Tempus AI A Chicago-based company focused on Precision Medicine, TEM builds network effects through three interconnected product lines. In the first quarter of 2025, revenues in the Data and Services segment rose 43.2% year-on-year to $61.9 million thanks to a 58% increase in our data licensing business, Insights. Total profit outweighed revenue growth, up 65.2%, with revenue costs increasing by just 3%. The business has expanded significantly, securing transactions with companies such as Novartis, Merck EMD, Takada and United Therapeutics over the past year. Against this background, Tempus' ability to maintain such a strong growth rate of data and services is particularly impressive.
Most of these contracts spanned multiple years, with the remaining total contract value reflecting data and services and not yet provided. Several recent developments set the stage for momentum. The main highlights are Tempus AI's $200 million data and modeling license agreement AstraZenecaAZN and Pathos will build the world's largest basic model, bringing AZN's remaining total contract value to more than $1 billion as of April 30th. AZN and Pathos cover most of the computational costs of training the model. In particular, the non-exclusive nature of the contract allows Tempus to license data and build models with others in the future.
The company has also expanded its collaboration with Illumina. Illumina uses a multimodal data platform to accelerate the clinical benefits of molecular profiling across all major diseases. In May, Tempus concluded a large-scale data agreement with Boehringer Ingelheim, focusing on biomarker development and new discovery efforts, and is based on past collaborations. Additionally, the company's new tumor-focused platform, Loop, is already in use by large pharmaceutical companies and prioritizes drug targeting in subpopulations of patients with serious, unmet needs.
Major competitors of TEM data and services
icon ICLR, an Ireland-based contract research institute, experienced a significant increase in overall biotechnology opportunities and a modest increase in project victory rates in the first quarter of 2025. However, ultimately it was ultimately offset by an increased opportunity for clients cancelled requests (RFPs) for proposals. In large pharma, RFP opportunities softened quarterly. Nevertheless, the high success rate of ICLR highlights strong positioning as a strategic partner.
IqviaIQV Technology & Analytics Solutions Business continued its strong recovery trend in the first quarter of 2025, with clients launching new drugs and running a commercial roadmap. However, IQV faced slow decision-making from clinical clients with new programs, reflecting broader macroeconomic pressures and industry attention. IQVIA reported an average time increase from RFP issuance to quarterly awards by 10%.
TEM is better than the peers and industry, but has grown in ratings
Each year, Tempus AI stocks surge 102.5%, surpassing the industry's 18% growth and offering stronger returns than IQV and ICLR.
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TEM is currently trading at a forward 12-month price (P/S) of 8.47 times, compared to the industry average of 5.83 times.
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Trends estimated in TEM stock
As you can see, Tempus AI revenue estimates for 2025 and 2026 show a variety of photos.
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TEM Stock currently has Zacks Rank #4 (sold). You can see Here is the complete list of today's Zacks #1 rank (strong purchase) stocks.
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