Tempus AI, Inc. (NASDAQ:TEM) shares are climbing today after the company unveiled a new AI-powered cancer diagnostic algorithm, building momentum ahead of its Q4 2025 earnings report scheduled for February 24, 2026 after market close. The stock is trading at $57.29, up 6.86% over the past week.
What’s Driving the Move
Tempus announced its Pan-Cancer HRD-RNA algorithm today, an AI-driven tool that identifies Homologous Recombination Deficiency using RNA analysis rather than traditional DNA tests. This approach provides a real-time snapshot of tumor biology, helping doctors identify patients likely to respond to platinum-based chemotherapy or PARP inhibitors. In real-world validation, patients with HRD-RNA positive metastatic pancreatic cancer showed significantly lower mortality risk compared to those receiving non-platinum therapies. The algorithm is currently available for research use, with clinical availability expected later in 2026.
Earnings Preview: What to Watch Tuesday
Tempus enters earnings week with strong momentum. The company already disclosed preliminary Q4 results in January, reporting revenue of $367 million, up 83% year-over-year, and total contract value exceeding $1.1 billion. Key items to watch in the full report include detailed financials, commentary on the path to profitability, and 2026 guidance.
What Analysts Say
Wall Street remains bullish despite recent volatility. The consensus analyst target sits at $85.69, representing nearly 50% upside from current levels. Analysts cite 2 Strong Buy and 5 Buy ratings, highlighting Tempus’s accelerating revenue growth and expanding AI-driven diagnostics platform.
The HRD-RNA launch signals continued innovation heading into earnings, but the stock remains down 18.54% over the past month. Tuesday’s report will provide more clarity on whether today’s momentum is supported by lasting fundamental strength or represents a short-term move ahead of results.
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