Tempus AITEM +6.85%35 Gross Margin % is 63.78% as of Mar. 2026, which is 57% above its 10-year median of 40.60. GuruFocus rates TEM with a GF Score™ of 35/100. The stock has 3 warning signs investors should review. Among 631 Healthcare Providers & Services companies, Tempus AI ranks better than 72.27% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tempus AI's Gross Profit for the
three
months ended in Mar. 2026 was $222 Mil. Tempus AI's Revenue for the
three
months ended in Mar. 2026 was $348 Mil. Therefore, Tempus AI's Gross Margin % for the quarter that ended in Mar. 2026 was 63.78%.
The historical rank and industry rank for Tempus AI's Gross Margin % or its related term are showing as below:
TEM'
s Gross Margin % Range Over the Past 10 Years
Min: 15.27 Med: 40.6 Max: 63.39
Current: 63.39
During the past 7 years, the highestGross Margin % of Tempus AI was 63.39%. The lowest was 15.27%. And the median was 40.60%.
TEM's Gross Margin % is ranked better than 72.27% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs TEM: 63.39
Tempus AI had a gross margin of 63.78% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tempus AI was 29.10% per year.
Tempus AI (NAS:TEM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tempus AI had a gross margin of 63.78% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tempus AI Gross Margin % Related Terms
Tempus AI Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tempus AI's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Health Information Services subindustry, Tempus AI's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tempus AI Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Tempus AI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tempus AI's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tempus AI (TEM) has a Gross Margin % of 63.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tempus AI and its competitors. This is 57% above median its historical median of 40.60. Over the past decade, Tempus AI's Gross Margin % has ranged from 15.27 to 63.39. According to the industry distribution chart, Tempus AI ranks #175 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 27.7%.
Is Tempus AI's Gross Margin % too high?
Tempus AI's current Gross Margin % of 63.78% is 57% above median its 10-year median of 40.60. Over the past 10 years, this metric has ranged from a low of 15.27 to a high of 63.39. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Tempus AI's value of 63.78% is 59.1% above this industry median. Based on the distribution chart, Tempus AI ranks #175 out of 631 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Tempus AI has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Tempus AI's Gross Margin % compare to HQY and BTSG?
According to the Healthcare Providers & Services industry distribution chart, Tempus AI ranks #175 out of 631 companies for Gross Margin %. This puts Tempus AI in the upper half of its industry. The industry median Gross Margin % is 40.09. Tempus AI's value of 63.78% is 59.1% above this benchmark. Historically, Tempus AI's own Gross Margin % has ranged from 15.27 to 63.39 over the past decade. While the company's 10-year median is 40.60 vs. the industry median of 40.09, Tempus AI has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tempus AI's current Gross Margin % of 63.78% is 59.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tempus AI and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tempus AI's current Gross Margin % is 63.78%, which is 57% above median its own 10-year median of 40.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tempus AI stock overvalued right now?
Tempus AI (TEM) has a current Gross Margin % of 63.78%. The current Gross Margin % is 63.78%, which is 57% above median its 10-year median of 40.60 and 59.1% above the Healthcare Providers & Services industry median of 40.09. Tempus AI's overall GF Score™ is 35/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tempus AI (TEM), the current Gross Margin % is 63.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Tempus AI Inc is a technology company. It has built the Tempus Platform, which comprises both a technology platform to free healthcare data from silos and an operating system to make the resulting data useful. Its Intelligent Diagnostics use AI, including generative AI, to make laboratory tests more accurate, tailored, and personal.
35GF Score
Get the complete analysis for TEM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TEM has been successfully added to your 
