Tempus AI (TEM) Is Up 7.2% After Raising 2025 Revenue Guidance and Reducing Net Loss

• Tempus AI recently reported second-quarter 2025 earnings, showing revenue of US$314.64 million, up from US$165.97 million a year earlier, and net loss sharply reduced to US$42.84 million from a very large loss of US$552.21 million last year.
• The company also raised its full-year 2025 revenue guidance to approximately US$1.26 billion, reflecting continued momentum in demand for its AI-driven healthcare solutions.
• We'll examine how Tempus AI's raised 2025 revenue guidance supports its long-term investment case in precision medicine and healthcare AI.

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Tempus AI Investment Narrative Recap

Owning Tempus AI means believing in the future of AI-powered healthcare, with a focus on rapid revenue expansion and leading-edge diagnostics. The latest earnings report, with substantial revenue growth and narrowed losses, reinforces a key short-term catalyst: scaling commercial adoption of its platforms. Importantly, this news does not materially change the biggest risk, ongoing regulatory and reimbursement uncertainty for AI-driven diagnostics, which continues to shape the company’s ability to monetize its innovations.

Among Tempus AI’s recent announcements, the expanded partnership with Personalis to offer the NeXT Personal MRD test is especially relevant. This alliance highlights efforts to push high-impact products in oncology, a core driver for both revenue acceleration and wider adoption of Tempus's AI solutions. It also directly connects to near-term catalysts, as successful rollout and future reimbursement for such assays could buoy performance in the months ahead.

However, investors should also be mindful of...

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

Tempus AI's narrative projects $2.1 billion revenue and $295.1 million earnings by 2028. This requires 29.8% yearly revenue growth and a $494.8 million earnings increase from current earnings of -$199.7 million.

Uncover how Tempus AI's forecasts yield a $69.50 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$17.07 to US$83.06, based on 31 different views. While revenue guidance has been raised, many contributors highlight lingering concerns about regulatory and reimbursement risks that could impact Tempus AI’s prospects, explore these varied perspectives to form your own opinion.

Explore 31 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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