Analyst Conference Summary

conference date: February 5, 2026 @ 1:30 PM Pacific Time
for quarter ending: December 31, 2025 (fourth quarter, Q4 2025)

Forward-looking statements

Overview: exceeded expectations

Basic data (GAAP):

Revenue was $1.16 billion, up 7% sequentially from $1.08 billion and 5% from $1.10 billion in the year-earlier quarter.

Net income was $334 million, up 123% sequentially from $150 million, and up 185% from $117 million year-earlier.

Diluted EPS was $2.16, up 120% sequentially from $0.98, and up 196% from $0.73 year-earlier.

Guidance:

2026 revenue between $4.5 and $4.6 billion, up 4% to 6%. Non-GAAP diluted EPS $5.05 to $5.20. For Q1 2026 expects revenue between $1.06 and $1.08 billion, with non-GAAP EPS between $1.02 and $1.07.

Conference Highlights:

Jacob Thaysen, CEO, said "The Illumina team delivered a strong finish to 2025, marking a return to growth through disciplined execution against our strategy. Momentum built in the second half of the year – especially in clinical markets, where adoption of NGS-based testing is expanding – reinforces our confidence as we enter 2026." Adoption of sequencing-based diagnostic tests is increasing.

In January 2026 the acquisition of SomaLogic was completed. Will pay $350 million in cash and up to $75 million in near-term milestones.

In Q4 2025 introduced the Billion Cell Atlas, the first data product of the BioInsight business, to support AI-enabled drug discovery.

China lifted the export ban on Illumina sequencers in Q4, but approvals are still required for instrument purchases.

In Q3 2025 Illumina launched the 5-base solution for simultaneous genomic and epigenomic insights. Introduced Constellation mapped read technology, uncovering hard-to-see genomic variants in GeneDx pilot. Illumina Protein Prep was introduced for driving deeper proteomic insights to enhance drug discovery. BioInsight launched to accelerate technology and data-driven discovery initiatives.

In Q3 2025 Illumina launched TruSight Oncology 500 version 2 (TSO 500 v2), an updated version of Illumina's comprehensive genomic profiling assay for cancer research. PromoterAI, a new AI algorithm that accurately deciphers pathogenic regulatory genetic variants in the noncoding regions of the human genome was introduced and launched DRAGEN v. 4.4 software for clinical oncology research.

Product revenue was $990 million, services $169 million. $150 million of the product revenue was for instruments, $713 was for consumables.

Illumina shipped >100 NovaSeq X instruments in Q4 2025. [NovaSeq X is the most powerful and expensive of its sequencers.]

Non-GAAP numbers: net income $208 million, up 1% sequentially from $206 million, and up 51% from $138 million year-earlier. Diluted EPS was $1.35, up 1% sequentially from $1.34, and up 57% from $0.86 year-earlier.

Cash, equivalents and investment balance was $1.36 billion, up sequentialy from $1.28 billion. $1.0 billion term debt. Cash flow from operations was $321 million. Free cash flow was $267 million. Capital expenditures were $54 million. Cash used to repurchase stock was $42 million.

GAAP cost of revenue was $400 million, leaving gross profit of $759 million. Operating expenses were $557 million, consisting of: $239 million for research and development; $310 million for selling, general, and administration; $8 million for legal settlement. Leaving income from operations of $202 million. Other income was $176 million. Income tax $44 million.

Full Year 2025 revenue was $4.34 billion, up slightly from $4.32 billion year-earlier. Net income was $850 million, down from $894 million. EPS was $5.45, down from $5.61. Non-GAAP EPS was $4.84, up from $4.16. Free cash flow was $931 million.

Q&A selective summary:

Operating margins in 2026? Long-term target is 26% operating margin. Did 200 basis points last year, looking for continued improvement in 2026, hope to get close to 26% in 2027.

Guidance to slower ex-China rate in 2026? We did end 2025 strong. Expects momentum to continue. The problem is in the research environment because of uncertainty for government grants. The 2% ex China is not due to a change in the clinical business, it is the low-end, Q3 2025 rate. Improved research demand would provide an upside.

Competition outside of academia? Over 60 of the 100 X placements were in clinical. No slowdown in that part of business. We did not see that much competition in Q4.

Nova X placements in 2026? We see continued strong demand for high-throughput consumables. We are guiding to 50 to 60 instrument placements per quarter.

We are working on helping customers use the full set of instruments and data. Our pricing is transparent, will be also for the new acquisitions.

Competitor seeing $100 per genome? Our customers look at more than one parameter or feature. We have the portfolio to compete on all parameters and address market segments with different pricepoints.

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