Shares of Tempus AI, Inc. (NASDAQ:TEM) climbed on Monday in response to the company’s recent release of preliminary financial results for the fourth quarter and full year 2025, along with announcements of new strategic contracts intended to support cancer diagnosis and treatment.
For the full year 2025, Tempus AI reported an estimated revenue figure of approximately $1.27 billion. This represents roughly an 83% increase compared to the previous year. Notably, the company’s organic revenue growth, excluding contributions from the acquisition of Ambry, was also strong at an estimated 30%. These figures reflect a robust expansion in the company’s market presence and operational scale over the period.
Focusing on the fourth quarter of 2025, Tempus AI expects to generate quarterly revenues in the vicinity of $367 million. This amount similarly marks an 83% year-over-year increase, suggesting sustained momentum throughout the year as the firm continues to grow its service offerings and customer base.
Beyond the financial updates, Tempus AI disclosed the signing of two significant agreements aimed at advancing cancer testing and care through cutting-edge molecular profiling and data-driven methodologies. These collaborations are with prestigious healthcare and research institutions, emphasizing the company’s commitment to innovation in oncology diagnostics.
Strategic Alliance with NYU Langone Health
The first major partnership involves a multi-year strategic alliance with NYU Langone Health. This collaboration is focused on improving cancer care through enhanced molecular profiling techniques and the application of sophisticated data analytics to generate actionable clinical insights.
Dr. Ezra Cohen, Tempus AI’s Chief Medical Officer of Oncology, highlighted the research objectives underpinning this partnership. He emphasized the focus on understanding the nuances of cancer behavior, including patient response, resistance mechanisms, and disease progression. The insights gained are intended to not only refine existing diagnostic assays but also to foster the development of novel diagnostic tools and algorithms designed to empower clinicians. The ultimate goal is to facilitate truly personalized treatment approaches that respond to the unique characteristics of each patient’s cancer.
Expanding Genomic Testing Access with Northwestern Medicine
In addition, Tempus AI has entered into a partnership with Northwestern Medicine aimed at broadening access to genomic testing for cancer patients. This initiative seeks to provide genomic testing across a wide range of cancer types, inclusive of patients with early-stage diagnoses.
By making testing accessible to nearly all cancer patients, the collaboration intends to equip healthcare providers with deeper insights into the molecular profile of individual tumors. Such comprehensive data enables the design of more personalized and effective treatment protocols, compatible with the specific cancer characteristics of each patient.
These two agreements signify Tempus AI’s strategic positioning to advance precision oncology through the integration of molecular data and sophisticated analytics, strengthening its role within the healthcare and diagnostics sector.
Market Reaction and Stock Performance
Following these announcements and the positive revenue outlook, Tempus AI’s shares traded higher on Monday. According to data from Benzinga Pro, the stock appreciated by approximately 3.86%, closing at $68.83 at the time of reporting. This market response underscores investor confidence in the company's growth trajectory and its expanding footprint in the cancer diagnostics space.
Summary of Key Points
- Tempus AI projects approximately $1.27 billion in revenue for 2025, indicating an 83% increase compared to the prior year.
- The fourth quarter of 2025 alone is expected to see revenues around $367 million, also up 83% year over year.
- New partnerships with NYU Langone Health and Northwestern Medicine aim to advance cancer molecular profiling and increase genomic testing accessibility.
- Strategic collaborations focus on generating data-driven insights to enhance personalized cancer care.
- Shares rose near 4% on Monday, reflecting positive market sentiment toward the company’s developments and earnings outlook.
Potential Risks and Uncertainties
- Preliminary financial results are subject to final audit and verification, which may result in adjustments.
- The success of new partnerships depends on effective collaboration and the translation of research into clinical practice.
- Market acceptance and reimbursement policies for molecular diagnostic tests could impact revenue growth.
- The company’s growth projections exclude Ambry’s contribution, highlighting dependency on organic expansion which may face challenges.