Tempus AI Expands Breast Cancer Support with AI-Enabled Platform

Tempus AI is a technology company that provides next-generation diagnostics for multiple disease areas. Its product lines include genomics, data, and artificial intelligence applications (AI). The AI platform, Next, leverages machine learning to identify and minimize care gaps for oncology and cardiology patients.

Tempus AI, Inc. (NASDAQ:TEM) has reported robust financial performance in the first quarter of 2025, with a significant increase in revenue driven by strong growth in its Genomics and Data & Services segments. The company's shares have surged 79.1% over the past year, outperforming the industry average and the S&P 500 composite.

Revenue Growth and Key Developments

In the first quarter of 2025, Tempus AI reported a 75.4% year-over-year increase in total revenues, driven by an 89% growth in Genomics revenues and a 43% rise in Data & Services revenues. The Genomics business benefited from 20% volume growth in oncology tests and increased Medicare reimbursement rates. Additionally, the acquisition of Ambry Genetics contributed $63.5 million in Genomics revenues. The Data & Services segment's growth was driven by a 58% improvement in Insights, the company's data licensing business, which has scaled significantly by signing deals with major pharmaceutical companies like Novartis, Merck EMD, Takeda, and United Therapeutics.

Tempus AI has also made several recent developments that are setting the stage for future sales growth. The company signed a $200 million data and modeling license agreement with AstraZeneca (AZN) and Pathos to build the world's largest foundation model. Additionally, Tempus AI's new liquid biopsy assay, xM for treatment response monitoring (TRM), is scheduled for clinical launch in the coming months, along with its first whole-genome sequencing (WGS) test, Xh, slated for clinical launch by next year.

Competitor Performance

Exact Sciences Corporation (EXAS) and Exelixis, Inc. (EXEL) also reported strong revenue growth in the first quarter of 2025. Exact Sciences reported a 10.9% revenue rise, driven by growth in its Screening and Precision Oncology segments. Exelixis reported strong revenue growth of 30.6% year over year, driven by the ongoing success of the Cabozantinib franchise.

Price Performance and Valuation

Tempus AI shares have surged 79.1% over the past year, outperforming the industry's 39.9% growth and the S&P 500 composite's 13% improvement. The company currently trades at a forward 12-month Price-to-Sales (P/S) of 7.85X compared to the industry average of 5.91X.

Earnings Estimates and Zacks Rank

Earnings estimates for Tempus AI in 2025 and 2026 are showing a mixed picture. The Zacks Rank for Tempus AI stock is #4 (Sell), indicating a cautious outlook from analysts.

References

[1] https://finance.yahoo.com/news/boosted-tempus-ai-tem-q1-122746776.html
[2] https://www.nasdaq.com/articles/whats-fueling-tempus-ais-explosive-sales-growth
[3] https://www.decibio.com/insights/ai-machine-learning-june-round-up-2025