01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. reported second-quarter 2025 total revenue of $1,059 milliona, down from $1,112 million in Q2 2024, with product revenue of $912 million and service and other revenue of $147 million.
Income from operations was $214 millionb versus a loss of $1,637 million a year earlier, which included a $1,886 million goodwill and intangible impairment tied to GRAIL. Net income was $235 million, or $1.49 per diluted share, compared with a net loss of $1,988 million in Q2 2024. Results were helped by a $107 million swing in other income (expense), net, driven primarily by gains on strategic investments, and by lower operating expense.
Year-to-date, revenue was $2,100 millionc (versus $2,188 million) and net income was $366 million. The filing highlights several headwinds: tariffs beginning in April 2025, Illumina's inclusion on China's unreliable entities list and the resulting prohibition on exporting sequencing instruments into China, and reduced U.S. government funding for the NIH. Instruments revenue declined 16% in Q2 2025 as customers delayed capital purchases, and Greater China revenue fell to $63 million from $75 million.
Management expects to partially mitigate tariff impacts in 2025 and more fully in 2026. On the balance sheet, cash and cash equivalents were $934 milliond and short-term investments were $221 million at June 29, 2025, against $1,491 million of term debt (current and non-current).
The company repurchased $570 million of stock in year-to-date 2025 under a $1.5 billion authorization, with about $804 million remaining. It also agreed on June 22, 2025 to acquire SomaLogic and certain assets from Standard BioTools for $350 million in cash plus royalties and up to $75 million in milestones, with closing expected in the first half of 2026.
02—Key points
Key Highlights
- Q2 2025 total revenue was $1,059 million, down from $1,112 million in Q2 2024; YTD 2025 revenue was $2,100 million versus $2,188 million.
- Q2 2025 income from operations was $214 million, compared with a loss of $1,637 million in Q2 2024 that included a $1,886 million goodwill and intangible impairment.
- Q2 2025 net income was $235 million ($1.49 per diluted share), versus a net loss of $1,988 million in Q2 2024.
- Other income (expense), net improved to $107 million in Q2 2025 from $(332) million, mainly from net gains on strategic investments.
- Instruments revenue fell to $101 million in Q2 2025 from $120 million, reflecting fewer high- and mid-throughput sequencing instrument shipments.
- Illumina was added to China's unreliable entities list and is not permitted to export sequencing instruments into China; Greater China revenue was $63 million in Q2 2025 versus $75 million.
- The company repurchased $570 million of common stock YTD 2025, with about $804 million remaining under its $1.5 billion authorization; it agreed to acquire SomaLogic for $350 million in cash, expected to close in the first half of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Illumina kept $0.22.
- Revenue$1.06B100.0%
- Cost of revenue−$364.0M34.4%
- Gross profit$695.0M65.6%
- Operating costs−$481.0M45.4%
- Operating income$214.0M20.2%
- Interest, other & tax$21.0M2.0%
- Net income$235.0M22.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.06B$1.11B | −4.8% |
| Cost of Revenue | $364.00M$391.00M | −6.9% |
| Gross Profit | $695.00M$721.00M | −3.6% |
| R&D Expenses | $247.00M$325.00M | −24.0% |
| SG&A Expenses | $234.00M$147.00M | +59.2% |
| Operating Expenses | $481.00M$2.36B | −79.6% |
| Operating Income | $214.00M-$1.64B | +113.1% |
| Net Income | $235.00M-$1.99B | +111.8% |
| EPS (Basic) | $1.49$-12.48 | +111.9% |
| EPS (Diluted) | $1.49$-12.48 | +111.9% |
| Shares Outstanding (Basic) | 157.00M159.00M | −1.3% |
| Shares Outstanding (Diluted) | 157.00M159.00M | −1.3% |
05—Questions
Frequently Asked Questions
Did Illumina return to profitability in the second quarter of 2025?
Yes. Illumina reported net income of $235 million, or $1.49 per diluted share, for Q2 2025, compared with a net loss of $1,988 million in Q2 2024. The prior-year loss was driven largely by a $1,886 million goodwill and intangible impairment tied to GRAIL. Q2 2025 operating income was $214 million, though part of the net income reflects $107 million of other income, net, mainly from strategic investment gains.
What is driving the decline in revenue?
Total revenue fell to $1,059 million in Q2 2025 from $1,112 million in Q2 2024. The filing attributes the decline mainly to lower instrument revenue, which fell to $101 million from $120 million due to fewer high- and mid-throughput sequencing instrument shipments as customers constrained capital spending. Service and other revenue also declined, primarily from lower strategic partnership revenue. Consumables were essentially flat at $811 million versus $815 million on a Core Illumina basis.
How are tariffs and China restrictions affecting Illumina?
Tariffs beginning in April 2025 raised freight and duties costs, and the company cited them as a factor in lower Core Illumina gross margin. Management expects to partially mitigate the tariff impact in 2025 and more fully in 2026 through supply chain optimization, cost measures and pricing actions. Illumina was added to China's unreliable entities list and cannot export sequencing instruments into China, which reduced Greater China revenue to $63 million in Q2 2025 from $75 million.
What is Illumina doing with its capital?
Illumina repurchased $570 million of common stock in YTD 2025 and had about $804 million of authorization remaining under its $1.5 billion program as of June 29, 2025. It repurchased another 230,300 shares for $22 million between June 29 and August 1, 2025, and intends to repurchase more shares over 2025. The company also agreed to acquire SomaLogic and certain Standard BioTools assets for $350 million in cash, plus royalties and up to $75 million in milestone payments, with closing expected in the first half of 2026.
Is Illumina's balance sheet sufficient to fund its near-term needs?
At June 29, 2025, Illumina had $934 million in cash and cash equivalents and $221 million in short-term investments, against total term debt of $1,991 million, of which $499 million is current. The revolving credit facility of $750 million was undrawn. Management said current cash, operating cash flow and revolver availability are sufficient for at least the next 12 months, including funding for the SomaLogic acquisition.
06—Continue