GAAP operating margin of 21.0% and non-GAAP operating margin of 24.5% for Q3 2025
GAAP diluted EPS of $0.98 and non-GAAP diluted EPS of $1.34 for Q3 2025
Cash provided by operations of $284 million and free cash flow of $253 million for Q3 2025
Repurchased 1.2 million shares of our common stock for $120 million at an average price of $97.10 per share
For fiscal year 2025, we now expect:
Total company constant currency revenue decline in the range of (1.5%) to (0.5%), up from (2.5%) to (1.5%)
Revenue growth outside of China in the range of 0.5% - 1.5% on a constant currency basis, with no change versus our prior guidance at the mid-point
Non-GAAP operating margin in the range of 22.75% - 23%, up from 22% - 22.5%
Non-GAAP diluted EPS in the range of $4.65 - $4.75, up from $4.45 - $4.55
SAN DIEGO, Oct. 30, 2025 /PRNewswire/ -- Illumina, Inc. (NASDAQ:ILMN) ("Illumina" or the "company") today announced its financial results for the third quarter of fiscal year 2025.
"I am pleased to announce that the Illumina team delivered Q325 results that exceeded the high-end of our guidance range for revenue and earnings, driven by revenue acceleration in clinical, our largest market segment," said Jacob Thaysen, Chief Executive Officer. "During the quarter, we returned to growth ex-China and are executing on our strategic pillars that support our long-range financial targets."
Third quarter results
GAAP
Non-GAAP (a)
Dollars in millions, except per share amounts
Q3 2025
Q3 2024
Q3 2025
Q3 2024
Revenue
$ 1,084
$ 1,080
$ 1,084
$ 1,080
Gross margin
67.6 %
68.9 %
69.2 %
70.5 %
Research and development (R&D) expense
$ 229
$ 253
$ 228
$ 249
Selling, general and administrative (SG&A) expense
$ 277
$ 239
$ 256
$ 268
Legal contingency and settlement
$ ,
$ (488)
$ ,
$ ,
Operating profit
$ 227
$ 741
$ 265
$ 244
Operating margin
21.0 %
68.6 %
24.5 %
22.6 %
Tax provision
$ 70
$ 77
$ 47
$ 48
Tax rate
31.8 %
10.8 %
18.6 %
21.0 %
Net income
$ 150
$ 642
$ 206
$ 181
Diluted EPS
$ 0.98
$ 4.03
$ 1.34
$ 1.14
(a)
See tables in "Results of Operations - Non-GAAP" section below for GAAP and non-GAAP reconciliations.
Capital expenditures for free cash flow purposes were $31 million for Q3 2025. Cash flow provided by operations was $284 million, compared to $316 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $253 million for the quarter, compared to $284 million in the prior year period. Depreciation and amortization expense was $67 million for Q3 2025. At the close of the quarter, the company held $1.28 billion in cash, cash equivalents and short-term investments.
Key announcements since our last earnings release
Launched 5-base solution, enabling simultaneous genomic and epigenomic insights
Introduced Constellation mapped read technology, uncovering hard-to-see genomic variants in GeneDx pilot
Launched BioInsight, a new business to accelerate technology and data-driven discovery initiatives
Expanded personalized cancer care efforts through new pharmaceutical development partnerships enabled on the TruSight™ Oncology (TSO) Comprehensive genomic profiling test
Welcomed Alnylam Pharmaceuticals to the Alliance for Genomic Discovery (AGD), broadening the consortium's diverse clinical genomic dataset and utilizing it to inform development of 'gene silencing' medicines
Introduced Illumina® Protein Prep, driving deeper proteomic insights to enhance drug discovery and development, with a streamlined sample-to-insights solution for discovery and clinical research
A full list of recent announcements can be found in the company's News Center.
Financial outlook and guidance
The company provides forward-looking guidance on a non-GAAP basis, including on a constant currency basis for revenue and revenue growth rates. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the impact of items such as acquisition-related expenses, fair value adjustments to contingent consideration, gains and losses from strategic investments, potential future asset impairments, restructuring activities, the ultimate outcome of pending litigation, and currency exchange rate fluctuations without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.
Conference call information
The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, October 30, 2025. Interested parties may access the live webcast via the Investor Info section of Illumina's website or directly through the following link - https://illumina-earnings-call-q3-2025.open-exchange.net/. To ensure timely connection, please join at least ten minutes before the scheduled start of the call. A replay of the conference call will be posted on Illumina's website after the event and will be available for at least 30 days following.
Statement regarding use of non-GAAP financial measures
The company reports non-GAAP results for diluted earnings per share, net income, gross margin, operating expenses, including research and development expense, selling general and administrative expense, legal contingency and settlement, and goodwill and intangible impairment, operating income, operating margin, gross profit, other income (expense), tax provision, constant currency revenue and growth, and free cash flow (on a consolidated and, as applicable, segment basis) in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company's financial measures under GAAP include substantial charges such as amortization of acquired intangible assets among others that are listed in the reconciliations of GAAP and non-GAAP financial measures included in this press release, as well as the effects of currency translation. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance. Non-GAAP net income, diluted earnings per share and operating margin are key components of the financial metrics utilized by the company's board of directors to measure, in part, management's performance and determine significant elements of management's compensation.
The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the tables of this release.
Use of forward-looking statements
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of growth in the markets we serve, including the proteomics market; (ii) the volume, timing and mix of customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our revenue expectations; (iv) the completion of the proposed acquisition of SomaLogic, Inc. and certain other assets (the SomaLogic Business) from Standard BioTools Inc. on the anticipated terms and timeline, or at all, including the ability of the parties to obtain required regulatory approvals - such as under the Hart-Scott-Rodino Act in the United States or from government authorities that may have or assert jurisdiction outside the United States - and to satisfy other conditions to closing; (v) our ability to successfully integrate the SomaLogic Business into our existing operations and the SomaLogic Business' technology and products into our portfolio; (vi) our ability to successfully manage partner and customer relationships in the proteomics market; (vii) uncertainty regarding the impact of our recent inclusion on the "unreliable entities list" by regulatory authorities in China and the decision by regulatory authorities in China to not permit us to export sequencing instruments into China; (viii) tariffs recently imposed or threatened by the U.S. government and its trading partners, and other possible tariffs or trade protection measures and our efforts to mitigate the impact of such tariffs; (ix) our ability to manufacture robust instrumentation and consumables, including the SomaLogic Business' products; (x) the success of products and services competitive with our own; (xi) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (xii) the impact of recently launched or pre-announced products and services on existing products and services; (xiii) our ability to modify our business strategies to accomplish our desired operational goals; (xiv) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (xv) our ability to further develop and commercialize our instruments, consumables, and products; (xvi) to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xvii) the risk of additional litigation arising against us in connection with the GRAIL acquisition; (xviii) our ability to obtain approval by third-party payors to reimburse patients for our products; (xix) our ability to obtain regulatory clearance for our products from government agencies; (xx) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xxi) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xxii) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (xxiii) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current quarter.
About Illumina
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X, Facebook, LinkedIn, Instagram, TikTok, and YouTube.
Illumina, Inc.
Condensed Consolidated Balance Sheets
(In millions)
September 28,2025
December 29,2024
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$ 1,050
$ 1,127
Short-term investments
228
93
Accounts receivable, net
729
735
Inventory, net
590
547
Prepaid expenses and other current assets
199
244
Total current assets
2,796
2,746
Property and equipment, net
748
815
Operating lease right-of-use assets
382
419
Goodwill
1,113
1,113
Intangible assets, net
225
295
Deferred tax assets, net
490
567
Other assets
423
348
Total assets
$ 6,177
$ 6,303
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 218
$ 221
Accrued liabilities
746
827
Term debt, current portion
998
499
Total current liabilities
1,962
1,547
Operating lease liabilities
506
554
Term debt
994
1,490
Other long-term liabilities
334
339
Stockholders' equity
2,381
2,373
Total liabilities and stockholders' equity
$ 6,177
$ 6,303
Illumina, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(unaudited)
Three Months Ended
Nine Months Ended
September 28,2025
September 29,2024
September 28,2025
September 29,2024
Revenue:
Product revenue
$ 927
$ 914
$ 2,719
$ 2,718
Service and other revenue
157
166
465
550
Total revenue
1,084
1,080
3,184
3,268
Cost of revenue:
Cost of product revenue (a)
267
235
795
739
Cost of service and other revenue (a)
68
84
228
286
Amortization of acquired intangible assets
16
16
50
110
Total cost of revenue
351
335
1,073
1,135
Gross profit
733
745
2,111
2,133
Operating expense:
Research and development (a)
229
253
728
913
Selling, general and administrative (a)
277
239
777
813
Goodwill and intangible impairment
—
—
—
1,889
Legal contingency and settlement
—
(488)
—
(474)
Total operating expense
506
4
1,505
3,141
Income (loss) from operations
227
741
606
(1,008)
Other (expense) income, net
(7)
(21)
103
(358)
Income (loss) before income taxes
220
720
709
(1,366)
Provision for income taxes
70
15
193
44
Net income (loss)
$ 150
$ 705
$ 516
$ (1,410)
Earnings (loss) per share:
Basic
$ 0.98
$ 4.43
$ 3.30
$ (8.86)
Diluted
$ 0.98
$ 4.42
$ 3.29
$ (8.86)
Shares used in computing earnings (loss) per share:
Basic
153
159
156
159
Diluted
154
160
157
159
The consolidated results for YTD 2024 include the results for GRAIL which was spun off on June 24, 2024.
(a) Includes stock-based compensation expense for stock-based awards:
Three Months Ended
Nine Months Ended
September 28,2025
September 29,2024
September 28,2025
September 29,2024
Cost of product revenue
$ 5
$ 7
$ 16
$ 19
Cost of service and other revenue
1
1
2
5
Research and development
26
