Tempus AI (TEM) shares plummeted 5.11% in pre-market trading on Wednesday, following the release of its third-quarter earnings report. Despite topping analyst estimates with revenue of $334.21 million, marking an 84.7% increase year-over-year, investors seemed unimpressed as the company continued to report losses.

The healthcare technology company reported an adjusted loss per share of 11 cents, better than the estimated loss of 17 cents. While Tempus AI showed improvement by posting a positive adjusted EBITDA of $1.5 million compared to a $21.8 million loss in the previous year, the persistent lack of profitability appears to be weighing on investor sentiment.

In response to the earnings report, several analysts adjusted their price targets for Tempus AI. Canaccord Genuity cut its target price to $95 from $110, while others such as Stifel, JP Morgan, and Needham raised their targets. The mixed analyst reactions, combined with the stock's significant year-to-date gain of 146.69%, suggest that some investors may be taking profits amid uncertainty about the company's path to profitability.