Tempus AI Stock Surged After Record Breaking Revenue Forecast and Big New Partnerships

The Explosive Growth of Tempus AI in Early 2026

The first few weeks of 2026 have been nothing short of transformative for Tempus AI (NASDAQ: TEM). Investors watched as shares of the precision medicine pioneer jumped significantly following the company's disclosure of stellar preliminary financial results for the full year 2025. The rally, which saw the stock climb as much as 15% in a single day, was sparked by a combination of massive revenue growth, record-breaking contract values, and high-profile clinical partnerships that suggest AI is finally finding its "killer app" in the healthcare sector.

As the 44th Annual J.P. Morgan Healthcare Conference kicked off in San Francisco, Tempus AI took center stage. CEO Eric Lefkofsky revealed that the company expects to report total revenue of approximately $1.27 billion for 2025, representing a staggering 83% increase year-over-year. This explosive growth isn't just a flash in the pan; it reflects a fundamental shift in how hospitals and pharmaceutical giants are using artificial intelligence to analyze complex biological data.

Record Contracts and High Retention Rates

One of the most impressive metrics in the recent update was the company's Total Contract Value (TCV), which surpassed the $1.1 billion milestone as of December 31, 2025. According to reports from BioSpace, Tempus signed data agreements with more than 70 organizations in 2025 alone. This list includes industry titans such as Pfizer, AstraZeneca, and Eli Lilly, all of whom are leaning on Tempus’s multimodal data to accelerate their drug discovery pipelines.

Furthermore, the company reported a net revenue retention rate of roughly 126%. This indicates that not only is Tempus winning new business, but its existing customers are also finding more ways to use its AI tools, spending significantly more each year. The market responded enthusiastically to this "sticky" business model, recognizing that once a pharmaceutical company integrates Tempus's data into its research, it becomes a core component of its operational infrastructure.

Strategic Partnerships Driving Clinical Adoption

While the financial numbers are impressive, the real-world utility of the platform is what’s driving long-term investor confidence. Just this week, Tempus announced major collaborations with NYU Langone Health and Northwestern Medicine. These partnerships aim to expand access to genomic testing and AI-driven insights for cancer patients across the country.

At Northwestern Medicine, the collaboration will focus on bringing next-generation sequencing to patients with early-stage cancers, a move that could redefine how oncologists personalize treatment from day one. These aren't just software deals; they are deep integrations into the clinical workflow. By utilizing DNA and RNA profiling alongside liquid biopsy and minimal residual disease (MRD) testing, healthcare providers can now offer a level of precision that was previously out of reach for many patients.

Breaking Down the Revenue Engines

The company's success is rooted in two main segments that are currently firing on all cylinders:

• Genomics & Diagnostics: This segment generated approximately $955 million in 2025, a 111% surge driven by increased oncology testing volume and the successful integration of the Ambry Genetics acquisition.
• Data & Applications: This high-margin business brought in roughly $316 million, growing 31% as more life sciences companies licensed Tempus’s "Insights" platform for research and development.

The stock's recent performance, as noted on Nasdaq, highlights that investors are increasingly comfortable with the company's path to profitability. For the first time, Tempus reported positive adjusted EBITDA in late 2025, proving that its AI-driven model can be both scalable and financially sustainable.

What Lies Ahead for TEM Stock in 2026?

Looking forward, the outlook for Tempus AI remains overwhelmingly bullish. With over $760 million in cash and zero debt, the company is well-capitalized to continue its aggressive expansion. The recent FDA clearances for its AI-powered cardiac imaging tools and ECG software also point to a future where Tempus moves beyond oncology into cardiology, neuropsychiatry, and other chronic diseases.

As AI continues to be a catalyst across all healthcare products, Tempus seems uniquely positioned as the "operating system" for precision medicine. If the current momentum holds, the company’s trajectory suggests that 2026 could be the year it transitions from a high-growth startup to a dominant cornerstone of the global medical technology landscape.