Tempus AI (NASDAQ: TEM) Forecasts 83% Sales Growth, Shares Rise 4%
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Strong Sales Forecast: Tempus AI anticipates an 83% year-over-year revenue growth to $367 million in Q4, driven by a 121% surge in diagnostics sales to $266 million and a 25% increase in data and applications revenue to $100 million, highlighting the company's robust growth potential in the healthcare technology sector.
- Annual Performance Outlook: The company projects full-year sales to reach $1.27 billion, an 83% increase, and even excluding the acquisition of Ambry Genetics in early 2025, organic sales are expected to grow by 30%, indicating sustained momentum in its core business operations.
- Record Contract Value: As of December 31, Tempus AI reported a total contract value exceeding $1.1 billion, showcasing its strong market position in precision medicine and signing data agreements with over 70 clients, further solidifying its industry leadership.
- Increased Customer Spending: With a net revenue retention rate of approximately 126%, Tempus demonstrates that existing customers are significantly increasing their spending on data offerings, reflecting the company's success in customer relationship management and product value delivery.
Analyst Views on TEM
Wall Street analysts forecast TEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEM is 90.64 USD with a low forecast of 80.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 66.270
Low
80.00
Averages
90.64
High
105.00
Current: 66.270
Low
80.00
Averages
90.64
High
105.00
About TEM
Tempus AI, Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. It offers AI-enabled precision medicine solutions to physicians to deliver personalized patient care and, in parallel, facilitates discovery, development and delivery of optimal therapeutics. It provides three product lines: Genomics, Data and artificial intelligence applications (AI). The Genomics product line leverages its laboratories to provide next generation sequencing (NGS) diagnostics, polymerase chain reaction, profiling, molecular genotyping and other anatomic and molecular pathology testing. The data generated in its lab or ingested into its platform is structured and de-identified, prior to commercialization. Its AI Applications is focused on developing and providing diagnostics that are algorithmic in nature, implementing new software as a medical device, and building and deploying clinical decision support tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
