On October 30, 2025 Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") reported its financial results for the third quarter of fiscal year 2025.
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"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, Chief Executive Officer. "During the quarter, we returned to growth ex-China and are executing on our strategic pillars that support our long-range financial targets."
Third quarter results
GAAP Non-GAAP (a)
Dollars in millions, except per share amounts
Q3 2025 Q3 2024 Q3 2025 Q3 2024
Revenue
$ 1,084 $ 1,080 $ 1,084 $ 1,080
Gross margin
67.6 % 68.9 % 69.2 % 70.5 %
Research and development (R&D) expense $ 229 $ 253 $ 228 $ 249
Selling, general and administrative (SG&A) expense $ 277 $ 239 $ 256 $ 268
Legal contingency and settlement $ — $ (488) $ — $ —
Operating profit
$ 227 $ 741 $ 265 $ 244
Operating margin 21.0 % 68.6 % 24.5 % 22.6 %
Tax provision $ 70 $ 77 $ 47 $ 48
Tax rate 31.8 % 10.8 % 18.6 % 21.0 %
Net income $ 150 $ 642 $ 206 $ 181
Diluted EPS $ 0.98 $ 4.03 $ 1.34 $ 1.14
(a)See tables in "Results of Operations – Non-GAAP" section below for GAAP and non-GAAP reconciliations.
Capital expenditures for free cash flow purposes were $31 million for Q3 2025. Cash flow provided by operations was $284 million, compared to $316 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $253 million for the quarter, compared to $284 million in the prior year period. Depreciation and amortization expense was $67 million for Q3 2025. At the close of the quarter, the company held $1.28 billion in cash, cash equivalents and short-term investments.
Key announcements since our last earnings release
•Launched 5-base solution, enabling simultaneous genomic and epigenomic insights
•Introduced Constellation mapped read technology, uncovering hard-to-see genomic variants in GeneDx pilot
•Launched BioInsight, a new business to accelerate technology and data-driven discovery initiatives
•Expanded personalized cancer care efforts through new pharmaceutical development partnerships enabled on the TruSight Oncology (TSO) Comprehensive genomic profiling test
•Welcomed Alnylam Pharmaceuticals to the Alliance for Genomic Discovery (AGD), broadening the consortium’s diverse clinical genomic dataset and utilizing it to inform development of ‘gene silencing’ medicines
•Introduced Illumina Protein Prep, driving deeper proteomic insights to enhance drug discovery and development, with a streamlined sample-to-insights solution for discovery and clinical research
A full list of recent announcements can be found in the company’s News Center.
Financial outlook and guidance
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, October 30, 2025. Interested parties may access the live webcast via the Investor Info section of Illumina’s website or directly through the following link – View Source 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.
(Press release, Illumina, OCT 30, 2025, View Source [SID1234657151])