Illumina Inc. (NASDAQ:ILMN) stock is trading higher after the company reported better-than-expected third-quarter earnings.

• ILMN shares are climbing with conviction. Watch the momentum here

The DNA sequencing company reported adjusted earnings of $1.34 per share, beating the consensus of $1.17.

The company, in its prepared remarks, said the performance reflects the momentum in the clinical markets, where sequencing consumables revenue grew at a high single-digit rate year-over-year.

The sales reached $1.084 billion, beating the consensus of $1.065 billion, flat compared to a year ago, on both a reported and constant currency basis.

Also Read: Illumina Settles With DOJ, Veterans To End Whistleblower Lawsuit

“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, CEO.

“During the quarter, we returned to growth ex-China and are executing on our strategic pillars that support our long-range financial targets,” Thaysen added.

In the quarter, Illumina reported more than 55 NovaSeq X instruments placed, in line with its goal of 50 to 60 placements per quarter.

Operating cash flow for the third quarter was $284 million, down from $316 million last year. Free cash flow was $253 million, compared to $284 million previously.

Guidance

Illumina raised its fiscal 2025 earnings guidance from $4.45-$4.55 per share to $4.65-$4.75 per share, versus the consensus of $4.50.

The total company’s constant currency revenue decline is expected to be between -1.5% and -0.5%, up from the previous range of -2.5% to -1.5%.

Revenue growth outside of China is expected to be in the range of 0.5% to 1.5% on a constant currency basis, with no change from prior guidance at the midpoint.

The 2025 adjusted operating margin is expected to be between 22.75% and 23%, up from 22.0% to 22.5%.

Evercore ISI maintains a rating of Outperform for Illumina and raises the price forecast from $132 to $142.

ILMN Price Action: Illumina shares were up 21.45% at $120.24 at the time of publication on Friday, according to Benzinga Pro data.

Read Next:

• Western Digital Analysts Boost Their Forecasts After Better-Than-Expected Q1 Results

Photo via Shutterstock