Core Insights - Tempus AI, Inc. (TEM) is set to report its fourth-quarter 2025 results on February 24, with expectations of an 82.8% year-over-year revenue increase to $366.8 million [2][7] - The company reported an adjusted loss of 11 cents per share in the last quarter, which was better than the Zacks Consensus Estimate of a loss of 16 cents [1] - Tempus has seen a share price decline of 32.9% in the fourth quarter due to macroeconomic challenges, despite strong momentum from strategic acquisitions and product launches [3][7] Financial Performance - The Zacks Consensus Estimate for loss per share has remained unchanged at 2 cents over the past 30 days [2] - The company's earnings estimate revision trend shows consistent expectations for the current quarter and the next, with losses projected at -0.02 for Q4 and -0.13 for Q1 2026 [3] - In the previous quarter, Tempus achieved a gross profit improvement of 98.4% year-over-year, and adjusted EBITDA turned positive, indicating progress towards profitability [14] Market Position and Competitive Landscape - Tempus trades at a forward price-to-sales (P/S) ratio of 5.82X, which is above the industry average of 5.66X and higher than competitors like 10x Genomics (3.83X) and SOPHiA GENETICS (3.69X) [16] - The Zacks Medical Info Systems industry experienced a loss of 21.6% during the same period, while the S&P 500 gained 3.3% [4] Strategic Developments - Recent collaborations include a multi-year partnership with Whitehawk Therapeutics for oncology treatments and a selection by the Advanced Research Projects Agency for Health to provide testing services [8] - The Genomics segment is expected to show improvement due to growth in oncology testing and hereditary sequencing, while the Data and Services business is likely to benefit from strong demand for proprietary data licensing and AI solutions [9][10] - Tempus has enhanced its capabilities through the acquisition of Paige, an AI leader in digital pathology, and expanded its collaboration with Northwestern Medicine to integrate AI into clinical workflows [12] Future Outlook - The AI market is anticipated to grow rapidly, positioning Tempus to capitalize on emerging opportunities in healthcare [17] - Despite recent upsides, the company's premium valuation and lack of near-term profitability may limit immediate gains [18]

Core Insights - Tempus AI (TEM) has experienced significant growth, with shares increasing by 82.4% over the past year, outperforming the industry growth of 2.6% and the S&P 500's 19.3% increase [1][10] Company Performance - Tempus has achieved profitability on a non-GAAP basis and is focusing on disciplined expansion and long-term growth, with a portfolio that includes oncology therapy selection, hereditary testing, and minimal residual disease (MRD) [2] - The company reported a positive adjusted EBITDA of $1.5 million in the third quarter, marking a significant milestone after a decade of efforts [7] Revenue Segments - The Genomics segment has seen revenues more than double year-over-year, driven by increased oncology testing volumes and the integration of Ambry hereditary testing, with total genomics testing volumes rising by 33% [4][10] - The Data & Services segment has emerged as a high-margin revenue stream, with revenues growing by 26.1% year-over-year, primarily due to data licensing [6] Regulatory Developments - In September 2025, Tempus received FDA 510(k) clearance for its xR IVD to support drug development programs and launched a new liquid biopsy assay for treatment response monitoring [5] Market Outlook - The Zacks Consensus Estimate projects a 59.5% improvement in loss per share for 2025 and a 71.6% improvement for 2026, with revenues expected to grow by 82.3% to $1.26 billion in 2025 and reach $1.56 billion in 2026 [11]

Core Insights - Tempus AI Inc. reported third-quarter 2025 results with earnings and revenues exceeding consensus estimates [1] - The company achieved a narrower loss of $0.11 per share and an 84.7% year-over-year revenue increase to $252.9 million [2][10] - For the first time, Tempus reported positive adjusted EBITDA, marking a significant milestone [2] Financial Performance - Genomics revenues surged 117.2% year over year to $252.9 million, with Oncology testing generating $139.5 million (up 31.7%) and Hereditary testing contributing $102.6 million (up 32.8%) [6] - Data and Services revenues reached $81.3 million, a 26.1% increase year over year, driven by Insights bookings of $150 million, reflecting 37.6% growth [12] Competitive Landscape - Rivals such as 10x Genomics and Doximity also reported strong performances, with 10x Genomics posting a loss of $0.22 per share and revenues of $149 million, while Doximity achieved adjusted EPS of $0.45 and revenues of $168.5 million [3] Stock Performance - TEM stock increased by 35.7% during the third quarter, outperforming the broader industry gain of 6.7% and the S&P 500's 9.6% [4] - The stock is currently trading at a price-to-sales (P/S) ratio of 8.21X, above the industry average of 5.81X, indicating potential overvaluation [10][18] Future Outlook - Tempus plans to launch its first whole-genome sequencing test, Xh, next year, and is developing a companion diagnostic with Verastem Oncology [8][11] - The company expects 80% revenue growth in the fourth quarter of 2025 and a full-year growth of 81.8%, although earnings per share are projected to remain negative [15] Strategic Initiatives - Tempus received FDA 510(k) clearance for its xR IVD and launched xM for Treatment Response Monitoring, enhancing its product offerings [7] - The acquisition of Paige, an AI leader in digital pathology, strengthens Tempus' data and AI capabilities [13]

Industry Overview - The integration of genomics into cancer care has shifted treatment from uniform therapies to precision medicine, tailoring clinical decisions to individual tumor genetics and molecular profiles [1] - The genomics in cancer care market was valued at $21.07 billion in 2024, with an expected CAGR of 16.2% from 2025 to 2030, driven by technology innovation and clinical validation [1] Company Profiles Tempus AI - Tempus AI reported $241.8 million in Genomics revenues for the quarter ended June 2025, marking a nearly 115% year-over-year increase, supported by a 26% volume growth in oncology tests [5] - The company launched a new liquid biopsy assay, xM for Treatment Response Monitoring, designed to track tumor fraction changes in patients undergoing immune-checkpoint inhibitor therapies [6] - Tempus plans to introduce its first whole-genome sequencing test, Xh, next year, and is developing a companion diagnostic with Verastem Oncology [7] - Tempus AI's Genomics revenues surged 115% year over year, with significant contributions from testing growth and acquisitions [9] - The Data and Services segment saw a 35.7% year-over-year increase in sales, driven by a 40.7% rise in Insights, the data licensing business [10] - A notable development includes a $200 million data and modeling license agreement with AstraZeneca and Pathos, enhancing Tempus' contract value to over $1 billion [11] Exact Sciences - Exact Sciences is strengthening its position in cancer diagnostics, with international adoption of its Oncotype DX and validation of its Oncodetect test for predicting recurrence in colorectal cancer [12] - The company launched Cologuard Plus, an enhanced colorectal cancer screening test expected to reduce false-positive results by over 40% compared to the original [13] - Exact Sciences introduced Cancerguard, a multi-cancer early detection blood test, which is the first commercially available test analyzing multiple biomarker classes [14] - Cologuard remains a cornerstone of Exact Sciences' portfolio, with the company delivering its 20 millionth result, doubling its total from three years ago [15] Valuation and Performance - Tempus AI is trading at a forward 12-month price-to-sales ratio of 10.52, while Exact Sciences has a forward sales multiple of 3.46, indicating that Tempus is trading at a premium [16] - The Zacks Consensus Estimate for Tempus' 2025 sales implies an 81.21% year-over-year growth, while Exact Sciences' sales are expected to rise by 14.4% [17][20] - Tempus AI has seen a year-to-date share price increase of 158.8%, while Exact Sciences has gained 12.6% [4] Investment Considerations - Tempus AI's strong momentum in genomic testing and data partnerships, alongside Exact Sciences' advancements in molecular diagnostics, positions both companies as key players in the genomics landscape [20] - Exact Sciences, currently rated as a Strong Buy, is viewed as more attractively valued compared to Tempus AI, which holds a Hold rating [21][22]