Shareholders in Tempus AI, Inc. (NASDAQ:TEM) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Tempus AI has also found favour with investors, with the stock up a remarkable 11% to US$68.36 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the four analysts covering Tempus AI are now predicting revenues of US$1.2b in 2025. If met, this would reflect a huge 93% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$902m of revenue in 2025. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

View our latest analysis for Tempus AI

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tempus AI's past performance and to peers in the same industry. The analysts are definitely expecting Tempus AI's growth to accelerate, with the forecast 69% annualised growth to the end of 2025 ranking favourably alongside historical growth of 31% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tempus AI to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Tempus AI.

Of course, there's always more to the story. We have analyst estimates for Tempus AI going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.