Tempus AI (TEM) Stock: Contract Value Tops $1.1 Billion as Pharma Giants Adopt AI Platform

TLDR

• Tempus AI’s total contract value surpassed $1.1 billion for the first time, driven by pharmaceutical companies adopting its AI-powered healthcare tools
• The company signed over 70 data agreements in 2025 with major drugmakers including AstraZeneca, GSK, Bristol Myers Squibb, Pfizer, and Merck
• Data and Applications segment revenue reached approximately $316 million for 2025, growing 31% year-over-year
• Diagnostics unit revenue jumped 111% to about $955 million, fueled by increases in oncology and hereditary testing
• Wall Street maintains a Moderate Buy rating with analysts setting a median price target of $87, implying 29.77% upside potential

Tempus AI reached a major milestone as its total contract value climbed past $1.1 billion. The preliminary results represent the highest level in company history.

Tempus AI, Inc., TEM

The healthcare AI company released preliminary estimates showing strong growth across both main business segments. Data and Applications segment revenue hit roughly $316 million for full-year 2025. That marks 31% growth compared to 2024.

The Insights unit performed even better. This division, which handles data licensing, grew 38% year-over-year.

The Diagnostics business posted the biggest gains. Revenue reached about $955 million in 2025, jumping 111% from the prior year. Oncology testing volume increased 26% while hereditary testing rose 29%.

TEM stock gained 6% over the past week. The company ranked as the third most-searched ticker on Quiver Quantitative over the last seven days.

Pharmaceutical Partnerships Drive Growth

Tempus AI signed more than 70 data agreements throughout 2025. The client list reads like a who’s who of Big Pharma.

Partners include AstraZeneca, GSK, Bristol Myers Squibb, Pfizer, Novartis, Merck, AbbVie, and Eli Lilly. These deals fuel the company’s record contract value.

The multimodal dataset sets Tempus apart. It combines genomic data with clinical records, imaging, and other information types. Drugmakers increasingly use this comprehensive approach for drug discovery and development.

He added that AI acts as a catalyst across all products.

Wall Street Weighs In

Analysts maintain a generally positive outlook on TEM stock. The consensus rating sits at Moderate Buy based on five Buy recommendations and six Hold ratings.

The average price target stands at $86. That suggests potential upside of 29.77% from current levels.

Recent price targets from analysts range from $80 to $105. Canaccord Genuity set an $80 target in late December. BTIG offered the highest target at $105 in November.

Eight analysts issued price targets over the past six months. The median target comes in at $87.

Institutional investors showed mixed activity in Q3 2025. BlackRock added 2.6 million shares to its position, increasing holdings by 62.8%. Vanguard Group boosted its stake by 22.1%, adding 1.7 million shares.

Goldman Sachs moved in the opposite direction. The firm reduced its position by 94.7%, removing over 4 million shares during the quarter.

Insider selling dominated recent activity. Company insiders completed 120 transactions over the past six months, all of them sales. CEO Eric Lefkofsky sold the most shares, offloading 1.7 million shares for roughly $127 million.

Tempus AI plans to release complete fourth-quarter and full-year 2025 results in February 2026.

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