Tempus AI Surges Past Earnings Expectations, Analyst Boosts Outlook

Tempus AI, Inc. has reported a strong performance in its third-quarter earnings for fiscal year 2025, exceeding analyst expectations and prompting a positive outlook from BTIG analyst Mark Massaro. The company’s revenue reached $334.21 million, surpassing forecasts of $328.73 million and representing an impressive 84.7% increase compared to the same period last year.

The results, announced on November 4, 2025, also revealed an adjusted loss per share of 11 cents, which was better than the anticipated loss of 17 cents. Following these results, Massaro maintained a “Buy” rating for the company’s stock, with a revised price target set at $96.

The strong earnings performance has been attributed, in part, to Tempus’s diversification into pharmaceutical contracts and the anticipated rise in average selling prices (ASPs) for its tests. Notably, the introduction of the xT CDx test is expected to increase ASPs significantly, moving to $4,500 per test from $2,900 for the previous xT LDT. Similarly, the xF liquid biopsy assay will see a price adjustment to $3,288 from $2,919.

Future Growth and Strategic Developments

Analysts, including Massaro, foresee Tempus securing additional pharmaceutical contracts that will bolster its data and services business. The expansion of commercial payor coverage for both the xF and xT CDx tests is anticipated, and Massaro highlights the ongoing development of Tempus’s algorithm business as a key driver for future growth.

Massaro emphasizes that Tempus AI is strategically positioned at the intersection of critical industry trends, including precision medicine, oncology advancements—particularly liquid biopsies—and the integration of AI and machine learning within healthcare. These factors are expected to accelerate the shift towards personalized drug development and enhance companion diagnostics for pharmaceutical companies.

Despite the positive earnings news, Tempus shares experienced a decline of 2.74% on the day of publication, trading at $82.18. This fluctuation reflects broader market dynamics, but analysts remain optimistic about the company’s long-term trajectory given its robust performance and strategic initiatives.

As Tempus AI continues to navigate the evolving landscape of healthcare technology, stakeholders will be watching closely for further developments in its contract acquisitions and pricing strategies. The potential for growth remains strong as the company capitalizes on its innovative solutions and industry trends.