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Tempus AI Signals Platform Leverage as Diagnostics and Data Scale in Tandem

January 12, 2026 By Analysis.org

Tempus AI, Inc. just put a very strong marker down for where its business is heading, and more importantly, how its two engines—Diagnostics and Data & Applications—are beginning to reinforce each other at scale. Preliminary, unaudited results for full-year 2025 show revenue of roughly $1.27 billion, up about 83% year-over-year, a number that would already be eye-catching on its own, but becomes more interesting once you factor in that roughly 30% of that growth was organic, excluding Ambry. This isn’t a one-off acquisition story masking underlying weakness; the core platform is expanding rapidly, and the growth curve is steepening rather than flattening. Diagnostics alone contributed approximately $955 million, up an extraordinary 111%, driven by sustained volume growth in both oncology and hereditary testing, while the Data and Applications segment reached around $316 million, growing 31% year-over-year and accelerating meaningfully in high-margin data licensing.

The fourth quarter sharpened that picture further. Q4 revenue of roughly $367 million represented another 83% year-over-year jump, with Diagnostics climbing 121% to about $266 million as oncology volumes grew close to 29% and hereditary testing volumes advanced roughly 23%. Meanwhile, Data and Applications delivered approximately $100 million in quarterly revenue, a record for the company, even after excluding the one-time AstraZeneca warrant impact that benefited Q4 2024. The standout detail here is Insights, Tempus’ data licensing business, which grew around 68% year-over-year in the quarter. That kind of acceleration suggests that pharma demand for large, multimodal, clinically annotated datasets is not just intact but intensifying, and that Tempus is increasingly viewed less as a service provider and more as core research infrastructure.

Management commentary reinforces that interpretation. Eric Lefkofsky emphasized that genomics unit growth in oncology hit the highest rate seen in years, accelerating for the third consecutive quarter, while Data and Applications exceeded expectations with full-year growth of about 31%. The phrase that matters most for investors, though, is “financial leverage inherent in our platform.” This is the point at which Tempus begins to look structurally different from traditional diagnostics companies. As volumes scale in Diagnostics, the dataset becomes richer; as the dataset becomes richer, data licensing and applications become more valuable; and as those higher-margin revenues expand, overall operating leverage improves. It’s a flywheel model, and 2025 appears to be the year where that flywheel gained real momentum.

That momentum is visible in contracted demand as well. Total Contract Value surpassed $1.1 billion by year-end, the highest level in the company’s history, with more than 70 data agreements signed during 2025 alone. The customer list spans nearly the entire top tier of global pharma alongside a growing set of mid-sized biotechs, signaling that Tempus’ multimodal datasets are becoming embedded in drug discovery and development workflows rather than treated as experimental add-ons. Net revenue retention of roughly 126% adds another important signal: existing customers are not just renewing, they are expanding their relationships as they scale usage across programs and indications. That kind of expansion, at this level of maturity, tends to correlate with long-term revenue durability.

Stepping back, the broader implication is that Tempus is exiting 2025 with both growth engines accelerating at the same time, something that is surprisingly rare in health-tech at this scale. Diagnostics growth provides defensible clinical relevance and data depth; Data and Applications convert that depth into recurring, high-value contracts with life sciences customers; and AI acts as the connective tissue that keeps improving both sides simultaneously. Heading into 2026, the company is not just growing fast—it’s doing so with increasing visibility, stronger customer lock-in, and a clearer path to margin expansion. For a business built around precision medicine, that alignment feels unusually precise.

Filed Under: Briefing

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