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Tempus AI Surges on Genomics Boost and AI Deployment
17 Nov
Summary
- Tempus AI's Q3 results beat expectations, with genomics revenue up ~27%
- AI deployment in clinical practice could drive strong long-term growth
- Adjusted EBITDA turned positive, but GAAP net loss due to costs
On November 5, 2025, Tempus AI, Inc. (NASDAQ:TEM) reported strong Q3 results, sending Wall Street sentiment soaring. The health-tech company, which applies artificial intelligence to clinical and molecular data, saw its genomics business deliver a standout performance.
Tempus' oncology test volumes jumped around 27%, while hereditary testing surged, pushing total genomics revenue to approximately $253 million. This "Ambry-boosted" genomics engine was the key driver behind the company's overall sales of $334 million. The Data/Services segment also grew, with Insights licensing leading the way, allowing Tempus to spread its fixed costs more widely and lift gross profit to around $210 million.
While Tempus' adjusted EBITDA turned positive, its GAAP net income remained in the red due to stock compensation, new Ambry amortization, and a $12 million debt-extinguishment hit. However, the market's reaction was not about demand, as management raised the full-year guidance, citing the durability of these growth levers.
Analysts remain bullish on Tempus AI's prospects, with Canaccord Genuity reiterating its Buy rating and noting that "AI deployment at scale in clinical practice could drive strong long-term revenue growth for Tempus AI."
