Illumina Q1 Earnings Top Estimates, Revenues Down Y/Y, Stock Dips

Illumina Inc. ILMN reported first-quarter 2025 adjusted earnings per share (EPS) of 97 cents, which topped the Zacks Consensus Estimate by 1%. However, the figure was down 1% on a year-over-year basis.  (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

Including one-time items, the company’s GAAP EPS was 82 cents, up 86.4% year over year.

Illumina’s Q1 Revenues

Revenues amounted to $1.04 billion, down 1.4% year over year and flat on a constant-currency basis. However, the top line beat the Zacks Consensus Estimate by 0.2%.

Following the earnings announcement, ILMN stock fell 2.2% in after-market trading yesterday.

Illumina’s Q1 Segmental Details

Illumina has one reportable segment — Core Illumina. Within this, Core Illumina sequencing service and other revenues totaled $142 million, down 5% year over year. This was mainly due to the timing of certain strategic partnership revenues last year related to the AGD consortium.

Illumina, Inc. Price, Consensus and EPS Surprise

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

Sequencing consumable revenues amounted to $696 million, up 1% year over year, driven by strength in high-throughput consumables and the ongoing transition of high-throughput sequencing to X.

ILMN’s Q1 Margins

The adjusted gross margin (excluding amortization of acquired intangible assets) was 67.2%, up 79 basis points (bps) year over year, due to a 5.5% fall in the cost of revenues.

Research and development expenses decreased 25.7% year over year to $252 million. SG&A expenses totaled $267 million, down 39.2% from the year-ago level. The adjusted operating profit in the quarter was $181 million against the year-ago quarter’s operating loss of $63 million.

Illumina’s Financial Update

Illumina exited the first quarter of 2025 with cash and cash equivalents of $1.11 billion compared with $1.13 billion at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the first quarter was $240 million compared with $77 million a year ago.

Illumina’s 2025 Guidance

For 2025, the company now expects Core Illumina revenues to decline 1%-3% on a constant currency basis year over year (earlier low single-digit growth). The Zacks Consensus Estimate for 2025 revenues currently stands at $4.31 billion.

ILMN expects Core Illumina's non-GAAP operating margin to be approximately 21.5%-22%, down from the previous 23% guidance.

Non-GAAP diluted EPS is now projected to be in the range of $4.20-$4.30 (earlier $4.50-$4.65) in 2025. The Zacks Consensus Estimate for full-year EPS is currently pegged at $4.43.

Key Announcements From Illumina in Q1

Throughout the first quarter, Illumina made headlines on many occasions. The company unveiled a series of roadmap innovations spanning genomics, spatial transcriptomics, single-cell analysis, CRISPR technologies, epigenetics and data analytics software. Illumina sequenced 250,000 whole genomes for the Alliance for Genomic Discovery initiative.

Additionally, it announced a collaboration with Broad Clinical Labs to rapidly streamline and scale single-cell projects with cutting-edge tools and workflows. Illumina announced a collaboration with the Broad Institute on a groundbreaking Spatial Flagship Project, leveraging the company’s cutting-edge spatial technology.

Our Take on ILMN

Illumina exited the first quarter of 2025 with both earnings and revenues beating respective estimates. The NovaSeq X transition continues to progress well, particularly among clinical customers. The expansion of the gross margin in the quarter is encouraging. Illumina remains focused on customer collaboration, driving differentiated innovations and delivering on its long-term financial targets of growth and profitability.

Meanwhile, both top and bottom lines were down on a year-over-year basis. The company’s revised outlook for the year reflects the impact of evolving policy and geopolitical developments.

ILMN’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.

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