Tempus AI, Inc. (TEM) delivered the kind of numbers that make investors smile, with shares climbing over 10% in premarket trading Monday after the company dropped preliminary fourth-quarter and full-year 2025 results over the weekend. The AI-driven diagnostics company is growing fast, and the momentum appears to be accelerating in exactly the areas that matter most.

The Big Picture for 2025

Let's start with the headline number: Tempus brought in roughly $1.27 billion in revenue for 2025, marking about 83% year-over-year growth. Strip out the Ambry acquisition and you're still looking at approximately 30% organic growth, which is the kind of expansion that suggests genuine business traction rather than growth-by-acquisition accounting magic.

The really interesting story lives in the segment breakout. Diagnostics revenue hit approximately $955 million, up roughly 111% year over year. That's not a typo—triple-digit growth in the diagnostics business. The engine behind this surge was oncology test volume growth of around 26% and hereditary testing growth of approximately 29%. These aren't just big numbers; they represent real tests being ordered by real doctors for real patients, which means the company's offerings are becoming embedded in actual clinical workflows.

Meanwhile, the Data and applications segment pulled in about $316 million, representing roughly 31% year-over-year growth. The star performer here was Insights, the company's data licensing business, which jumped an estimated 38%. When pharmaceutical companies and researchers are willing to pay for your data, that's a validation of both quality and utility.

Fourth Quarter Shows Acceleration

The fourth quarter continued the strong performance with revenue of approximately $367 million, up 83% year over year. Diagnostics revenue reached roughly $266 million, soaring 121% year over year, driven by oncology volume growth of about 29% and hereditary testing growth of approximately 23%.

Data and applications revenue stood at $100 million, up 25% year over year. When you exclude the impact of the AstraZeneca PLC (AZN) warrant that was recorded in the fourth quarter of 2024, Insights revenue actually increased around 68%, which shows the underlying business momentum when you strip away one-time accounting items.

Building a Contract Pipeline

Here's where things get interesting for anyone thinking about Tempus's future revenue visibility. As of December 31, 2025, the company reported a record Total Contract Value of over $1.1 billion. That's contracted business that should convert to revenue over time, giving the company a substantial backlog to work through.

Throughout 2025, Tempus locked in data agreements with more than 70 clients. The client list reads like a who's who of global pharma: AstraZeneca (AZN), GlaxoSmithKline PLC (GSK), Bristol Myers Squibb Company (BMY), Pfizer Inc. (PFE), Novartis AG (NVS), Merck & Co., Inc. (MRK), AbbVie Inc. (ABBV), Daiichi Sankyo Company, Limited (DSNKY), Eli Lilly and Company (LLY), and Boehringer Ingelheim International GmbH.

The roster also includes biotech firms like Incyte Corporation (INCY), Les Laboratoires Servier SAS, Aspera Biomedicines, Inc., and Whitehawk Therapeutics, Inc. When this many major players are buying your data and insights, it suggests Tempus has built something genuinely valuable in the oncology data space.

Adding to the positive metrics, Tempus reported net revenue retention of approximately 126% in 2025. That means existing customers aren't just sticking around—they're spending more, which is exactly what you want to see in a business model like this.

What Management Is Saying

Eric Lefkofsky, Founder and CEO of Tempus, highlighted the acceleration in the core business: "Within Diagnostics, year-over-year volume growth of our genomics (oncology) offering accelerated for the third consecutive quarter, hitting the highest unit growth rate we have seen in years."

He continued with an optimistic outlook: "We enter 2026 in an exceptionally strong position with both of our main businesses accelerating in growth and delivering the financial leverage inherent in our platform. With AI as a catalyst across all of our products, we couldn't be more excited for 2026."

The company plans to report complete fourth quarter and full year 2025 financial results in February 2026, which should provide more detail on margins, profitability trajectory, and forward guidance.

Market Reaction

Investors clearly liked what they saw. Tempus AI (TEM) shares were up 10.31% at $73.09 during premarket trading on Monday, suggesting the market views these preliminary results as validation of the company's growth story. The combination of accelerating diagnostics growth, expanding pharma partnerships, and strong retention metrics paints a picture of a company hitting its stride in a massive addressable market.