A healthcare AI giant in the making?

The company generated $693 million in revenue last year, up 30.4% from 2023. That growth accelerated in Q1 2025, with Tempus reporting $256 million in revenue, a 75.4% year-over-year surge. Gross profit nearly doubled to $155 million.Despite the strong top-line momentum, Tempus had a net loss of $68 million. Roughly $28 million of that came from stock-based compensation, the company said.Even so, Tempus is guiding for a breakout 2025. Executives expect revenue to soar 80% to $1.25 billion, with adjusted earnings turning slightly positive. That would represent a $110 million year-over-year improvement in profitability.CEO Eric Lefkofsky credited Tempus’ performance to its aggressive AI strategy, including new partnerships with AstraZeneca and AI drug discovery firm Pathos. Those deals will pay Tempus $200 million in data licensing and model development fees over the next three years, all toward building a foundation model for oncology.“These investments uniquely position us to advance what is possible in diagnostics and drug development,” Lefkofsky said.Tempus’ model has broad implications. By embedding AI directly into the tech that powers hospitals, it’s attempting to make itself indispensable by becoming part of the infrastructure.And Wall Street appears to be buying into the strategy.TEM stock is now up 88% year-to-date. If Tempus' agentic AI rollout continues at this pace and the company cements itself as the backbone of AI infrastructure in healthcare, this year's rally could be just a warm-up.