Shares of Illumina (ILMN) surged 5.09% in after-hours trading on Thursday, following the genomics company's release of better-than-expected third-quarter results and an improved full-year outlook. The strong performance was primarily driven by growth in the clinical market and a return to growth outside of China.

Illumina reported Q3 revenue of $1.08 billion, surpassing analyst expectations of $1.07 billion. The company's adjusted earnings per share (EPS) came in at $1.34, significantly beating the consensus estimate of $1.16. Notably, Illumina's adjusted net income of $206 million also exceeded analyst projections of $181.62 million.

CEO Jacob Thaysen attributed the revenue acceleration to growth in the clinical market, Illumina's largest segment. The company also highlighted its success in executing strategic initiatives aimed at achieving long-term targets. Additionally, Illumina launched new technologies, including a 5-base solution and Constellation mapped read technology, enhancing its genomic insights capabilities. In a show of confidence, the company repurchased 1.2 million shares for $120 million during the quarter.

Looking ahead, Illumina raised its fiscal year 2025 guidance. The company now expects non-GAAP EPS in the range of $4.65 to $4.75, up from previous estimates. However, Illumina anticipates a slight decline in constant currency revenue for the full year, projecting a range of -1.5% to -0.5%. The company also forecasts a non-GAAP operating margin between 22.75% and 23% for the fiscal year.

The market's positive reaction to Illumina's results reflects investor optimism about the company's ability to navigate challenges and capitalize on growth opportunities in the genomics sector. As Illumina continues to innovate and expand its market presence, investors will be closely watching for sustained momentum in the coming quarters.