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TEM's Diagnostics Arm Expanding Rapidly: What's Driving the Growth?
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Key Takeaways
TEM's Diagnostics arm is growing rapidly, led by rising adoption of precision oncology and MRD testing.
TEM's multi-assay platform and AI tools enhance genomic diagnostics.
Tempus' Ambry Genetics acquisition expanded hereditary cancer testing and broadened its sequencing portfolio.
The Diagnostics segment of Tempus AI (TEM - Free Report) experienced strong growth in 2025, driven primarily by increasing adoption of precision oncology testing and its integration of artificial intelligence with genomic diagnostics. One of the fastest-growing areas within Diagnostics was Minimal Residual Disease (“MRD”) testing, demonstrating the rapid adoption of advanced monitoring technologies in cancer care. The strong performance of the diagnostics segment is also supported by Tempus’ extensive clinical network, which includes connections with more than 5,500 hospitals and over 8,500 regularly ordering oncologists.
Tempus’ multi-assay genomic testing platform has also contributed to the growth, which includes several advanced oncology tests such as xT, xR, xF, xH and xE. Another major factor contributing to the advancement of the diagnostics segment is Tempus’ focus on integrating artificial intelligence and multimodal data analysis into its diagnostic platform.
The company has developed innovative tools such as Paige Predict, an AI-driven technology that analyzes digitized pathology slides to predict genetic mutations even when sequencing results cannot be returned due to technical limitations. Tempus has also developed the Immune Profile Score, an analytical framework that integrates DNA sequencing, RNA sequencing and digital pathology data to refine traditional biomarkers such as tumor mutational burden.
The acquisition of Ambry Genetics also played an important role in strengthening the diagnostics segment. Ambry expanded Tempus’ capabilities in hereditary cancer testing and allowed it to broaden the overall sequencing portfolio.
Peer Update
Illumina (ILMN - Free Report) is currently focusing on its core strengths in genomics. The primary growth driver remains the clinical market, where adoption of sequencing is expanding rapidly around the world. In multiomics, Illumina is building a comprehensive set of integrated solutions that extend its sequencing ecosystem, combining internally developed capabilities with selective acquisitions. It launched Illumina Protein Prep - an assay introducing superior performance for NGS-based proteomics discovery at scale.
Illumina also launched BioInsight, a new business that brings together its software, informatics, AI, pharma data partnerships, and large national genomics initiatives teams to cater to the industry demand for large, comprehensive data solutions. Its first data product, Billion Cell Atlas, drew strong interest from biopharma partners, with initial collaborations announced with AstraZeneca, Merck and Eli Lilly.
In 2025, Guardant Health (GH - Free Report) made several important advancements in its diagnostics business, particularly in precision oncology, liquid biopsy testing and early cancer detection technologies. The company continued expanding adoption of its flagship Guardant360 liquid biopsy test, which analyzes circulating tumor DNA from a simple blood sample to identify cancer mutations and guide targeted treatment decisions.
Another major advancement in GH’s diagnostics portfolio in 2025 was the expansion of its MRD testing platform, Guardant Reveal, which is designed to detect small traces of cancer remaining after treatment and identify early signs of recurrence. Guardant Health also continued advancing its multi-cancer early detection strategy in 2025 through the development and commercialization efforts surrounding Shield, a blood-based screening test designed to detect colorectal cancer in average-risk individuals.
TEM’s Stock Price Performance
Over the past year, Tempus’ shares have lost 3.4% compared with the industry’s 28.2% decline. The S&P 500 composite has improved 19.3% in the same time frame.
Image Source: Zacks Investment Research
Expensive Valuation
TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 5.54X compared with the industry average of 5.47X.
Image Source: Zacks Investment Research
TEM Stock Estimate Trend
In the past 30 days, Tempus' loss per share estimate for 2026 has increased from 21 cents to 37 cents.
View the Zacks #1 Rank List
Image: Bigstock
TEM's Diagnostics Arm Expanding Rapidly: What's Driving the Growth?
Key Takeaways
The Diagnostics segment of Tempus AI (TEM - Free Report) experienced strong growth in 2025, driven primarily by increasing adoption of precision oncology testing and its integration of artificial intelligence with genomic diagnostics. One of the fastest-growing areas within Diagnostics was Minimal Residual Disease (“MRD”) testing, demonstrating the rapid adoption of advanced monitoring technologies in cancer care. The strong performance of the diagnostics segment is also supported by Tempus’ extensive clinical network, which includes connections with more than 5,500 hospitals and over 8,500 regularly ordering oncologists.
Tempus’ multi-assay genomic testing platform has also contributed to the growth, which includes several advanced oncology tests such as xT, xR, xF, xH and xE. Another major factor contributing to the advancement of the diagnostics segment is Tempus’ focus on integrating artificial intelligence and multimodal data analysis into its diagnostic platform.
The company has developed innovative tools such as Paige Predict, an AI-driven technology that analyzes digitized pathology slides to predict genetic mutations even when sequencing results cannot be returned due to technical limitations. Tempus has also developed the Immune Profile Score, an analytical framework that integrates DNA sequencing, RNA sequencing and digital pathology data to refine traditional biomarkers such as tumor mutational burden.
The acquisition of Ambry Genetics also played an important role in strengthening the diagnostics segment. Ambry expanded Tempus’ capabilities in hereditary cancer testing and allowed it to broaden the overall sequencing portfolio.
Peer Update
Illumina (ILMN - Free Report) is currently focusing on its core strengths in genomics. The primary growth driver remains the clinical market, where adoption of sequencing is expanding rapidly around the world. In multiomics, Illumina is building a comprehensive set of integrated solutions that extend its sequencing ecosystem, combining internally developed capabilities with selective acquisitions. It launched Illumina Protein Prep - an assay introducing superior performance for NGS-based proteomics discovery at scale.
Illumina also launched BioInsight, a new business that brings together its software, informatics, AI, pharma data partnerships, and large national genomics initiatives teams to cater to the industry demand for large, comprehensive data solutions. Its first data product, Billion Cell Atlas, drew strong interest from biopharma partners, with initial collaborations announced with AstraZeneca, Merck and Eli Lilly.
In 2025, Guardant Health (GH - Free Report) made several important advancements in its diagnostics business, particularly in precision oncology, liquid biopsy testing and early cancer detection technologies. The company continued expanding adoption of its flagship Guardant360 liquid biopsy test, which analyzes circulating tumor DNA from a simple blood sample to identify cancer mutations and guide targeted treatment decisions.
Another major advancement in GH’s diagnostics portfolio in 2025 was the expansion of its MRD testing platform, Guardant Reveal, which is designed to detect small traces of cancer remaining after treatment and identify early signs of recurrence. Guardant Health also continued advancing its multi-cancer early detection strategy in 2025 through the development and commercialization efforts surrounding Shield, a blood-based screening test designed to detect colorectal cancer in average-risk individuals.
TEM’s Stock Price Performance
Over the past year, Tempus’ shares have lost 3.4% compared with the industry’s 28.2% decline. The S&P 500 composite has improved 19.3% in the same time frame.
Image Source: Zacks Investment Research
Expensive Valuation
TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 5.54X compared with the industry average of 5.47X.
Image Source: Zacks Investment Research
TEM Stock Estimate Trend
In the past 30 days, Tempus' loss per share estimate for 2026 has increased from 21 cents to 37 cents.
Image Source: Zacks Investment Research
TEM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.