Shares of Tempus AI (TEM +4.51%) popped on Monday after the health technology specialist issued an upbeat sales forecast.
By the close of trading, Tempus AI's stock price was up more than 4% after rising as much as 15% earlier in the day.
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This AI business is booming
Tempus expects revenue to grow 83% year over year to $367 million in the fourth quarter, fueled by a 121% surge in diagnostics sales, to $266 million, and a 25% jump in data and applications revenue, to $100 million.
For the full year, the artificial intelligence (AI)-focused healthcare company forecast sales growth of 83% to $1.27 billion. Excluding its acquisition of Ambry Genetics in early 2025, Tempus projects its organic sales to grow by 30%.
NASDAQ: TEM
Key Data Points
"We enter 2026 in an exceptionally strong position with both of our main businesses accelerating in growth and delivering the financial leverage inherent in our platform," CEO Eric Lefkofsky said in a press release.
Tempus AI is supporting the pharma industry's drug discovery efforts
Tempus also announced record total contract value of more than $1.1 billion as of Dec. 31. The precision medicine enabler signed data deals with over 70 clients in 2025. Pharmaceutical giants like Pfizer, Novartis, and Eli Lilly are integrating Tempus' datasets into their drug development programs.
Better still, Tempus' existing customers are spending more on its data offerings, as evidenced by its impressive net revenue retention of roughly 126% in 2025.
Investors will have an opportunity to review Tempus AI's finalized results when it reports earnings in February.
