A month has gone by since the last earnings report for Tempus AI (TEM Quick QuoteTEM - Free Report) . Shares have lost about 8.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Tempus due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Tempus AI, Inc. before we dive into how investors and analysts have reacted as of late.

Key Highlights

Revenue: $334.2 million in Q3 2025, up 84.7% year over year and modestly above external consensus compiled by Zacks.

Gross profit: $209.9 million, up 98.4% year over year.

GAAP net loss: $80.0 million, a 5.5% wider loss year over year; net loss per share of $0.46, flat year over year.

Adjusted EBITDA: $1.5 million, improved from ($21.8) million in Q3 2024.

Genomics revenue: $252.9 million, up 117.2% year over year; oncology testing $139.5 million (up 31.7%) and hereditary $102.6 million (up 32.8% on a pro forma basis).

Data and services revenue: $81.3 million, up 26.1% year over year; Insights up 37.6%.

Clinical tests delivered: 217,000, up 33% year over year.

Tempus 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.

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.

Segment Performance

Genomics revenue more than doubled year over year, with oncology buoyed by unit growth and modest ASP improvement versus 2024, and hereditary contributing as Ambry scales. Data and services increased in the mid 20s percent year over year, led by Insights. Bookings added $150 million in total contract value across multiple agreements in Q3, alongside a multi hundred million foundation model engagement signed earlier in 2025. Management reiterated that bookings are recognized over multi year periods and will be disclosed on an annual basis, supporting long term visibility rather than near term revenue spikes.

Profitability and Operating Leverage

Q3 marked Tempus’ first positive Adjusted EBITDA. Gross profit nearly doubled year over year, highlighting scale in both Genomics and Data and services. Q3 net loss reflected sizable stock based compensation, amortization of intangibles associated with the Ambry acquisition, and a one time loss on debt extinguishment. Management emphasized cost discipline and improved sales force efficiency post portfolio integration.

Liquidity and Cash Flow

Tempus ended Q3 with $764.3 million of cash and marketable securities. Management continues to invest in AI compute and regulatory initiatives while avoiding “unnatural” spending. Paige, acquired in Q3, expands digital pathology capabilities but increases losses by roughly a mid single digit million amount per quarter. Non GAAP metrics exclude stock based compensation, acquisition related items, amortization of intangibles, and other specified items; the company does not guide to GAAP net loss and does not reconcile Adjusted EBITDA to GAAP net loss without unreasonable effort.

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.
For Q4 2025, Adjusted EBITDA is guided to approximately $20 million, with the full year expected to be slightly positive, inclusive of the Paige acquisition’s quarterly loss impact.

Consistent with this trajectory, Zacks’ annual EPS consensus currently anticipates improving per share results through 2026 and a positive print in 2027.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

The consensus estimate has shifted 12.3% due to these changes.

VGM Scores

Currently, Tempus has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Tempus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Tempus is part of the Zacks Medical Info Systems industry. Over the past month, Inspire Medical Systems (INSP Quick QuoteINSP - Free Report) , a stock from the same industry, has gained 62.7%. The company reported its results for the quarter ended September 2025 more than a month ago.

Inspire reported revenues of $224.5 million in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $0.38 for the same period compares with $0.60 a year ago.

Inspire is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of -41.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Inspire. Also, the stock has a VGM Score of C.