Mizuho Eyes Upside for Tempus AI with Outperform Call

Mizuho has initiated coverage of Tempus AI, backing the AI healthcare company with an Outperform recommendation as of February 19, 2026. This marks a significant moment for Tempus, as the Japanese financial giant’s vote of confidence signals potential catalysts ahead for the company trading under ticker TEM on the Nasdaq.

Analyst’s Bullish Case: Tempus Shows Strong Growth Potential

The research team at Mizuho has set a price target of $89.17 per share for Tempus, based on data as of February 4, 2026. The forecast represents a 58.77% upside from the then-current stock price of $56.16. Across the analyst community, price targets for Tempus range from $76.76 to $110.25, painting a broadly optimistic picture for the company’s near-term trajectory. This consensus reflects expectations that Tempus’s revenue will expand significantly, with projections showing annual revenue reaching $1,591 million—a 43.95% year-over-year increase. However, analysts expect near-term earnings pressure, with non-GAAP EPS forecasted at -0.15, suggesting the company is prioritizing growth over profitability.

Tempus Attracts Major Institutional Players Despite Mixed Signals

Currently, 593 funds and institutions maintain positions in Tempus, though this represents a slight decline of 26 owners (4.20%) over the past quarter. The average portfolio allocation to Tempus stands at 0.20% across all funds, which actually increased by 7.78%—indicating that while fewer players are invested, those remaining are raising their stakes. Institutional ownership has expanded modestly, with total shares owned by funds growing 5.06% to 113.05 million shares. The put-to-call ratio of 0.71 reflects a bullish lean among options traders, suggesting market participants expect Tempus to continue climbing.

Key Players Reshuffling Positions in Tempus

Major institutional investors are recalibrating their Tempus exposure with divergent strategies. Baillie Gifford, once Tempus’s largest institutional holder with 8,741K shares (5.06% of the company), has trimmed its position by 10.88% from the prior quarter. Despite reducing absolute share count, Baillie Gifford cut its portfolio weight allocation to Tempus by 25.98%, signaling a strategic pullback.

ARK Investment Management holds 7,558K shares representing 4.37% ownership. The firm increased its position by 5.05% quarter-over-quarter, yet paradoxically reduced its portfolio allocation to Tempus by 14.08%, suggesting a broader portfolio rebalancing. Meanwhile, the ARKK Innovation ETF specifically maintains 5,987K shares in Tempus, up 16.23% from the prior period, though this fund also moderated its portfolio weight by 17.22%.

Catalytic Wealth RIA holds 6,762K shares (3.91% stake), while Softbank Group maintains a steady 5,405K share position (3.13%) with no changes recorded in the latest quarter.

Market Sentiment Suggests Cautious Optimism on Tempus

The contrasting moves by major institutions tell an intriguing story for Tempus. While new capital inflows and rising analyst price targets reflect confidence in the company’s high-growth narrative, the tendency of large holders to trim allocations despite growing share counts suggests some caution about valuations or near-term execution risks. The options market’s bullish leaning supports the optimistic narrative, yet investors should monitor whether institutional enthusiasm translates into sustained buying or merely reflects positioning adjustments ahead of quarterly results.