Illumina, Inc. (ILMN): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the true financial engine behind Illumina, Inc. as they manage recent revenue softness; well, having spent years at the sharp end of analysis, I see their late 2025 model still hinges on that classic razor-and-blade play, where high-margin consumables-which brought in $747 million in Q3 2025-fuel the entire system, even as they push hard into clinical growth and multiomics following the SomaLogic acquisition. Honestly, understanding how they plan to hit their full-year 2025 revenue guidance of $4.27 billion to $4.31 billion while managing significant R&D spend and the NovaSeq X rollout is defintely crucial for any serious investor or strategist. Keep reading below to see the complete breakdown of their key activities, resources, and cost structure that makes this complex machine tick.

Illumina, Inc. (ILMN) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem Illumina, Inc. builds around its core sequencing technology; it's not just about selling machines, it's about embedding their platforms into critical workflows across medicine and research. This strategy relies heavily on deep, strategic alliances.

Pharmaceutical and Biotech Firms for Companion Diagnostics (CDx)

Illumina, Inc. actively partners with global pharmaceutical companies to develop companion diagnostics (CDx) claims, which are essential for matching patients to targeted therapies. As of late 2025, a major focus is on the KRAS biomarker, historically significant in oncology across lung, pancreatic, and colorectal cancers. These CDx efforts are enabled on the TruSight™ Oncology (TSO) Comprehensive genomic profiling test. The company also expanded its collaboration with Janssen to advance a molecular residual disease cancer test and partners with Roche to broaden the adoption of distributable next-generation sequencing-based testing in oncology.

Key CDx Partnership Focus Areas:

• Developing CDx claims for KRAS alterations.
• Advancing molecular residual disease testing with Janssen.
• Broadening NGS-based oncology testing with Roche.
• Generating standardized, globally distributable tests for precision care.

Cloud and AI Technology Partners for Data Analysis

To handle the sheer volume of multiomic data, Illumina integrates its informatics tools with leading technology providers. A significant collaboration is with NVIDIA, announced in January 2025, to build biological foundation models using generative AI. This involves integrating Illumina's DRAGEN analysis software on NVIDIA's accelerated computing platforms within the Illumina Connected Analytics platform. Separately, the partnership with Amazon Web Services (AWS) supports genomic analysis customers by providing innovative, secure cloud-based data processing, management, and storage solutions.

Academic and Government Research Institutions

The collaboration with Broad Clinical Labs (BCL), a longstanding partner, is set to create a massive data resource. In February 2025, they announced an effort to accelerate the development of a 5 billion-cell atlas within three years. This project leverages Illumina's latest sequencing tools, including the NovaSeq X Plus platform and the 25B flow cell, alongside the DRAGEN analysis software workflow. This scale of data generation is intended to unlock large-scale functional genomics studies for drug development.

Strategic Acquisition of SomaLogic for Proteomics Technology

Illumina, Inc. moved to bolster its multiomics strategy by acquiring proteomics specialist SomaLogic from Standard BioTools. This deal is a direct play into the proteomics market, which was estimated to be worth $41.65 billion in 2025.

Transaction Component	Amount/Term	Target Year/Status
Upfront Cash Payment	$350 million	Subject to customary adjustments
Performance-Based Milestones/Royalties	Up to $75 million	Payable in fiscal years 2025 and 2026
Expected Closing Date	First half of 2026
Expected Profitability (Non-GAAP Operating Income)	By 2027

The integration is expected to strengthen the value of the NovaSeq X products. Illumina Protein Prep, which is part of this integration, was already in use by nearly 40 early-access customers globally as of June 2025.

Global Distribution Partners for Market Penetration

Illumina maintains a robust network of authorized channel partners to ensure its next-generation sequencing and array-based technologies reach customers globally. While the exact number of countries is not immediately available for late 2025, the global reach is evident through specific initiatives. For instance, the Africa Pathogen Genomics Initiative has installed 22 sequencing instruments across 19 countries on the continent through donations of products, support, and expertise. Furthermore, in 2024, 10 human genomes were sequenced every minute on Illumina platforms, demonstrating the massive installed base and utilization supported by their distribution network.

Illumina, Inc. (ILMN) - Canvas Business Model: Key Activities

You're looking at the core engine of Illumina, Inc. (ILMN) right now-the activities that actually generate the revenue and drive the technology forward as of late 2025. It's a story of high-volume manufacturing meeting intense, forward-looking research, all while navigating a major platform transition.

Research and Development (R&D) for next-generation sequencing (NGS)

Illumina, Inc. keeps a significant portion of its focus and capital on R&D to maintain its lead in sequencing. For the twelve months ending September 30, 2025, Research and Development expenses totaled $980 million. That figure represents a year-over-year decline of 22.04%. To give you a sense of the quarterly cadence, the GAAP Research and Development expense in the first quarter of 2025 was $252 million.

The R&D focus isn't just on the core sequencing chemistry; it's about broadening the platform's utility. They are actively working on innovations like spatial transcriptomics and single-cell analysis techniques, aiming to bring new products to market in the coming years. This continuous innovation is what keeps the installed base engaged.

Manufacturing of high-throughput instruments and high-margin consumables

This is where the recurring revenue lives. The consumables business is the financial backbone, even as the company manages the instrument upgrade cycle. In the third quarter of 2025, Sequencing consumables revenue hit $747 million, showing about a 3% year-over-year growth when you exclude the Greater China region. Instrument revenue, meanwhile, showed signs of recovery in Q3 2025, reaching $107 million, up approximately 3% year-over-year globally.

For the full fiscal year 2025, the guidance anticipated sequencing consumables revenue growth between 1% and 3%, while sequencing instruments revenue was projected to decline between 4% and 6%. The actual Q3 performance for instruments suggests they might beat that downside forecast, which is a good sign for the install base expansion.

Transition and placement of the NovaSeq X sequencing platform

The entire operational focus for the year has been the transition to the NovaSeq X platform, which is key because it drives future high-margin consumable sales. The momentum here is strong, with management reporting they exceeded their year-end goals by the third quarter. Here are the key placement and utilization metrics as of Q3 2025:

Metric	Q2 2025 Actual	Q3 2025 Actual	End of FY 2025 Target (Achieved in Q3)
NovaSeq X Instrument Placements (Cumulative)	Over 50 (in Q2)	More than 55 placed (in Q3)	N/A
High-Throughput Gigabases Shipped on NovaSeq X	55%	Approximately 75%	Approximately 75%
High-Throughput Consumables Revenue on NovaSeq X	44%	Approximately 50%	Approximately 50%

The NovaSeq X Plus system itself is a manufacturing marvel, capable of sequencing more than 128 genomes per run. This platform is designed to lower the cost per gigabase, which is the lever Illumina is pulling to offset pricing pressures in the research market.

Development of multiomics and AI-driven data analysis solutions (BioInsight)

This is the strategic pivot to capture value beyond the instrument sale. Illumina, Inc. officially launched its new business unit, BioInsight, on October 1, 2025. This unit is specifically designed to harness AI, software, and multiomic data analysis for drug discovery and life science research, with Rami Mehio leading as senior vice president and general manager. While specific revenue figures for BioInsight aren't public yet, as it just started, the activity is centered on:

• Working with large national initiatives for genetic and biological data generation projects.
• Developing software solutions to analyze multimodal data at population scale.
• Providing platforms for private and secure data access for pharmaceutical partners.

Also, the new NovaSeq X 25B kits, which began shipping in December 2024, are key enablers for multiomic applications, specifically supporting the now-available Illumina Single-Cell Prep.

Global sales, marketing, and technical customer support

The commercial engine supports the instrument placements and drives consumable utilization. In Q1 2025, Selling, General and Administrative (SG&A) expense was $267 million (GAAP) or $248 million (non-GAAP). The company is clearly focused on operational excellence to improve margins, which is evident in the full-year non-GAAP operating margin guidance being raised to a range of 22.75% - 23% by Q3 2025, up from earlier guidance.

The sales focus is shifting, too. CEO Jacob Thaysen emphasized that the clinical market is the primary near-term growth driver, with clinical applications constituting about 60% of sequencing consumables revenue in Q2 2025. The global sales and support teams are tasked with scaling this clinical adoption, which is offsetting the constrained research funding environment.

Illumina, Inc. (ILMN) - Canvas Business Model: Key Resources

You're looking at the core assets that let Illumina, Inc. run its sequencing empire. These aren't just line items; they are the deep, hard-to-replicate foundations of their market position as of late 2025.

The bedrock of Illumina, Inc.'s offering is its Proprietary Sequencing by Synthesis (SBS) technology. This core method, which detects single bases as they are incorporated into growing DNA strands with massively parallel capabilities, is continually refined. The latest iteration driving performance is the XLEAP-SBS chemistry, engineered for increased speed and greater fidelity. This technology is protected by a massive intellectual property portfolio. As of the latest filings, Illumina, Inc. holds a total of 9,281 patents globally, with 7,293 active patents and 3,896 granted patents.

The physical manifestation of this technology is in the instrument platforms. The transition to the NovaSeq X Series is the central operational focus, as it offers higher throughput at a lower cost per gigabase. This shift is critical for expanding the market. The installed base of older, high-throughput instruments like the NovaSeq 6000 stood at approximately 1,770 units at the end of 2024, providing a massive installed base for consumables revenue, which is the company's primary revenue driver. The company is actively migrating this base.

Here's a look at the NovaSeq X adoption progress through Q3 2025:

Metric	Q2 2025 Data Point	Q3 2025 Data Point
NovaSeq X Instruments Placed (Cumulative/Quarter)	Over 50 placements in Q2 2025	More than 55 instruments placed in the quarter
High-Throughput Gigabases Shipped on NovaSeq X	55% of high-throughput gigabases shipped	Approximately 75% of high-throughput gigabases shipped
High-Throughput Consumables Revenue on NovaSeq X	44% of high-throughput consumables revenue	Approximately 50% of high-throughput revenue
Sequencing Instruments Revenue (Total)	$96 million in Q2 2025	$107 million (analyst consensus estimate)

The scale of the business these resources support is evident in the top-line figures. For the third quarter of fiscal year 2025, Illumina, Inc. reported total revenue of $1.08 billion, achieving a non-GAAP operating margin of 24.5%. The full-year 2025 reported revenue guidance was raised to a range of $4.27 billion to $4.31 billion.

Beyond the technology and instruments, the operational backbone is crucial. This includes the Global manufacturing and supply chain infrastructure necessary to support the worldwide installed base and deliver reagents on time. Furthermore, the company relies on its Highly specialized scientific and computational talent to drive the innovation pipeline, including the development of new multiomics solutions like the 5-base solution, which became generally available in Q3 2025.

The Large installed base of sequencing instruments globally ensures a steady stream of high-margin consumables revenue, which is the engine of the business. The company generated $747 million in sequencing consumables revenue in Q3 2025, based on analyst consensus estimates. This base is the primary insulation against new entrants, as customers are locked into the ecosystem for reagents and service.

The financial health underpinning the maintenance and expansion of these resources is strong. In Q3 2025, Illumina, Inc. generated $284 million in cash provided by operations, resulting in $253 million in free cash flow. The company held $1.28 billion in cash, cash equivalents and short-term investments at the close of the quarter.

• Proprietary SBS technology protected by 9,281 total global patents.
• Latest chemistry is XLEAP-SBS, enabling up to 2x faster incorporation speed.
• NovaSeq X platform reached 50% of high-throughput revenue share in Q3 2025.
• Q3 2025 Sequencing Consumables Revenue was approximately $747 million.
• Q3 2025 Free Cash Flow was $253 million.

Finance: draft 13-week cash view by Friday.

Illumina, Inc. (ILMN) - Canvas Business Model: Value Propositions

Industry-leading accuracy and comprehensive genomic data

• Base call accuracy benchmark of Q30, corresponding to an inferred base call accuracy of 99.9%.
• Illumina sequencing chemistry delivers a vast majority of bases scoring Q30 and above.

High-throughput, low-cost whole-genome sequencing via NovaSeq X

• Whole-genome sequencing (WGS) cost target of $200 USD per genome (sequencing consumables only) on the NovaSeq X Series, delivered at list price on the 25B flow cell, assuming 100Gb per genome.
• The NovaSeq X Plus system can sequence more than 20,000 whole genomes per year.
• Throughput is 2.5 times that of prior sequencers.
• The cost per Gb reduction on the NovaSeq X Series is over 2.5x compared to the NovaSeq 6000 System.
• Over 60 NovaSeq X instruments were placed in Q1 2025.

Illumina provides specific pricing tiers for its NovaSeq X instruments based on flow cell and cycle configuration, as detailed by a university core in February 2025:

Instrument/Flow Cell	Clusters Available	Run Type	Example Price (Non-Profit Affiliate)
NovaSeq X 1.5B - Shared F/C	1.25B (1 lane, of 8)	ANY	$1,700
NovaSeq X 10B - Shared F/C	1.25B (1 lane, of 8)	ANY	$1,700
NovaSeq X 25B - 300 cycle	25B	PE 150	$20,500
NovaSeq X 25B - 100 cycle	25B	PE 50 / 10X	$15,000

Integrated multiomics solutions, including proteomics via SomaLogic

• Illumina entered an agreement to acquire SomaLogic for $350 million in cash payable at closing, plus up to $75 million in performance-based milestones and royalties.
• Illumina Protein Prep is currently in use with nearly 40 early-access customers globally.
• Full availability of Illumina Protein Prep is projected for the third quarter of 2025.
• The kitted NGS-based panels business (including SomaLogic) is expected to become profitable in 2027 on a non-GAAP operating income basis.

Precision oncology and in vitro diagnostic (IVD) test development (TruSight)

• Illumina presented real-world data with Providence and Microsoft Research finding that cancer patients with early genomic testing received better precision treatment.
• The company announced the expansion of TruSight Oncology, its latest solution for comprehensive genomic profiling of tumors.
• The NGS Workflow Finder now includes oncology workflows.

Scalable bioinformatics and secure cloud data management

• Illumina launched BioInsight on October 1, 2025, a new business focused on developing data assets, software, and AI.
• BioInsight will develop software solutions to analyze multimodal data at population scale and provide platforms for private and secure data access.
• Illumina entered a partnership with NVIDIA to enhance the analysis and interpretation of multiomic data.
• Illumina participated in a $320 million funding round for electronic health record data company Truveta, investing $20 million.

Illumina, Inc. (ILMN) - Canvas Business Model: Customer Relationships

You're looking at how Illumina, Inc. keeps its high-value customers locked in, which is key since their core business revenue is projected for a slight dip in fiscal year 2025, with Core Illumina revenue expected to decline between (1%) and (3%) on a constant currency basis year over year. This makes the relationship management even more critical for future stability.

Dedicated direct sales force for complex instrument sales

Illumina, Inc. relies on a specialized, direct sales team to handle the capital equipment side of the business, particularly for high-throughput systems like the NovaSeq X platform, which placed over 60 units in the first quarter of 2025. This direct engagement is necessary for complex instrument sales and subsequent adoption, especially as the clinical segment, their largest, continues to accelerate its growth.

Strategic co-development and early access programs with key customers

The company actively embeds itself with key partners early on. For instance, in September 2025, Illumina announced partnerships with multiple global pharmaceutical companies to develop companion diagnostics (CDx) enabled on the TruSight™ Oncology Comprehensive test. Also, the Illumina Protein Prep offering, which brings proteomics to NGS platforms, was already in use with nearly 40 early-access customers globally before its planned full availability starting in the third quarter of 2025. This early access builds deep integration and product loyalty.

High-touch technical support and application training

To ensure customers get the most out of their significant capital investments, Illumina offers specialized services. The Illumina Proactive Instrument Performance Service is specifically designed to help reduce unplanned downtime and minimize the need for instrument requalification, a high-touch service that keeps labs running smoothly. This support structure is vital when you consider the company generated $234 million in cash provided by operations in Q2 2025, demonstrating the scale of their ongoing service commitment.

MyIllumina platform for self-service order management and support

For routine interactions, the MyIllumina Platform serves as the digital hub. While specific adoption rates aren't public, this platform is positioned to offer self-service capabilities for order management and support access, streamlining the day-to-day consumables replenishment that fuels recurring revenue. This digital layer supports the overall operational discipline that helped the company guide its Non-GAAP operating margin to approximately 22% - 22.5% for fiscal year 2025.

Long-term service contracts for instrument maintenance

Service contracts are a recognized component of the recurring revenue base. In 2024, Core Illumina service and other revenue increased, driven in part by extended maintenance service contracts. The financial commitment from customers for these future services is captured in contract liabilities. As of December 29, 2024, total contract liabilities stood at $327 million. The short-term portion of this was $260 million, leaving a long-term liability balance that reflects the committed future service revenue from these long-term agreements.

Here's a quick look at the deferred revenue context related to customer commitments:

Metric	Date	Amount (USD)
Total Contract Liabilities	December 29, 2024	$327 million
Short-Term Contract Liabilities	December 29, 2024	$260 million
Revenue Recognized from Deferred Balance	Fiscal Year 2024	$245 million
Cash Repurchased in Q2 2025	Q2 2025	$380 million

The relationship strategy also involves financial enablement, as seen by the company's continued share repurchase authorization, with approximately $800 million remaining at the end of Q2 2025, signaling confidence back to the investor base.

• CDx development partnerships formalized in September 2025.
• Illumina Protein Prep utilized by nearly 40 early-access customers.
• Instrument placements exceeding 60 NovaSeq X units in Q1 2025.
• Long-term service liability component within $327 million total contract liabilities.

Illumina, Inc. (ILMN) - Canvas Business Model: Channels

You're looking at how Illumina, Inc. gets its high-value instruments and recurring consumables into the hands of researchers and clinicians as of late 2025. The channel strategy balances direct, high-touch sales with scalable digital and partner networks.

The scale of transactions flowing through these channels is significant, even with the projected slowdown. For instance, Q3 CY2025 revenue hit $1.08 billion, following Q2 2025 revenue of $1.06 billion and Q1 2025 revenue of $1.04 billion. The full-year 2025 expectation is a total company constant currency revenue decline in the range of (2.5%) to (0.5%). This revenue base is what moves through the various channels.

Direct sales force for high-value instrument and clinical sales

The direct sales force is key for closing deals on major capital equipment, like the NovaSeq X systems, and for penetrating the growing clinical segment. The clinical segment is noted as the largest customer segment, driving revenue acceleration in Q3 CY2025. The placement of new, high-value instruments directly correlates with future recurring revenue streams.

• Placed 60 NovaSeq X systems in Q1 2025.
• NovaSeq X generated 43% of revenue in Q1 2025.
• NovaSeq X produced 68% of the data in Q1 2025.

MyIllumina e-commerce platform for consumables and reagents

This digital channel handles the high-volume, recurring sales of sequencing consumables and reagents, which are essential to keep the installed base of sequencers running. The success of this channel is tied to instrument utilization. Consumable sales remained solid in Q2 2025, even as instrument demand softened.

Here's a look at the revenue flow, keeping in mind that instrument sales are often bundled or followed by reagent purchases:

Period End Date	Reported Revenue (Core Illumina)	China Region Revenue Estimate (FY 2025)
Q1 2025	$1.04 billion	$72 million recognized
Q2 2025	$1.06 billion	N/A
Q3 CY2025	$1.08 billion	N/A

Global network of third-party distribution partners

Distribution partners extend Illumina, Inc.'s reach into geographies or customer segments where a direct presence is less efficient. The company manages channel risk by segmenting its outlook based on geography, indicating where partners play a larger role versus direct focus areas.

• Revenue outside the Greater China region is expected to grow between 0% and 2% in 2025 (constant currency).
• Reported revenue from the Greater China region is expected to be $165 million to $185 million in fiscal year 2025.
• Greater China represented approximately 5% of the business in early 2025.

Cloud-based software and informatics platforms for data delivery

This channel is evolving rapidly, moving beyond just selling instruments to monetizing the data they generate. The launch of the BioInsight business in late 2025 signals a formal push to deliver software, AI, and large-scale data assets directly to pharma and research partners.

• BioInsight, a new business focused on data assets and AI, launched on October 1, 2025.
• The leader of the Global Software & Informatics team for four years now leads BioInsight.
• The company is developing software solutions to analyze multimodal data at population scale.

Finance: draft 13-week cash view by Friday.

Illumina, Inc. (ILMN) - Canvas Business Model: Customer Segments

You're looking at the core groups that drive Illumina's business as of late 2025. It's not a single market; it's a collection of distinct, high-value users, and knowing their relative size helps you understand where the near-term focus is.

Academic and government research institutions

This segment remains a foundational customer base for Illumina, though recent commentary suggests they are navigating a constrained funding environment. For instance, in Q2 2025, the CEO mentioned actively helping these research customers manage that environment. In the broader Life Science Laboratory Automation Market, the segment of Academic & research institutes is expected to grow fastest.

The scale of engagement in this area is often seen through large-scale government-backed projects.

Pharmaceutical and biotechnology companies (Top 50 pharma are key)

Pharmaceutical and biotechnology companies represent a significant portion of the genomics market spend. In the Life Science Laboratory Automation Market for 2025, this end-user segment held the major market share at 40.4%. To give you a sense of the industry Illumina operates within, the top pharmaceutical companies by market capitalization in late 2025 include Eli Lilly with a market cap of $692.83B, followed by Johnson & Johnson at $373.35B. For a competitive benchmark, Illumina ranked 3rd out of 39 companies in the Pharmaceuticals & Biotech industry in the 2025 JUST Capital Rankings.

Clinical and diagnostic testing laboratories (largest segment)

This is the engine room for current growth. Illumina's Chief Executive Officer, Jacob Thaysen, explicitly stated that Q3 2025 results were 'driven by revenue acceleration in clinical, our largest market segment.' This trend was also noted in Q2 2025, where growth was 'accelerating in clinical, our largest customer segment.' The global clinical genomics market was valued at approximately US$1.25 billion in 2025. Within the related Life Science Laboratory Automation Market, the Clinical & Diagnostic Laboratories segment is projected to expand at the highest Compound Annual Growth Rate (CAGR) of 8.1% between 2026 and 2035.

Population genomics and large-scale national health initiatives

These national programs are crucial for driving high-volume, long-term instrument and consumable sales. Illumina is at the heart of this global movement. As of the latest data, 38+ nations have established national genomics initiatives. Collectively, these programs have enrolled over 13 million participants globally. A key metric showing progress in equity is the 4-fold increase in non-European ancestry participation since 2015. For example, Canada's largest-ever human genomics project involves supporting the sequencing of 100,000 whole human genomes.

Here's a quick look at the scale of Illumina's overall business context in 2025, which frames these customer segments:

Metric	Value (as of late 2025)
Q3 2025 Reported Revenue	$1.08 billion
FY 2025 Expected Constant Currency Revenue Change	Decline in the range of (1.5%) to (0.5%)
FY 2025 Expected Revenue Growth Outside China (Constant Currency)	Range of 0.5% - 1.5%
Cash, Cash Equivalents, and Short-term Investments (End Q3 2025)	$1.28 billion
Q1 2025 Greater China Revenue (Expected Range)	$165 - $185 million

Applied markets (e.g., agriculture, forensics)

While not the primary revenue drivers compared to clinical and pharma, these markets represent diversification and future application growth. The technology Illumina provides is used across various applied fields, including agriculture and forensics, which require high-throughput sequencing for applications like trait identification or sample matching. The development of faster and more affordable sequencing techniques, like Next-Generation Sequencing (NGS), fuels demand in these areas, though specific revenue figures for Illumina's applied markets segment aren't explicitly broken out in the latest reports. The company continues to advance its workflows for various applications, including oncology workflows.

You'll want to track the revenue mix in the next 10-K to see if applied markets start showing up as a distinct, material segment. If onboarding takes 14+ days for new instruments in these segments, churn risk rises. (Note: This last point is an empathetic caveat based on general industry risk, not a direct Illumina number, but it reflects a real-world consideration for this segment.)

Illumina, Inc. (ILMN) - Canvas Business Model: Cost Structure

When you look at the cost side of Illumina, Inc.'s business, you see the heavy investment required to stay ahead in sequencing technology, plus the direct costs of making and selling those systems and reagents. It's a capital-intensive structure, to be fair.

Significant R&D expenditure to maintain technology leadership is a non-negotiable cost. Illumina consistently allocates substantial resources to research and development to drive the next generation of sequencing platforms and multiomics solutions. For instance, looking at the first nine months of fiscal year 2025, the quarterly spend shows this commitment:

Metric	Q1 2025 (GAAP, Millions USD)	Q3 2025 (GAAP, Millions USD)
Research and Development (R&D) Expense	$252	$229

The High cost of goods sold (COGS) for manufacturing instruments and consumables is the other major component. This cost directly ties to the revenue generated from selling sequencers and the recurring revenue from flow cells and reagents. For the third quarter of fiscal year 2025, the total cost of revenue was $351 million.

Sales, General, and Administrative (SG&A) expenses reflect the investment in a global sales force and the overhead to run a multinational operation. You can see the quarterly fluctuations in this area:

Metric	Q1 2025 (GAAP, Millions USD)	Q3 2025 (GAAP, Millions USD)
Selling, General, and Administrative (SG&A) Expense	$267	$277

You also have to factor in external pressures that hit the bottom line directly. The tariff-related costs estimated at $85 million for fiscal year 2025 were a specific headwind announced earlier in the year, which the company noted would impact the operating margin by an approximate 125 basis points.

In response to geopolitical shifts, particularly the China import ban, Illumina instituted costs associated with the $100 million cost reduction program for 2025. This program was designed to mitigate the impact of potential revenue loss. The actions taken to achieve these savings included:

• Optimizing stock-based compensation.
• Reducing non-labor spending.
• Accelerating certain productivity measures.
• Eliminating over 300 jobs, which was approximately 3.5 per cent of the workforce as of the end of 2024.

This is a clear example of management reacting to external risk by tightening internal spending.

Illumina, Inc. (ILMN) - Canvas Business Model: Revenue Streams

You're looking at how Illumina, Inc. actually brings in the money, and as of late 2025, the story is still heavily weighted toward the recurring flow from the lab. For the third quarter of fiscal year 2025, the total reported revenue came in at $1.084 billion. This top-line performance was flat year-over-year on a reported basis, but it did exceed the high end of management's guidance for the quarter.

Here's a quick look at how that $1.084 billion in Q3 2025 revenue broke down across the main segments:

Revenue Component	Q3 2025 Amount (Millions USD)
Sequencing Consumables	$747 million
Sequencing Instruments	$107 million
Services and Other revenue	$147 million

The Sequencing Consumables are the core of the razor-and-blade anchor for Illumina, Inc. These are the reagents and flow cells that run on their installed base of sequencers. In Q3 2025, this stream generated $747 million. Management noted that clinical demand was a key driver, showing double-digit growth outside of Greater China for this segment. This recurring revenue stream is what provides the base-level stability for the business, so seeing clinical strength here is defintely a positive sign.

Sequencing Instruments revenue, which includes the sale of the sequencers themselves, landed at $107 million for the third quarter. This number reflects the ongoing transition to newer platforms like the NovaSeq X series, which had over 55 placements by the end of Q3 2025. Instrument sales can be lumpy, as they often depend on capital expenditure cycles from customers, especially in the research segment.

The Services and Other revenue stream, which covers things like instrument service contracts and maintenance agreements, brought in $147 million in Q3 2025. This segment experienced a slight year-over-year decline, which management attributed to the timing of certain strategic partnership revenues, calling it a timing headwind.

The fourth component, Software, bioinformatics, and data analysis solutions, is generally integrated within the other reported segments or captured in the Services and Other bucket, as the company does not typically report this as a standalone, material revenue stream in its primary segment disclosures. The focus remains on the physical throughput and the recurring consumables that enable it.

Looking ahead to the full-year expectations, Illumina, Inc. has adjusted its outlook based on the Q3 performance:

• Full-year 2025 reported revenue guidance is set between $4.27 billion and $4.31 billion.
• FY2025 constant currency revenue decline expectation improved to a range of (1.5%) to (0.5%).
• Non-GAAP operating margin guidance for the full year was raised to 22.75% - 23%.
• Non-GAAP diluted EPS guidance for the full year was raised to $4.65 - $4.75.