Start here if you're new
what it is
Tempus uses AI software that learns from data and lab results to help doctors choose cancer tests and treatments.
how it gets paid
Last year Tempus Ai made $1.3B in revenue.
why it's growing
Revenue grew 83.4% last year. During 2025, tempus inked data agreements with over 70 customers, including several of the biggest names in large and mid-sized drugmakers and biotech companies.
what just happened
Tempus posted $905M in revenue, but EPS was still -$1.10.
At a glance
B balance sheet — gets the job done, barely
-$0.40 fy2027 eps est
$2B fy2029 rev est
19.9% operating margin
~$9B market cap
xvary composite: 40/100 — below average
What they do
Tempus uses AI software that learns from data and lab results to help doctors choose cancer tests and treatments.
Tempus has more than 2,400 employees and a data library built from mixed records, scans, and lab results. More cases give the software better examples to learn from, while your doctor gets more personalized answers. Insiders and directors owned 52.9% of the stock, so the people running it own the outcome.
How they make money
$1.3B
annual revenue · their business grew +83.4% last year
total revenue
$1.3B
+83.4%
The products that matter
molecular testing and clinical insights
Diagnostics platform
about $266M in q4 prelim revenue · +121%
management said diagnostics climbed about 121% to roughly $266M in the december quarter, driven by 29% oncology genomics volume growth and a 23% rise in hereditary volume. That's volume doing the work, not just price.
growth engine
data licensing and services
Data agreements
70+ customers · $1.1B contract value
tempus ended the year with over 70 customers and more than $1.1B in total contract value for data licensing and services. That's commercial proof. Here's the thing: contract value is not the same thing as recognized revenue, so you still need to watch conversion.
commercial proof
provider and health-system partnerships
Clinical network
nyu langone partnership
the nyu langone health partnership shows the model can win institutional buyers. This page does not give enough data to tell you how much revenue those relationships will add next, and pretending otherwise would be fan fiction.
proof still needed
Key numbers
$1.3B
annual revenue
A $1.3B top line with 83.4% growth says the business is still scaling hard.
83.4%
revenue growth
This is the contrast to the -19.9% operating margin, which means growth is outrunning profit.
19.9%
op margin
Operating margin means profit before interest and taxes. At -19.9%, the business still loses about $0.20 on each sales dollar before overhead and taxes.
$74
target price
The 18-month target is 42% above $51.95, so the market still expects more proof.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- long-term debt $201M (2% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TEM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Tempus posted $905M in revenue, but EPS was still -$1.10.
Revenue means sales. It jumped 171% vs. prior year, but profit per share stayed negative. Yahoo consensus showed a smaller -$0.30 loss, so the miss debate is messy.
$905M
revenue
-$1.10
eps
171.0%
revenue growth
the number that mattered
Revenue was the number that mattered because $905M is the clearest proof that the business still scales fast.
-
tempus ai released favorable preliminary results for the 2025 december period and full year.
-
management estimated that fourth-quarter revenues increased about 83% vs. prior year, to around $367 million.
-
the diagnostics business accounted for the lion’s share of the advance, rising about 121%, to around $266 million, driven by genomics (oncology) volume growth of around 29%, and a 23% increase in hereditary volume.
-
full-year revenues were about 83% higher, led by an 111% increase in diagnostics. (note: full financial results were due shortly after this report went to press.) an ample pipeline suggests results will remain on an upswing this year and the next.during 2025, tempus inked data agreements with over 70 customers, including several of the biggest names in large and mid-sized drugmakers and biotech companies. as a result, it boasted more than $1.1 billion in total contract value for data licensing and services as of the end of the year. most recently, tempus announced a strategic partnership with nyu langone health to advance cancer care through molecular profiling and data driven insights.
-
altogether, we continue to look for revenues to advance about 22% this year, to about $1.55 billion.
source: company earnings report, 2026
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What could go wrong
the main risk is simple: diagnostics growth cools before the rest of the business is ready to carry the weight. This stock is getting priced off proof points that are real, but narrow.
med
the valuation assumes growth stays fast
TEM carries a roughly $9B market cap against $1.3B in annual revenue. That setup works if growth stays elevated. It looks a lot less forgiving if the business is really settling near the recent 4.2% read shown on this page.
if growth normalizes faster than investors expect, the multiple takes the hit first
high
losses are widening, not narrowing
full-year EPS moved to -$1.20 from -$0.08 a year earlier, and quarterly margin was -19.3%. If scale does not start showing up in the income statement, investors stop calling this patience and start calling it a problem.
negative earnings are still central to the thesis, not a footnote
med
diagnostics is carrying too much of the narrative
management said diagnostics reached about $266M in the december quarter, versus preliminary revenue of about $367M. When one engine contributes roughly three-quarters of the quarter, any slowdown matters fast.
the growth engine is obvious. So is the concentration
med
contract value is not recognized revenue
more than $1.1B in contract value across 70-plus customers is a real commercial signal. It is not revenue yet. If conversion lags or contracts spread out over longer periods, the stock can get punished even with demand intact.
this is an execution and timing risk, not a demand problem
The tension is straightforward: $1.3B of revenue and 83.4% past growth support the bull case, while -$1.20 EPS, a -19.3% margin, and a much cooler recent growth read keep the stock fragile. If you own it, you are betting that proof arrives before patience runs out.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
diagnostics growth rate
121% growth to about $266M is the number holding up the narrative. If that cools sharply, the stock loses its cleanest proof point.
risk
losses per share
full-year EPS was -$1.20, and the fy2026 estimate is still -$0.60. You want losses narrowing quarter by quarter, not just revenue piling up.
calendar
next full earnings release
this page includes preliminary commentary and reported figures. The next full report matters because Tempus still owes you steadier proof, not just fast headlines.
trend
contract conversion
over 70 customers and $1.1B in contract value sound good because they are good. You care whether that turns into reported revenue growth and less negative margins.
Analyst rankings
risk profile
below average
stability score 4 means this stock is more volatile than most. in human-speak, analysts see upside, but they do not think this is a calm ride.
3–5 year target midpoint
$74
the midpoint sits about 42% above the current $51.95 price. That's the reward side. The reason the gap exists is that investors still need proof on margins and durability.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 279 buyers vs. 154 sellers in 3q2025. total institutional holdings: 92.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$38
$110
$52
current price
$74
target midpoint · +42% from current · 3-5yr high: $110
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