See the related feature article:
Do Analog Temperature Sensors Need Bypass Capacitors?
The answer to this question depends on the application and the temperature sensor itself.
Texas Instruments’ LMT87 is a precision analog output temperature sensor that can operate between -58 and 302°F (-50 and 150°C). It is an effective replacement for NTC thermistors because it delivers more accurate and more linear measurements while consuming less power.
The LMT87/LMT87-Q1 are precision analog output CMOS integrated-circuit temperature sensors. A class-AB output structure gives the LMT87/LMT87-Q1 strong output source and sink current capability for driving heavy loads. This means it is well suited to source the input of a sample-and-hold analog-to-digital converter with its transient load requirements. The LMT87/LMT87-Q1 low supply current makes it ideal for battery-powered systems as well as general temperature sensing applications.