1. Q1 2025 revenue of $1.04B, down 1% from Q1 2024. 2. Expected fiscal 2025 revenue decline of 1% to 3% on constant currency. 3. Tariffs to impact operating margin by about 125 bps. 4. Expected non-GAAP diluted EPS reduced to between $4.20 and $4.30. 5. New innovations and collaborations announced, despite revenue concerns.
Revenue declines and lower EPS forecast suggest potential investor concern. Historical precedent, like 2018's tariff impacts, shows similar trends leading to stock downturns.
The financial guidance for 2025, especially regarding revenue and EPS, is critical for ILMN's stock performance. Tariff implications also underscore significant operational challenges.
Immediate revenue outlook and operational changes will quickly influence market perception. Historical examples show swift reactions to quarterly earnings revisions.
"I'm proud that the Illumina team delivered strong Q1 revenue and EPS, a good start to the year in an increasingly dynamic business environment," said Jacob Thaysen, Chief Executive Officer. "Our outlook for the year has weakened due to shifting policy and geopolitical developments and we have taken swift incremental actions to protect our earnings. Our strategic focus remains on customer collaboration, driving differentiated innovations, and delivering on our long-term financial targets of growth and profitability."
| GAAP | Non-GAAP (a) | Dollars in millions, except per share amounts |
|---|---|---|
| Q1 2025 | Q1 2024 | Revenue (b) |
| $ 1,041 | $ 1,056 | $ 1,041 |
| Gross margin (c) | 65.6 % | 67.4 % |
| Research and development (R&D) expense | $ 252 | $ 241 |
| Selling, general and administrative (SG&A) expense | $ 267 | $ 248 |
| Operating profit | $ 164 | $ 212 |
| Operating margin | 15.8 % | 20.4 % |
| Net income | $ 131 | $ 154 |
| Diluted EPS | $ 0.82 | $ 0.97 |
(a) See tables in "Results of Operations - Non-GAAP" section below for GAAP and non-GAAP reconciliations.
(b) Revenue for Q1 2024 included intercompany revenue of $7 million prior to the spin-off of GRAIL.
(c) Increase in gross margin was driven by execution of our operational excellence initiatives, that continue to deliver cost savings and improve productivity.
A full list of recent announcements can be found in the company's News Center.
For fiscal year 2025, we expect:
The company provides forward-looking guidance on a non-GAAP basis, including on a constant currency basis for revenue and revenue growth rates.
The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, May 8, 2025. Interested parties may access the live webcast via the Investor Info section of Illumina's website or directly through the following link - Illumina Earnings Call.
To ensure timely connection, please join at least ten minutes before the scheduled start of the call.
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. To learn more, visit www.illumina.com and connect with us on social media.