Tempus AI Shares Surge After Morgan Stanley Raises Revenue Outlook
Shares of Tempus AI (NASDAQ:TEM) have surged nearly 30% this week following a revenue outlook upgrade from Morgan Stanley. The firm highlighted potential reimbursement pricing increases for xT and xF diagnostics, which could add $330 million to $400 million in annual revenue. CEO Eric Lefkofsky expressed confidence that the company will exceed its multiyear 25% growth target. In Q2 FY2026, Tempus reported $382.49 million in revenue, a year-over-year increase of 21.6%, and raised full-year guidance to between $1.595 billion and $1.605 billion. The company also noted strong data licensing bookings from major pharmaceutical firms like AstraZeneca, GSK, and Merck. Despite the recent gains, TEM still trades below its 52-week high of $104.32. Analysts have a consensus target price of $68.18, which is now lower than the current market price, suggesting potential for further upward revisions.
Topics: Morgan Stanley revenue outlook stock rally Tempus AI