Tempus AI (TEM) Stock Rallying Pre Market – The Latest

Tempus AI (NASDAQ:TEM) stock is 8.34% higher in the pre-market at $71.80, after a 6.15% decline in its stock price over the past month. This downturn arrives even as the company touts record contract values and strategic collaborations, presenting a mixed picture for markets.

A key highlight for Tempus AI has been its Total Contract Value (TCV), which exceeded $1.1 billion as of December 31, 2025. In 2025, the company secured data agreements with over 70 customers, including prominent pharmaceutical entities such as AstraZeneca, GlaxoSmithKline, and Pfizer. This achievement underscores growing adoption of Tempus' multimodal dataset in drug discovery and development. The company reported that an increasing number of biopharma companies are incorporating Tempus' unique dataset into their drug discovery and development efforts.

However, this positive news is tempered by analyst price target reductions. In December 2025, Bank of America (BofA) Securities and JPMorgan lowered their price targets for Tempus AI to $80, citing valuation concerns. While maintaining neutral ratings, these adjustments signal apprehensions about the company's valuation relative to its growth prospects.

Adding to the pressure, significant insider selling has been observed. CEO Eric Lefkofsky sold 166,250 shares valued at approximately $10.6 million. Such transactions can be perceived as bearish signals, potentially indicating a lack of confidence in the company's near-term stock performance.

On a brighter note, Tempus AI has been actively expanding its strategic collaborations. The partnership with AstraZeneca and Pathos AI aims to develop a multimodal foundation model in oncology, leveraging Tempus' de-identified oncology data to advance drug discovery and development. The acquisition of Deep 6 AI further strengthens Tempus' capabilities in AI-driven patient recruitment and qualification for clinical trials, potentially accelerating drug development and trial efficiency.

Financially, Tempus AI has demonstrated strong growth. In the third quarter of 2025, the company reported an 84.7% year-over-year revenue increase to $334.2 million. Consequently, Tempus AI raised its full-year 2025 revenue guidance to approximately $1.265 billion, representing about 80% annual growth. This robust financial performance reflects strong demand for Tempus' AI-driven healthcare solutions.

The current landscape for Tempus AI presents a multifaceted challenge. While the company boasts impressive achievements, such as record TCV and strategic partnerships, concerns over valuation, insider selling, and critical analyst reports have contributed to bearish sentiment leading in.