Illumina Q4 Earnings & Revenues Top Estimates, Stock Dips

Illumina Inc. ILMN reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.35, which topped the Zacks Consensus Estimate by 7.4%. The figure was up 42.1% on a year-over-year basis.  

Including one-time items, the company’s GAAP EPS was $2.16 compared with 73 cents a year ago. 

Full-year adjusted EPS was $4.84, up 16.3% year over year.

Illumina’s Revenues

Fourth-quarter revenues amounted to $1.16 billion, up 5.4% year over year and up 4% on a constant-currency basis. The top line marginally beat the Zacks Consensus Estimate by 0.3%.

Full-year revenues amounted to $4.34 billion, up 0.2% year over year and flat on a constant-currency basis.

Following the earnings announcement, Illumina shares declined 10.4% last Friday. The stock price decline reflects investor concerns over gross margin contraction.

Illumina’s Segmental Details

Illumina generates revenues from two segments – Product, and Services and other. 

Product revenues totaled $990 million, up 5.4% year over year. Meanwhile, Services and other revenues amounted to $169 million, up 2.4% year over year. 

ILMN’s Margins

The adjusted gross margin (including amortization of acquired intangible assets) was 65.5%, down 45 basis points (bps) year over year due to a 6.4% rise in the cost of revenues.

Research and development expenses decreased 6.6% year over year to $239 million. SG&A expenses totaled $310 million, down 11.1% from the year-ago level. Adjusted operating margin expanded 64 bps to 63.7%.

Illumina’s Financial Update

Illumina exited the fourth quarter of 2025 with cash and cash equivalents of $1.42 billion compared with $1.13 billion at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities totaled $1.08 billion compared with $837 million a year ago.

Illumina’s 2026 Guidance

For 2026, the company expects total revenues to be in the range of $4.50-$4.60 billion, representing growth of 4-6% on a reported basis. The Zacks Consensus Estimate for 2026 revenues is currently pinned at $4.54 billion.

Illumina, Inc. Price, Consensus and EPS Surprise

Illumina, Inc. price-consensus-eps-surprise-chart | Illumina, Inc. Quote

Non-GAAP diluted EPS is projected to be in the range of $5.05-$5.20 in 2026. The Zacks Consensus Estimate for full-year EPS is currently pegged at $5.14.

Our Take on ILMN

Illumina exited the fourth quarter of 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. The company delivered a strong 2025 performance, marking a return to growth through disciplined execution. 

Notable developments in the quarter include the acquisition of SomaLogic and the introduction of the Billion Cell Atlas, the first data product of the BioInsight business, to support AI-enabled drug discovery. 

On the flipside, the contraction of gross margin does not bode well. 

ILMN’s Zacks Rank & Key Picks

Illumina currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Envista NVST and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 13.24%.

Envista, sporting a Zacks Rank #1 at present, posted a fourth-quarter 2025 adjusted EPS of 38 cents, exceeding the Zacks Consensus Estimate by 18.23%. Revenues of $750.6 million topped the Zacks Consensus Estimate by 411.16%.

NVST has an earnings yield of 4.7% compared with the industry’s 2.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.4%.

Align Technology, carrying a Zacks Rank #2 (Buy) at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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