|
|
|
|
|||||
|
|
|
Tempus AI, Inc. TEM reported a third-quarter 2025 adjusted loss of 11 cents per share, narrower than the Zacks Consensus Estimate by 31.3%.
GAAP loss per share was 46 cents, flat on a year-over-year basis.
Revenues totaled $334.2 million, which beat the Zacks Consensus Estimate by 2.4%. The top line surged 84.7% on a year-over-year basis.
Following the announcement, shares of Tempus AI declined 3.1% in after-market trading yesterday, reflecting investor reaction to the company’s reported quarterly operating loss.
In the third quarter, Genomics contributed $252.9 million in revenues, up 117.2% year over year.
Within this, Oncology testing (legacy Tempus clinical) revenues totaled $139.5 million, up 31.7% year over year. This was supported by approximately 27% volume growth in the third quarter.
Hereditary testing (legacy Ambry Genetics) contributed $102.6 million in revenues, up 32.8% year over year on a pro-forma basis. Volume growth was approximately 37%.
The Data and Services product line reported sales of $81.3 million, up 26.1% year over year. This was driven by Insights (data licensing), which grew 37.6% year over year.
The gross profit in the third quarter totaled $209.9 million, up 98.4% from the year-ago quarter’s level. The adjusted gross margin expanded 432 bps to 62.8% despite a 65.5% rise in the cost of revenues (genomics, data and services).
Total adjusted operating expenses were $232.8 million, up 80.8% from the year-ago quarter’s level. The company incurred operating loss of $22.9 million, which remained flat on a year-over-year basis.
At the end of the third quarter of 2025, the company had cash and cash equivalents of $655.9 million compared with $186.3 million at the end of the second quarter.
Cumulative net cash used in investing activities at the end of the third quarter was $387.6 million compared with $122.4 million a year ago.
Tempus raised its guidance for 2025. The company expects full-year revenues to be approximately $1.265 billion (earlier $1.26 billion) for the consolidated Tempus and Ambry Genetics business, indicating nearly 80% annual growth. The Zacks Consensus Estimate for the metric is pinned at $1.26 billion.
Adjusted EBITDA for the year is now expected to be $20 million (earlier $5 million).
Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote
Tempus AI ended the third quarter of 2025 with better-than-expected earnings and revenues. The company witnessed a significant reacceleration of its clinical volumes. The company had several milestones in the third quarter, including the acquisition of Paige, an AI company specializing in digital pathology, to expand the dataset and technical team, and establish a leading footprint in digital pathology. It also obtained FDA clearance for xR IVD (RNA NGS in vitro diagnostic device), Tempus Pixel and Tempus’ ECG-Low ejection fraction software. Furthermore, raised revenue guidance for the year bodes well for the stock.
However, the company’s quarterly operating loss looks discouraging.
Tempus AI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, IDEXX Laboratories IDXX and Boston Scientific BSX.
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.
IDEXX, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $3.40, which exceeded the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.
IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 2 hours | |
| 2 hours | |
| 2 hours | |
| 3 hours | |
| 3 hours | |
| 3 hours | |
| 3 hours | |
| 3 hours | |
| 4 hours | |
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 5 hours | |
| 8 hours | |
| 14 hours |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite