Illumina (ILMN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1.16 billion, up 5% year-over-year, with ex-China revenue up 8% and strong clinical consumables growth of 20% ex-China.

• Over 100 NovaSeq X instruments were placed in Q4, with 55%-60% to clinical customers and 91% of high-throughput gigabases shipped.

• Completed SomaLogic acquisition for $350 million upfront, enhancing multiomics and proteomics capabilities, with up to $75 million in milestones and expected profitability accretion by 2027.

• Advanced portfolio into multi-omics, data software, and AI, and returned $740 million to shareholders via share repurchases.

• Fiscal 2025 revenue was $4.34 billion, flat year-over-year; ex-China revenue rose 2%.

Financial highlights

• Q4 2025 revenue was $1.16 billion, up 5% year-over-year reported and 4% constant currency; ex-China revenue up 7%-8%.

• Sequencing consumables revenue reached $755 million, up 8% year-over-year and 11% ex-China; clinical segment up 20% in Q4.

• Non-GAAP gross margin for Q4 was 67%, down 40 bps year-over-year due to tariffs; GAAP gross margin was 65.5%.

• Non-GAAP operating margin was 23.7% in Q4, expanding 400 bps year-over-year; GAAP operating margin was 17.4%.

• Non-GAAP EPS of $1.35 per diluted share grew 42% year-over-year; full-year 2025 EPS was $4.84, up 16%.

• Free cash flow for Q4 was $267 million; $931 million for the year; cash and short-term investments at year-end totaled $1.63 billion.

Outlook and guidance

• 2026 revenue expected at $4.5–$4.6 billion, up 4–6% year-over-year, including 1.5–2.0% from SomaLogic; ex-China organic growth projected at 2–4%.

• Clinical consumables expected to grow double-digit to mid-teens in 2026; research and applied consumables to decline mid-to-high single digits.

• Non-GAAP operating margin forecasted at 23.3–23.5%, with 100–130 bps negative impact from SomaLogic.

• Non-GAAP diluted EPS expected at $5.05–$5.20, including $0.18 dilution from SomaLogic; excluding dilution, EPS growth is 10%.

• Instrument sales expected to be flat to slightly down; China sales projected at $210–$220 million.