Q3 2025 Illumina Inc Earnings Call Transcript
Key Points
- Illumina Inc (ILMN) reported a strong year-over-year expansion in non-GAAP operating margin to 24.5% and non-GAAP diluted EPS of $1.34, both above guidance.
- The NovaSeq X transition is progressing well, with over 75% of high-throughput volume and over 50% of revenue now transitioned to the X platform.
- Sequencing consumables revenue grew at a high single-digit rate, driven by strong demand in clinical markets.
- The company is expanding its multiomics portfolio, including the development of a proteomics assay that can measure up to 9,500 proteins per sample.
- Illumina Inc (ILMN) is increasing its full-year 2025 revenue guidance for Greater China by $20 million, reflecting better-than-expected performance despite export restrictions.
- Revenue in Greater China was down approximately 54% due to export restrictions, impacting overall growth.
- Research and applied consumable sales declined high single digits outside of China, reflecting continued funding uncertainty.
- Non-GAAP gross margin decreased by 130 basis points year-over-year, impacted by tariffs.
- The company has not yet reached a long-term resolution related to its operations in China, creating ongoing uncertainty.
- Pricing headwinds in the research segment are expected to persist, although they are easing as the NovaSeq X transition progresses.
(audio in progress)
Ex China, up about 2% year-over-year. Non-GAAP operating margin was 24.5% and non-GAAP diluted EPS was $1.34, both reflecting strong year-over-year expansion and above our guidance. This performance reflects the momentum we're building through the NovaSeq X transition, especially in the clinical markets, where sequencing consumables revenue grew at a high single-digit rate, we are raising our total full year 2025 outlook. We're staying disciplined as we monitor macro and funding dynamics through year-end.
In our end markets, clinical continues to accelerate. Customers are advancing new assays that demand increasing sequencing capacity and intensity. And the NovaSeq X is proving to be the ideal solution, delivering higher throughput with the same trusted accuracy and workflow as their existing NovaSeq 6000 instruments.
Growing sequencing volumes are more than offsetting transitional pricing effects, driving a sequential revenue. In research, we saw a stabilization in demand, even as many labs continue to
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