Tempus revenue has skyrocketed by 75.4% year-over-year, reaching an impressive $255.7 million in the first quarter of 2025. We’ve witnessed exceptional performance across all business segments, with quarterly gross profit nearly doubling by 99.8% compared to the same period last year, totaling $155.2 million.
Furthermore, our genomics division has demonstrated remarkable tempus ai revenue growth, contributing $193.8 million and expanding by 88.9% versus the first quarter of 2024. Notably, our oncology testing services generated $119.0 million, representing a 31.0% increase year-over-year. Additionally, our data and services segment delivered $61.9 million with 43.2% growth compared to the previous year. As a result of this outstanding performance across all business units, we’re raising our full year 2025 revenue guidance to $1.25 billion, which represents approximately 80% growth year-over-year.
Tempus Reports 85% Revenue Growth in Q3 2025
In a striking financial performance, Tempus AI has delivered an 85% year-over-year revenue surge in the third quarter of 2025, continuing its exceptional growth trajectory seen throughout the year.
Revenue rises to $310M, beating analyst expectations
Tempus AI has posted Q3 2025 revenue of $310 million, surpassing the Zacks Consensus Estimate of $326.90 million. This impressive performance follows strong momentum from previous quarters, as the company maintains its aggressive growth pattern. Prior to the results announcement, market analysts had projected revenues between $326.90 million and $328.89 million for the third quarter, indicating the company’s ability to deliver solid performance despite varying market expectations.
Comparison with Tempus revenue 2024 and previous quarters
The Q3 results mark significant progress from the company’s Q2 2025 performance, when tempus revenue reached $314.60 million, representing an 89.6% year-over-year increase. Moreover, this continues the upward trend from Q1 2025 when the company reported $255.70 million in revenue with a 75.4% year-over-year improvement.
The company had previously indicated it expected to recognize approximately $330.00 million in Q3 2025, constituting roughly 26% of its annual revenue guidance. This consistent quarter-over-quarter growth demonstrates Tempus AI’s strengthening market position throughout 2025.
Gross profit and margin improvements across business units
Tempus has shown substantial gross profit improvements across its business segments. In Q2 2025, the company delivered a gross profit of $195.00 million, reflecting a dramatic 158.3% increase compared to the same period in 2024. The company’s gross margin rose to 62.0% in Q2 2025 versus 45.5% in Q2 2024.
Looking at individual business segments, Tempus’s genomics division achieved a non-GAAP gross margin of 59.4% in Q2 2025, up from 49.4% in Q2 2024. This improvement stems primarily from increases in average reimbursement per test and the strategic addition of Ambry Genetics. Concurrently, the data and services business maintained a healthy non-GAAP gross margin of 73.9% in Q2 2025, slightly up from 72.4% in Q2 2024, underscoring the strength of the company’s Insights business.
Genomics and Data Services Drive Performance Surge
Tempus AI’s business segments have emerged as powerful drivers of growth, with stellar performance across its diagnostic and data services portfolios.
Genomics revenue jumps 90% YoY
The genomics division has established itself as Tempus’s primary revenue engine, delivering remarkable expansion in recent quarters. During Q2 2025, genomics revenue reached $241.80 million, representing a 115.3% year-over-year increase. This acceleration follows the robust 88.9% growth seen in Q1 2025. The company’s genomics offerings consist of two main components: oncology testing and hereditary testing through Ambry Genetics. Hereditary testing contributed $97.30 million in Q2 2025, growing 33.6% year-over-year on a pro forma basis.
Oncology testing sees 25% volume growth
Oncology testing has witnessed significant acceleration throughout 2025. In Q3, the segment maintained the momentum established in earlier quarters, with approximately 25% volume growth expected. This represents a meaningful improvement from Q2 2025, when oncology testing delivered $133.20 million in revenue with 26% volume growth, and Q1 2025, which saw 20% volume growth. The company’s next-generation sequencing (NGS) tests have gained substantial market traction, particularly following enhanced Medicare reimbursement rates.
Data and services revenue up 60%, led by licensing deals
In parallel with genomics growth, Tempus’s data and services division has emerged as a crucial revenue contributor. The segment generated $72.80 million in Q2 2025, achieving 35.7% growth compared to Q2 2024. The Insights business (data licensing) has been especially strong, growing 40.7% year-over-year in Q2 following 58% growth in Q1.
The segment received a substantial boost from strategic collaborations announced with AstraZeneca and Pathos AI. These multi-year agreements include $200 million in data licensing and model development fees. The partnerships aim to build a multimodal foundation model in oncology leveraging Tempus’s vast repository of de-identified oncology data. These collaborations underscore the pharmaceutical industry’s growing interest in Tempus’s comprehensive molecular and clinical datasets.
Tempus Expands Through Strategic Partnerships and Acquisitions
Strategic expansion has been a cornerstone of Tempus AI’s recent growth strategy, with major partnerships and acquisitions significantly enhancing the company’s capabilities.
New collaborations with AstraZeneca and Pathos
Tempus recently formalized multi-year strategic collaborations with AstraZeneca and Pathos AI to develop what aims to be the largest multimodal foundation model in oncology. These agreements include $200 million in data licensing and model development fees to Tempus. The partnership will utilize Tempus’ de-identified oncology data to build a sophisticated AI model that all three parties will share upon completion. This agreement with AstraZeneca builds upon their initial 2021 partnership, now expanded to leverage Tempus’ AI-enabled platform and data repository for advancing therapeutic programs in oncology.
Impact of Ambry Genetics and Deep 6 AI acquisitions
In a significant move to diversify its testing portfolio, Tempus completed the acquisition of Ambry Genetics for $600 million, comprising $375 million in cash and $225 million in shares. Ambry was projected to generate approximately $300 million in revenue for calendar 2024 with adjusted EBITDA exceeding $40 million. Simultaneously, Tempus acquired Deep 6 AI, an AI-powered precision research platform integrated with over 750 provider site locations spanning more than 30 million patients. In another strategic acquisition, Tempus purchased Paige, a digital pathology company, for $81.25 million. This acquisition gave Tempus access to nearly 7 million digitized pathology slide images and associated clinical and molecular data from 45 countries.
AI integration with Illumina to enhance diagnostics
In April 2025, Tempus announced a collaboration with Illumina to accelerate the clinical adoption of next-generation sequencing tests through innovative evidence generation. This partnership combines Illumina’s AI technologies with Tempus’ comprehensive multimodal data platform to train genomic algorithms. “By expanding our collaboration with Illumina, we are combining our strengths in technology and data analytics with their strengths in developing new sequencing technologies to drive forward innovation and advance precision medicine,” stated Terron Bruner, Chief Commercial Officer of Tempus. The program builds on a long-standing relationship between the companies, focusing on developing tools spanning therapy selection, bioinformatics, and health economics.
Tempus Raises Full-Year Guidance and Eyes Profitability
Following its exceptional Q3 performance, Tempus AI has revised its financial outlook upward, solidifying its path toward sustainable profitability.
Updated 2025 revenue forecast to $1.3B
In light of strong Q3 results, Tempus has once again elevated its full-year 2025 revenue guidance to approximately $1.30 billion. This represents the third guidance increase this year, progressing from an initial $1.25 billion forecast to $1.26 billion after Q2, and now reflecting nearly 82% growth year-over-year. Consequently, the company expects Q3 to contribute roughly $330 million, approximately 26% of its annual revenue target.
Adjusted EBITDA expected to turn positive
Tempus continues to project positive Adjusted EBITDA of $5 million for full year 2025, marking a substantial $110 million improvement compared to 2024. The company has demonstrated consistent progress toward this milestone, with Q2 Adjusted EBITDA of -$5.6 million showing a $25.6 million improvement versus Q2 2024. This follows Q1’s improvement of $27.8 million year-over-year. Ultimately, achieving profitability on an adjusted EBITDA basis within the company’s first decade fulfills a longstanding corporate goal.
Tempus revenue multiple and investor sentiment
The market has responded enthusiastically to Tempus’s financial trajectory. Currently, the company maintains:
- Market capitalization of $15.4 billion
- Revenue multiple of 13.8x
- Enterprise value to revenue multiple of 23.1x
Analyst sentiment remains cautiously optimistic with 7 buy ratings and 7 hold ratings. The average price target stands at $82.50, though targets range from $60 to $110, reflecting varied expectations about Tempus’s valuation and growth potential.
Conclusion
Tempus AI’s outstanding Q3 2025 performance clearly establishes the company as a formidable player in the healthcare technology sector. The remarkable 85% revenue growth to $310 million demonstrates our sustained momentum throughout 2025, following equally impressive results in previous quarters. Accordingly, our genomics division has emerged as the primary growth engine with a 90% year-over-year increase, while oncology testing volumes grew approximately 25%, solidifying our market position.
Strategic partnerships certainly stand out as key catalysts for this exceptional growth. Our collaborations with AstraZeneca and Pathos AI, worth $200 million in data licensing and model development fees, significantly enhance our capabilities in developing multimodal foundation models in oncology. Additionally, the acquisitions of Ambry Genetics, Deep 6 AI, and Paige have expanded our testing portfolio and strengthened our data repository.
These achievements prompted us to raise our full-year revenue guidance for the third time this year, now projecting approximately $1.3 billion—representing nearly 82% growth year-over-year. Most importantly, we expect to achieve positive Adjusted EBITDA of $5 million for 2025, marking a substantial $110 million improvement compared to 2024 and fulfilling a longstanding corporate goal within our first decade.
The market has undoubtedly recognized our potential, reflected in our $15.4 billion market capitalization. Though analyst opinions remain divided between buy and hold ratings, our consistent execution across all business segments positions Tempus for continued success. The foundation we’ve built through strategic acquisitions, partnerships, and technological innovation establishes a robust platform for sustainable growth as we advance precision medicine and transform healthcare delivery through our AI-powered solutions.
Key Takeaways
Tempus AI’s Q3 2025 results showcase exceptional growth across all business segments, driven by strategic partnerships and acquisitions that position the company for sustained profitability.
• Revenue surged 85% to $310M in Q3 2025, beating analyst expectations and continuing strong momentum from previous quarters with consistent growth acceleration.
• Genomics division leads growth with 90% YoY increase, while oncology testing volumes grew 25% and data services expanded 60% through strategic licensing deals.
• Strategic $200M partnerships with AstraZeneca and Pathos AI will develop the largest multimodal foundation model in oncology, leveraging Tempus’s comprehensive data repository.
• Company raised full-year guidance to $1.3B revenue (82% growth) and expects positive $5M Adjusted EBITDA, marking first-time profitability milestone.
• Key acquisitions including Ambry Genetics ($600M) and Deep 6 AI significantly expanded testing capabilities and patient data access across 750+ provider sites.
These results demonstrate Tempus’s successful transformation from a growth-stage company to a profitable healthcare technology leader, with diversified revenue streams and strong market positioning in precision medicine.
FAQs
Q1. What was Tempus AI’s revenue growth in Q3 2025? Tempus AI reported an impressive 85% year-over-year revenue growth in Q3 2025, with revenue reaching $310 million.
Q2. How much revenue is Tempus AI projecting for the full year 2025? Tempus AI has raised its full-year 2025 revenue guidance to approximately $1.3 billion, representing nearly 82% growth compared to the previous year.
Q3. Which business segment is driving Tempus AI’s growth? The genomics division is leading Tempus AI’s growth, with a 90% year-over-year increase in revenue, while oncology testing volumes grew by approximately 25%.
Q4. Has Tempus AI formed any significant partnerships recently? Yes, Tempus AI has formed strategic partnerships with AstraZeneca and Pathos AI, worth $200 million in data licensing and model development fees, to develop a multimodal foundation model in oncology.
Q5. Is Tempus AI expected to be profitable in 2025? Yes, Tempus AI expects to achieve positive Adjusted EBITDA of $5 million for the full year 2025, marking a significant improvement of $110 million compared to 2024.
