ILMN Neutral Sentiment Score: 60/100
Illumina Reports Financial Results for First Quarter of Fiscal Year 2025 Core Illumina revenue of $1.04 billion for Q1 2025, down 1% from Q1 2024 (flat on a constant currency basis) GAAP operating margin of 15.8% and...
Thursday, May 8, 2025 5 min read
Key Takeaway: Illumina, Inc. reported its financial results for the first quarter of fiscal year 2025, revealing a core revenue of $1.04 billion, a slight decrease from the previous year's $1.056 billion. While net income improved significantly to $131 million, the company expressed concerns over a weakened outlook due to geopolitical factors. Operating margins took a hit, falling to 15.8%, compared to 20.4% a year prior. Illumina remains committed to strategic innovations and customer collaborations to navigate this challenging business environment.
Full Press Release Details
SAN DIEGO , May 8, 2025 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN ) ("Illumina" or the "company") today announced its financial results for the first quarter of fiscal year 2025.
"I'm proud that the Illumina team delivered strong Q1 revenue and EPS, a good start to the year in an increasingly dynamic business environment," said Jacob Thaysen , Chief Executive Officer. "Our outlook for the year has weakened due to shifting policy and geopolitical developments and we have taken swift incremental actions to protect our earnings. Our strategic focus remains on customer collaboration, driving differentiated innovations, and delivering on our long-term financial targets of growth and profitability."
First quarter Core Illumina segment results
| | GAAP | | Non-GAAP (a) |
| Dollars in millions, except per share amounts | Q1 2025 | | Q1 2024 | | Q1 2025 | | Q1 2024 |
| Revenue (b) | $ 1,041 | | $ 1,056 | | $ 1,041 | | $ 1,056 |
| Gross margin (c) | 65.6 % | | 65.7 % | | 67.4 % | | 67.1 % |
| Research and development (R&D) expense | $ 252 | | $ 241 | | $ 241 | | $ 237 |
| Selling, general and administrative (SG&A) expense | $ 267 | | $ 336 | | $ 248 | | $ 254 |
| Operating profit | $ 164 | | $ 116 | | $ 212 | | $ 218 |
| Operating margin | 15.8 % | | 11.0 % | | 20.4 % | | 20.6 % |
| Tax provision | $ 51 | | $ 45 | | $ 44 | | $ 54 |
| Tax rate | 27.9 % | | 39.3 % | | 22.0 % | | 25.7 % |
| Net income | $ 131 | | $ 70 | | $ 154 | | $ 155 |
| Diluted EPS | $ 0.82 | | $ 0.44 | | $ 0.97 | | $ 0.98 |
| (a) | See tables in "Results of Operations - Non-GAAP" section below for GAAP and non-GAAP reconciliations. |
| (b) | Revenue for Q1 2024 included intercompany revenue of $7 million prior to the spin-off of GRAIL. |
| (c) | Increase in gross margin was driven by execution of our operational excellence initiatives, that continue to deliver cost savings and improve productivity, and lower strategic partnership revenue that is lower margin, offset by lower product margins, primarily due to reduced pricing, and an increase in field service costs. |
Capital expenditures for free cash flow purposes were $32 million for Q1 2025. Cash flow provided by operations was $240 million, compared to $284 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $208 million for the quarter, compared to $251 million in the prior year period. Depreciation and amortization expense was $69 million for Q1 2025. At the close of the quarter, the company held $1 .24 billion in cash, cash equivalents and short-term investments.
Share repurchases for Q1 2025 were $200 million and the company intends to repurchase incremental shares over the course of the year as part of our ~$1.2 billion authorization remaining at the end of the quarter.
Key announcements since our last earnings release
A full list of recent announcements can be found in the company's News Center.
Financial outlook and guidance For fiscal year 2025, we expect:
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, May 8, 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-q1-2025.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.
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) |
| | March 30, 2025 | | December 29, 2024 |
| ASSETS | (unaudited) | | |
| Current assets: | | | |
| Cash and cash equivalents | $ 1,113 | | $ 1,127 |
| Short-term investments | 124 | | 93 |
| Accounts receivable, net | 699 | | 735 |
| Inventory, net | 537 | | 547 |
| Prepaid expenses and other current assets | 200 | | 244 |
| Total current assets | 2,673 | | 2,746 |
| Property and equipment, net | 782 | | 815 |
| Operating lease right-of-use assets | 410 | | 419 |
| Goodwill | 1,113 | | 1,113 |
| Intangible assets, net | 278 | | 295 |
| Deferred tax assets, net | 553 | | 567 |
| Other assets | 373 | | 348 |
| Total assets | $ 6,182 | | $ 6,303 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| Current liabilities: | | | |
| Accounts payable | $ 207 | | $ 221 |
| Accrued liabilities | 734 | | 827 |
| Term debt, current portion | 499 | | 499 |
| Total current liabilities | 1,440 | | 1,547 |
| Operating lease liabilities | 539 | | 554 |
| Term debt | 1,491 | | 1,490 |
| Other long-term liabilities | 344 | | 339 |
| Stockholders' equity | 2,368 | | 2,373 |
| Total liabilities and stockholders' equity | $ 6,182 | | $ 6,303 |
| Illumina, Inc. |
| Condensed Consolidated Statements of Operations |
| (In millions, except per share amounts) |
| (unaudited) |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| Revenue: | | | |
| Product revenue | $ 880 | | $ 876 |
| Service and other revenue | 161 | | 200 |
| Total revenue | 1,041 | | 1,076 |
| Cost of revenue: | | | |
| Cost of product revenue (a) | 253 | | 255 |
| Cost of service and other revenue (a) | 88 | | 106 |
| Amortization of acquired intangible assets | 17 | | 48 |
| Total cost of revenue | 358 | | 409 |
| Gross profit | 683 | | 667 |
| Operating expense: | | | |
| Research and development (a) | 252 | | 339 |
| Selling, general and administrative (a) | 267 | | 439 |
| Total operating expense | 519 | | 778 |
| Income (loss) from operations | 164 | | (111) |
| Other income, net | 18 | | 2 |
| Income (loss) before income taxes | 182 | | (109) |
| Provision for income taxes | 51 | | 17 |
| Net income (loss) | $ 131 | | $ (126) |
| Earnings (loss) per share: | | | |
| Basic | $ 0.83 | | $ (0.79) |
| Diluted | $ 0.82 | | $ (0.79) |
| Shares used in computing earnings (loss) per share: | | | |
| Basic | 159 | | 159 |
| Diluted | 159 | | 159 |
| | The consolidated financial results for Q1 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 |
| | March 30, 2025 | | March 31, 2024 |
| Cost of product revenue | $ 5 | | $ 5 |
| Cost of service and other revenue | 1 | | 2 |
| Research and development | 30 | | 39 |
| Selling, general and administrative | 37 | | 50 |
| Stock-based compensation expense before taxes | $ 73 | | $ 96 |
| Illumina, Inc. |
| Condensed Statements of Cash Flows |
| (In millions) |
| (unaudited) |
| TABLE 1: CONSOLIDATED STATEMENTS OF CASH FLOWS AND FREE CASH FLOWS: |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| Net cash provided by operating activities | $ 240 | | $ 77 |
| Net cash used in investing activities | (63) | | (48) |
| Net cash (used in) provided by financing activities | (195) | | 35 |
| Effect of exchange rate changes on cash and cash equivalents | 4 | | (4) |
| Net (decrease) increase in cash and cash equivalents | (14) | | 60 |
| Cash and cash equivalents, beginning of period | 1,127 | | 1,048 |
| Cash and cash equivalents, end of period | $ 1,113 | | $ 1,108 |
| Calculation of free cash flow: | | | |
| Net cash provided by operating activities | $ 240 | | $ 77 |
| Purchases of property and equipment | (32) | | (36) |
| Free cash flow (a) | $ 208 | | $ 41 |
| TABLE 2: CORE ILLUMINA FREE CASH FLOWS: |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| Net cash provided by operating activities | $ 240 | | $ 284 |
| Purchases of property and equipment | (32) | | (33) |
| Free cash flow (a) | $ 208 | | $ 251 |
| Illumina, Inc. |
| Results of Operations - Constant Currency Revenue |
| (Dollars in millions) |
| (unaudited) |
| | Core Illumina | | Consolidated |
| | Three Months Ended | | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 | | % Change | | March 30, 2025 | | March 31, 2024 | | % Change |
| Revenue | $ 1,041 | | $ 1,056 | | (1) % | | $ 1,041 | | $ 1,076 | | (3) % |
| Less: Hedge gains | 6 | | 3 | | | | 6 | | 3 | | |
| Revenue, excluding hedge effect | 1,035 | | 1,053 | | | | 1,035 | | 1,073 | | |
| Less: Exchange rate effect | (16) | | — | | | | (16) | | — | | |
| Constant currency revenue (a) | $ 1,051 | | $ 1,053 | | — | | $ 1,051 | | $ 1,073 | | (2) % |
| | The consolidated financial results for Q1 2024 include the results for GRAIL which was spun off on June 24, 2024. |
| (a) | Constant currency revenue growth, which is a non-GAAP financial measure, is calculated using comparative prior period foreign exchange rates to translate current period revenue, net of the effects of hedges. |
| Illumina, Inc. |
| Results of Operations - Non-GAAP |
| (In millions, except per share amounts) |
| (unaudited) |
| TABLE 1: RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE: |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| | Core/Consolidated | | Core Illumina | | Consolidated |
| GAAP diluted earnings (loss) per share | $ 0.82 | | $ 0.44 | | $ (0.79) |
| Cost of revenue (b) | 0.12 | | 0.09 | | 0.31 |
| R&D expense (b) | 0.07 | | 0.03 | | 0.03 |
| SG&A expense (b) | 0.12 | | 0.52 | | 0.57 |
| Other income, net (b) | (0.21) | | (0.05) | | (0.05) |
| Provision for income taxes (b) | 0.05 | | (0.05) | | 0.02 |
| Non-GAAP diluted earnings per share (a) | $ 0.97 | | $ 0.98 | | $ 0.09 |
| TABLE 2: RECONCILIATION OF GAAP AND NON-GAAP NET INCOME (LOSS): |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| | Core/Consolidated | | Core Illumina | | Consolidated |
| GAAP net income (loss) | $ 131 | | $ 70 | | $ (126) |
| Cost of revenue (b) | 19 | | 15 | | 49 |
| R&D expense (b) | 11 | | 4 | | 4 |
| SG&A expense (b) | 19 | | 83 | | 91 |
| Other income, net (b) | (33) | | (8) | | (8) |
| Provision for income taxes (b) | 7 | | (9) | | 4 |
| Non-GAAP net income (a) | $ 154 | | $ 155 | | $ 14 |
| | Amounts in tables are rounded to the nearest millions. As a result, certain amounts may not recalculate. |
| | The consolidated financial results for Q1 2024 include the results for GRAIL which was spun off on June 24, 2024. |
| (a) | Non-GAAP net income and diluted earnings per share exclude the effects of the pro forma adjustments detailed above. Non-GAAP net income and diluted earnings per share 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. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing our past and future operating performance. |
| (b) | Refer to Reconciliations between GAAP and Non-GAAP Results of Operations for details of amounts. |
| Illumina, Inc. |
| Results of Operations - Non-GAAP (continued) |
| (Dollars in millions) |
| (unaudited) |
| TABLE 3: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE: |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| | Core/Consolidated | | Core Illumina | | GRAIL | | Elims | | Consolidated |
| GAAP gross profit (loss) (b) | $ 683 | 65.6 % | | $ 693 | 65.7 % | | $ (22) | | $ (4) | | $ 667 | 62.0 % |
| Acquisition-related costs (c) | 17 | 1.6 % | | 15 | 1.4 % | | 34 | | — | | 49 | 4.5 % |
| Transformational initiatives (d) | 2 | 0.2 % | | — | — | | — | | — | | — | — |
| Non-GAAP gross profit (a) | $ 702 | 67.4 % | | $ 708 | 67.1 % | | $ 12 | | $ (4) | | $ 716 | 66.5 % |
| GAAP R&D expense | $ 252 | 24.2 % | | $ 241 | 22.8 % | | $ 101 | | $ (3) | | $ 339 | 31.5 % |
| Acquisition-related costs (c) | — | — | | (3) | (0.3) % | | — | | — | | (3) | (0.3) % |
| Transformational initiatives (d) | (11) | (1.0) % | | (1) | (0.1) % | | — | | — | | (1) | (0.1) % |
| Non-GAAP R&D expense | $ 241 | 23.2 % | | $ 237 | 22.4 % | | $ 101 | | $ (3) | | $ 335 | 31.1 % |
| GAAP SG&A expense | $ 267 | 25.6 % | | $ 336 | 31.9 % | | $ 104 | | $ (1) | | $ 439 | 40.8 % |
| Acquisition-related costs (c) | 4 | 0.4 % | | (48) | (4.6) % | | (7) | | — | | (55) | (5.1) % |
| Transformational initiatives (d) | (18) | (1.7) % | | (34) | (3.3) % | | (1) | | — | | (35) | (3.3) % |
| Other (g) | (5) | (0.4) % | | — | — | | — | | — | | — | — |
| Non-GAAP SG&A expense | $ 248 | 23.9 % | | $ 254 | 24.0 % | | $ 96 | | $ (1) | | $ 349 | 32.4 % |
| GAAP operating profit (loss) | $ 164 | 15.8 % | | $ 116 | 11.0 % | | $ (227) | | $ — | | $ (111) | (10.3) % |
| Cost of revenue | 19 | 1.8 % | | 15 | 1.4 % | | 34 | | — | | 49 | 4.5 % |
| R&D costs | 11 | 1.1 % | | 4 | 0.4 % | | — | | — | | 4 | 0.4 % |
| SG&A costs | 18 | 1.7 % | | 83 | 7.8 % | | 8 | | — | | 91 | 8.5 % |
| Non-GAAP operating profit (loss) (a) | $ 212 | 20.4 % | | $ 218 | 20.6 % | | $ (185) | | $ — | | $ 33 | 3.1 % |
| GAAP other income (expense), net | $ 18 | 1.7 % | | $ (1) | (0.1) % | | $ 3 | | $ — | | $ 2 | 0.2 % |
| Strategic investment gain, net (e) | (33) | (3.1) % | | (6) | (0.6) % | | — | | — | | (6) | (0.6) % |
| Other (f) | — | — | | (2) | (0.2) % | | — | | — | | (2) | (0.2) % |
| Non-GAAP other (expense) income, net (a) | $ (15) | (1.4) % | | $ (9) | (0.9) % | | $ 3 | | $ — | | $ (6) | (0.6) % |
| | Amounts in tables are rounded to the nearest millions. As a result, certain amounts may not recalculate. |
| | Percentages of revenue are calculated based on the revenue of the respective segment. |
| | The consolidated financial results for Q1 2024 include the results for GRAIL which was spun off on June 24, 2024. |
| (a) | Non-GAAP gross profit, included within non-GAAP operating profit (loss), is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and the average selling prices of our products and services. Non-GAAP operating profit (loss) and non-GAAP other income (expense), net exclude the effects of the pro forma adjustments as detailed above. Non-GAAP operating margin is a key component 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. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing past and future operating performance. |
| (b) | Reconciling amounts are recorded in cost of revenue. |
| (c) | Amounts for Q1 2025 consist of $17 million for amortization of intangible assets (cost of revenue) and $7 million related primarily to legal expenses for the GRAIL acquisition (SG&A), offset by $11 million for fair value adjustments on our contingent consideration liabilities (SG&A). Consolidated amounts for Q1 2024 consist of $50 million for amortization of intangible assets, $16 million for fair value adjustments on our contingent consideration liabilities, $31 million related primarily to legal and other expenses for the acquisition and divestiture of GRAIL, $7 million for accrued interest on the EC fine, and $3 million for IPR&D impairment. |
| (d) | Amounts for Q1 2025 consist primarily of employee severance costs related to restructuring activities and amounts for Q1 2024 consist primarily of lease and other asset impairments and employee severance costs. |
| (e) | Amounts consist primarily of mark-to-market adjustments and impairments on our strategic investments. |
| (f) | Consolidated amounts for Q1 2024 consist of $3 million for fair value adjustments on our Helix contingent value right, which was settled in 2024, offset by $1 million for unrealized gains/losses related to foreign currency balance sheet remeasurement of the EC fine liability, that was reversed in 2024, and unrealized mark-to-market gains/losses on hedge associated with the EC fine, for which such forward contracts were terminated in 2024. |
| (g) | Amounts for Q1 2025 consist of $3 million for costs related to board membership changes and $2 million for legal contingency accrual. |
| Illumina, Inc. |
| Results of Operations - Non-GAAP (continued) |
| (Dollars in millions) |
| (unaudited) |
| TABLE 4: RECONCILIATION OF GAAP AND NON-GAAP TAX PROVISION : |
| | Three Months Ended |
| | March 30, 2025 | | March 31, 2024 |
| | Core/Consolidated | | Core Illumina | | Consolidated |
| GAAP tax provision | $ 51 | 27.9 % | | $ 45 | 39.3 % | | $ 17 | (15.3) % |
| Income tax provision (b) | (6) | | | — | | | — | |
| GILTI, US foreign tax credits, global minimum top-up tax (c) | — | | | (13) | | | (17) | |
| Incremental non-GAAP tax expense (d) | (1) | | | 22 | | | 13 | |
| Non-GAAP tax provision (a) | $ 44 | 22.0 % | | $ 54 | 25.7 % | | $ 13 | 46.4 % |
| | The consolidated financial results for Q1 2024 include the results for GRAIL which was spun off on June 24, 2024. |
| (a) | Non-GAAP tax provision excludes the effects of the pro forma adjustments detailed above, which have been excluded to assist investors in analyzing and assessing past and future operating performance. |
| (b) | Amounts represent the difference between book and tax accounting related to stock-based compensation cost. |
| (c) | Amounts represent the impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of US foreign tax credits, and the Pillar Two global minimum top-up tax, which no longer applies for 2025 since the GRAIL pre-acquisition net operating losses were fully utilized in prior years. |
| (d) | Incremental non-GAAP tax expense reflects tax impact of the non-GAAP adjustments listed in Table 2. |
Investors: Brian Blanchett +1.858.291.6421 [email protected]
Media: Christine Douglass [email protected]
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