Illumina Reports Financial Results for First Quarter of Fiscal Year 2025

PR Newswire

SAN DIEGO, May 8, 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 non-GAAP operating margin of 20.4% for 
      Q1 2025 
 
   -- GAAP diluted EPS of $0.82 and non-GAAP diluted EPS of $0.97 for Q1 2025 
 
   -- Cash provided by operations of $240 million and free cash flow of $208 
      million for Q1 2025 
 
   -- For fiscal year 2025, we expect: 
 
          -- Core Illumina revenue to decline between (1%) and (3%) on a 
             constant currency basis year over year, down from low single digit 
             growth previously 
 
                 -- Revenue outside of the Greater China region expected to 
                    grow between 0% and 2% in 2025 on a constant currency basis 
                    year over year and includes our estimate reflecting changes 
                    in the research funding environment as well as the 
                    projected benefit from pricing actions 
 
                 -- Reported revenue from the Greater China region expected to 
                    be $165 - $185 million in 2025 (with $72 million in revenue 
                    recognized in Q1 2025) 
 
          -- $85 million in tariff related costs which after actions is an 
             approximate 125 bps reduction in fiscal year 2025 operating margin 
             and $0.25 of EPS 
 
          -- Non-GAAP operating margin of approximately 21.5% - 22.0%, down 
             from approximately 23% previously; and non-GAAP diluted EPS in the 
             range of $4.20 - $4.30, a reduction from our March guidance of 
             approximately $4.50, primarily due to the net impact of tariffs 

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

   -- Instituted an incremental $100 million cost reduction program to mitigate 
      the impact of a range of potential scenarios for a reduction in revenue 
      and related operating income from the company's Greater China business 
 
   -- Unveiled first-of-its-kind spatial transcriptomics technology; Broad 
      Institute to collaborate on flagship project 
 
   -- Announced collaboration with Broad Clinical Labs to rapidly streamline 
      and scale single-cell projects with cutting-edge tools and workflows 
 
   -- Unveiled a series of roadmap innovations spanning genomics, spatial 
      transcriptomics, single cell analysis, CRISPR technologies, epigenetics, 
      and data analytics software 
 
   -- Sequenced 250,000 whole genomes for the Alliance for Genomic Discovery 
      $(AGD)$ initiative 
 
   -- Announced partnership with Tempus to accelerate clinical adoption of 
      next-generation sequencing tests through novel evidence generation 
 
   -- Dr. Scott Gottlieb elected as Board Chair, Keith Meister joined Board of 
      Directors 
 
   -- Named for the sixth year in a row to the Dow Jones Best-in-Class World 
      Index and the Dow Jones Best-in-Class North America Index 

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:

   -- 
 
          -- Core Illumina revenue to decline between (1%) and (3%) on a 
             constant currency basis year over year, down from low single digit 
             growth previously 
 
                 -- Revenue outside of the Greater China region expected to 
                    grow between 0% and 2% in 2025 on a constant currency basis 
                    year over year and includes our estimate reflecting changes 
                    in the research funding environment as well as the 
                    projected benefit from pricing actions 
 
                 -- Reported revenue from the Greater China region expected to 
                    be $165 - $185 million in 2025 (with $72 million in revenue 
                    recognized in Q1 2025) 
 
          -- $85 million in tariff related costs which after actions is an 
             approximate 125 bps reduction in fiscal year 2025 operating margin 
             and $0.25 of EPS 
 
          -- Non-GAAP operating margin of approximately 21.5% - 22.0%, down 
             from approximately 23% previously; and non-GAAP diluted EPS in the 
             range of $4.20 - $4.30, a reduction from our March guidance of 
             approximately $4.50, primarily due to the net impact of tariffs 

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

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May 08, 2025 16:13 ET (20:13 GMT)