Illumina (ILMN) has wrapped up FY 2025 with Q4 revenue of US$1,159 million and basic EPS of US$2.18, capping a year in which quarterly revenue ranged from US$1,041 million to US$1,159 million and EPS moved between US$0.82 and US$2.18, while trailing twelve month EPS came in at US$5.48 on revenue of US$4.3 billion. With trailing net income of US$850 million and a sizeable one off gain of US$262 million sitting in the background, the latest print gives investors richer detail on how much of the current profitability reflects underlying operations versus one time effects, and sets up a closer look at how margins are holding up.

See our full analysis for Illumina.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the widely followed narratives around Illumina's growth, profitability quality, and long term potential.

TTM net income reaches US$850 million

• Over the last twelve months, Illumina reported net income of US$850 million on US$4.3b of revenue, compared with quarterly net income in FY 2025 ranging from US$131 million to US$334 million. This highlights how much stronger the full year looks than any single quarter on its own.
• Bullish investors often focus on the move into profitability, and this trailing US$850 million figure gives them support. It also raises questions about how much of that earnings base is repeatable when you compare it to earlier periods like Q1 2025, which still showed a much lower quarterly net income of US$131 million.

US$262 million one off gain shapes recent profit

• The last twelve months include a US$262 million one off gain that materially affects earnings, sitting alongside trailing EPS of US$5.48 and reported net income of US$850 million. A meaningful slice of that profit is tied to a single non recurring item.
• Critics highlight that bullish arguments around stronger profitability need to be tested against this one off, because the US$262 million gain inflates the US$5.48 trailing EPS, while the quarterly run rate in FY 2025, with net income between US$131 million and US$334 million, suggests a lower underlying level once you strip that gain out.
  • This challenges any simple read that the trailing profit trend alone supports a sustained step up in earnings, because a large chunk of the improvement is not linked to ongoing operations.
  • It also means margin and EPS comparisons across periods can be tricky, as the one off gain affects the trailing numbers in a way that the FY 2025 quarterly profile alone does not fully explain.

P/E of 21.5x sits below peers and DCF fair value

• Illumina is quoted at US$119.72 per share with a trailing P/E of 21.5x, compared with a North American Life Sciences industry average P/E of 35.8x, a peer average of 33x, and a cited DCF fair value of about US$151.00. The shares therefore trade below both those relative and DCF markers.
• Supporters argue this valuation gap is attractive, and the numbers give them some backing. They also sit alongside forecast earnings growth of about 8.2% a year and revenue growth of about 5.3% a year, both of which are slower than the referenced US market averages of 15.6% for earnings and 10.2% for revenue, so the lower P/E may be partly tied to those more moderate growth expectations.
  • The spread between the current price of US$119.72 and the US$151.00 DCF fair value is meaningful, but the growth rates being below market benchmarks help explain why the market may not be assigning industry level multiples right now.
  • At the same time, the move into profitability over the past year, combined with a 21.5x P/E that is below sector and peer averages, is a key part of the bullish case that investors are paying less for each dollar of trailing earnings than many comparable life science names.

Curious how these figures stack up against the broader story on Illumina and similar names in the sector? Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Illumina's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Illumina's profitability story leans heavily on a US$262 million one off gain and slower forecast growth figures compared with the broader US market averages.

If that reliance on a one time boost and moderate growth has you cautious about paying 21.5x earnings here, you may wish to review 53 high quality undervalued stocks that our screener surfaces for investors who want stronger fundamentals at a price that appears more compelling today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.