Tempus AI Inc
NASDAQ:TEM
Tempus AI Inc
Tempus AI Inc. stands at the forefront of the healthcare technology revolution, focusing its expertise on the convergence of artificial intelligence and big data to transform the way doctors approach precision medicine. Founded by Eric Lefkofsky in 2015, the company’s mission is to harness the power of data, equipping physicians with crucial insights that can propel patient care forward. With its sprawling genomic database, Tempus aggregates clinical and molecular information, which is then meticulously analyzed to provide actionable insights. Physicians receive comprehensive reports, offering tailored therapeutic options and clinical trial opportunities that might otherwise remain undiscovered.
Monetization for Tempus hinges on its relationships with various stakeholders in the healthcare ecosystem. It primarily earns revenue through partnerships with pharmaceutical companies, where it assists in drug discovery and development by offering detailed genomic data and analytics. Moreover, Tempus collaborates with research institutes and healthcare providers who rely on its AI-driven platform to enhance clinical decision-making and improve treatment outcomes. By bridging the gap between vast datasets and intricate patient care solutions, Tempus not only facilitates better healthcare practices but also solidifies its role as a vital link in the evolving landscape of modern medicine.
Tempus AI Inc. stands at the forefront of the healthcare technology revolution, focusing its expertise on the convergence of artificial intelligence and big data to transform the way doctors approach precision medicine. Founded by Eric Lefkofsky in 2015, the company’s mission is to harness the power of data, equipping physicians with crucial insights that can propel patient care forward. With its sprawling genomic database, Tempus aggregates clinical and molecular information, which is then meticulously analyzed to provide actionable insights. Physicians receive comprehensive reports, offering tailored therapeutic options and clinical trial opportunities that might otherwise remain undiscovered.
Monetization for Tempus hinges on its relationships with various stakeholders in the healthcare ecosystem. It primarily earns revenue through partnerships with pharmaceutical companies, where it assists in drug discovery and development by offering detailed genomic data and analytics. Moreover, Tempus collaborates with research institutes and healthcare providers who rely on its AI-driven platform to enhance clinical decision-making and improve treatment outcomes. By bridging the gap between vast datasets and intricate patient care solutions, Tempus not only facilitates better healthcare practices but also solidifies its role as a vital link in the evolving landscape of modern medicine.
Strong Revenue Growth: Tempus reported over 33% revenue growth in its core business for 2025, with both Diagnostics and Data segments performing above expectations.
Guidance Issued: Management guided to $1.59 billion in revenue and approximately $65 million of positive adjusted EBITDA for 2026, reflecting confidence in ongoing momentum.
Accelerating Diagnostics: Oncology unit growth reached 29% in Q4, with MRD test volume up 56% quarter-over-quarter and Hereditary business up 23%.
Data Business Outperformance: Data Licensing revenue rose 69% in Q4 (factoring in a one-time AstraZeneca impact), with net revenue retention at 126% and strong future bookings.
AI & Technology Edge: Tempus emphasized its unique, proprietary multimodal data and real-time clinical connectivity as key differentiators, with recent investments in foundation models expected to further accelerate growth.
ASP Upside: Average selling prices (ASPs) were $1,640 in Q4, up $40 sequentially, and management reiterated the potential for more than $500 upside as the product mix shifts to FDA-approved versions.
Healthy Demand Outlook: Oncology growth rates remain robust entering 2026, with high visibility and strong bookings across businesses.
Margins Set to Improve: Rising ASPs are expected to drive gross margin expansion, though management will balance this with ongoing investment in broader panels and data capabilities.
