#United States #San Diego #Genomics #financial results #Illumina

Illumina Reports Financial Results for Q3 2025

Illumina, Inc. announced its financial performance for the third quarter of fiscal year 2025, revealing a revenue of $1.08 billion, indicating no change from the same period last year, whether viewed on a reported basis or in constant currency. The company's GAAP operating margin was reported at 21.0%, with a non-GAAP operating margin of 24.5%. The diluted earnings per share (EPS) stood at $0.98 on a GAAP basis and $1.34 on a non-GAAP basis.

In terms of cash flows, Illumina generated $284 million through its operations while recording free cash flow of $253 million for the quarter. The company also repurchased 1.2 million shares of common stock, totaling $120 million at an average price of $97.10 per share, reflecting its commitment to returning value to shareholders.

CEO Jacob Thaysen expressed satisfaction with the results, stating that the Q3 performance exceeded expectations due to increased revenue in the clinical market segment, which remains Illumina's largest area. He highlighted the positive turnaround, particularly outside of China, emphasizing continued strategic execution to achieve long-term financial goals.

Financial Highlights

For Q3 2025:

• - Revenue: $1,084 million (flat compared to $1,080 million in Q3 2024)
• - Gross Margin: 67.6% (compared to 68.9% in Q3 2024)
• - Operating Profit: $227 million with a 21.0% operating margin (in contrast with 68.6% in Q3 2024)
• - Net Income: $150 million (down from $642 million in the previous year)
• - Non-GAAP Diluted EPS: $1.34 compared to $1.14 last year

Despite the stable revenue performance, the comparison with last year reveals challenges, as reflected in profit margins and net income fluctuations driven by various operational changes and legal issues from past settlements.

Illumina's third quarter also showcased substantial investments in research and development, amounting to $229 million as the company continues to innovate in DNA sequencing technologies. The investments align with new product launches such as the 5-base solution that enables researchers to gain concurrent genomic and epigenomic insights.

Market and Business Strategy

Looking ahead, Illumina has adjusted its revenue outlook for the fiscal year 2025. The company predicts a constant currency revenue decline of between 1.5% to 0.5%, which is an improvement from its previous forecast of a 2.5% to 1.5% decline. The forecast for revenue growth outside of China remains stable between 0.5% and 1.5%. They project non-GAAP operating margins to reach between 22.75% to 23%, with guidance for non-GAAP diluted EPS estimated to rise to between $4.65 to $4.75.

As part of its initiatives to bolster growth, Illumina has undertaken several significant actions, including:

• - Launching the "5-base solution" facilitating enhanced genomic analysis.
• - Introducing the Constellation mapped read technology for detecting unique genomic variants, further substantiating its clinical offerings.
• - Forming partnerships to promote personalized cancer care via advancements in genomic profiling tests such as TruSight™ Oncology, which have proved essential in evolving cancer treatment approaches.

Conclusion

Illumina continues to solidify its position as a leader in the genome industry through sustained innovation, strategic partnerships, and a focus on clinical growth. The guidance for the forthcoming quarters predominantly indicates a cautiously optimistic outlook, coupled with a commitment to technological advancement and shareholder value.

For further details and updates, the company invites stakeholders to participate in its upcoming conference call scheduled for October 30, 2025, to discuss these results and answer questions on future strategies. Interested parties are encouraged to access the live webcast through Illumina's investor relations website.