stockrowWhat it does
Tempus AI is a healthcare technology company that provides diagnostic tests and uses patient data and artificial intelligence to support clinical and research decisions. It is headquartered in Chicago, Illinois, and its founder, Eric Lefkofsky, is chief executive officer and chairman.
Its Diagnostics business performs tests for healthcare providers, life sciences companies and researchers. These include tests that examine genes and other biological characteristics to help inform treatment, as well as hereditary tests that assess inherited disease risk. Cancer is its primary diagnostic focus, although its work also covers other disease areas.
Tempus connects laboratory results with clinical information, such as treatment history and outcomes, to give physicians more context about an individual patient. Its platform collects, organizes and de-identifies clinical, molecular and imaging data from its laboratories and healthcare institutions. The company uses that data in its own products and makes de-identified data available to customers.
Its Data and applications business serves pharmaceutical and biotechnology companies with data licensing, analytics and clinical trial support. It also develops software and algorithm-based diagnostic tools, including products designed to identify gaps in patient care. The company’s model connects the two businesses: diagnostic testing generates data that can be used in its data products, while the data platform supplies context for its tests.
How it makes money
Tempus earns revenue from diagnostic testing and from data and applications products. For diagnostic services, it generally bills insurers or patients, or bills healthcare providers and pharmaceutical companies directly. Payment therefore depends in part on coverage and reimbursement for the tests it runs.
The testing portfolio includes oncology and hereditary tests, as well as other laboratory services. Diagnostics generated $955.4 million in FY2025, representing 75.1% of revenue. The business also produces molecular data that Tempus can link to clinical records and outcomes, de-identify and use across its products.
In Data and applications, Insights licenses de-identified clinical, molecular and imaging data to pharmaceutical and biotechnology companies, along with analytics and computing tools. Trials helps pharmaceutical companies find patients and support clinical studies. Next uses machine learning to identify potential care gaps, while Algos develops algorithmic diagnostics. Insights Product revenue was $257.7 million in FY2025.
Some data agreements extend over several years. Tempus agreed to license oncology data and models to Bristol-Myers Squibb for up to $137.5 million over a five-year term. It also said Pathos is paying Tempus $55 million over a five-year term for a collaboration involving Alzheimer’s disease datasets and models. These agreement amounts are not the same as revenue already recognized.
Total revenue was $1,271.8 million for FY2025 and $411.5 million for Q3 2026.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Diagnostics | $955.4 million | 75.1% | 111.5% |
| Insights Product | $257.7 million | 20.3% | 38.0% |
| Trials Product | $38.5 million | 3.03% | −9.20% |
| AI Applications | $20.1 million | 1.58% | 63.4% |
Customers and how it sells
Tempus primarily operates in the United States. Healthcare providers order its diagnostic tests for patients, while insurers, patients, providers or pharmaceutical companies can pay for those services. Pharmaceutical and biotechnology companies also use its data, analytics and clinical trial services to support drug discovery and development.
The company’s provider network is a channel for both testing and data collection. It has more than 700 unique data connections across more than 5,000 healthcare institution sites that order its products and services. Tempus says its network covers more than 55% of U.S. oncologists, including connections through sequencing and data collection. These figures describe its network, not revenue concentration.
Named life sciences customers and collaborators include Bristol-Myers Squibb, which licenses oncology data and models, and Pathos, which is paying Tempus for work on Alzheimer’s disease datasets and models. Tempus also has a collaboration with Moderna and Merck to support the potential commercialization of an individualized cancer therapy. The company has relationships with academic medical centers, community practices and other healthcare institutions through which it obtains and structures data.
Suppliers and costs
Tempus operates five diagnostic testing laboratories in Chicago, Atlanta, Raleigh, Aliso Viejo and Minneapolis. Its laboratories perform sequencing and other molecular and anatomical pathology tests. Healthcare institutions also supply clinical and other patient data through arrangements connected to testing, trial matching and data services.
The company has a limited number of paid licenses to acquire de-identified data from healthcare associations or institutions. In some cases, it also pays the direct technical integration costs needed to establish a data connection. Its data processing uses software as well as manual curation and quality control.
Tempus employs specialists in product development, engineering, research and development, as well as laboratory and clinical disciplines. It expects operating expenses to increase as it develops offerings, expands its sales organization and increases marketing. It also expects that demand for tests could increase capital expenditure requirements if it needs more laboratory capacity. Developing new diagnostics can require research, validation studies and, in some cases, clinical trials.
- Revenue$1.3B
- Cost of revenue−$473.9M
- Research and development−$319.0M
- Selling, general and administrative−$731.7M
- Operating income−$252.9M
Competitive position
Tempus competes with diagnostic companies that test genes in cancer and other diseases. Its named precision oncology competitors include Foundation Medicine, Caris Life Sciences, Guardant Health, Natera and NeoGenomics. GeneDx, Variantyx and Baylor Genetics compete in hereditary testing. The company also identifies Myriad Genetics and Genomind as competitors for its neuropsychiatry pharmacogenetic test.
In data and applications, Tempus competes with Flatiron Health, IQVIA and ConcertAI for pharmaceutical and biotechnology customers seeking data for drug development. Clinical research organizations, including ICON and Syneos, also compete in data and trial matching services. Some competitors may have greater financial resources, larger research teams or more established sales forces.
Tempus’s proposed advantages include its provider connections, linked clinical and molecular data, laboratories and software. Its database contained more than 8.6 million de-identified patient records at the end of 2025, and it generally retains rights acquired in de-identified data even if contractual obligations expire or end.
Our reading: The connected provider network and linked data are meaningful potential defenses because they support both testing and data products. Our reading: Their strength is constrained by competitors offering similar tests and data services, including companies with potentially greater resources.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Foundation Medicine | Precision oncology diagnostic testing | High |
| Caris Life Sciences | Precision oncology and algorithmic diagnostic tests | High |
| Guardant Health | Precision oncology and tumor-origin testing | High |
| Natera | Precision oncology and minimal residual disease testing | High |
| NeoGenomics | Precision oncology diagnostic testing | High |
| GeneDx | Hereditary diagnostic testing | High |
| Myriad Genetics | Neuropsychiatry pharmacogenetics and HRD testing | High |
| Flatiron Health | Data for pharmaceutical and biotechnology research | High |
Growth opportunities
Tempus is expanding its diagnostic portfolio and applying its data platform beyond oncology. Its acquisition of Ambry Genetics in 2025 added hereditary testing capabilities and offerings across areas including rare disease, cardiology and reproductive health. Tempus also acquired Paige.AI in 2025; it expects the acquisition to expand its dataset and presence in digital pathology.
The company sees an opportunity to expand hereditary testing. Tempus says current guidelines and reimbursement would cover about 70 million lives, compared with something like 2 million tests a year that it runs. It also says it must follow the reimbursement landscape before entering new diagnostic categories.
In cancer, Tempus plans to bring Personalis’ testing portfolio into its business, with the acquisition pending. The portfolio would extend its work in minimal residual disease testing, which seeks evidence of remaining cancer. Tempus estimates the market at more than $20 billion. It says the transaction is intended to broaden its offering and accelerate adoption.
Data licensing is another area of expansion. Alongside its oncology work with Bristol-Myers Squibb, Tempus and its collaborators are building Alzheimer’s disease datasets and models. In Q3 2026, Data and applications revenue was $108.1 million, increasing 33% year over year. Tempus increased its 2026 revenue guidance to 1.60 to 1.605 billion dollars.
- $320.7MFY2022
- $531.8MFY2023
- $693.4MFY2024
- $1.3BFY2025
- $1.6BFY2026 guidance
Structural risks
- Losses and funding: Tempus has incurred significant losses and negative operating cash flows. It expects additional operating losses in the near future and may need to raise capital; additional financing may not be available on reasonable terms, or at all.
- Coverage and reimbursement: Adoption of its tests depends partly on obtaining and broadening coverage from commercial and government payers. Lower reimbursement than expected could affect its liquidity requirements and ability to enter new categories.
- Clinical adoption and product development: Commercial acceptance depends on clinical validation, publications and adoption by clinicians and life sciences companies. Diagnostic development can fail, including if a test does not demonstrate clinical utility.
- Regulation and data: Some diagnostic products are subject to FDA and other regulation. Changes in privacy, data security or medical device rules, or failures to comply, can affect operations and product approvals.
- Competition and customer budgets: Competitors may develop products that rival or replace Tempus offerings. Demand for data and diagnostics also depends partly on pharmaceutical and biotechnology research and clinical budgets, which can change with economic and funding conditions.
- Acquisition integration: Tempus expects to absorb losses from Personalis if the pending acquisition closes. It says the company’s tests currently lose money on a per-test basis.
Bottom line
Our reading
Our reading: Tempus combines a laboratory testing business with a data and software business that can reuse de-identified information generated through clinical care. Its provider connections and linked datasets support that model, while diagnostics remain the largest disclosed revenue category. The business also depends on reimbursement, clinical adoption and continued investment, with losses and the pending Personalis acquisition adding financial demands.