Tempus AI Stock Gains Momentum on Strong Preliminary Results and Record Contract Pipeline

Tempus AI US88023B1035

Tempus AI has captured significant market attention following the release of preliminary financial figures and details of a substantial contract backlog. The company's dual business segments appear to be accelerating, with management reporting a record Total Contract Value. This performance raises the question of whether Tempus AI is positioning itself as a leading provider of AI-driven precision medicine.

The company's stock closed yesterday at €60.00, trading approximately 3.4% below its 50-day moving average of €62.11. Despite a recent recovery, the share price remains about 32.6% below its 52-week high of €89.00.

Company leadership has identified artificial intelligence as the central growth engine for the coming year, 2026. The sustainability of its current momentum will hinge on the successful conversion of its high contract value into recurring revenue streams and improved profit margins. While the preliminary data suggests a robust foundation for expansion, this picture must still be confirmed by audited financial statements and the subsequent realization of revenue from newly signed agreements.

Accelerating Financial Performance

Preliminary, unaudited results for the fourth quarter and full fiscal year 2025 indicate a marked acceleration in growth. For Q4, Tempus AI anticipates revenue of approximately $367 million, representing an increase of roughly 83% year-over-year. The diagnostics segment is exhibiting particularly strong expansion, with reported figures around $266 million, a surge of 121%. The Data & Applications segment is expected to reach about $100 million, growing 25%, with the Insights business showing an even more pronounced growth rate on an adjusted basis.

For the full 2025 fiscal year, management forecasts revenue of around $1.27 billion, also an 83% increase compared to 2024. An estimated $955 million of this total is attributed to diagnostics, reflecting 111% growth. This performance was driven by higher testing volumes in oncology (+26%) and hereditary testing (+29%). Revenue from Data rose to approximately $316 million (+31%), bolstered significantly by a 38% expansion in the data licensing business.

Expanding Client Base and Contract Backlog

A key factor behind the positive market response is the reported Total Contract Value (TCV). As of December 31, 2025, Tempus AI holds a TCV exceeding $1.1 billion. Furthermore, the company secured more than 70 data agreements throughout 2025, including partnerships with major pharmaceutical firms such as AstraZeneca, GlaxoSmithKline, Bristol Myers Squibb, Pfizer, and Novartis.

The company's Net Revenue Retention rate stands at approximately 126%, indicating an ability to expand relationships with existing clients even as its overall business volume grows.

Key Data Points:
* Record Contract Backlog: Total Contract Value >$1.1 billion (as of Dec 31, 2025)
* Broad Industry Engagement: Over 70 data agreements with pharmaceutical and biotech firms in 2025
* Strong Client Loyalty: Net Revenue Retention of ~126%
* Dual Growth Engines: Both core business segments are accelerating, with Data Licensing showing exceptional strength