Illumina was also recognized as one of the Best Companies to Work For byU.S. News & World ReportSAN DIEGO, July 10, 2025 /PRNewswire/ -- Illumina Inc. (NASDAQ: ILMN) today announced two awards recognizing the company's leadership in sustainability practices and as an employer of choice. TIME named Illumina to its World's Most Sustainable Companies list for the second year in a row, and U.S. News & World Report named Illumina to its Best Companies to Work For list. The awards highlight the company's continue ...

Core Insights - Illumina's 2024 CSR Report emphasizes the company's commitment to making precision health more accessible and promoting sustainability across its operations [2][3][4] Group 1: CSR Strategy and Goals - The company aims to improve human health by unlocking genomic potential, with CSR efforts focused on increasing access to genomic technologies and enhancing health equity for billions globally [4] - Illumina's CSR program is structured around four key areas, demonstrating progress in 2024 [6] Group 2: Achievements in 2024 - Advocacy efforts expanded health care coverage for genomic testing to an additional 100 million people, totaling 1.4 billion lives covered [7] - Achieved an 80% reduction in packaging since 2019, surpassing the 2030 target of 75%, and launched the MiSeq i100 Series with a 35% reduction in climate change impact [7] - 100% of global electricity consumption came from renewable sources for the third consecutive year [7] - Reached 2.1 million STEM learners since 2019 through various educational initiatives [7] Group 3: Community and Employee Engagement - 52% of employees participated in giving and volunteering programs, contributing 91,370 volunteer hours [7] - Maintained a zero net pay gap for six consecutive years [7] Group 4: Sustainability and Governance - Realized a 45% decrease in scopes 1 and 2 emissions from the 2019 baseline [7] - All core facilities participated in third-party audit programs, and the company was recognized in the Dow Jones Best-in-Class World Index for six consecutive years [7][8]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $1,040 million, down 1.4% year over year, with constant currency revenue roughly flat [19][30] - Non-GAAP EPS was $0.97, at the high end of guidance [18][27] - Non-GAAP gross margin increased by 30 basis points year over year to 67.4% [24] - Non-GAAP operating margin was 20.4% in Q1 [27] - Cash flow from operations was $240 million, with free cash flow at $208 million [28] Business Line Data and Key Metrics Changes - Sequencing consumables revenue was $696 million, growing approximately 1% year over year [19] - Sequencing instruments revenue was approximately flat at $109 million [22] - Sequencing service and other revenue decreased by approximately 5% year over year to $142 million [23] Market Data and Key Metrics Changes - Clinical business consumables grew mid-single digits, while research consumables were down in the high mid to high single-digit range [49] - The Greater China region is expected to contribute only $165 million to $185 million in full-year revenue, significantly down from previous levels [30][32] Company Strategy and Development Direction - The company aims for high single-digit revenue growth and 500 basis points margin expansion by 2027, excluding Greater China [8][10] - A $100 million cost reduction program was initiated to address challenges in China and the U.S. funding environment [11][25] - The company is focused on advancing its Multiomics ecosystem and has several new product launches planned for 2025 and 2026 [13][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges but emphasized the resilience of the business and strong sequencing activity [6][44] - The company is actively engaging with regulatory authorities in China to find long-term solutions [10][32] - Management expressed confidence in the long-term growth trajectory despite current headwinds [9][39] Other Important Information - The company is revising its guidance to reflect geopolitical impacts, particularly in China [29] - The estimated gross cost of tariffs for 2025 is approximately $85 million, impacting margins [34][35] Q&A Session Summary Question: What is the outlook for revenue growth and margins? - Management believes revenue growth will rebound and margins will expand above 25% in the future, with a focus on cost control [41][42] Question: What are the growth rates for clinical and research segments? - Clinical revenue grew mid-single digits, while research revenue is expected to decline in the mid-double digits for the remainder of the year [49][50] Question: How are tariffs affecting demand? - No significant change in customer behavior was observed in Q1 due to tariffs, but future impacts are anticipated [66][68] Question: What is the impact of China on future revenue? - The company expects continued revenue decline from China, with proactive measures in place to mitigate risks [96]