Is Tempus AI Stock (TEM) Halal? A Complete Analysis

The Short Answer

Tempus AI stock (TEM) is considered halal under standard Sharia screening, subject to verification. AI-driven precision medicine, genomic diagnostics, and clinical-decision software are permissible activities with no haram revenue line. The factors to confirm are financial: the debt-to-market-cap ratio and any interest income should be checked against the standard thresholds.

On balance the activity is clearly permissible and the leverage has generally been manageable, supporting a halal verdict subject to ongoing verification as this recent IPO matures.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

Tempus AI's Business Activity

Tempus AI, Inc. provides AI-enabled precision-medicine products. Its revenue comes from:

• Genomics: Sequencing and diagnostic testing, particularly in oncology
• Data and services: Licensing a large library of clinical and molecular data
• Software: Tools that help physicians personalize treatment

Healthcare diagnostics, clinical data, and decision-support software are permissible activities with no inherent haram revenue line.

Why TEM Is Halal

1. Permissible Core Business

Precision medicine and diagnostics are halal activities that benefit patients. There is no gambling, alcohol, conventional banking, or other prohibited line at the heart of the business.

2. Manageable Leverage — Verify

Tempus carries some debt as a recently public, not-yet-consistently-profitable company. The debt-to-market-cap ratio has generally been manageable but should be verified against the 33% threshold each period.

3. Interest Income

Interest income on cash balances should be confirmed against the 5% threshold, and the corresponding portion of any returns purified.

Financial Ratios (2025)

Based on Tempus AI's most recent financial statements:

• Total Debt / Market Cap: Verify against the 33% threshold — some debt ⚠️
• Interest Income / Revenue: Verify against the 5% threshold and purify ⚠️
• Haram Revenue: Negligible (healthcare diagnostics) ✅
• Business Activity: Permissible — precision medicine ✅

Verdict from Major Screening Agencies

Tempus AI stock is generally screened as halal, subject to ratio verification by:

• Zoya App — Generally compliant; check the debt ratio each period ✅
• Musaffa — Generally compliant, with purification of minor income ✅
• Most major Sharia advisory boards — Permissible activity; verify financials ✅

Bottom Line

Tempus AI (TEM) is halal for Muslim investors, subject to verification. The precision-medicine and genomics business is permissible, and the leverage has generally stayed within the screen. Investors should re-check the debt-to-market-cap ratio against the 33% threshold each period and purify the minor portion of returns attributable to interest income.

For Muslim investors seeking healthcare and AI exposure, compare TEM with peers like Recursion Pharmaceuticals (RXRX) and NVIDIA (NVDA).