01—Abstract
Summary
Summary of the 10-Q filed October 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. reported third-quarter 2025 revenue of $1,084 milliona, roughly flat versus $1,080 million in Q3 2024, with income from operations of $227 million compared with $741 million a year earlier, when results included a $488 million legal contingency gain.
Net income was $150 millionb, or $0.98 per diluted share, versus $705 million ($4.42 per diluted share) in Q3 2024. For the nine months ended September 28, 2025, revenue declined to $3,184 million from $3,268 million, primarily due to lower service and other revenue (including the GRAIL Spin-Off in 2024) and fewer high- and mid-throughput instrument shipments. Management cited Greater China revenue decreases of $41 million year-to-date tied to Illumina's inclusion on China's unreliable entities list, and tariff costs that weighed on Core Illumina gross margin.
Year-to-date net income was $516 millionc, against a net loss of $1,410 million in the prior-year period, which included a $1,889 million goodwill and intangible impairment. Operating cash flow was $758 million year-to-date, and the company repurchased $700 million of common stock. Cash, cash equivalents and short-term investments totaled $1,278 million at quarter end, and total term debt was $1,992 million, with $998 million classified as current, reflecting the 2025 Term Notes maturing in December 2025.
The company has agreed to acquire SomaLogic and certain other assets from Standard BioTools for $350 million in cash, plus royalties and up to $75 milliond in potential milestone payments, with closing expected in the first half of 2026. Ongoing litigation includes shareholder derivative suits and securities class actions related to the GRAIL acquisition, and the company says these matters are at an early stage and that it intends to defend them vigorously.
02—Key points
Key Highlights
- Q3 2025 total revenue was $1,084 million, compared with $1,080 million in Q3 2024; product revenue rose to $927 million from $914 million, while service and other revenue fell to $157 million from $166 million.
- Q3 2025 income from operations was $227 million, versus $741 million in Q3 2024, which benefited from a $488 million legal contingency and settlement gain.
- Q3 2025 net income was $150 million ($0.98 per diluted share), compared with $705 million ($4.42 per diluted share) in Q3 2024.
- Year-to-date 2025 net income was $516 million, versus a net loss of $1,410 million in 2024 that included a $1,889 million goodwill and intangible impairment.
- Q3 2025 effective tax rate was 31.8%, including a one-time $42 million valuation allowance on certain U.S. foreign tax credits following U.S. tax legislation signed July 4, 2025.
- The company repurchased $700 million of common stock year-to-date and had about $684 million remaining under its share repurchase authorization as of September 28, 2025.
- Pending acquisition of SomaLogic from Standard BioTools for $350 million in cash is expected to close in the first half of 2026, subject to regulatory approvals.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Illumina kept $0.14.
- Revenue$1.08B100.0%
- Cost of revenue−$351.0M32.4%
- Gross profit$733.0M67.6%
- Operating costs−$506.0M46.7%
- Operating income$227.0M20.9%
- Interest, other & tax−$77.0M7.1%
- Net income$150.0M13.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 31, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.08B$1.08B | +0.4% |
| Cost of Revenue | $351.00M$335.00M | +4.8% |
| Gross Profit | $733.00M$745.00M | −1.6% |
| R&D Expenses | $229.00M$253.00M | −9.5% |
| SG&A Expenses | $277.00M$239.00M | +15.9% |
| Operating Expenses | $506.00M$4.00M | +12550.0% |
| Operating Income | $227.00M$741.00M | −69.4% |
| Net Income | $150.00M$705.00M | −78.7% |
| EPS (Basic) | $0.98$4.43 | −77.9% |
| EPS (Diluted) | $0.98$4.42 | −77.8% |
| Shares Outstanding (Basic) | 153.00M159.00M | −3.8% |
| Shares Outstanding (Diluted) | 154.00M160.00M | −3.7% |
05—Questions
Frequently Asked Questions
Why did Illumina's operating income fall so sharply in Q3 2025 compared with Q3 2024?
Q3 2024 operating income of $741 million included a $488 million legal contingency and settlement gain tied to the withdrawn European Commission fine. Q3 2025 had no comparable gain, and operating income was $227 million. Q3 2025 SG&A also rose to $277 million from $239 million, which the filing attributes largely to a $52 million unfavorable remeasurement of contingent consideration liabilities related to the GRAIL CVRs.
What is driving the year-to-date revenue decline?
Year-to-date revenue fell to $3,184 million from $3,268 million, primarily due to lower service and other revenue, including the GRAIL Spin-Off in 2024 and decreased strategic partnership revenue. Instrument revenue also declined on fewer high- and mid-throughput sequencing shipments, partly offset by higher consumables revenue. Greater China revenue decreased $41 million year-to-date, primarily due to Illumina's inclusion on the unreliable entities list.
How is Illumina managing its debt and liquidity?
Cash, cash equivalents and short-term investments totaled $1,278 million at September 28, 2025, and the company has a $750 million revolving credit facility with no borrowings outstanding. Term debt totals $1,992 million, of which $998 million is current, including the $500 million 2025 Term Notes maturing December 12, 2025. Management states that current resources are sufficient to fund needs for at least the next 12 months, including the SomaLogic acquisition.
What are the key legal and regulatory risks disclosed?
The filing describes several shareholder derivative lawsuits relating to the GRAIL acquisition, with a motion to dismiss the amended complaint in the consolidated Pavers action set for hearing on February 13, 2026. A securities class action was dismissed by the court on September 26, 2025, with plaintiffs granted leave to amend, and a Third Amended Complaint was filed October 27, 2025. A separate state securities class action survived Illumina's demurrer. The company says these cases are at an early stage and it intends to vigorously defend them. The filing also notes the China unreliable entities listing and the inability to export sequencing instruments into China.
06—Continue