Tempus AI Reports Strong Earnings, Analyst Boosts Growth Outlook

Tempus AI, Inc. has reported impressive third-quarter earnings for fiscal year 2025, prompting BTIG analyst Mark Massaro to reaffirm a Buy rating for the company. Following the earnings release on November 4, 2025, Massaro set a price target of $96, reflecting optimism about the company’s growth potential.

The company achieved revenue of $334.21 million, surpassing analysts’ expectations of $328.73 million and representing an 84.7% increase compared to the previous year. Tempus also reported an adjusted loss per share of 11 cents, better than the anticipated loss of 17 cents. In light of these results, Tempus raised its revenue guidance for fiscal year 2025 to $1.265 billion, up from an earlier estimate of $1.260 billion.

Analyst Insights and Future Projections

Massaro highlighted that Tempus is likely to secure additional pharmaceutical contracts for its data and services, which he believes will bolster revenue. He noted the expected rise in average selling prices (ASPs) as the company shifts its focus towards higher-priced tests. Specifically, the price for the xT CDx test is projected to increase to $4,500 per test, up from $2,900 for the previous xT LDT version. Similarly, the xF liquid biopsy assay will see a price adjustment to $3,288 from $2,919.

The analyst anticipates that the expansion of commercial payer coverage for both the xF and xT CDx tests will further enhance Tempus’s market position. Additionally, Massaro believes that the company’s algorithm business will continue to develop and grow, positioning Tempus at the intersection of several key trends, including precision medicine, oncology, artificial intelligence, and personalized drug development.

Market Response

Despite the positive earnings report, Tempus shares experienced a decline of 2.74%, trading at $82.18 at the time of publication on Wednesday. This market response highlights the ongoing volatility in the biotechnology sector, which can often be influenced by broader market conditions and investor sentiment.

As Tempus AI continues to innovate and expand its offerings, the company’s ability to navigate these market challenges will be instrumental in achieving the ambitious targets set forth by analysts. With a growing portfolio of contracts and a focus on higher-value testing options, Tempus is well-positioned for sustained growth in the evolving healthcare landscape.