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TEM's Q3 Earnings & Revenues Beat, Stock Down in After-Market Hours
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Key Takeaways
Tempus AI's Q3 loss of 11 cents per share beat estimates, with revenues up 84.7% year over year.
TEM's Genomics revenues rose 117.2%, led by strong oncology and hereditary testing volume growth.
Tempus AI lifted 2025 revenue and EBITDA guidance, despite an unchanged operating loss.
Tempus AI, Inc. (TEM - Free Report) reported a third-quarter 2025 adjusted loss of 11 cents per share, narrower than the Zacks Consensus Estimate by 31.3%.
GAAP loss per share was 46 cents, flat on a year-over-year basis.
TEM’s Q3 Revenues
Revenues totaled $334.2 million, which beat the Zacks Consensus Estimate by 2.4%. The top line surged 84.7% on a year-over-year basis.
Following the announcement, shares of Tempus AI declined 3.1% in after-market trading yesterday, reflecting investor reaction to the company’s reported quarterly operating loss.
Detailed Breakdown of TEM’s Q3 Revenues
In the third quarter, Genomics contributed $252.9 million in revenues, up 117.2% year over year.
Within this, Oncology testing (legacy Tempus clinical) revenues totaled $139.5 million, up 31.7% year over year. This was supported by approximately 27% volume growth in the third quarter.
Hereditary testing (legacy Ambry Genetics) contributed $102.6 million in revenues, up 32.8% year over year on a pro-forma basis. Volume growth was approximately 37%.
The Data and Services product line reported sales of $81.3 million, up 26.1% year over year. This was driven by Insights (data licensing), which grew 37.6% year over year.
TEM’s Margin Performance
The gross profit in the third quarter totaled $209.9 million, up 98.4% from the year-ago quarter’s level. The adjusted gross margin expanded 432 bps to 62.8% despite a 65.5% rise in the cost of revenues (genomics, data and services).
Total adjusted operating expenses were $232.8 million, up 80.8% from the year-ago quarter’s level. The company incurred operating loss of $22.9 million, which remained flat on a year-over-year basis.
TEM’s Liquidity Position
At the end of the third quarter of 2025, the company had cash and cash equivalents of $655.9 million compared with $186.3 million at the end of the second quarter.
Cumulative net cash used in investing activities at the end of the third quarter was $387.6 million compared with $122.4 million a year ago.
Tempus AI’s Full-Year Outlook
Tempus raised its guidance for 2025. The company expects full-year revenues to be approximately $1.265 billion (earlier $1.26 billion) for the consolidated Tempus and Ambry Genetics business, indicating nearly 80% annual growth. The Zacks Consensus Estimate for the metric is pinned at $1.26 billion.
Adjusted EBITDA for the year is now expected to be $20 million (earlier $5 million).
Tempus AI ended the third quarter of 2025 with better-than-expected earnings and revenues. The company witnessed a significant reacceleration of its clinical volumes. The company had several milestones in the third quarter, including the acquisition of Paige, an AI company specializing in digital pathology, to expand the dataset and technical team, and establish a leading footprint in digital pathology. It also obtained FDA clearance for xR IVD (RNA NGS in vitro diagnostic device), Tempus Pixel and Tempus’ ECG-Low ejection fraction software. Furthermore, raised revenue guidance for the year bodes well for the stock.
However, the company’s quarterly operating loss looks discouraging.
TEM’s Zacks Rank and Key Picks
Tempus AI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , IDEXX Laboratories (IDXX - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.
IDEXX, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $3.40, which exceeded the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.
IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
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TEM's Q3 Earnings & Revenues Beat, Stock Down in After-Market Hours
Key Takeaways
Tempus AI, Inc. (TEM - Free Report) reported a third-quarter 2025 adjusted loss of 11 cents per share, narrower than the Zacks Consensus Estimate by 31.3%.
GAAP loss per share was 46 cents, flat on a year-over-year basis.
TEM’s Q3 Revenues
Revenues totaled $334.2 million, which beat the Zacks Consensus Estimate by 2.4%. The top line surged 84.7% on a year-over-year basis.
Following the announcement, shares of Tempus AI declined 3.1% in after-market trading yesterday, reflecting investor reaction to the company’s reported quarterly operating loss.
Detailed Breakdown of TEM’s Q3 Revenues
In the third quarter, Genomics contributed $252.9 million in revenues, up 117.2% year over year.
Within this, Oncology testing (legacy Tempus clinical) revenues totaled $139.5 million, up 31.7% year over year. This was supported by approximately 27% volume growth in the third quarter.
Hereditary testing (legacy Ambry Genetics) contributed $102.6 million in revenues, up 32.8% year over year on a pro-forma basis. Volume growth was approximately 37%.
The Data and Services product line reported sales of $81.3 million, up 26.1% year over year. This was driven by Insights (data licensing), which grew 37.6% year over year.
TEM’s Margin Performance
The gross profit in the third quarter totaled $209.9 million, up 98.4% from the year-ago quarter’s level. The adjusted gross margin expanded 432 bps to 62.8% despite a 65.5% rise in the cost of revenues (genomics, data and services).
Total adjusted operating expenses were $232.8 million, up 80.8% from the year-ago quarter’s level. The company incurred operating loss of $22.9 million, which remained flat on a year-over-year basis.
TEM’s Liquidity Position
At the end of the third quarter of 2025, the company had cash and cash equivalents of $655.9 million compared with $186.3 million at the end of the second quarter.
Cumulative net cash used in investing activities at the end of the third quarter was $387.6 million compared with $122.4 million a year ago.
Tempus AI’s Full-Year Outlook
Tempus raised its guidance for 2025. The company expects full-year revenues to be approximately $1.265 billion (earlier $1.26 billion) for the consolidated Tempus and Ambry Genetics business, indicating nearly 80% annual growth. The Zacks Consensus Estimate for the metric is pinned at $1.26 billion.
Adjusted EBITDA for the year is now expected to be $20 million (earlier $5 million).
Tempus AI, Inc. Price, Consensus and EPS Surprise
Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote
Our Take on TEM Stock
Tempus AI ended the third quarter of 2025 with better-than-expected earnings and revenues. The company witnessed a significant reacceleration of its clinical volumes. The company had several milestones in the third quarter, including the acquisition of Paige, an AI company specializing in digital pathology, to expand the dataset and technical team, and establish a leading footprint in digital pathology. It also obtained FDA clearance for xR IVD (RNA NGS in vitro diagnostic device), Tempus Pixel and Tempus’ ECG-Low ejection fraction software. Furthermore, raised revenue guidance for the year bodes well for the stock.
However, the company’s quarterly operating loss looks discouraging.
TEM’s Zacks Rank and Key Picks
Tempus AI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , IDEXX Laboratories (IDXX - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.
IDEXX, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $3.40, which exceeded the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.
IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.