Illumina CEO Jacob Thaysen Reports Q4 & Full-Year 2025 Financial Results; Signals Return to Growth and Positive 2026 Outlook

Illumina, Inc., a global leader in genomic sequencing and multi-omics technologies, reported financial results for the fourth quarter and full fiscal year 2025, highlighting a return to quarterly revenue growth, solid profitability improvements, and an upbeat outlook for fiscal 2026 under CEO Jacob Thaysen.

Fourth Quarter 2025 Highlights
Illumina delivered $1.16 billion in revenue for Q4 2025, up 5% year-over-year (up 4% on a constant currency basis) — its first sequential rebound in recent quarters, reflecting improving demand in clinical markets and broader operational execution.
• Ex-China revenue climbed 8% to $1.10 billion, signaling broader global momentum.
• GAAP operating margin reached 17.4%, with non-GAAP operating margin at 23.7%, both improved from prior year comparatives.
• GAAP diluted EPS was $2.16, a sharp increase from $0.73 in Q4 2024; non-GAAP diluted EPS was $1.35, up from $0.95 previously.

Net income also rose meaningfully, with $334 million in GAAP earnings compared with $117 million a year earlier, reflecting improved operating leverage and lower legal contingencies.

Operational efficiency metrics showed strength, with research and development (R&D) and selling, general and administrative (SG&A) expenses managed effectively, while free cash flow remained robust at $267 million for the quarter.

Full Fiscal Year 2025 Performance
For the full year, revenue totaled $4.34 billion, essentially flat against 2024 on both reported and constant currency bases — driven by resilient core demand despite lingering headwinds.
• Ex-China revenue grew 2% to $4.10 billion, indicating geographical diversification and market penetration.
• GAAP operating margin widened to 18.6%, with non-GAAP operating margin at 23.1%, highlighting disciplined cost management.
• GAAP diluted EPS was $5.45, and non-GAAP diluted EPS was $4.84, both reflecting solid profitability and effective capital allocation.

Fiscal 2025 free cash flow was strong at $931 million, underscoring Illumina’s ability to convert earnings into cash and support strategic investments.

Strategic Drivers and Segment Trends
Illumina’s performance was underpinned by several key trends:

• Clinical Markets Expansion: Broader adoption of next-generation sequencing (NGS) in clinical diagnostics contributed to revenue growth, particularly in consumables and service segments.

• Ex-China Strength: Growth outside China helped offset lingering market uncertainties tied to regulatory and trade restrictions in the region.

• Innovation and Portfolio Expansion: The completion of the SomaLogic acquisition and new product introductions bolstered the company’s technology pipeline in proteomics and AI-enabled discovery, expanding beyond core sequencing.

Management also noted progress in addressing China market complexities, including the lifting of certain export bans, though the company remains on the Chinese Ministry of Commerce’s Unreliable Entities List — a risk factor that continues to require careful navigation.

Outlook for Fiscal Year 2026
Looking ahead, Illumina provided guidance that reflects renewed confidence in growth:
• Total company revenue is expected between $4.5 billion and $4.6 billion, representing 4%–6% growth on a reported basis, including a modest contribution from the SomaLogic acquisition.
• Ex-China organic revenue is projected to grow 2%–4%, excluding currency and acquisition impacts, underscoring underlying demand strength.
• Non-GAAP operating margin is anticipated in the 23.3%–23.5% range, even after absorbing about **100 basis points of acquisition-related impacts.
• Non-GAAP diluted EPS is forecast at $5.05–$5.20, which incorporates approximately $0.18 of dilution from the recent acquisition.

CEO Jacob Thaysen commented that momentum built in the second half of 2025 — particularly in clinical adoption of NGS technologies — “reinforces our confidence as we enter 2026,” signaling strategic alignment with evolving market demand.

Market Context and Competitive Landscape
Illumina’s results arrive amid a broader genomic technology industry landscape marked by variable funding for biotech research, competitive pressures, and macroeconomic factors influencing capital spending. In recent periods, the company faced challenges including China import restrictions on sequencing instruments and earlier guidance adjustments tied to those restrictions.

Despite these headwinds, Illumina’s improved quarterly growth, robust cash generation and strategic investments in multi-omics position it to capture expanding clinical and research applications of sequencing technology. Its strong balance sheet and solid free cash flow also provide flexibility for product innovation and potential future acquisitions.

Illumina’s Q4 and full-year 2025 financial performance reflects a meaningful rebound from recent industry headwinds, highlighted by quarterly revenue growth, margin expansion, and constructive financial guidance for 2026. Under CEO Jacob Thaysen’s leadership, the company is positioning itself to capitalize on accelerating clinical adoption of NGS and diversified technology platforms, with strategic investments aimed at long-term growth and shareholder value