Tempus AI (TEM) Stock: Why Big Pharma Is Betting Big on This AI Platform

TLDR

• Tempus AI total contract value exceeded $1.1 billion, marking highest level in company history
• Company signed 70 data agreements with pharmaceutical companies including Pfizer, Merck, and AstraZeneca
• Diagnostics revenue grew 111% to $955 million with oncology testing up 26%
• Data and Applications segment revenue reached $316 million, up 31% year-over-year
• Wall Street consensus rating is Moderate Buy with $87 median price target

Tempus AI total contract value surpassed $1.1 billion in preliminary 2025 results. The milestone represents the highest level in company history as pharmaceutical companies adopt its AI-driven healthcare platform.

Tempus AI, Inc., TEM

The Data and Applications segment generated approximately $316 million in revenue for 2025. That reflects 31% year-over-year growth from 2024.

The Insights unit, which handles data licensing, performed better. Revenue grew 38% compared to the previous year.

Diagnostics revenue reached about $955 million, jumping 111% from 2024. Oncology testing volume increased 26% while hereditary testing climbed 29%.

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

Major Pharmaceutical Partnerships

Tempus AI secured over 70 data agreements throughout 2025. Partners include AstraZeneca, GSK, Bristol Myers Squibb, Pfizer, Novartis, Merck, AbbVie, and Eli Lilly.

These pharmaceutical companies use Tempus AI’s multimodal dataset for drug discovery and development. The platform combines genomic data, clinical records, imaging, and other information types.

CEO Eric Lefkofsky said the company enters 2026 in a strong position. Both main businesses are accelerating growth and delivering financial leverage, he noted.

Analyst Ratings and Price Targets

Wall Street maintains a Moderate Buy consensus on TEM stock. Five analysts rate it Buy while six recommend Hold.

The average price target stands at $86, suggesting 29.77% upside potential. Eight analysts issued targets over the past six months with a median of $87.

Recent targets range from $80 to $105. BTIG set the highest at $105 in November while Canaccord Genuity and JP Morgan both established $80 targets in December.

Institutional and Insider Activity

BlackRock increased its position by 62.8% in Q3 2025, adding 2.6 million shares. Vanguard Group boosted holdings by 22.1%, adding 1.7 million shares.

Goldman Sachs reduced its stake by 94.7%, removing 4 million shares during the same period.

Insiders completed 120 transactions over six months, all sales. CEO Eric Lefkofsky sold 1.7 million shares for approximately $127 million.

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

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