TLDR
Tempus AI stock jumped nearly 24% after Merck and Moderna reported a Phase 3 win for their cancer vaccine
The news boosted the value of Tempus AI’s $1.5 billion deal to acquire Personalis, which provides gene-sequencing tech for Moderna’s cancer program
TEM reported its first-ever quarterly GAAP net profit of $5.6 million in Q2 2026, with revenue up 22% to $382.5 million
Over 26% of TEM’s float is sold short, amplifying the upside move as short sellers rushed to cover
Analysts hold a Moderate Buy consensus on TEM with an average price target of $62.15
Tempus AI stock is up nearly 24% on Wednesday, trading around $59.64, after Merck and Moderna announced a major Phase 3 success for their cancer vaccine program. Tempus AI, Inc., TEM
The news hit hard and fast. Tempus AI is in the process of acquiring Personalis for $1.5 billion. Personalis supplies the gene-sequencing technology that underpins Moderna’s cancer vaccine program. A successful Phase 3 trial makes that acquisition look a lot more valuable overnight.
TEM touched a session high of $59.04 in the morning before pushing further. The stock is now well above its 52-week low of $40.77. The rally is not just about one headline.
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Several positives have stacked up for the company in recent weeks. On July 30, Tempus AI posted its first-ever quarterly GAAP net profit of $5.6 million. That compared to a loss of $42.8 million in the same quarter a year earlier. Revenue came in at $382.5 million, up 22% year over year. Management then raised full-year 2026 revenue guidance to a range of $1.595 to $1.605 billion, with projected Adjusted EBITDA of around $65 million. Short Squeeze Adds Fuel
More than 26% of TEM’s float is sold short.
That level of short interest turns bullish momentum into rocket fuel. As the stock climbs, short sellers are forced to buy back positions, which pushes the price even higher. On August 4, a study published in Nature Medicine validated TEM’s PRISM2 AI platform as a high-precision tool for cancer diagnosis and patient prognosis. That gave independent scientific backing to the company’s core technology.
Two days later, on August 6, Tempus AI announced a strategic partnership with CellCarta, making Tempus a commercial lab partner within CellCarta’s oncology companion diagnostics network. Data licensing has also been a growth driver. The company reported a 36% year-over-year increase in data licensing deals with pharma partners including Merck and Gilead. Analyst View
The broader market is providing a steady backdrop. The S&P 500 is up 0.4% and the Nasdaq is up 0.1% today, though neither is the driving force behind TEM’s move. Analysts currently hold a Moderate Buy consensus on TEM, based on eight Buy ratings and seven Hold ratings over the past three months.
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The average price target sits at $62.15. Over the past three months, TEM stock had gained 8% before today’s surge. The average price target of $62.15 implies about 4% upside from current levels.
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