Core Insights - Illumina, Inc. reported better-than-expected earnings for Q2, with earnings of $1.19 per share, surpassing the analyst consensus estimate of $1.01 per share, and quarterly sales of $1.059 billion, exceeding the consensus estimate of $1.049 billion [1][2] Financial Performance - The company experienced a significant increase in its FY2025 adjusted EPS guidance, raising it from a range of $4.20-$4.30 to $4.45-$4.55, indicating positive growth expectations [2] Market Reaction - Following the earnings announcement, Illumina shares fell by 6.8%, trading at $95.76 [3] - Analysts adjusted their price targets for Illumina, with Barclays maintaining an Underweight rating and raising the target from $85 to $90, while Canaccord Genuity maintained a Hold rating and increased the target from $99 to $105 [8]

Core Insights - Illumina reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and showing a significant increase from $0.36 per share a year ago, resulting in an earnings surprise of +16.67% [1] - The company generated revenues of $1.06 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.11%, although this represents a slight decline from year-ago revenues of $1.11 billion [2] - Illumina has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] Earnings Outlook - The future performance of Illumina's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.09 on revenues of $1.06 billion, while the estimate for the current fiscal year is $4.25 on revenues of $4.23 billion [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Illumina belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance compared to higher-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of approximately $1,060,000,000, reflecting a year-over-year decline of about 3% on both constant currency and reported basis [20][21] - Non-GAAP operating margin was 23.8%, an increase of 160 basis points year-over-year, while non-GAAP EPS was $1.19, growing 9% year-over-year [27][28] - Non-GAAP gross margin was 69.4%, stable year-over-year, with a favorable product mix contributing to improved performance [26] Business Line Data and Key Metrics Changes - Sequencing consumables revenue was approximately flat year-over-year at $740,000,000, with high throughput consumables showing over 10% sequential growth [21][22] - Clinical markets now account for roughly 60% of total sequencing consumables, driven by comprehensive genomic profiling and sequencing-intensive applications [7][21] - Sequencing instruments revenue was down approximately 18% year-over-year, primarily due to budget constraints from research customers [24] Market Data and Key Metrics Changes - Greater China revenue was $63,000,000, slightly ahead of expectations but down $12,000,000 from 2024 [21] - The clinical segment is showing resilience, while the research environment in the U.S. remains constrained due to NIH funding uncertainties [9][19] - Total sequencing gigabases output on connected instruments grew over 30% year-over-year, driven by clinical strength [23] Company Strategy and Development Direction - The company aims for high single-digit revenue growth and to expand non-GAAP operating margin to 26% by 2027, focusing on core sequencing business growth and multiomics expansion [10][31] - The acquisition of Somologic for $350,000,000 is expected to enhance the company's proteomics capabilities and integrate with existing platforms [29][12] - The company is transitioning to a model that emphasizes delivering high-quality biological insights at the lowest end-to-end cost [10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for the second half of 2025 due to ongoing funding uncertainties in the U.S. research market, despite raising guidance for total company revenue growth [17][36] - The clinical market is expected to remain a significant growth driver, with increasing adoption of NGS in therapy selection and early detection [8][79] - Management remains focused on disciplined execution and innovation, with expectations for improved performance in 2026 and beyond [62][64] Other Important Information - The company repurchased approximately 4,500,000 shares for $380,000,000, with plans to continue share repurchases throughout the year [28][29] - The company ended the quarter with approximately $1,160,000,000 in cash and equivalents, maintaining a gross leverage of approximately 1.7x [30] Q&A Session Summary Question: Guidance change and its components - Management acknowledged the guidance change was influenced by FX and increased expectations for consumables, while instrumentation expectations were reduced due to research market constraints [39][43] Question: Customer behavior in anticipation of competition - Management emphasized a focus on customer engagement and innovation to remain competitive, particularly in the clinical space [47][49] Question: Pull forward of customer orders - Management indicated no significant pull forward in orders, with a normal quarter observed, and noted increased backlog for the NovaSeq X transition [53][55] Question: Clinical customer spending patterns - Management highlighted strong opportunities in the clinical market, with customers expanding tests rather than just reducing costs during the transition to NovaSeq X [80][82] Question: Instrument guidance and X placements - Management expects continued placements of NovaSeq X instruments, with a gradual transition rather than a sudden shift [88][90]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of approximately $1,060 million, reflecting a year-over-year decline of about 3% on both constant currency and reported basis [20][21] - Non-GAAP operating margin was 23.8%, an increase of 160 basis points year-over-year, while non-GAAP EPS was $1.19, growing 9% year-over-year and exceeding guidance [5][28][29] - Non-GAAP gross margin was 69.4%, stable year-over-year, with a favorable product mix contributing to improved performance [27] Business Line Data and Key Metrics Changes - Sequencing consumables revenue was approximately flat year-over-year at $740 million, with high throughput consumables showing over 10% sequential growth [21][22] - The transition to the NovaSeq X platform is progressing, with over 80% of sequencing volumes for research customers already transitioned, and clinical customers at approximately 55% [22] - Sequencing instruments revenue was down approximately 18% year-over-year, primarily due to budget constraints from research customers [24] Market Data and Key Metrics Changes - Clinical markets now account for roughly 60% of total sequencing consumables, driven by comprehensive genomic profiling and sequencing-intensive applications [5][21] - Greater China revenue was $63 million, slightly ahead of expectations but down $12 million from 2024, with ongoing discussions with regulators regarding export restrictions [20][32] Company Strategy and Development Direction - The company aims for high single-digit revenue growth and to expand non-GAAP operating margin to 26% by 2027, focusing on growing the core sequencing business and expanding services [9][31] - The acquisition of Somologic for $350 million is expected to enhance the company's capabilities in proteomics, integrating it into their multiomics strategy [30][12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for the second half of 2025 due to ongoing funding uncertainties in the U.S. research market, despite raising guidance for total company revenue growth [16][17] - The clinical segment is expected to continue driving growth, with significant opportunities in oncology and genetic disease testing [80] Other Important Information - The company repurchased approximately 4.5 million shares for $380 million, with plans to continue share repurchases throughout the year [29][30] - The company ended the quarter with approximately $1,160 million in cash and equivalents, maintaining a gross leverage of approximately 1.7x [30] Q&A Session Summary Question: Guidance change and its components - The guidance increase was attributed to FX and increased expectations for consumables, while instrumentation expectations were reduced due to research market constraints [40][44] Question: Customer behavior in anticipation of competition - The company focuses on customer engagement and innovation to remain competitive, with ongoing efforts to understand customer needs [48][50] Question: Pull forward in customer orders - No significant pull forward was observed in Q2, with a normal quarter reported; however, increased backlog was noted for future orders [56][57] Question: Clinical customer spending patterns - Clinical customers are expected to continue investing in expanding their portfolios, with a gradual transition to the NovaSeq X platform [78][82] Question: Trajectory of X placements - The company anticipates continued placements of NovaSeq X instruments, with expectations of 50-60 placements per quarter [90]

Q2 2025 Financial Performance - Illumina's Q2 2025 revenue reached $1.06 billion, a decrease of 3% year-over-year (YoY) on both a constant currency (CC) and reported basis[7] - The non-GAAP operating margin for Q2 2025 was 23.8%[7] - Non-GAAP diluted earnings per share (EPS) for Q2 2025 stood at $1.19[7] Regional Revenue Performance - Americas region generated $586 million in revenue, a decrease of 5% YoY CC and 6% YoY reported[7] - Europe's revenue was $310 million, an increase of 6% YoY CC and 7% YoY reported[7] - Asia Pacific, Middle East, and Africa (AMEA) region contributed $100 million, a decrease of 14% YoY CC and 15% YoY reported[7] - Greater China's revenue was $63 million, a decrease of 14% YoY CC and 15% YoY reported[7] NovaSeq X Transition - NovaSeq X accounted for over 50% of high-throughput (HT) revenue and over 75% of HT Gigabases (Gb) shipped in Q2 2025[22] - NovaSeq X consumables revenue is targeted to represent approximately 50% of HT revenue by the end of 2025[22] - NovaSeq X is targeted to represent approximately 75% of HT Gb shipped towards the end of 2025[22] Acquisition of SomaLogic - Illumina announced the acquisition of SomaLogic for $350 million in cash, payable at closing, with up to $75 million in near-term revenue performance-based milestones and potential performance-based royalties[15] - The acquisition is projected to close in the first half of 2026, pending regulatory clearance[14] - SomaLogic is expected to become profitable in 2027 on a non-GAAP operating income basis, with non-GAAP operating margins aligning with Illumina's in 2028[15] Financial Guidance - Illumina's FY25 revenue guidance indicates a growth of 0% to 2%, with an FX benefit of approximately 20 bps for the rest of the world, and a revenue between $190 million and $210 million for Greater China[35] - Q3 2025 revenue guidance indicates a decline of 2.5% to 1.5%, with an FX benefit of approximately 60 bps, implying a reported revenue of $1.06 billion to $1.07 billion[35]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) Illumina reports strong Q2 2025 results exceeding guidance and raises its full-year 2025 financial outlook [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) Illumina reported second-quarter 2025 results that exceeded guidance, despite a 3% year-over-year revenue decline to $1.06 billion, driven by strong X consumables sales and clinical segment growth, achieving GAAP operating margin of 20.2% and non-GAAP operating margin of 23.8% - CEO Jacob Thaysen highlighted that results exceeded guidance, driven by the ramp in X consumables and accelerating growth in the clinical customer segment, with a focus on operational excellence leading to margin expansion[3](index=3&type=chunk) Core Illumina Q2 2025 Financial Results (GAAP vs. Non-GAAP) | Dollars in millions, except per share amounts | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,059 | $1,092 | $1,059 | $1,092 | | **Gross Margin** | 65.6% | 68.0% | 69.4% | 69.4% | | **Operating Profit** | $214 | $442 | $252 | $242 | | **Operating Margin** | 20.2% | 40.5% | 23.8% | 22.2% | | **Net Income** | $235 | $66 | $187 | $174 | | **Diluted EPS** | $1.49 | $0.41 | $1.19 | $1.09 | - Total revenue for Q2 2025 was **$1.06 billion**, representing a **3% decrease** from Q2 2024 on both a reported and constant currency basis[5](index=5&type=chunk) Q2 2025 Cash Flow Summary | Metric | Amount (in millions) | | :--- | :--- | | Cash provided by operations | $234 | | Capital expenditures | $30 | | Free cash flow | $204 | [Fiscal Year 2025 Outlook](index=1&type=section&id=Fiscal%20Year%202025%20Outlook) The company raised its full-year 2025 guidance, now expecting a constant currency revenue decline between 0.5% and 2.5%, with non-GAAP operating margin projected at 22% to 22.5% and non-GAAP diluted EPS forecasted in the range of $4.45 to $4.55 Updated Fiscal Year 2025 Guidance | Metric | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Total company constant currency revenue decline | (3%) to (1%) | (2.5%) to (0.5%) | | Non-GAAP operating margin | 21.5% - 22.0% | 22.0% - 22.5% | | Non-GAAP diluted EPS | $4.20 - $4.30 | $4.45 - $4.55 | - The increase in the non-GAAP diluted EPS forecast includes an approximate **$0.10 benefit** from recent legislation allowing U.S.-based R&D spending to be tax-deductible[5](index=5&type=chunk) [Capital Allocation and Strategic Initiatives](index=1&type=section&id=Capital%20Allocation%20and%20Strategic%20Initiatives) The company executed significant share repurchases and advanced strategic growth through a key acquisition and new product launches [Capital Allocation](index=1&type=section&id=Capital%20Allocation) During the second quarter, Illumina repurchased 4.5 million shares for $380 million, with approximately $800 million remaining under its current share repurchase authorization, and plans to continue repurchases throughout the year - In Q2 2025, the company repurchased approximately **4.5 million shares** of its stock for **$380 million**, at an average price of **$84.66 per share**[5](index=5&type=chunk)[7](index=7&type=chunk) - The company has approximately **$800 million remaining** in its share repurchase authorization at the end of the quarter and intends to repurchase more shares over the course of the year[7](index=7&type=chunk) [Strategic and Operational Highlights](index=1&type=section&id=Strategic%20and%20Operational%20Highlights) Key strategic developments include entering a definitive agreement to acquire SomaLogic, expected to close in the first half of 2026, alongside launching new products like TruSight Oncology 500 v2, PromoterAI, and DRAGEN v4.4 software, and receiving regulatory approval in Japan for its TSO Comprehensive assay - Entered into a definitive agreement to acquire SomaLogic from Standard BioTools, with the transaction expected to close in the **first half of 2026**, pending regulatory approval[5](index=5&type=chunk)[13](index=13&type=chunk) - Recent product and technology launches include: - TruSight Oncology 500 version 2 (TSO 500 v2) for cancer research - PromoterAI, a new AI algorithm for deciphering pathogenic genetic variants - DRAGEN™ v4.4 software for secondary analysis in oncology and multiomics[13](index=13&type=chunk) - Received approval from Japan's Ministry of Health, Labour and Welfare (MHLW) for TruSight™ Oncology (TSO) Comprehensive as a Class III/IV Medical Device[13](index=13&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, Illumina's total assets were $6.09 billion, a decrease from $6.30 billion at the end of fiscal 2024, primarily due to reduced cash and cash equivalents, while total liabilities decreased to $3.83 billion and stockholders' equity fell to $2.26 billion Condensed Consolidated Balance Sheets (in millions) | | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total current assets** | $2,641 | $2,746 | | **Total assets** | $6,087 | $6,303 | | **Total current liabilities** | $1,461 | $1,547 | | **Total liabilities** | $3,829 | $3,930 | | **Stockholders' equity** | $2,258 | $2,373 | | **Total liabilities and stockholders' equity** | $6,087 | $6,303 | - Cash and cash equivalents decreased from **$1.127 billion** at the end of 2024 to **$934 million** at the end of Q2 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 29, 2025, Illumina reported total revenue of $1.06 billion and a net income of $235 million, or $1.49 per diluted share, a significant turnaround from a $1.99 billion net loss in the prior-year period primarily due to a large goodwill and intangible impairment charge related to GRAIL Condensed Consolidated Statements of Operations (in millions, except per share amounts) | | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | $1,059 | $1,112 | | **Gross profit** | $695 | $721 | | **Income (loss) from operations** | $214 | $(1,637) | | **Net income (loss)** | $235 | $(1,988) | | **Diluted earnings (loss) per share** | $1.49 | $(12.48) | - The results for Q2 2024 and YTD 2024 included the results for GRAIL, which was spun off on June 24, 2024, with Q2 2024 results heavily impacted by a **$1.886 billion goodwill and intangible impairment charge**[21](index=21&type=chunk) [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) In Q2 2025, net cash provided by operating activities was $234 million, a significant increase from $80 million in the prior-year period, resulting in $204 million in free cash flow after capital expenditures, while net cash used in financing activities was $371 million, largely due to share repurchases Consolidated Statements of Cash Flows and Free Cash Flow (in millions) | | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $234 | $80 | | **Net cash used in investing activities** | $(49) | $(41) | | **Net cash used in financing activities** | $(371) | $(225) | | **Net decrease in cash and cash equivalents** | $(179) | $(188) | | **Free cash flow** | $204 | $48 | - Core Illumina's free cash flow was **$204 million** in Q2 2025, compared to **$213 million** in the prior year period, showing more stability when excluding the impact of GRAIL in the prior year[25](index=25&type=chunk) [Supplemental Financial Information (Non-GAAP)](index=8&type=section&id=Supplemental%20Financial%20Information%20(Non-GAAP)) This section provides supplemental non-GAAP financial measures, including constant currency revenue and reconciliations to GAAP results [Constant Currency Revenue](index=8&type=section&id=Constant%20Currency%20Revenue) On a constant currency basis, Core Illumina's revenue for Q2 2025 was $1.054 billion, representing a 3% decline compared to the prior year, with six-month constant currency revenue at $2.104 billion, a 2% year-over-year decline, adjusting for foreign exchange rate fluctuations and hedging Core Illumina - Constant Currency Revenue (in millions) | | Three Months Ended | % Change | Six Months Ended | % Change | | :--- | :--- | :--- | :--- | :--- | | **Reported Revenue (Q2 2025 vs Q2 2024)** | $1,059 vs $1,092 | (3)% | $2,100 vs $2,148 | (2)% | | **Constant Currency Revenue (Q2 2025 vs Q2 2024)** | $1,054 vs $1,088 | (3)% | $2,104 vs $2,141 | (2)% | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides detailed reconciliations of its GAAP to non-GAAP results, with Q2 2025 non-GAAP diluted EPS at $1.19 compared to GAAP diluted EPS of $1.49, primarily adjusted for acquisition-related costs, intangible impairments, and strategic investment gains, resulting in non-GAAP operating profit of $252 million Q2 2025 Reconciliation of GAAP and Non-GAAP Diluted EPS | | Amount per share | | :--- | :--- | | **GAAP diluted earnings per share** | $1.49 | | Cost of revenue adjustments | $0.25 | | R&D expense adjustments | $0.03 | | SG&A expense adjustments | $(0.04) | | Other (income) expense, net adjustments | $(0.65) | | Provision for income taxes adjustments | $0.11 | | **Non-GAAP diluted earnings per share** | $1.19 | Q2 2025 Reconciliation of GAAP and Non-GAAP Operating Profit (in millions) | | Amount | | :--- | :--- | | **GAAP operating profit** | $214 | | Cost of revenue adjustments | $40 | | R&D costs adjustments | $4 | | SG&A costs adjustments | $(6) | | **Non-GAAP operating profit** | $252 | - Key adjustments between GAAP and Non-GAAP results for Q2 2025 include **$16 million** for amortization of intangible assets, a **$23 million intangible asset impairment**, and a **$102 million net gain** on strategic investments[34](index=34&type=chunk)[39](index=39&type=chunk) [Disclosures](index=3&type=section&id=Disclosures) This section outlines the company's use of non-GAAP financial measures and provides forward-looking statements with associated risk factors [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP financial measures as supplementary to GAAP, believing these metrics, which exclude items like amortization of acquired intangibles and currency effects, help investors better assess operating performance and are used by the board to evaluate management performance and determine compensation - Management excludes certain items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance[14](index=14&type=chunk) - Non-GAAP metrics are key components used by the company's board of directors to measure management's performance and determine significant elements of their compensation[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, warning that actual results could differ materially from forward-looking statements due to various risk factors, including market growth changes, the ability to complete and integrate the SomaLogic acquisition, regulatory uncertainty in China, potential tariffs, and challenges in launching new products - Key risks that could cause actual results to differ from projections include: - The ability to complete and integrate the proposed acquisition of SomaLogic - Uncertainty regarding the impact of being on China's "unreliable entities list" and export restrictions - Tariffs and other trade protection measures - Challenges inherent in developing and launching new products and services[16](index=16&type=chunk)

Core Insights - Illumina reported Q2 2025 financial results, showing a revenue of $1.06 billion, a decrease of 3% from Q2 2024 on both reported and constant currency basis [7][3] - The company experienced margin expansion due to operational excellence, leading to an increase in annual expectations despite a constrained funding environment in research [2][4] - Illumina's GAAP diluted EPS for Q2 2025 was $1.49, compared to $0.41 in Q2 2024, while non-GAAP diluted EPS was $1.19, up from $1.09 [7][28] Financial Performance - Revenue for Q2 2025 was $1,059 million, down from $1,092 million in Q2 2024 [3][7] - Gross margin for Q2 2025 was 65.6% (GAAP) and 69.4% (non-GAAP), compared to 68.0% and 69.4% respectively in Q2 2024 [3][7] - Operating profit was $214 million with a GAAP operating margin of 20.2%, while non-GAAP operating profit was $252 million with a margin of 23.8% [3][7] Cash Flow and Capital Expenditures - Cash flow from operations was $234 million, down from $243 million in the prior year, with free cash flow at $204 million compared to $213 million [4][7] - Capital expenditures for Q2 2025 were $30 million [4] Share Repurchase and Future Guidance - The company repurchased approximately 4.5 million shares for $380 million at an average price of $84.66 per share [5][7] - For fiscal year 2025, Illumina expects a revenue decline of 2.5% to 0.5%, an improvement from previous guidance of 3% to 1% [7][11] Strategic Developments - Illumina entered into a definitive agreement to acquire SomaLogic from Standard BioTools, expected to close in the first half of 2026 [7][16] - The company launched TruSight Oncology 500 version 2, enhancing its genomic profiling capabilities for cancer research [9][16]

Core Insights - Illumina (ILMN) is expected to report quarterly earnings of $1.02 per share, reflecting a significant increase of 183.3% year over year, while revenues are forecasted to decline by 5.8% to $1.05 billion [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.2% in the last 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts project 'Revenue- Core Illumina- Consumables' to reach $792.14 million, down 2.8% from the previous year [5] - The estimate for 'Revenue- Product revenue- Consumable' is $788.41 million, indicating a decline of 3.3% year over year [5] - 'Revenue- Service and other revenue' is expected to be $157.99 million, reflecting a decrease of 14.6% from the prior year [5] - 'Revenue- Product revenue' is anticipated at $888.52 million, down 4.2% from the previous year [6] - 'Revenue- Core Illumina- Service and other revenue' is projected to be $159.52 million, suggesting a slight increase of 1.6% year over year [6] - 'Revenue- Core Illumina- Total product revenue' is expected to be $886.54 million, indicating a decline of 5.2% year over year [6] - 'Revenue- Product revenue- Instruments' is estimated at $115.79 million, down 3.5% from the year-ago quarter [7] - 'Revenue- Sequencing' is projected to reach $802.27 million, reflecting a significant decline of 19.5% year over year [8] - 'Revenue- Sequencing- Consumables' is expected to be $705.59 million, down 4.3% from the prior year [9] Stock Performance - Illumina shares have increased by 10.8% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.4% [9]

Core Insights - Illumina has launched TSO 500 v2, an advanced assay that enhances tumor profiling capabilities with built-in HRD detection, faster turnaround times, and reduced tissue requirements [1][2] - The assay assesses hundreds of genes and immuno-oncology biomarkers, facilitating personalized treatment and improving patient outcomes when used early in cancer diagnosis [1] Product Enhancements - TSO 500 v2 includes HRD status analysis at no additional cost, utilizing a Genomic Instability Scoring (GIS) algorithm from Myriad Genetics, expanding research into HRD biomarkers across various cancer types [2] - The new workflow is designed to be faster and more efficient, with improved accuracy compared to previous solutions from other vendors [4] - The updated packaging and kit configuration reduce the number of boxes and tubes, enhancing user experience and minimizing errors during the workflow [5] Workflow Efficiency - The streamlined workflow reduces turnaround time and hands-on time, with sensitive variant calling and better coverage of difficult genomic regions [7] - New kit configurations feature 50% less packaging and 70% fewer tubes, improving sustainability and usability with a color-coded tubing system [7] - Integrated data analysis is supported by DRAGEN™ secondary analysis and Illumina Connected Insights, with compatibility across various sequencers [7] Strategic Partnerships - Illumina has partnered with Pillar BioSciences to offer targeted molecular profiling tests, including the upcoming Pillar oncoReveal CDx IVD kit [8]

Core Viewpoint - The market anticipates Illumina (ILMN) to report a year-over-year increase in earnings despite lower revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Illumina is expected to post quarterly earnings of $1.02 per share, reflecting a year-over-year increase of +183.3% [3]. - Revenue projections stand at $1.05 billion, indicating a decline of 5.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.15% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Illumina is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.10% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Illumina currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Illumina exceeded the expected earnings of $0.96 per share by reporting $0.97, achieving a surprise of +1.04% [13]. - Over the past four quarters, Illumina has surpassed consensus EPS estimates three times [14]. Industry Context - Another company in the biomedical and genetics sector, Wave Life Sciences (WVE), is expected to report a loss of $0.28 per share, reflecting a year-over-year change of -12% [18]. - Wave Life Sciences anticipates revenues of $12.64 million, down 35.8% from the previous year, with an Earnings ESP of +4.85% despite a Zacks Rank of 4 (Sell) [19][20].