Illumina, Inc. announced on March 10, 2025, that it has lowered its annual forecast and plans to implement an incremental $100 million cost reduction program for fiscal year 2025. This decision follows the March 4, 2025, notice from the China Ministry of Commerce (MOFCOM) that prohibits Illumina from exporting sequencing instruments into China.
The company stated that the cost reduction program aims to mitigate the impact of a potential reduction in revenue and related operating income from its Greater China business. These savings will be achieved through optimizing stock-based compensation, reducing non-labor spending, and accelerating certain productivity measures.
Illumina now expects Core Illumina fiscal 2025 non-GAAP diluted EPS to be approximately $4.50. Despite these challenges, the company reiterated its focus on achieving high-single-digit revenue growth by 2027 and expanding its margins, emphasizing the strength of its global market opportunity and multiomics strategy.
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