Illumina Reports $4.34 Billion Revenue for Fiscal Year 2025, Faces Challenges from Tariffs and Inflation

Illumina, Inc. reported a consolidated revenue of $4.34 billion for the fiscal year ending December 28, 2025, reflecting a slight decrease of 1% from $4.37 billion in 2024. The company's Core Illumina segment generated $4.34 billion in revenue, which remained relatively flat compared to the previous year. Consumables revenue increased to $3.23 billion, driven by demand for high-throughput consumables, while instrument revenue decreased to $482 million due to fewer shipments of high- and mid-throughput sequencing instruments. The decline in total revenue was attributed to a $65 million decrease in the Greater China region, primarily due to the company's inclusion on the List of Unreliable Entities by Chinese regulatory authorities.

The company's gross margin for Core Illumina was 66.1%, down from 67.1% in 2024, primarily due to higher costs associated with tariffs and a $23 million intangible asset impairment. Operating income for Core Illumina was reported at $807 million, a significant decrease from $1.47 billion in 2024, largely due to increased operating expenses. Total operating expenses rose by $628 million, influenced by a prior year gain related to legal contingencies and settlements. Illumina's effective tax rate for 2025 was 21.7%, compared to a negative rate of 3.8% in 2024, reflecting changes in valuation allowances against deferred tax assets.

Strategically, Illumina completed the Spin-Off of GRAIL on June 24, 2024, distributing approximately 85.5% of GRAIL's shares to Illumina stockholders. This transaction did not qualify as a discontinued operation, and GRAIL's financials remain included in Illumina's consolidated statements. Additionally, on January 30, 2026, Illumina acquired SomaLogic and other assets from Standard BioTools for $350 million, aiming to enhance its presence in the proteomics market and advance its multiomics strategy.

Operationally, Illumina's workforce comprised approximately 8,600 full-time employees as of December 28, 2025, with a global voluntary turnover rate of 8%. The company reported a backlog of $738 million, with 77% expected to be shipped in 2026. International sales accounted for 48% of total revenue, with significant contributions from the Americas and Europe. Illumina's cash and cash equivalents totaled $1.63 billion at year-end, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Illumina anticipates continued challenges from macroeconomic factors, including tariffs and inflation, as well as uncertainties in government funding for research. The company aims to mitigate these impacts through operational excellence initiatives and cost reduction programs. Despite these headwinds, Illumina remains focused on achieving revenue growth and improved margin performance by the end of 2027.