Tempus AI (TEM) Is Up 10.9% After Upbeat Revenue Outlook and FDA Clearance for AI Heart Tool

• Tempus AI, Inc. recently reported second quarter 2025 results, revealing revenue growth to US$314.64 million from US$165.97 million a year earlier, a much smaller net loss year-on-year, and a raised full-year 2025 revenue outlook to approximately US$1.26 billion.
• The company also secured FDA 510(k) clearance for its AI-powered ECG-Low EF software, highlighting ongoing expansion in clinical AI innovation alongside new share offerings, even as it continues to face pending shareholder lawsuits related to previous business practice concerns.
• We'll examine how Tempus AI's raised revenue guidance and FDA clearance for a new AI cardiovascular tool could influence its investment outlook.

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Tempus AI Investment Narrative Recap

To own Tempus AI shares, you need to believe in the company's ability to turn rapid revenue growth and clinical AI innovation into durable market leadership, despite persistent losses and heavy investment demands. While the company's raised revenue outlook and FDA clearance for its ECG-Low EF software help reinforce its growth narrative, the most pressing short-term catalyst remains consistent delivery on large pharma partnerships, and the main risk now centers on the unresolved shareholder lawsuit and related disclosures, neither outcome is yet fully visible in the business fundamentals.

The recent follow-on equity offering of US$500 million stands out as especially relevant. This sizeable capital raise could give Tempus AI more flexibility to fund ongoing R&D, expand its product pipeline, and support commercial initiatives, all of which directly affect both near-term catalysts and the company’s capacity to address emerging risks.

By contrast, unresolved legal challenges tied to past disclosures could have far-reaching implications investors should be aware of, especially if they...

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

Tempus AI’s outlook anticipates $2.1 billion in revenue and $296.8 million in earnings by 2028. Achieving this would require annual revenue growth of 37.4%, and an earnings increase of $1.02 billion from the current earnings of -$721.3 million.

Uncover how Tempus AI's forecasts yield a $67.70 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Thirty members of the Simply Wall St Community estimate Tempus AI’s fair value between US$17.04 and US$93.38, with substantial differences in outlook. In light of heightened growth expectations and ongoing legal concerns, your perspective on Tempus AI’s future may depend on your willingness to weigh both sides of this debate.

Explore 30 other fair value estimates on Tempus AI - why the stock might be worth less than half 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 1 key reward and 3 important warning signs 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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