Illumina Sees Flat Q3 Revenue Amid China Challenges, Eyes Growth Opportunities

Illumina, the global leader in DNA sequencing technology, reported flat revenue for the third quarter of 2025, as the company continues to navigate challenges in the Chinese market. Despite these headwinds, CEO Jacob Thaysen remains optimistic about future growth prospects and ongoing dialogues with regulatory agencies.

Q3 Financial Performance and Market Reaction

Illumina reported revenue of $1.08 billion for the third quarter, maintaining stability compared to the previous year. This performance marks a slight improvement from the second quarter, which saw a 3% decline in sales. The company's shares responded positively to the news, trading up approximately 7% before U.S. markets opened on Friday.

Chief Financial Officer Ankur Dhingra disclosed that revenue from Greater China amounted to $52 million for the quarter. While this figure represents a significant portion of the company's international sales, it reflects the ongoing impact of export restrictions to China.

China Market Challenges and Adaptations

The primary obstacle facing Illumina in recent quarters has been the ban on exporting its DNA sequencers to China, implemented in response to expanded U.S. tariffs on Chinese-made products. This restriction has significantly impacted Illumina's operations, considering that China previously accounted for about 7% of the company's revenue, translating to approximately $300 million in sales for 2024.

Despite these challenges, CEO Thaysen reported some positive developments in the Chinese market. Illumina has received approval for its manufacturing partners to sell select instruments and consumables to specific customer segments within China. Thaysen characterized this as a "measured step forward," stating, "We have now received approval to serve those partners through the manufacturing of select instruments locally in China."

Global Growth Strategy and Future Outlook

While China-related issues persist, Illumina has shown resilience in other markets. Thaysen highlighted that the company "returned to growth ex-China, up about 2% year over year" during the third quarter. This growth in non-Chinese markets suggests that Illumina's global strategy is yielding positive results.

Thaysen emphasized ongoing efforts to resolve long-term operational issues in China, stating, "We have not yet reached a long-term resolution related to our operations in China, but we remain in dialogue with the relevant agencies." This continued engagement with regulatory bodies indicates Illumina's commitment to maintaining its presence in the important Chinese market while navigating complex international trade dynamics.