Tempus AI, Inc. (NASDAQ:TEM) witnessed a drop in its share price on Monday following the announcement by Ambry Genetics, its wholly owned subsidiary, that it has completed its one-millionth deoxyribonucleic acid (DNA) and ribonucleic acid (RNA) test. This landmark achievement reflects a growing adoption of genomic diagnostics aimed at hereditary cancer and rare diseases, reinforcing the company’s expanding footprint in precision medicine.
Ambry Genetics first introduced RNA testing commercially in 2019 under the brand +RNAinsight. Analysis derived from testing over 450,000 patients revealed critical insights: approximately one in every 25 patients with a positive result would have been undetected without the inclusion of RNA data. Additionally, integrating RNA analysis contributed to a 6% reduction in genetic variants classified as uncertain, thereby enhancing diagnostic clarity and clinical decision-making.
Building on this foundation, Ambry further augmented its diagnostic suite in 2024 by incorporating RNA testing into its ExomeReveal offering, specifically targeting rare disease cases. This strategic move enables more comprehensive genetic profiling, potentially improving outcomes for populations affected by complex hereditary conditions.
Despite these operational accomplishments, Tempus AI’s stock performance has encountered notable headwinds in recent trading sessions. Current market data shows the share price trading 11.4% below its 20-day simple moving average (SMA) and 23% below the 100-day SMA, indicators widely interpreted as signaling a bearish trend in both short and medium-term horizons. Over the past year, the stock has declined by approximately 2.79%, underscoring persistent challenges in regaining upward momentum. The share price resides closer to its 52-week low than its high, reflecting investor caution.
Technical momentum indicators further illustrate this mixed outlook. The Relative Strength Index (RSI) stands at 37.98, which is commonly regarded as neutral territory, neither signaling overbought nor oversold conditions. Conversely, the Moving Average Convergence Divergence (MACD) remains below its signal line, suggesting that bearish pressures are exerting downward influence on the stock's price. Collectively, these metrics suggest that while the stock is not in oversell territory, it faces continued downward momentum risks.
Market analysts have identified key technical levels that may act as resistance and support points. Resistance is noted near $66.00, which could represent a challenging threshold for the stock to surpass, whereas support has been observed around $59.00, potentially serving as a price floor anchoring downside risks for the near-term.
Investor focus is increasingly drawn to Tempus AI’s forthcoming earnings report scheduled for February 23, 2026. Consensus estimates forecast an earnings per share (EPS) loss of 14 cents, an improvement compared to a prior loss of 18 cents year-over-year. Revenue expectations show a significant anticipated increase to $364.25 million, up from $200.68 million in the previous year, indicating optimism about top-line growth despite ongoing losses.
Analyst sentiment presents a nuanced picture. The stock maintains an average Buy rating, accompanied by a price target averaging about $77.86. Recent revisions from key research firms illustrate differing outlooks: Canaccord Genuity has retained a Buy rating but lowered its price target to $80.00 as of December 22, 2025; JP Morgan downgraded its stance to Neutral while also lowering the target to $80.00 on December 15, 2025; Morgan Stanley remains positive with an Overweight rating and increased its target to $85.00 at the beginning of December. These divergent perspectives underscore the market’s mixed expectations around the company’s growth trajectory and risk profile.
Additional quantitative analysis, such as the Benzinga Edge scorecard, positions Tempus AI’s momentum as weak with a score of 46.6, indicating the stock is underperforming relative to the broader market. During premarket trading on Monday, Tempus AI shares declined 1.60% to $58.86, reflecting continuing caution among investors ahead of the earnings announcement.
In summary, while Ambry Genetics’ milestone of completing one million DNA/RNA tests signifies tangible progress in the commercialization and adoption of advanced genetic testing modalities, Tempus AI’s equity performance remains challenged amid technical bearishness and mixed analyst forecasts. This duality reflects the complexity of balancing clinical innovation milestones with the financial market’s demand for sustained and robust profitability.