January 12, 2026
Finance

Tempus AI Experiences Significant Stock Gains Following Strong Preliminary 2025 Financial Indications

Robust growth in Diagnostics and Data segments propels Tempus AI’s promising outlook for 2026

Loading...
Loading quote...

Summary

Tempus AI, Inc. (NASDAQ:TEM) saw its shares surge Monday after disclosing preliminary financial results for the fourth quarter and full year of 2025. Reporting substantial revenue growth across Diagnostics and Data divisions and securing a record total contract value, the company underscores its strengthening market position. CEO Eric Lefkofsky highlighted accelerating genomics test volume and AI's catalytic role as Tempus approaches its comprehensive earnings announcement in February 2026.

Key Points

Tempus AI reported preliminary 2025 revenue of approximately $1.27 billion, representing an 83% year-over-year increase.
Diagnostics segment revenue surged roughly 111% to about $955 million, driven by significant growth in oncology and hereditary testing volumes.
Data and applications segment grew around 31% to $316 million, with Insights revenue increasing an estimated 38%.
The company achieved a record Total Contract Value exceeding $1.1 billion as of year-end 2025, securing agreements with over 70 clients including major pharmaceutical and biotech firms.

Tempus AI, Inc., a publicly traded biotechnology firm listed on NASDAQ under the ticker symbol TEM, observed a notable increase in its share price on Monday subsequent to releasing its preliminary financial figures for the final quarter and entire 2025 fiscal year. This early disclosure painted a promising picture of significant revenue increases, particularly anchored in the company's Diagnostics and Data and applications segments.

For the full 2025 fiscal year, Tempus AI reported total revenue approaching $1.27 billion, marking a year-over-year increase of approximately 83%. This figure incorporates an estimated organic growth rate of around 30%, excluding impacts from Ambry's contributions. The Diagnostics division, which plays a core role in Tempus’s business model, generated revenues near $955 million. This segment experienced a remarkable approximate 111% increase compared to the prior year. Growth in this area was primarily driven by oncology test volumes rising by roughly 26% and hereditary testing expanding by about 29%, underscoring the rising demand for genetic diagnostic services.

In parallel, the company’s Data and applications revenue totaled approximately $316 million in 2025, representing about 31% growth year over year. The increase here was largely fueled by an estimated 38% surge in Insights revenue, which stems from data licensing activities — a critical component given the growing importance of data-driven platforms in healthcare innovation.

Looking specifically at the fourth quarter, Tempus AI recorded revenues close to $367 million, reflecting an 83% boost from the same quarter of the prior year. Diagnostics revenue for the quarter hit around $266 million, surging about 121% year over year. This spike was attributed chiefly to oncology volume growth of nearly 29% and hereditary testing growth near 23%. Meanwhile, the Data and applications segment achieved revenue of roughly $100 million for the quarter, an increase of 25% year over year. Insights revenue within this segment, when adjusted to exclude the one-time impact of the AstraZeneca PLC warrant recognized in the fourth quarter of 2024, grew approximately 68%, signaling expanding value from data licensing operations.

In terms of contract agreements, as of December 31, 2025, Tempus AI reported reaching a record Total Contract Value (TCV) exceeding $1.1 billion. Throughout 2025, the company forged data agreements with more than 70 clients, including prominent pharmaceutical corporations such as AstraZeneca, GlaxoSmithKline PLC, Bristol Myers Squibb Company, Pfizer Inc., Novartis AG, Merck & Co., Inc., AbbVie Inc., Daiichi Sankyo Company, Limited, Eli Lilly and Company, and Boehringer Ingelheim International GmbH. In addition, Tempus collaborated with various biotech firms including Incyte Corporation, Les Laboratoires Servier SAS, Aspera Biomedicines, Inc., and Whitehawk Therapeutics, Inc. These partnerships underscore Tempus’s entrenched position within the pharmaceutical and biotech sectors, leveraging data-driven insights to support drug development and personalized medicine.

Further highlighting customer engagement, the company posted a net revenue retention rate of around 126% in 2025, indicating a strong ability to maintain and grow revenue streams from its existing client base over the year.

Eric Lefkofsky, the Founder and CEO of Tempus AI, commented on these outcomes stating, “Within Diagnostics, year-over-year volume growth of our genomics (oncology) offering accelerated for the third consecutive quarter, hitting the highest unit growth rate we have seen in years.” He emphasized the company’s readiness for the coming year by adding, “We enter 2026 in an exceptionally strong position with both of our main businesses accelerating in growth and delivering the financial leverage inherent in our platform. With AI as a catalyst across all of our products, we couldn’t be more excited for 2026.”

Tempus AI is scheduled to release complete detailed financial results for the fourth quarter and full year 2025 in February 2026, providing a comprehensive view of the company’s performance.

Following the preliminary results announcement, Tempus AI shares opened Monday’s trading session higher, rising 10.31% to reach $73.09 in premarket trading, according to Benzinga Pro data. This price movement reflects investor optimism responding to the company’s robust growth indicators and promising contractual arrangements.

Risks
  • The preliminary nature of the disclosed financial figures means final results could differ when fully reported in February 2026.
  • Insights revenue growth in Q4 2025 was influenced by the exclusion of a warrant impact from AstraZeneca in the previous year, which may introduce variability in year-over-year comparisons.
  • The company’s reliance on contracts with a concentrated set of pharmaceutical and biotech clients could pose risk if key partnerships shift or contract renewals falter.
  • While strong current growth is noted, sustaining this momentum in a competitive diagnostics and data market presents inherent challenges.
Disclosure
Education only / not financial advice
Search Articles
Category
Finance

Financial News

Ticker Sentiment
TEM - positive
Related Articles
Quest Diagnostics Reports Strong Q4 Earnings and Raises Full-Year Guidance Driving Stock Higher

Quest Diagnostics posted fourth-quarter results surpassing both earnings and revenue expectations, d...

AstraZeneca Posts Solid Q4 Earnings, Shares Rally Near 52-Week High

AstraZeneca Plc reported fourth-quarter 2025 revenue of $15.50 billion, slightly above expectations,...

Evommune Shares Surge Amid Positive Phase 2a Data for Atopic Dermatitis Treatment

Evommune, Inc. witnessed a sharp increase in its stock price following the release of encouraging to...

Phio Pharmaceuticals Reports Promising Tumor Clearance in Skin Cancer Trials, Shares Jump

Phio Pharmaceuticals Corp. announced encouraging Phase 1b data for its lead drug candidate PH-762 in...

Personalis Stock Surges on New Medicare Coverage for Lung Cancer Test

Shares of Personalis, Inc. climbed sharply in premarket trading following Medicare's approval of cov...

SAP Collaborates with Cohere to Deliver Global Sovereign AI Solutions Starting in Canada

SAP SE is enhancing its collaboration with Cohere to deploy sovereign AI solutions worldwide, initia...