Is TEM (Tempus AI, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TEM is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (8.79% vs ≤33% threshold), interest income ratio (0.99% vs ≤5% threshold), and cash & securities ratio (8.13% vs ≤33% threshold).

Tempus AI operates at the intersection of healthcare and technology, focusing on precision medicine through extensive data analysis. Their core business revolves around providing next-generation sequencing diagnostics and molecular profiling to help physicians make real-time, data-driven decisions for patient care. Additionally, they license their vast library of de-identified clinical and molecular data to pharmaceutical companies to accelerate drug discovery and development. For Muslim investors, Tempus AI is considered Halal under AAO IFI standards, having passed all four key screening metrics. The company’s business activities are inherently permissible, as they contribute to saving lives and advancing medical science without involvement in prohibited industries like alcohol or gambling. This 'clean' operational model makes it an attractive option for those seeking ethical exposure to the AI and biotech sectors. Financially, the company maintains a very healthy balance sheet from an Islamic finance perspective. Its interest-bearing debt is low relative to its market capitalization (8.8%), and its income from interest is negligible at less than 1% of total revenue, ensuring that 'impure' income remains minimal. This low leverage reduces financial risk and aligns well with the principles of avoiding excessive Riba (interest). Investors should continue to monitor the company's 'Insights' data licensing segment to ensure future contracts remain compliant, though current operations show no red flags. As Tempus grows, maintaining these low debt and liquidity ratios will be key to retaining its compliant status, but for now, it stands as a robust candidate for a Shariah-compliant portfolio. Tempus AI, Inc. operates in the Healthcare sector under the Medical - Healthcare Information Services industry and is headquartered in Chicago, IL, US. The company is led by CEO Eric Lefkofsky and employs approximately 2,400 people.

TEM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. TEM passed 4 of these 4 screens.

Although TEM passes all shariah screens, it does earn $12.6M in interest income (0.99% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.99 to purify the income.

TEM was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.