Tempus AI: Data And Applications Will Unlock More Upside

Summary Tempus AI remains a buy after a 60% rally, driven by robust oncology testing volumes and expanding data & applications revenue. Q2 oncology testing volumes grew 31% YoY, with MRD test volumes nearly doubling since Q4 2025, validating the Personalis acquisition. Data & applications segment led Q2 growth at 28%, with strong bookings and AI innovation positioning the company for long-term growth and margin expansion. Despite a premium valuation, TEM's self-reinforcing data cycle, expanding clinical scope, and improving profitability justify a constructive long-term outlook. Just_Super/E+ via Getty Images Introduction Back in July, I provided an update on Tempus AI, Inc. ( TEM ) after their Personalis ( PSNL ) acquisition announcement. Despite being a little expensive, I viewed the deal as strategically sound since it This article was written by Bay Area Ideas 5.79K Followers Follow I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America! Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.