ILMNMEDIUM SIGNALOPERATIONAL10-K

ILMN completed its acquisition of SomaLogic from Standard BioTools while divesting GRAIL, marking a strategic pivot toward proteomics amid new tariff-related uncertainties.

The company is repositioning its portfolio by exiting the cancer screening business (GRAIL divestiture) while entering proteomics through the SomaLogic acquisition, suggesting a focus on expanding beyond genomics. However, management has added new risk disclosures around U.S. tariffs beginning in April 2025, indicating potential cost pressures and supply chain challenges ahead.

Comparing 2026-02-12 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

ILMN's financial position improved meaningfully with operating cash flow growing 29% to $1.1 billion and current assets expanding 20% to $3.3 billion, reflecting stronger operational performance. The company reduced R&D spending by 17% to $967 million, likely reflecting cost discipline amid the business transition. Overall, the balance sheet strengthened with stockholders' equity rising 15% to $2.7 billion, though the market value held by non-affiliates declined from $14.7 billion to $9.2 billion, indicating share price pressure during the reporting period.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+28.9%
$837.0M$1.1B

Operating cash flow grew 28.9% — strong conversion of earnings to cash, healthy business fundamentals.

Current Assets
Balance Sheet
+19.8%
$2.7B$3.3B

Current assets grew 19.8% — improving short-term liquidity or inventory/receivables build.

R&D Expense
P&L
-17.3%
$1.2B$967.0M

R&D spending cut 17.3% — could signal cost discipline or concerning reduction in innovation investment.

Accounts Receivable
Balance Sheet
+16.2%
$735.0M$854.0M

Receivables grew 16.2% — monitor days sales outstanding for collection efficiency.

Stockholders Equity
Balance Sheet
+14.7%
$2.4B$2.7B

Equity base grew 14.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-12
ADDED
The aggregate market value of the common stock held by non-affiliates of the registrant as of June 29, 2025 (the last business day of the registrant s most recently completed second quarter), based on the closing price for the common stock on The Nasdaq Global Select Market on June 27, 2025 (the last trading day before June 29, 2025), was $ 9.2 billion.
(SomaLogic) and certain other assets from Standard BioTools Inc.
(Standard BioTools), including the future conduct and growth of the SomaLogic business and the proteomics market and our ability to successfully integrate SomaLogic into our existing operations and SomaLogic s technology and products into our portfolio; our estimate of the cost impact on Illumina of the tariffs announced by the U.S.
Government and other countries beginning in April 2025; and other expectations, beliefs, plans, strategies, anticipated developments, and other matters that are not historical facts.
government administration; risks and uncertainties regarding legal and regulatory proceedings; uncertainty regarding the impact of tariffs imposed by the U.S.
government and its trading partners in response, other possible tariffs or trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers, as well as the impact of Illumina s efforts to mitigate the effect of such tariffs; risks associated with contracts or other agreements containing provisions that might be implicated by the divestiture of GRAIL, Inc.
References to 2025, 2024, and 2023 refer to fiscal years ended December 28, 2025, December 29, 2024, and December 31, 2023, respectively, which were all 52 weeks.
Genetic variations also can have medical consequences affecting disease susceptibility, including predisposition to complex genetic diseases such as cancer, diabetes, cardiovascular disease, and Alzheimer s disease.
Clinical We are focused on enabling translational and clinical markets across customer segments through the introduction of best-in-class sequencing, library preparation, and bioinformatics technologies, and by developing sample-to-answer solutions in oncology, genetic health, and reproductive health.
Today, cancer genomics is used to improve understanding of this disease, support the identification of new treatments, enable the development of more effective diagnostics and screening tests, and monitor disease evolution through liquid biopsies.
REMOVED
The aggregate market value of the common stock held by non-affiliates of the registrant as of June 30, 2024 (the last business day of the registrant s most recently completed second quarter), based on the closing price for the common stock on The Nasdaq Global Select Market on June 28, 2024 (the last trading day before June 30, 2024), was $ 14.7 billion.
(f/k/a GRAIL, LLC) (GRAIL); and other expectations, beliefs, plans, strategies, anticipated developments, and other matters that are not historical facts.
government administration; risks and uncertainties regarding legal and regulatory proceedings; 2 the impact of tariffs recently imposed by the U.S.
References to 2024, 2023, and 2022 refer to fiscal years ended December 29, 2024, December 31, 2023, and January 1, 2023, respectively, which were all 52 weeks.
Variations among organisms are due, in large part, to differences in their DNA sequences.
Clinical We are focused on enabling translational and clinical markets through the introduction of best-in-class sequencing technology.
Further, we are developing sample-to-answer solutions to catalyze adoption in the clinical setting, including in reproductive and genetic health and oncology.
Using NGS can reduce costs compared to traditional methods of disease diagnosis, which are often expensive and inconclusive while requiring extensive testing.
Cancer is a disease of the genome, and the goal of cancer genomics is to identify genomic changes that transform a normal cell into a cancerous one.
Understanding these genomic changes will improve diagnostic accuracy, increase understanding of the prognosis, and enable oncologists to target therapies to individuals.
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