TLDR
- Tempus AI stock jumped 15% Thursday, extending its five-day gain to nearly 40%
- CEO Eric Lefkofsky expects up to $100M in revenue from its tissue scanning test and up to $300M from its liquid biopsy
- TEM has risen 92% since hitting a 52-week low of $41.55 on July 29
- Wall Street holds a Moderate Buy rating with an average price target of $66.56, implying about 17% downside from current levels
- Data licensing business grew 36% last quarter, with deals exceeding $100M each signed with AstraZeneca, Merck, GSK and others
Tempus AI (TEM) stock climbed 15% on Thursday after CEO Eric Lefkofsky laid out the company’s Medicare reimbursement expectations at the Morgan Stanley 24th Annual Global Healthcare Conference. The stock is now up close to 40% over the past five sessions, trading toward its highest close since November 2025.
Lefkofsky said Tempus expects between $80 million and $100 million in reimbursement next year from its solid tumor tissue scanning test. He also projected between $250 million and $300 million from its liquid biopsy product, which is awaiting approval expected in the second half of 2027.
That revenue clarity was enough to send investors back into the stock after a rocky stretch following the company’s July acquisition announcement.
In July, Tempus said it would acquire cancer testing company Personalis for $1.5 billion, or $16.25 per share, mostly in Tempus stock. Wall Street initially pushed back on the stock-based structure, sending TEM lower. Since hitting that July 29 low of $41.55, the stock has recovered 92%.
Data Licensing Driving Growth
Beyond diagnostics, Lefkofsky pointed to the data licensing business as a key growth engine. That segment grew 36% last quarter and includes long-term deals worth more than $100 million each with major drugmakers including AstraZeneca, Bristol Myers Squibb, GSK, Merck and BioNTech.
Lefkofsky said Tempus has a 50 million-patient database and long-standing relationships with hospitals and drugmakers that give it an edge in that space.
The Personalis acquisition is also expected to strengthen Tempus’ molecular residual disease business and push test pricing above $1,000 per test over time.
Tempus reported $382.5 million in second-quarter revenue on July 30. Its diagnostics arm made up 76% of total revenue. The company also flagged $200 million in new licenses for its data and applications segment.
What Analysts Are Saying
Despite the rally, Wall Street’s consensus price target sits at $66.56, which now implies about 17% downside from current levels. TEM carries a Moderate Buy rating based on 10 Buy and 7 Hold ratings over the past three months.
Lefkofsky pushed back on any suggestion the stock has run too far. He said the company is focused on 25% annual growth over the next decade rather than short-term spikes. “If you got to bet at all, every day of the week and twice on Sunday, we over-deliver,” he said.
ARK Innovation ETF (ARKK), which holds TEM as its third-largest position behind Tesla and SpaceX, rose 4.3% on the day. ARK Invest had added nearly 85,000 TEM shares back in March as it trimmed its Meta position.
TEM has gained more than 60% over the past month. The stock’s five-day win streak is its strongest run since the July low.
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