Tempus AI: Firing On All Cylinders

  • Tempus AI delivered strong Q1 results, driven by the Ambry Genetics acquisition and a major AstraZeneca contract, boosting revenue and backlog. The AI precision medicine company grew core revenues 32% YoY, but headline growth topped 75% due to the Ambry deal, though organic growth analysis is crucial for investors. The stock trades at a reasonable 7x '26 sales with 25-28% pro forma growth, but limited adjusted EBITDA targets may cap the valuation premium.