Should You Be Worried About Tempus AI Stock

Tempus AI (TEM) stock has lost 17.3% over the past month, while the S&P 500 gained 0.6%. The company still grew sales 22% in its latest quarter, but the risk worth your attention lies with the few drugmakers that license its data. One of them is a very large client. Which drugmaker is it, and how long does its deal with Tempus AI run?

Tempus AI's AstraZeneca Deal May Run To 2028

Tempus AI's agreement with AstraZeneca runs past the end of 2026, though management could not say exactly when it ends. Speaking on the July 30 call for the second quarter of 2026, management said the deal goes for another couple of years, perhaps through 2028. AstraZeneca is also more than a buyer of data: Tempus AI delivered the first version of its foundation model to AstraZeneca during that quarter.

AstraZeneca's pricing for 2027 and beyond is less settled-and presents a real margin risk. Asked on the same call about contract escalators, management noted that AstraZeneca can qualify for discounted, preferential rates if it meets specific volume or commitment thresholds. If AstraZeneca locks in those lower rates, Tempus AI collects less revenue per unit of data; if AstraZeneca opts out, it pays standard rates, but risks scaling back its usage to manage costs.

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What Share Of Tempus AI's Sales Comes From Data?

Data and Apps, the unit holding the data licensing business, brought in $93.2 million in the second quarter of 2026. This amounted to about a quarter of the company's $382.5 million in sales. It is also the faster-growing part of the business. Data and Apps revenue rose 28% from a year earlier, compared with 22% for the whole company. Within that unit, the data licensing and modeling business grew 36%.

That growth is what you pay for. Tempus AI posted a net loss of $254 million over the twelve months to June 2026, so its P/E is not meaningful. On sales, the stock trades at 8.1 times, against 3.1 for the S&P 500. The same multiple stood at 11.6 at the end of June 2025. The shares now trade 30.4% below their highest close of the past year, but even after that drop, the price appears to assume Tempus AI keeps growing far faster than the market.

How Worried Should Tempus AI Holders Be?

The threat is real but slow. Management said AstraZeneca will be a very large client in 2027 whatever happens, because projects it has already committed to extend into that year. Other drugmakers are signing on too. BioNTech joined AstraZeneca, GlaxoSmithKline and Bristol Myers Squibb as a data licensing client in the second quarter, when total bookings came to about $200 million.

Holders have also seen how far this stock can fall. Tempus AI dropped 57% in the 2025 tariff shock, against 19% for the S&P 500.

For now, the AstraZeneca risk is still a couple of years out. Growth in Data and Apps revenue is the number to watch when Tempus AI reports its third quarter of 2026.

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