Illumina partners go beyond the genome, driving cancer breakthroughs using spatial transcriptomics, epigenomics, and proteomics [Accessibility Statement] Skip NavigationAt AGBT, researchers reveal new findings from studies leveraging Illumina's multiomics solutionsSAN DIEGO, Feb. 25, 2026 /PRNewswire/ -- Illumina, Inc. (NASDAQ: ILMN) today announced new customer breakthroughs in oncology powered by Illumina's spatial transcriptomics, 5-base sequencing, and proteomics technologies. The ability to combine mor ...

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Financial Data and Key Metrics Changes - Illumina reported Q4 revenue of $1.16 billion, up 5% year-over-year on a reported basis and 4% on a constant currency basis [20][22] - Non-GAAP EPS for Q4 was $1.35, growing approximately 42% year-over-year, exceeding guidance [26] - Non-GAAP operating margin was 23.7% in Q4, expanding 400 basis points year-over-year [25] Business Line Data and Key Metrics Changes - Clinical consumables revenue grew 20% year-over-year in Q4, driven by increased adoption of sequencing-based diagnostic tests [5][8] - Sequencing consumables revenue was $755 million, up 8% year-over-year, with 11% growth excluding China [22] - Research and applied markets consumable sales were roughly flat year-over-year, reflecting ongoing uncertainty in the funding environment [22] Market Data and Key Metrics Changes - Greater China revenue was $55 million, representing a $25 million decline from Q4 of 2024 [22] - Clinical market maintained momentum, growing 20% outside of China, driven by broader adoption of NGS-based testing [22] - Total sequencing GB output grew at a rate of more than 30% year-over-year, primarily from clinical customers [24] Company Strategy and Development Direction - Illumina's strategy focuses on three pillars: core sequencing, scaling multi-omics, and expanding service data and software capabilities [10][13] - The acquisition of SomaLogic is expected to enhance Illumina's position in the proteomics market, integrating capabilities for deeper biological insights [12] - The company aims to introduce new technologies, including spatial transcriptomics and constellation map read technology, in 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum built in 2025, expecting organic revenue growth of 2%-4% in 2026, excluding China [17][30] - Clinical consumables are projected to grow double-digit to mid-teens in 2026, while research consumables are expected to decline mid-to-high single digits [30][31] - Management highlighted the importance of adapting to the evolving market dynamics and customer needs, particularly in the clinical space [16][70] Other Important Information - Illumina returned approximately $740 million to shareholders through share repurchases in 2025 [7] - The company ended Q4 with approximately $1.63 billion in cash and cash equivalents [28] - The acquisition of SomaLogic was completed for an upfront payment of $350 million, with potential royalties and milestone payments [27] Q&A Session Summary Question: Operating margin guidance and capital deployment - Management confirmed that the guidance includes an assumption of ending the year at 26%-27% operating margin and discussed capital deployment priorities [36][38] Question: Clinical performance guidance for 2026 - Management explained that the guidance reflects a cautious approach, considering uncertainties in the research environment, but remains optimistic about clinical growth [42][45] Question: Instrumentation split between research and clinical - Management indicated that over 60% of NovaSeq X placements were to clinical customers, with expectations for this trend to continue [50][52] Question: Growth drivers in oncology and genetic applications - Management noted that oncology remains the main growth driver, with increasing use of genetic profiling for various diseases [66] Question: Competitive landscape and pricing strategies - Management expressed confidence in Illumina's competitive position and the ability to address market segments with different pricing strategies [74][76] Question: China market assumptions and BioInsight monetization - Management discussed ongoing conversations with Chinese regulators and the potential for growth in the BioInsight business, emphasizing its early-stage momentum [80][81]

Financial Data and Key Metrics Changes - Illumina reported Q4 2025 revenue of $1.16 billion, a 5% increase year-over-year on a reported basis and 4% on a constant currency basis [20][22] - Non-GAAP EPS for Q4 was $1.35, reflecting a 42% year-over-year growth [26] - Non-GAAP operating margin expanded to 23.7%, up 400 basis points year-over-year [25] Business Line Data and Key Metrics Changes - Clinical consumables revenue grew 20% in Q4 2025, excluding China, driven by increased adoption of sequencing-based diagnostic tests [5][8] - Sequencing consumables revenue reached $755 million, an 8% increase year-over-year [22] - Research and applied markets consumable sales were roughly flat year-over-year, indicating a stabilization compared to previous quarters [22] Market Data and Key Metrics Changes - Greater China revenue was $55 million, down $25 million from Q4 2024, reflecting ongoing export restrictions [22] - Clinical market growth outside of China was 20%, driven by broader adoption of NGS-based testing [22] - Total sequencing GB output grew over 30% year-over-year, primarily from clinical applications [24] Company Strategy and Development Direction - Illumina's strategy focuses on three pillars: core sequencing, scaling multi-omics, and expanding service data and software capabilities [10][12] - The acquisition of SomaLogic is expected to enhance Illumina's position in the proteomics market, integrating capabilities for deeper biological insights [11][12] - The company aims to introduce new technologies, including spatial transcriptomics and constellation map read technology, in the first half of 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum built in 2025, expecting organic revenue growth of 2%-4% in 2026, excluding China [17][30] - Clinical consumables are projected to grow double-digit to mid-teens in 2026, while research consumables are expected to decline mid- to high-single digits [30][31] - Management highlighted the importance of adapting to the evolving funding environment in the research sector [44] Other Important Information - The company returned approximately $740 million to shareholders through share repurchases in 2025 [7] - Illumina ended Q4 with approximately $1.63 billion in cash and cash equivalents [28] - The company plans to continue share repurchases opportunistically, with $643 million remaining on its authorization [27] Q&A Session Summary Question: Operating margin guidance and capital deployment - Management confirmed that the guidance includes an assumption of ending the year at 26%-27% operating margin and remains committed to long-term margin targets despite the SomaLogic acquisition [36][38] Question: Clinical performance guidance for 2026 - Management explained that the guidance reflects a cautious approach, considering uncertainties in the research environment, but remains optimistic about clinical growth momentum [42][45] Question: Instrumentation split between research and clinical - Management indicated that over 60% of Q4 instrument placements were clinical, with expectations for this trend to continue into 2026 [50][52] Question: Growth drivers in oncology and genetic applications - Management noted that oncology remains the main growth driver, with increasing use of genetic profiling for various applications [66] Question: Competitive landscape and pricing strategies - Management expressed confidence in Illumina's competitive position and highlighted ongoing discussions with customers regarding pricing and workflow efficiencies [74][76]

Financial Data and Key Metrics Changes - In Q4 2025, Illumina's revenue reached $1.16 billion, reflecting a 5% year-over-year increase on a reported basis and a 4% increase on a constant currency basis [18][19] - Non-GAAP EPS for Q4 was $1.35, growing approximately 42% year-over-year, exceeding guidance [24] - Non-GAAP operating margin was 23.7% in Q4, expanding 400 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Clinical consumables revenue grew 20% year-over-year in Q4, driven by increased adoption of sequencing-based diagnostic tests [4][19] - Sequencing consumables revenue was $755 million, up 8% year-over-year, with a notable 11% increase excluding China [19] - Sequencing instruments revenue was approximately flat year-over-year at $154 million, with strong placements of NovaSeq X [22] Market Data and Key Metrics Changes - Greater China revenue was $55 million, down $25 million from Q4 2024, reflecting export restrictions [19] - Clinical market outside China grew 20%, driven by broader adoption of NGS-based testing [19] - Research and applied markets saw consumable sales remain roughly flat year-over-year, indicating ongoing uncertainty in the funding environment [20] Company Strategy and Development Direction - Illumina's strategy focuses on three pillars: core sequencing, scaling multi-omics, and expanding service data and software capabilities [9][12] - The acquisition of SomaLogic is expected to enhance Illumina's position in the proteomics market, integrating capabilities to accelerate innovation [10][11] - The company aims to introduce new technologies, including spatial transcriptomics and constellation map read technology, in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum built in the second half of 2025, expecting organic revenue growth of 2%-4% in 2026, excluding China [15][27] - Clinical consumables are projected to grow double-digit to mid-teens in 2026, while research consumables are expected to decline mid- to high-single digits [15][29] - Management highlighted the importance of adapting to evolving market dynamics and customer needs, particularly in the context of multi-omics [14][78] Other Important Information - The company returned approximately $740 million to shareholders through share repurchases in 2025 [5] - Illumina ended Q4 with approximately $1.63 billion in cash and cash equivalents, maintaining a strong balance sheet [25] - The company plans to change geographical reporting segments starting in Q1 2026 to better align with its commercial structure [31] Q&A Session Summary Question: Operating margin guidance and capital deployment - Management confirmed that the guidance includes an assumption of ending the year at 26%-27% operating margin and remains committed to long-term margin targets despite the SomaLogic acquisition [33][36] Question: Clinical performance guidance for 2026 - Management explained that the guidance reflects continued momentum in clinical growth, with expectations for mid-teens growth, while acknowledging challenges in the research environment [40][42] Question: Instrumentation split between research and clinical - Over 60% of Q4 instrument placements were clinical, with expectations for this trend to continue into 2026 [46][48] Question: Growth drivers in oncology and genetic applications - Oncology is expected to remain the main growth driver, with significant uptake in genetic profiling for various diseases [62][64] Question: BioInsight monetization strategy - Management outlined plans for monetizing BioInsight through specialized data and subscription-based models, indicating a multi-year opportunity [78][79]

Q4 2025 Earnings Presentation February 5, 2026 © 2026 Illumina, Inc. All rights reserved. Cautionary Notes Year-over-year (YoY) denotes a comparison against the same quarter of the previous fiscal year, while quarter-over-quarter (QoQ) or "sequential" denotes a comparison against the previous fiscal quarter. In addition, all references to China refer to our Greater China Region, which also includes Taiwan and Hong Kong. © 2026 Illumina, Inc. All rights reserved. 2 RGB: 229, 96, 0 RGB: 228, 189, 255 RGB: 255 ...

Core Insights - Illumina, Inc. (ILMN) is scheduled to announce its fourth-quarter 2025 results on February 5, with adjusted earnings per share (EPS) of $1.34 in the last reported quarter, exceeding the Zacks Consensus Estimate by 15.5% [1] Q4 Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $1.16 billion, indicating a 4.6% growth from the previous year [2] - The earnings estimate is $1.26 per share, reflecting a 46.5% increase from the year-ago figures [2] Estimate Revision Trend - Earnings estimates for the fourth quarter have risen by 2.4% to $1.26 over the past 30 days [3] Factors Influencing Q4 Performance - The Core Illumina segment's performance may be impacted by macroeconomic challenges, including the Russia-Ukraine conflict and reduced U.S. government funding for the NIH [4] - The company faces cost exposure related to imports from its Singapore manufacturing facility, while the Chinese Ministry of Commerce has lifted its export ban on Illumina's sequencing instruments, although the company remains on the Unreliable Entities List [4] Positive Developments - Illumina is expected to benefit from the momentum of the NovaSeq X in Q4, with high-throughput volumes likely increasing due to strong clinical market demand outside of China [5] - The company exceeded its goal of high-throughput gigabases shipped and revenues on the X platform, indicating strong demand for sequencing [6] Revenue Projections - Sequencing Consumables revenues are projected to grow by 3.2% year-over-year in Q4, despite ongoing funding uncertainty affecting research customers [7] - Sequencing Instruments revenues may decline by 12.2% year-over-year, impacted by export restrictions in Greater China [8] Strategic Initiatives - Illumina's strategic focus includes growing its core sequencing business, scaling into multiomics, and enhancing services and software capabilities [11] - The launch of the Illumina Protein Prep assay and the introduction of BioInsight are expected to positively influence Q4 revenues [12] Earnings Prediction - Illumina has an Earnings ESP of +2.25%, indicating a higher likelihood of beating estimates [13]

Core Insights - The JPM Health Conference highlighted a shift in focus among major medical device companies from investment narratives to growth execution, emphasizing the importance of mergers and acquisitions, AI integration, and organizational restructuring for future growth [2][4]. Medtronic - Medtronic's leadership emphasized a transition to a "growth execution phase," with a focus on accelerating growth through existing technologies and strategic acquisitions, particularly smaller tuck-in acquisitions [6][7]. - The company plans to launch its Hugo surgical robot system in the U.S. in 2026, targeting soft tissue surgery as a key growth area, and sees significant market potential in cardiac electrophysiology and renal denervation [7][8]. - Medtronic aims for mid-to-high single-digit revenue growth in 2026, driven by advancements in ASC penetration and AI-enabled surgical planning [8]. Boston Scientific - Boston Scientific reported over 10% revenue growth for three consecutive years, driven by core products like PFA and WATCHMAN, with a focus on maintaining high growth in the electrophysiology market [10][11]. - The company aims to enhance the overall adoption of arrhythmia treatments and expand its product offerings, including the FARAPOINT catheter, to new indications [11]. - Boston Scientific's growth strategy includes targeting outpatient surgical centers and advancing its clinical pipeline with new innovations [11]. Stryker - Stryker's CEO highlighted the importance of mergers and acquisitions, particularly in orthopedics and neurology, while focusing on enhancing the Mako robotic platform [12][14]. - The company expects to achieve 7%-9% revenue growth in 2026, with a strong emphasis on outpatient surgical centers as a significant growth driver [14]. Johnson & Johnson - Johnson & Johnson's CEO indicated a return to fundamentals, with a focus on execution and long-term growth, planning to invest approximately $55 billion in new facilities and R&D, particularly in MedTech [15][17]. - The company is preparing for regulatory milestones for its Ottava surgical robot system, with significant contributions expected post-2028 [17][18]. - J&J's strategy includes strategic investments in robotic systems to enhance its outpatient surgical capabilities [18]. Intuitive Surgical - Intuitive Surgical's focus remains on expanding its da Vinci system and integrating AI functionalities to improve surgical efficiency [19][20]. - The company anticipates a competitive landscape in soft tissue robotics but believes its established ecosystem provides a competitive advantage [20]. - Intuitive expects revenue growth of 12%-15% in 2026, driven by increased surgical volumes and international market expansion [20]. Alcon - Alcon is committed to innovation in eye health, focusing on surgical and vision care segments, with a significant emphasis on enhancing operational efficiency [22][23]. - The company aims to launch 10-15 new products over the next two years, maintaining an annual R&D investment of around $1 billion [23]. Abbott - Abbott's strategy emphasizes stable execution, particularly in diabetes management, with plans to expand the FreeStyle Libre system's applications [24]. - The company expects 8%-10% revenue growth in its MedTech business for 2026, focusing on internal innovation and operational efficiency [24]. GE Healthcare - GE Healthcare is shifting its AI capabilities towards standalone software tools, emphasizing the commercialization of AI in imaging [25]. - The company plans to simplify its product offerings to enhance customer experience and reduce internal costs, aiming for organic growth through advanced imaging technologies [25]. Illumina - Illumina's growth strategy focuses on sequencing, multi-omics, and scaling services, with a strong emphasis on partnerships to accelerate drug development [29][30]. - The company aims to maintain a balanced approach between innovation investment and shareholder returns, with a positive outlook for the Chinese market [30]. Edwards Lifesciences - Edwards Lifesciences is focused on structural heart disease, with a commitment to innovation in TAVR and TMTT platforms, expecting 8%-10% sales growth [33][34]. - The company is addressing regulatory challenges while continuing to invest in breakthrough therapies and expanding market access [34]. Jabil - Jabil's CEO discussed the company's transformation and focus on integrating recent acquisitions, with a strategic emphasis on improving sales efficiency in the U.S. market [36][37]. - The company plans to launch new products and leverage AI technology to enhance its offerings in the orthopedic sector [37]. Conclusion - The overall sentiment from the JPM26 conference indicates that major medical device companies are prioritizing alignment of products, organizational structure, and capital utilization to drive growth, rather than focusing solely on new technologies [40].

Core Insights - The article discusses the performance and strategic outlook of Illumina, emphasizing its leadership in the next-generation sequencing (NGS) market and the growth driven by clinical applications [3][4]. Financial Performance Analysis - In Q4 2025, revenue grew by 4% year-over-year at constant currency, with a 7% increase excluding the Chinese market [4]. - Earnings per share for Q4 2025 were projected between $1.27 and $1.30, with an annual EPS of approximately $4.76 to $4.79, reflecting over 15% growth [4]. - The company placed 95 units of the NovaSeq X series instruments in Q4 2025, with consumable sales driven by strong usage rates [4]. Key Growth Drivers - Revenue growth is primarily driven by the clinical market, with 60% of consumable revenue coming from clinical customers [6]. - Increased adoption of the NovaSeq X has doubled sequencing capabilities and boosted consumable demand [6]. - Customers are increasing sequencing intensity, necessitating a 15-fold volume growth for certain applications [6]. Business Operations Overview - The clinical market serves as the core growth engine, with strong demand in oncology, genetic diseases, and reproductive health [7]. - The academic research market shows signs of rebound but is expected to remain weak in 2026 [7]. Market Expansion - Global installed base exceeds 20,000 units, supporting a full lifecycle from early detection to routine clinical applications [8]. - The Chinese market faced sanctions but is gradually recovering post-sanction, with a current revenue contribution of 3% [8]. R&D Investments and Achievements - The launch of NovaSeq X enhances sequencing capabilities, with new technologies being integrated into existing platforms [9]. - Multi-omics products, including single-cell solutions and protein preparation systems, are being developed [9]. Operational Efficiency - The company has optimized end-to-end workflows, reducing total costs for customers by over 30% compared to alternatives [11]. - The NovaSeq X workflow has been simplified, improving laboratory efficiency [11]. Future Outlook and Plans - Short-term goals for 2026 include maintaining demand patterns from H2 2025 and focusing on clinical market growth [12]. - Long-term strategies involve expanding multi-omics capabilities and enhancing the Bio Insights business to drive digital drug discovery [13]. Q&A Highlights - Q4 performance exceeded expectations due to strong growth in markets outside China, with clinical market growth being a significant contributor [14]. - The transition to NovaSeq X is expected to have a reduced price impact in 2026 [15]. Market Health Status - The clinical market continues to grow, with 60% of consumable revenue derived from clinical applications [17]. - The academic research sector is anticipated to remain weak in 2026, but new technologies may drive long-term recovery [17]. Competitive Environment - Customers prioritize ecosystem and workflow integrity over price, with NovaSeq X offering advantages in flexibility and usability [18]. China Market Approval and Recovery - Post-sanction, instrument imports for OEM customers are allowed, with ongoing discussions to lift the "unreliable entity list" designation [19].

Summary of Illumina's Presentation at J.P. Morgan Healthcare Conference Company Overview - **Company**: Illumina - **Industry**: Next-generation sequencing (NGS) - **Market Position**: Market leader with over 20,000 instruments globally across clinical, research, and applied markets [3][4] Key Financial Highlights - **Q4 2025 Revenue Growth**: Grew 4% on a constant currency basis and 7% excluding China [4] - **Earnings Per Share (EPS)**: Q4 EPS ranged from $1.27 to $1.30, leading to a full-year EPS of approximately $4.76 to $4.79, representing over 15% growth [4][6] - **Clinical Market Contribution**: Clinical markets accounted for roughly 60% of consumables revenue, driving significant growth [12][33] Product and Market Dynamics - **NovaSeq X Series**: Launched in 2023, it doubled customers' sequencing capacity and accounted for approximately 80% of high-throughput gigabases shipped by year-end 2025 [3][5] - **Consumables Growth**: Achieved 20% consumables growth ex-China in Q4, driven by strong clinical utilization [6][26] - **Transition to NovaSeq X**: The transition is expected to continue, with clinical customers increasingly adopting larger panels and deeper sequencing [40][42] Strategic Initiatives - **BioInsights Launch**: Aimed at enhancing clinical interpretation and expanding data utilization in drug discovery [11][16] - **Multi-Omics Expansion**: New product offerings in multi-omics, including single-cell solutions and proteomics, are designed to scale research programs and improve insights [15][54] - **AI Integration**: Leveraging AI to enhance drug discovery and biological insights through large-scale data analysis [16][56] Market Outlook - **Clinical Market Growth**: Anticipated to remain a key growth driver, with expectations of continued demand for NGS tests in oncology, genetic diseases, and reproductive health [5][33] - **Research Market Sentiment**: While there is optimism for the clinical market, the academic research environment is expected to remain muted in the near term [33] Competitive Landscape - **Technological Advantages**: Illumina emphasizes the importance of providing comprehensive solutions beyond just hardware, focusing on workflow optimization and customer success [45][46] - **Resilience in Challenges**: Despite geopolitical challenges in 2025, Illumina demonstrated resilience and continued to grow its bottom line [32][33] Capital Allocation and Shareholder Returns - **Cash Flow Generation**: Approximately $1 billion per year in strong and durable cash flow, with a free cash flow conversion of about 140% [17] - **Share Repurchases**: Returned $740 million to shareholders via share repurchases in June 2025 [18] Conclusion - **Future Focus**: Illumina aims to continue innovation, execute with discipline, and deploy capital thoughtfully to drive long-term value creation and maximize shareholder value [18]