Tempus AI (TEM) Logs First Non-GAAP Profit And Bullish 2025 Outlook Is The Thesis Evolving?

• Earlier this month, Tempus AI reported a non-GAAP profit for Q3 2025 as genomics testing and data services gained momentum, while management outlined plans for additional FDA submissions to support higher average selling prices and improved unit economics.
• The company also projected sharply higher 2025 revenue with positive adjusted EBITDA for the full year, suggesting that its growing testing footprint and data platform are beginning to scale operationally.
• We’ll now explore how Tempus AI’s first non-GAAP profitable quarter and upbeat 2025 outlook could reshape its broader investment narrative.

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Tempus AI Investment Narrative Recap

To own Tempus AI, you need to believe its genomics testing and data platform can scale into a sustainable, higher-margin business. The first non GAAP profitable quarter and a 2025 adjusted EBITDA target help that thesis, but also increase focus on execution risk around pricing, reimbursement, and cost control in the near term.

The ten SABCS breast cancer abstracts tie directly into Tempus AI’s core catalyst of turning multimodal real world data into clinically relevant insights that support testing demand and, over time, potential uplift in average selling prices and assay mix.

Yet even as the story strengthens around scaling AI driven diagnostics, investors should be aware that rising competition and pricing pressure could...

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

Tempus AI’s narrative projects $2.1 billion revenue and $295.0 million earnings by 2028. This requires 29.7% yearly revenue growth and a $494.7 million earnings increase from -$199.7 million today.

Uncover how Tempus AI's forecasts yield a $91.42 fair value, a 42% upside to its current price.

Exploring Other Perspectives

Thirty four fair value estimates from the Simply Wall St Community range widely, from US$25.24 to US$229.35 per share, showing how far apart views can be. When you set that against Tempus AI’s reliance on expanding genomics testing and AI data services to support its recent non GAAP profitability, it underlines why checking multiple viewpoints on the company’s prospects can matter.

Explore 34 other fair value estimates on Tempus AI - why the stock might be worth over 3x 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 2 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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