Key Highlights
- Tempus AI has secured a broadened multi-year partnership with Gilead Sciences (GILD), enabling enhanced oncology research through Tempus’ AI-powered Lens technology.
- Gilead now gains enterprise-level access to Tempus’ anonymized multimodal cancer data spanning numerous indications.
- Tempus reported 111.5% year-over-year revenue growth in its Diagnostics division for 2025, with oncology testing volumes climbing 26%.
- The company’s Data and Applications division generated $100.4M in Q4 2025, marking a 25.1% YoY increase, while total remaining contract obligations surpassed $1.1 billion.
- Over the past twelve months, TEM stock has climbed 17.9%, outperforming the medical information systems sector which declined 20%.
Tempus AI has announced a significant expansion of its existing collaboration with Gilead Sciences, building upon a relationship that has been supplying oncology real-world evidence for Gilead’s drug development initiatives.
Under the revised agreement, Gilead receives comprehensive enterprise-level access to Tempus’ AI-driven Lens platform. This expansion provides Gilead with substantially broader access to de-identified patient datasets covering various cancer types, complemented by specialized analytical support from Tempus’ expert team.
In the previous arrangement, Gilead utilized Tempus’ data resources for targeted applications including clinical trial optimization, biomarker identification, treatment indication prioritization, and real-world outcomes research. The current expansion represents a substantial upgrade in scope and capabilities.
According to Patrick Loerch, Senior Vice President of Clinical Data Science at Gilead, the collaboration exemplifies their “shared priority of putting patients at the heart of innovation.” Ryan Fukushima, CEO of Tempus Data & Apps, emphasized that the enhanced access would provide AI-powered analytical capabilities to accelerate Gilead’s research and development efforts. Neither company disclosed the financial details of the arrangement.
Robust Diagnostics Performance Underpins Partnership Growth
The partnership expansion arrives amid exceptional performance metrics from Tempus’ diagnostics operations.
Throughout 2025, Tempus‘ Diagnostics division achieved remarkable 111.5% revenue expansion compared to the prior year. Oncology test volumes increased 26%, Hereditary testing climbed 29%, and the company’s minimal residual disease (MRD) testing segment processed approximately 4,700 tests in Q4 alone—representing a 56% sequential quarterly increase.
Company leadership projects approximately 30% growth in oncology testing for 2026, fueled by increasing genomic sequencing adoption and broadening MRD reimbursement policies.
Additionally, Tempus is navigating regulatory pricing enhancements through the transition of its xT CDx test from laboratory-developed test status to FDA-approved diagnostic status. The average selling price reached approximately $1,640 in Q4 2025, representing a $40 increase from the previous quarter.
Data Platform Demonstrates Consistent Expansion
Tempus‘ Data and Applications division has emerged as a critical growth engine for the organization.
The segment generated $100.4 million in Q4 2025 revenue, reflecting 25.1% year-over-year growth. Net Revenue Retention reached 126%, demonstrating that current customers are significantly increasing their platform usage. The company concluded 2025 with total remaining contract value exceeding $1.1 billion.
Management has established guidance targeting approximately $1.59 billion in aggregate 2026 revenues, suggesting roughly 25% overall growth.
Tempus is simultaneously developing advanced AI foundation models utilizing its proprietary datasets, with strategic plans to extend capabilities 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.
Meanwhile, Gilead has entered an aggressive acquisition period. The pharmaceutical company has disclosed three transactions totaling approximately $15 billion, encompassing a $7.8 billion Arcellx acquisition and a $5 billion Tubulis purchase. Equity analysts at TD Cowen, BMO Capital, and Truist Securities maintain Buy or Outperform recommendations on Gilead with price targets spanning $155 to $174.
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