Key Highlights
- Tempus AI has broadened its multi-year partnership with Gilead Sciences (GILD), providing comprehensive access to its AI-powered Lens platform for oncology drug development.
- Gilead now gains enterprise-level access to Tempus’ anonymized multimodal cancer datasets spanning various tumor types.
- Tempus’ Diagnostics division delivered 111.5% year-over-year revenue growth in 2025, with oncology test volumes climbing 26%.
- The Data and Applications business segment generated $100.4M in Q4 2025, representing 25.1% YoY growth, while total contract backlog surpassed $1.1 billion.
- Over the past year, TEM stock has climbed 17.9%, significantly outperforming the medical information systems sector which declined 20%.
Tempus AI has significantly broadened its collaboration with Gilead Sciences, building on an existing relationship that has been providing valuable real-world oncology insights for Gilead’s pharmaceutical research initiatives.
Under the enhanced agreement, Gilead receives comprehensive enterprise-level access to Tempus’ AI-driven Lens analytics platform. This expansion provides significantly broader reach to anonymized patient information spanning numerous cancer categories, complemented by specialized analytical support from Tempus’ expert teams.
In the initial arrangement, Gilead leveraged Tempus’ extensive data repository for targeted applications including clinical trial architecture, biomarker identification strategies, therapeutic indication prioritization, and real-world outcomes assessment. The current expansion represents a substantial advancement in scope and capability.
Patrick Loerch, Senior Vice President of Clinical Data Science at Gilead, characterized the collaboration as embodying their “shared priority of putting patients at the heart of innovation.” Ryan Fukushima, Chief Executive Officer of Tempus Data & Apps, emphasized that the enhanced platform access would furnish AI-powered intelligence to accelerate Gilead’s research and development initiatives. The companies did not reveal specific financial details of the arrangement.
Robust Diagnostics Performance Underpins Partnership Expansion
The partnership enhancement arrives as Tempus delivers exceptional diagnostic performance metrics.
Throughout 2025, Tempus‘ Diagnostics division achieved remarkable 111.5% revenue expansion compared to the prior year. Oncology test volumes increased 26%, Hereditary testing grew 29%, and minimal residual disease (MRD) testing reached approximately 4,700 tests during Q4 alone—representing 56% sequential quarterly growth.
Company leadership forecasts approximately 30% oncology segment growth in 2026, propelled by accelerating genomic sequencing adoption and broadening MRD reimbursement coverage.
The organization is simultaneously navigating regulatory pricing enhancements, particularly with the transformation of its xT CDx test from a laboratory-developed format to FDA-approved status. The average selling price in Q4 2025 reached approximately $1,640, reflecting a roughly $40 increase from the third quarter.
Data Platform Demonstrates Consistent Expansion
Tempus‘ Data and Applications division has emerged as a critical growth driver for the company.
Fourth quarter 2025 revenues for this segment totaled $100.4 million, marking 25.1% year-over-year advancement. Net Revenue Retention measured 126%, demonstrating that current clients are increasing their platform investment. The company concluded 2025 with more than $1.1 billion in total remaining contract value.
Management has issued guidance projecting approximately $1.59 billion in aggregate 2026 revenues, suggesting roughly 25% growth trajectory.
Tempus continues investing substantially in large-scale AI foundation models utilizing its proprietary healthcare datasets, with strategic plans to diversify beyond oncology into radiology, cardiology, and neuropsychology applications.
The stock currently trades at a forward price-to-sales multiple of 5.02x, positioned below the industry median of 5.38x.
Gilead, concurrently, is executing an aggressive acquisition strategy. The pharmaceutical company has disclosed three transactions totaling approximately $15 billion, encompassing a $7.8 billion Arcellx acquisition and a $5 billion Tubulis purchase. Wall Street analysts at TD Cowen, BMO Capital, and Truist Securities maintain Buy or Outperform ratings on Gilead shares with price objectives spanning $155 to $174.
