Key Highlights
- Tempus AI has broadened its multi-year partnership with Gilead Sciences (GILD), enabling Gilead’s oncology research teams to leverage Tempus’ AI-powered Lens analytics platform.
- Gilead now has enterprise-level access to Tempus’ anonymized multimodal oncology datasets spanning numerous cancer types.
- Revenue from Tempus’ Diagnostics division skyrocketed 111.5% year-over-year in 2025, accompanied by a 26% increase in oncology testing volume.
- The Data and Applications division recorded $100.4M in fourth-quarter 2025 revenue, marking a 25.1% annual increase, while total remaining contract obligations surpassed $1.1 billion.
- TEM stock has climbed 17.9% during the trailing twelve months, outperforming the medical information systems sector, which declined 20%.
Tempus AI has announced a significantly enhanced collaboration with Gilead Sciences, building upon an existing relationship that has already been providing real-world oncology intelligence for Gilead’s pipeline development efforts.
This upgraded agreement provides Gilead with company-wide access to Tempus’ artificial intelligence-driven Lens analytics platform. The expansion enables more comprehensive access to anonymized patient information across diverse cancer categories, complemented by dedicated analytical support from Tempus’ specialized teams.
Historically, Gilead utilized Tempus’ data infrastructure for targeted applications including clinical trial architecture, biomarker identification strategies, therapeutic indication prioritization, and real-world outcomes evaluation. This expanded framework significantly broadens the scope of collaboration.
Patrick Loerch, Senior Vice President of Clinical Data Science at Gilead, characterized the partnership as evidence of their “shared priority of putting patients at the heart of innovation.” Ryan Fukushima, Chief Executive Officer of Tempus Data & Apps, emphasized that the enhanced access would provide AI-generated insights to bolster Gilead’s research and development initiatives. Specific financial details of the arrangement were not made public.
Robust Diagnostics Performance Underpins Expansion
The announcement arrives alongside some of Tempus’ most impressive diagnostic performance metrics to date.
During 2025, Tempus‘ Diagnostics division achieved 111.5% revenue expansion compared to the prior year. Oncology test volumes increased 26%, while Hereditary testing advanced 29%. The company’s Minimal Residual Disease (MRD) testing segment reached approximately 4,700 tests during the fourth quarter alone, representing a 56% sequential quarterly increase.
Company leadership projects oncology segment growth approaching 30% throughout 2026, fueled by accelerating adoption of genomic profiling technologies and broadening reimbursement frameworks for MRD testing.
Tempus is simultaneously navigating regulatory pricing enhancements, transitioning its xT CDx test from laboratory-developed test status to full FDA-approved commercial pathways. The average transaction price during Q4 2025 reached approximately $1,640, representing a roughly $40 increase from the third quarter.
Data Operations Demonstrating Consistent Expansion
Tempus‘ Data and Applications division has emerged as a crucial growth engine for the organization.
Fourth-quarter 2025 revenues for this segment totaled $100.4 million, reflecting 25.1% year-over-year growth. Net Revenue Retention registered at 126%, demonstrating that existing client relationships are expanding their financial commitments. The company concluded 2025 with total remaining contract obligations exceeding $1.1 billion.
Management has issued guidance projecting approximately $1.59 billion in aggregate 2026 revenues, suggesting roughly 25% annual growth.
Tempus is channeling resources into developing large-scale artificial intelligence foundation models trained on its exclusive datasets, with strategic plans to extend beyond oncology into radiology, cardiology, and neuropsychology applications.
The equity currently trades at a forward price-to-sales multiple of 5.02x, positioned below the industry median of 5.38x.
Gilead, for its part, is pursuing an aggressive acquisition strategy. The pharmaceutical company has disclosed three transactions totaling approximately $15 billion, including a $7.8 billion purchase of Arcellx and a $5 billion agreement for Tubulis. Financial analysts at TD Cowen, BMO Capital, and Truist Securities maintain Buy or Outperform recommendations on Gilead with price objectives ranging from $155 to $174.
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