b and a reported net loss of US$203.88m, plus a sizeable gap to analyst targets, you have to ask whether this is a mispriced growth story or whether the market is already accounting for what comes next.

Most Popular Narrative: 40.2% Undervalued

Tempus AI’s most followed narrative places fair value at about $87.92 per share, well above the last close of $52.56, which naturally raises questions about how much growth is being priced in by that view.

The analysts have a consensus price target of $72.727 for Tempus AI based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $90.0, and the most bearish reporting a price target of just $60.0.

Read the complete narrative.

Curious what sits behind that fair value gap and the updated analyst targets? The narrative leans heavily on rapidly scaling revenue, margin expansion and a premium future earnings multiple. If you want to see exactly how those moving parts are stitched together, the full story lays out the assumptions step by step.

Result: Fair Value of $87.92 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on Tempus AI defending its pricing power against tougher genomics and AI competition, and on reimbursement and regulatory paths for newer assays developing as modeled.

Find out about the key risks to this Tempus AI narrative.

Story continues  

Another Angle On Tempus AI’s Valuation

Those fair value and analyst target numbers paint one picture, but the current P/S of 8.5x tells another. That is higher than both the US Life Sciences average of 2.8x and the peer average of 4.8x, as well as above a fair ratio of 7.8x. This leaves you weighing how much execution risk you are willing to accept for that premium.

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:TEM P/S Ratio as at Feb 2026

Next Steps

Mixed signals on pricing, growth expectations, and competition can feel unsettling, so move quickly to review the full picture for yourself, including 3 key rewards and 2 important warning signs.

Looking for more investment ideas?

If this Tempus AI story has you thinking harder about where you put your money next, do not stop here. Widen your view with a few targeted filters.

Start with quality at a discount by scanning our 56 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect them.

Focus on resilience by checking out 80 resilient stocks with low risk scores designed to highlight companies with steadier risk profiles that may better suit cautious investors.

Hunt for future standouts before the crowd catches on by reviewing our screener containing 24 high quality undiscovered gems built to spotlight underfollowed names with strong underlying metrics.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include TEM.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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