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Tempus AI’s Big Pharma Data Push: AI Models Meet Recurring Revenue Momentum!

The latest quarter for Tempus AI demonstrated continued growth across its core business segments, with total revenue reaching $348.1 million, reflecting a 36% increase year-over-year. Diagnostic revenue totaled $261.1 million, rising nearly 35%, driven primarily by strength in Oncology, including solid tumor, liquid biopsies, and notably minimal residual disease (MRD) volumes. However, growth in the hereditary testing segment slowed, attributed in part to a challenging comparison against strong prior-year results. Management expects a return to mid-teens percentage growth in hereditary testing during the latter half of the year, supported by new product introductions and market adoption dynamics. The data and applications segment performed particularly well, generating $87 million in revenue, a 40.5% increase year-over-year. This segment benefited from robust data licensing and modeling business, with notable new strategic collaborations with major pharmaceutical clients such as Merck and Gilead.