Loading...
•
Jun 29
Illumina Q2 2025 Earnings Report
Illumina reported its financial results for the second quarter of fiscal year 2025, exceeding guidance with strong performance in X consumables and clinical segments, while navigating a constrained funding environment in research.
Key Takeaways
Illumina delivered a solid second quarter in fiscal year 2025, with revenue of $1.06 billion, a GAAP diluted EPS of $1.49, and a non-GAAP diluted EPS of $1.19. The company exceeded its guidance, driven by strong performance in X consumables and accelerating growth in its clinical segment, despite a challenging funding environment in research. Operational excellence contributed to margin expansion, leading to increased full-year expectations.
Revenue for Q2 2025 was $1.06 billion, a 3% decrease from Q2 2024 on both a reported and constant currency basis.
GAAP diluted EPS was $1.49 and non-GAAP diluted EPS was $1.19 for Q2 2025.
The company generated $234 million in cash from operations and $204 million in free cash flow for Q2 2025.
Illumina repurchased approximately 4.5 million shares for $380 million during the quarter and increased its fiscal year 2025 non-GAAP diluted EPS guidance to $4.45 - $4.55.
Illumina
Illumina
Illumina Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService and Other Revenue
CapyFin.com Forward Guidance
For fiscal year 2025, Illumina expects total company constant currency revenue decline in the range of (2.5%) to (0.5%), an improvement from previous guidance. Non-GAAP operating margin is projected to be approximately 22% - 22.5%, and non-GAAP diluted EPS is expected to be in the range of $4.45 - $4.55, including a benefit from recently passed tax legislation.
Positive Outlook
- Total company constant currency revenue decline is now expected to be in the range of (2.5%) to (0.5%), an improvement from the previous guidance of (3%) to (1%).
- Non-GAAP operating margin is now expected to be approximately 22% - 22.5%, up from 21.5% - 22.0% previously.
- Non-GAAP diluted EPS guidance increased to $4.45 - $4.55, up from $4.20 - $4.30.
- The non-GAAP diluted EPS guidance includes a benefit of approximately 10 cents from recently passed legislation allowing U.S. based R&D spend to be tax-deductible.
- The company intends to repurchase incremental shares over the course of the year as part of its approximate $800 million authorization remaining.
Challenges Ahead
- The company still expects a total company constant currency revenue decline for fiscal year 2025.
- The research segment is navigating a constrained funding environment.
- The acquisition of SomaLogic is subject to regulatory approval and is not expected to close until the first half of 2026.
- Uncertainty regarding the impact of inclusion on the 'unreliable entities list' by regulatory authorities in China and the decision to not permit export of sequencing instruments into China.
- Potential risks from tariffs recently imposed or threatened by the U.S. government and its trading partners.
Revenue & Expenses
Visualization of income flow from segment revenue to net income