Key Takeaways TEM stock surged 82.4% in a year, sharply outperforming its industry peers and the broader market. TEM's Genomics sales more than doubled as testing volumes rose 33% and Ambry integration lifted efficiency. Data & Services revenues grew 26.1%, Paige boosted AI scale, and TEM posted positive adjusted EBITDA. Tempus AI (TEM) has shown impressive momentum in the past 12 months, with its shares rising 82.4%. This has significantly outperformed the industry, which grew 2.6%, as well as the S&P 500 ...

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]