How Tempus AI's (TEM) New Collaborations and Revenue Growth Could Shape Its Precision Medicine Strategy

• Tempus AI recently reported third-quarter 2025 results, showing revenue of US$334.21 million, ongoing net losses, and updated its full-year guidance to an estimated US$1.27 billion, while announcing new scientific collaborations and presenting six new research abstracts at a major cancer conference.
• The company's partnership with the Institute for Follicular Lymphoma Innovation marks its first major collaboration with a non-profit foundation, highlighting Tempus AI's focus on precision medicine and multi-omic data innovation for unmet clinical needs.
• Let's examine how the strong quarterly results and new research partnerships could impact Tempus AI's growth and investment narrative.

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Tempus AI Investment Narrative Recap

Tempus AI shareholders are essentially betting on the company’s ability to maintain rapid commercial adoption of its precision oncology services and AI-powered data platform, while simultaneously extending its leadership in multi-omic data and research collaborations. The recent IFLI partnership and strong Q3 revenue growth reinforce the positive revenue momentum, but do not materially shift the focus away from the critical near-term catalyst: achieving reimbursement for novel assays. The main immediate risk remains margin pressure from rising R&D spend and intensifying competition in genomics.

Among recent announcements, the FDA clearance of Tempus AI’s xR IVD, an RNA sequencing-based diagnostic tool, stands out as especially relevant. This milestone aligns with Tempus’s efforts to secure payment and prove the clinical value of new AI-enabled diagnostics, a key factor influencing whether the anticipated revenue growth can translate into reliable earnings and offset current operating losses.

However, investors should keep in mind the potential for margin compression as competition in genomics heats up...

Read the full narrative on Tempus AI (it's free!)

Tempus AI's outlook anticipates $2.1 billion in revenue and $295.0 million in earnings by 2028. Achieving this requires an annual revenue growth rate of 29.7% and an earnings increase of $494.7 million from the current loss of $-199.7 million.

Uncover how Tempus AI's forecasts yield a $87.17 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Thirty-three members of the Simply Wall St Community produced fair value estimates for Tempus AI spanning US$24.88 to US$152.10 per share. While revenue guidance has been raised, opinions differ widely on the impact of ongoing reimbursement and margin risks, readers can explore these alternate viewpoints to inform a balanced outlook.

Explore 33 other fair value estimates on Tempus AI - why the stock might be worth over 2x more than the current price!

Build Your Own Tempus AI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tempus AI research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Tempus AI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tempus AI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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