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Sep 28
Illumina Q3 2025 Earnings Report
Illumina reported its financial results for the third quarter of fiscal year 2025, exceeding revenue and earnings guidance.
Key Takeaways
Illumina delivered strong Q3 2025 results, with revenue of $1.08 billion, flat year-over-year, and diluted EPS of $0.98. Non-GAAP diluted EPS reached $1.34, surpassing expectations. The company returned to growth outside of China, driven by acceleration in the clinical market segment.
Revenue for Q3 2025 was $1.08 billion, remaining flat compared to Q3 2024 on both a reported and constant currency basis.
GAAP diluted EPS was $0.98, and non-GAAP diluted EPS was $1.34, exceeding the high-end of guidance.
GAAP operating margin stood at 21.0%, while non-GAAP operating margin was 24.5% for the quarter.
The company generated $284 million in cash from operations and $253 million in free cash flow during Q3 2025.
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 has raised its guidance for total company constant currency revenue, non-GAAP operating margin, and non-GAAP diluted EPS, while maintaining its revenue growth outlook outside of China.
Positive Outlook
- Total company constant currency revenue decline is now expected in the range of (1.5%) to (0.5%), an improvement from the previous guidance of (2.5%) to (1.5%).
- Non-GAAP operating margin is projected to be in the range of 22.75% - 23%, an increase from the prior guidance of 22% - 22.5%.
- Non-GAAP diluted EPS is now expected to be in the range of $4.65 - $4.75, up from $4.45 - $4.55.
- Revenue growth outside of China is anticipated to be in the range of 0.5% - 1.5% on a constant currency basis, with no change at the mid-point from prior guidance.
- The company is executing on strategic pillars to support long-range financial targets.
Challenges Ahead
- The company still expects a total company constant currency revenue decline for fiscal year 2025, albeit a smaller one.
- The guidance for revenue growth outside of China remains unchanged at the mid-point, indicating no further acceleration in this specific area.
- The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to GAAP due to inherent uncertainties.
- Potential risks include changes in market growth rates, customer order volumes, and the ability to adjust operating expenses.
- Uncertainty regarding the impact of inclusion on the 'unreliable entities list' by regulatory authorities in China and restrictions on exporting sequencing instruments into China.
Revenue & Expenses
Visualization of income flow from segment revenue to net income