Illumina, Inc. (ILMN) Earnings Call Transcript & Summary

All right. Great. Welcome to the JPMorgan Healthcare Conference. My name is Casey Woodring, from the Life Science Tools and Diagnostics team. Pleased to be joined by Illumina, CEO, Jacob Thaysen. We'll go through the corporate presentation, then we'll do some Q&A afterwards. Jacob, the floor is yours.

Thank you, Casey, JPMorgan and to the entire team for hosting us this year again. And thank you all for joining us today. I'm Jacob Thaysen, CEO of Illumina. As a reminder, today's presentation includes forward-looking statements and non-GAAP measures. I encourage all of you to review the details in our SEC filings. Today, I will focus on 3 key topics. First, I will start with where Illumina stands today and our return to growth, including a first look at our first -- fourth quarter 2025 results. Second, I'll discuss how Illumina's differentiated ecosystem and workflow position us well to drive continued growth, especially in the clinical markets. And finally, I will look ahead to how our strategic position us well for profitable growth, supported by disciplined execution and capital allocation. For those of you who don't know us well, Illumina is the market leader in next-generation sequencing with highly innovative products and the largest and most diverse installed base in the industry. We serve an installed base of more than 20,000 instruments globally across clinical, research and applied markets. That scale gives us the reach across the entire life cycle from early discovery all the way into routine clinical use. Since launching our flagship of NovaSeq X in 2025 -- 2023, we have doubled our customer sequencing capacity, enabling the next phase of biological discovery and applications. Importantly, the clinical adoption of sequencing continues to grow rapidly across the world and it's a core part of patient care across oncology, genetic diseases and reproductive health areas. Roughly 60% of our sequencing consumables comes now from clinical customers. This scale and leadership supports a durable financial profile with a high level of recurring revenue and healthy margins, allowing us to continuing investments in innovations and long-term growth. During 2025, we made tremendous progress towards our portfolio growth and financial goals. This morning, we published our preliminary financial results for the quarter which were well ahead of our expectations. Illumina's Q4 revenue grew at 4% on a constant currency basis and 7% excluding China. Q4 earnings per share were in the range of $1.27 to $1.30, equating to a full year EPS about $4.76 to $4.79. This represents earnings growth of over 15% in a year full of geopolitical changes. This strong above-expectation performance was driven both by instruments. We placed more than 95 X and also by consumables, driven by continued strong utilization of the NovaSeq X. There were signs of year-end budget utilizations as well. Overall, clinical markets were a key driver of growth, and we expect clinical demand to remain as an important source of strength going forward. This year, we launched several new products, progressing to our end-to-end workflows and establish new business, BioInsight, which I'll talk more about later in this presentation. I am proud of what the Illumina team delivered in 2025. We remain focused on expanding the NGS ecosystem, supporting our customers and accelerating our growth into '26 and beyond. The NovaSeq X Series made strong progress through the transition in 2025, and we achieved the milestones we set out to hit. By year-end, the NovaSeq X accounted for approximately 80% of high-throughput gigabases shipped, reflecting steady customer adoption. As customers move to X, elasticity dynamics that we discussed are clearly taking hold with higher sequencing intensity driven by expanded content and new indications on a more powerful platform. This is most evident in clinical, where the X utilization and revenue growth both accelerated in the second half of the year, achieving 20% consumables growth ex China in Q4. We expect the transition and related volume elasticity to continue in the near future as the largest cohort of clinical customers are the transition fully to the X, all layer incremental volume onto X alongside existing NovaSeq 6000 workflows. The progress we are making across our strategic growth pillars is now clearly showing up in our financials, and we remain on track toward our 2027 targets. In '25, we returned the company's growth, expanded margins by approximately 200 basis points and grew EPS by approximately 15%, and that was accomplished in a very dynamic year. While we were providing guidance -- while we will provide guidance for 2026 during our earnings in a few weeks, we expect to continue to make progress towards these goals. The framework we shared during our Q3 earnings call, '26, looking like second half of '25, still hold well. We expect the demand pattern adjusting for any budget utilization dynamics here in Q4 to carry out in '26 as well. Let's look ahead and I'll share our vision for Illumina's role in health care. Over the past 20 years, our understanding of the human genome has advanced significantly. While researchers historically believe that only 2% of the genome was relevant, Illumina technology innovation has significantly expanded that understanding, enabling NGS to move into everyday clinical decision-making supporting national scale health infrastructures and accelerating breakthrough discoveries for our partners. Our success is unlocking the human genome has opened up for demand for the next wave of biological insights in areas like multiomics and deeper understanding of data through AI. We envision the NGS ecosystem to become the standard in moving health care system away from sick care to personalized health care. This will happen through routine adoption in multiomics in research and in clinical application and an acceleration of drug discovery through our improved understanding of biological at scale. While Illumina has made sequencing much more accessible, this broad adoption requires delivering the highest quality of insights at the lowest end-to-end cost. Our customers have become more sophisticated, focused less on dollar per gigabase and much more on the total cost of workflows from sample to insights. By investing in complete end-to-end workflows, both owned and partnered, we are making it easier for customers to adopt new innovations at scale. This allows them to run higher volume experiments, generating rich data sets, extract deeper biological insights at meaningfully lower total cost per sample. In a few real-world examples, we have seen customers save 30% or more on total sample-to-answer cost relative to alternative workflows. What's unique about Illumina is what brings all of this together in one single open ecosystem. Our customers have become much more sophisticated and face many complex challenges. To be successful, they are choosing partners that offers more than just a box. They want to work with someone that they can experience in optimizing their workflow needs by providing the most breadth of applications and the most robust reliability and services, someone who is continuously pushing the envelope through innovation. This is what makes us the partner of choice, and our Q4 results enforces this. By streamlining workflows, Illumina is enabling more robust and complex data sets. We launched BioInsight to help customers take advantage of the data and insights that we're generating. BioInsight is expecting to further enrich this ecosystem by continuing to improve clinical interpretation and expanding utilization of data in areas like drug discovery. Our vision comes together in 3 growth pillars that define how we execute. Our foundation is core sequencing, anchored by the NovaSeq X, where we continue to see strong adoptions. We're driving this adoption through complete application specific workflows that deliver superior results and unit economics to our customers. Second, we are deepening biological discovery through multiomics by adding more data layers per sample and running experiments at scale. We enable much deeper insights and larger experiments at lower cost. Third, we are scaling our services, data and software. We are uniquely positioned to generate and integrate large genomic and proteomic data sets. We also have the tools to translate these into insights for pharma by adopting AI. Tying all of this together is the strength of our ecosystem. Our shared platform supports multiple -- in multiple end markets, enable customers to scale research insights into clinical applications over time. We'll go through each of these pillars and how they are driving sustainable growth in our business. Our largest market representing roughly 60% of our consumables revenue is our clinical customers. Over the last years, we have seen meaningful increase in clinical adoption across oncology, genetic and reproductive diseases with new assay approvals, broader reimbursement and increase in new clinical trials, yet we're still in the early stages of clinical adoption with less than 20% of patients receiving a relevant NGS test across disease modalities. At the same time, our clinical customers increasingly adopt larger panels and more sequencing depths to improve sensitivity and provide deeper insights for more accurate analysis. This is all powered by the NovaSeq X. As an example, for rare genetic diseases, many are now converting assays from exome sequencing to whole genome sequencing, which require approximately 15x increase in sequencing volume. These dynamics are driven driving clinical sequencing volume growth above 30%. We see continued adoption of approved and emerging NGS test in areas like early cancer detection and MRD, plus more demand for sequencing intense assays as drivers of continued growth volume in the future. In addition, we continue to innovate to equip our customers with next-generation assays and sequencing technologies that improve quality of insights and lower end-to-end cost of the workflows. A few examples. The 5-based genome launched last year embeds epigenetic information as a part of standard genomic runs. Applications in early detection of cancers and genetic diseases will definitely benefit from this. Our planned constellation technology, which reduces library prep and significantly expands information captured that previously were difficult to capture with short-read techniques, it's already getting rave reviews in early access. We believe this technology will lead to development of several new clinical application areas. This is on top of our continuous innovation of our sequences, including the expansion of flow cell offerings and software upgrades that have expanded the application space and continue to improve performance significantly. Our rich and robust innovation pipeline is not only meeting the expanding lease of our customers, but it's also raising the bar for what's possible. The next area of growth comes from our product offerings in multiomics. This includes recent launches of our single cell solution, our entry into proteomics with Illumina Protein Prep developed in partnership with SomaLogic and the upcoming launch of our spatial solution. Together, these offerings allow customers to study multiple biological layers on a single integrated sequencing and software platform. They designed to scale research programs with high accuracy from millions of cells in single cell workflows to up to 9,500 proteins per sample with local efficient variations in proteomics, all while reducing per unit cost to our customers. Illumina-connected multiomics software ties all of this together, enabling customers to analyze and visualize multiomics biological data at scale. Collectively, these solutions extend our ecosystem beyond genome, increase the value of each experiments and drive incremental sequencing demand on our platforms. And now we have just launched the BioInsight business. For the first time, 4 key enabling capabilities are converging. Sequencing at scale, tools to perturb biology using CRISPR at genome-wide levels, dedicated compute power to analyze it and AI to bring those elements together into predictive biological models. This fundamentally changed drug discovery. Instead of relying up years of iterative wet lab experiments pharma and biotech companies can increasingly build, test and refine biological models digitally, accelerating time lines and improved success rates. But training of these AI models require massive high-quality data sets, which is why we launched BioInsight. And this is enabling our drug discovery customers through our deep expertise in this area. With our multiomics and sequencing technologies, Illumina is uniquely positioned to power and scale these proprietary data sets and associated AI models. We're starting with 5 billion cell atlas with ambitions to go well beyond that. And leading pharma partners like Merck, AstraZeneca and Eli Lilly are already engaged. Our capital allocation priorities are well aligned by driving value through innovation and execution. We are generating strong and durable cash flow, approximately $1 billion per year and had excellent free cash flow conversion of about 140%. Combined with a strong balance sheet, we have excellent capital base and flexibility in how we can allocate capital. Our top priority remains investing in the business, continuing to fund innovation in clinical sequencing, expanding the sequencing ecosystem across multiomics and now with the launch of BioInsight also in proprietary data sets and software to support long-term growth. Second, we pursue targeted bolt-on acquisitions that strengthens our capabilities and expand the markets we serve. And third, we remain committed to return excess capital to shareholders using share repurchases in a disciplined and flexible manner. During 2025, we returned $740 million shareholders via share repurchases. Taken together, this approach allows us to invest in growth, maintain financial strength and drive long-term value creation. To wrap it up, we feel very good about the progress we have made and where Illumina stands today. We have a strong core business, growing momentum in clinical markets and a clear strategy to expand our footprint through sequencing, multiomics, data and software. In 2025, we delivered meaningful progress, executing through a dynamic environment and strengthening the foundation for growth. Looking ahead, our priorities are clear: continue innovation for our customers, execute with discipline and deploy capital thoughtfully, all with the goal of driving long-term value creation and maximizing shareholder value. With that, thank you again for your time today. I look forward to connecting with many of you during this conference or after our fourth quarter and full year '25 earnings call on February 5. Thank you very much.

All right. Great. Thank you for that, Jacob. Ankur, you want to come up for some Q&A?

Great. Well, maybe to start with the preannouncement, some questions there to dig into. So 4Q revenues came in above your initial expectations, and it looks like the strength came from both China and ex-China, with China revenues coming in better than expected here. So maybe just dig into how the quarter played out relative to expectations? Can you walk us through the trends you saw both inside and outside of China? And did the Chinese beat really just come from the removal of the export ban?

Yes, let's start by focusing on ex China. Ex China is 97% of our revenue. So I think that's the most important part. We were very pleased with the traction in the quarter especially in the clinical markets. We placed 95 X instruments, a lot of them into the clinical market, but certainly also into our research academic environment. As you're seeing, we continue to have momentum in the clinical space. Our customers are doing very well, and that is reflecting on our growth also. And we expect that to continue. We also did see some level of rebound in the research academic. It's too early to call, but at least we did see some improvements in the market space. And I think that also reflects a little bit in what we call a body utilization by end of the year. But overall, very strong progress. And so if you think about our beat, it's probably 1/3 on consumables, 1/3 on instruments and 1/3 on China. Just on China, very pleased with the progress. Jenny and the team in China, our General Manager have done a fantastic job to keep the business intact and we continue to see our customers prioritize working with us. We've also spent time in Q4, working with the Chinese officials to find a path through our current situation.

Yes. Maybe turning to placements. So during the presentation, you mentioned you placed over 95 NovaSeq X instruments in the quarter. On the 3Q call, you talked about that you were not expecting placements in the quarter to be as significant as last year's 4Q, the 91 placements you saw. Looks like you surpassed that number here. So maybe just walk through what changed since 3Q and what drove that placement number higher in the quarter? And just maybe walk through any budget flush dynamics or anything else that played out?

Yes. As I mentioned, we were definitely very pleased with the placement of NovaSeq X. It really shows that the performance and the reliability and the number of things you can do on the X is really resonating our customers. And we saw many of our clinical customers also doubling down on the NovaSeq X and which is the platform they're going to scale new products on. And so we continue to see that. We're also pleased with actually replaced a good number of Xs also in the research environment. So while that is still muted, that works well. But the primary performance came from the clinical space.

Maybe turning to consumables. So in 3Q, I think you were assuming ex-China sequencing consumables growth of around 6%. In the slides today showed sequencing consumables grew around 11%. Can you walk us through what drove that better-than-expected sequencing consumables growth?

Yes. I think as you saw a fantastic performance on the consumables. We love it. This is what we have said all the way through that we are walking through the transition when the ex transition is getting above what we mentioned in Q3 with more than 50% of our revenue now on the NovaSeq X. And at Q3, we were at 75%. Now we have approximately 80% of the volume. You're starting to see the impact of the price transition be lower than actually the volume performance. So we -- the math is working and it's working according to the expectations. So we're really pleased to see the continued movement on consumables, as we said, as expected, mostly driven by clinical customers.

Very, very strong clinical volumes as well. The -- we've laid out the whole transition philosophy and the model, which is working out as Jacob was elucidating. But during Q4, we also saw clinical volumes pick up much more than what we had built in our expectations and our forecast as well. That's where bulk of the strength was.

Helpful. You typically provide a number for sequencing output, which I think was more than 30% in 3Q. How did this trend in the quarter across the customer base? And in research, particularly, I would be curious to hear your thoughts.

Yes. As you can imagine, since we had strong growth in consumables, also the volume were very strong. So we continue to have that above 30% volume growth, which we -- at least from clinical customers, we expect to -- will continue for a while. As we have mentioned, we believe that on long horizon, our -- the volume growth should be for the whole business approximately 25%. We think that is sustainable. We continue to see many customers go and build larger panels, more intense, more deeper sequencing, and that will continue to drive growth over the last long period of time. But clearly, most volume growth is coming from clinical, but academia and research growth was also growing.

One thing I would add is, meaning JPMorgan, most of you do tend to track some of our largest clinical customers and they've been announcing results. So that's been very visible. But the strength in clinical business was not just centered in the large U.S. clinical players only. The clinical strength was fairly broad-based, not just in the U.S., in Europe and the rest of the Asia as well, and the strength of the core clinical business was quite good.

Now maybe moving on from the preannouncement and stepping back here. Last year, we saw Illumina really go through a number of challenges, right, from the proposed 40% cut to the NIH budget really impacting academic and government customer confidence. We saw Chinese tariffs, the unreliable entities list. Now that some of those headwinds have eased, how do you think about the underlying health of the end market progressing as we move through 2026?

Yes. I mean, no doubt, '25 was a very interesting year, challenging year. It's a very dynamic market environment. And I think all of us here in this room hope that '26 is going to be a little more straightforward. But we will see. I think what's important there is that the Illumina team showed resilience, and we showed that we would be focusing on controlling what we can control and executing and continue delivering both improvement in our top line, but even in a very challenging market environment, continue to grow our bottom line EPS of 15% growth, in my opinion, is impressive in the market environment we've been in. So really pleased around that. As I mentioned, the geopolitical is what has been the biggest impact in 2025. And I think we all hope that the situation in '26 is going to be more predictable. But no matter what situation we committed to continue to execute. So that said is that we believe that the clinical market will be the -- continue to drive our growth. As we mentioned, more than 60% of our consumables revenue is now from clinical, and we believe that, that will keep the momentum going. On the academic research, at least it looks like we have a little more clarity now. The sentiment is improving. I think still we will see for the quarters to come that this would be a muted environment. So while we are optimistic on the long horizon, I think still '26 is going to be muted from a research academic environment.

Okay. maybe hitting on the NovaSeq X transition here. So you've hit your milestone of over 75% of high-throughput gigabases shipped on the X and 50% of high throughput revenues attributed to the X as of last quarter. How do you see that transition pacing as we move through 2026? And then additionally, now that you've achieved your initial tracking targets, are there any new KPIs or metrics that you plan to share with us to help us track the progress on the ongoing transition?

Yes. The most important thing that we are focused on is the clinical business in terms of tracking progress there. We're looking at our customers, the number of reimbursements that are going to improve the number of new tests that are coming to the market and eventually driving the growth of the clinical business. On the X transition side, it's great to get to a point where we've passed the 75% mark now being into the 80s. And we expect that the price effect of that transition would continue to reduce over time, should be a lesser impact than going into '26 per se. So KPIs all around our clinical growth, at least in 2026. We'll observe the research business closely, of course. And we have a lot of new technology, which has just been launched or getting launched in 2026 as well. And we've talked about the protein business. We've talked about our special business coming up, which are extremely interesting for our research customers, not just in academia, but into our pharmaceutical research companies as well. And we'll keep watching traction in that area would be the important factors.

Okay. On a related note, in 3Q, you noted that 78% of high throughput volumes and 51% of revenue are already on the NovaSeq X and that the 40 customers who had fully transitioned volume offset the pricing declines in year 1 and revenue accelerated in year 2. As the broader installed base moves through that same transition, how durable is the elasticity pattern seen from those 40 fully transitioned customers? And then how does that -- what you've seen from those customers really inform your confidence in the long-term trajectory of that transition?

Yes. Just a reminder, in Q3, we shared how the growth -- the volume growth is -- continues to be very, very strong for some of our customers. We had -- we showed 40 customers that had transitioned fully to the X. And the idea where sure, I think there's been some concern about we will see a bump -- a negative bump before we see growth. That is not the case. We are seeing customers transition and actually where the first year might be a little bit flattish than the next year is starting to really see growth. While we do not intend to continue to share the performance of individual or cohort of customers, I can tell you, we continue to see growth across the spectrum of different customers that are converting. As mentioned, we see especially the clinical customers here. They are getting new products to the market. Each time a customer is updating a panel, they are looking to sequence much deeper. We are still in the early innings of understanding on biology. And it's very clear that our customers want to offer and physicians want to see deeper and deeper biological insights to make the right decisions for treatment decisions. And that has only gone one way. That is deeper sequencing and larger panels. And as I mentioned, just in -- if you think about it from genetic rare diseases where we have long time done maybe smaller panels or exome sequencing, DX is now making it possible cost-wise also to whole genome sequencing, which requires 15x more volume sequencing. So just one example of transition that will continue to happen over the years to come. And thereby, volume will continue to grow, we believe, over 30% in clinical.

Yes. You just brought up an interesting point. We are seeing trends in diagnostics moving towards larger panels and eventually whole genome sequencing, as you noted, how long do you think this shift will take? And what percent of current clinical customers run whole genome sequencing today? Where can that go over time? And if you can frame the financial impact to Illumina, obviously, more sequencing intensity like you called out, but just curious if you can quantify any sort of magnitude of the potential headwind over time?

Yes. From a clinical volume perspective, the whole genome still makes a small action of the overall volumes that have been sequenced. A lot of the historical tests were built on exomes and are still validated tests. The trends you're seeing recently are around the launch of new whole genome-based approach and they're becoming a part of the calculus, but it's still much, much smaller. Part of the equation as we were trying to outline during our -- in our clinical slide is we see a long runway from a sequencing volume growth perspective, both in terms of higher-intensity whole genome approaches coming to market as well as a lot of newer tests that are in various stages of clinical trials that are yet to come to the market over the next 2,3,4 years. So that combination, we see significant volume growth in front of us. And frankly, all of that is getting enabled because of X, because of both the high throughput capacity and the quality that explains as well as the unit economics that explains to our customers.

Maybe just touching on competition here. As we approach AGBT, what are your latest thoughts on the competitive environment? And how do you foresee customers evaluating new entrants like Roche, Element more recently? You've said before, price alone isn't enough to drive competitive switch. So just maybe walk through some of the technological advantages maybe NovaSeq X provides and your latest thoughts on the competitive piece.

Yes. So first and foremost, we have been in a competitive space for long term -- time. And I think that competition is always good. It keeps us on our toes. It channels us. It makes us very focused on ensuring that we provide the best solutions to our customers. That is our focus. That will continue to be our focus. Customers are looking for partners that not only try to sell them a box and argue for a lower price, but really can help them be successful in their laboratories. That's what I talked about in the presentation about the whole ecosystem. Customers are very sophisticated. They know what they're looking for. And they know that they need somebody that is here today, but also in the future and can continue to provide them innovation and deep insights. And I would say that if you look at the combination of the NovaSeq X, that is a very flexible instruments, but actually have extremely easy workflows and ease of use combined with our compute power in DRAGEN and our interpretation software is actually a very strong combination. Customers do not want to pick and choose different components. They want to focus on outcomes. And the more we can provide our workflows. And the more a vendor like Illumina provider workflows, the more successful we make the customers. And of course, that makes them actually work with us as somebody I can do beyond just the box. So we continue to see that. I'm convinced we will see a lot of new things coming out of AGBT. So we continue to innovate. We spend a lot of money in innovations, and we will keep that going.

Maybe just one on China, following up on some of the prior comments there. Just what's the latest on the government approval required for customers to buy alumina in China? What are the steps? How long does it take? Maybe walk us through the process there and how we should think about it?

Yes. I guess we can never escape the China question. So let's talk about that a little bit. So just to remind everyone about the 10 months ago, where in February, where we were put on what is called the Unreliable Entity List. And a month later, we were sanctioned for place new instruments in China. That, of course, put a dent to our performance in China. But I've been very pleased, as I mentioned before, about the resiliency, both of our own team, but more importantly, of our customers. They continue to want to work with us. They know who is the innovator in the industry, and they know who is actually providing the highest quality sequencing. So I think we saw a very strong commitment from also our Chinese customers. We are committed to China. We believe there's a huge opportunity in China, and we would like to stay in the market. But obviously, we need to be welcomed into that market also. Over the last quarters, at Q3, we announced also that we have now been allowed to import instruments in back into China for our OEM customers. That represents approximately 20% of the opportunity. And later in the quarter, I myself went to China to have conversations with Chinese officials. It was a very open and good conversation. We have now -- the sanctions have been lifted, and we start to see steady progress. But still, when we haven't been able to place instruments for a while, it takes time to build up momentum again and the funnel of instruments and so on. So we're optimistic. We still have the unreliable -- we're still on the Unreliable Entity List. That will be the ultimate goal to get that eliminated. At this point, we're working on that, but there's still no clear outcome.

Just to add, in Q4, we did -- our results were not impacted by the lifting of the sanctions. So all of the Q4 strength is all built on consumables, where our customers have continued to utilize their installed base and it was a consumable strength in China. It wasn't the -- we did not see any additional instrument imports per se.

Yes, Helpful. Maybe one just on multiomics. So over the past couple of years, we've seen Illumina really expanded footprint in multiomics, whether that's the launch of IPP, single cell products, the fluent acquisition. Could you just share a bit about how you see the portfolio evolving in the next few years and how all these pieces sort of fit together into Illumina's larger vision of the future?

Yes. So we're very excited about moving into the multiomics space. And especially since all of that is able to run our current sequencing platform. So that's the power is that you can buy one platform and then you can look at -- from the genome all the way up to the proteom. And we believe this is going to create deep insight and new understanding on biology will be created over the next years to come. I do think that we will see a lot, especially in the research -- academic research market that will adopt these technologies out the gate. And then, of course, eventually that will transition into clinical applications also. Biology is much more complicated than understand the genome. And so getting the additional layers on top of that is going to be very powerful and that's also why we announced the BioInsight business, which will help now accelerate massive amount of data crazing to really understanding biology at scale. We still -- our humans still don't truly understand biology. It's very difficult to make an experiment on one cell, on 100 cells to really understand the whole human body, how it works. So you need to do billions of cells experiments. You need to do huge proteomic studies. You need to look at spatial on a very large capacity. But all of that data requires, first of all, a lot of sequencing, but also a lot of compute power and AI to really get the insight. And that's what we can really facilitate both with our instrument solutions but on also BioInsight that we can really accelerate that insight. That is going to change how we understand biology. That is going to change health care and it's going to change the opportunity for Illumina and for all our customers.

Okay. Yes. You mentioned BioInsight, maybe the last minute or so here, we can just kind of double-click on that. How do you envision BioInsight differentiating Illumina in the market and particularly as you -- as it brings together population sequencing, data partnerships, AI capabilities, all really under one platform?

Yes. So what we saw was a big need from our customers to do really sequencing at scale, especially looking at doing a lot of experiments that is almost cost prohibitive for everything that -- what it will take to do that. So having now both the single cell capabilities, sequencing, compute power and AI capabilities under our roof, we can really scale this into something that and individual customers can't do on their own. And that's why we're building up this consortium to really do billions of cells experiments. And we're going to be way beyond that to really create that insight, to start to build cell models that can start to be -- can start to interpret actually how drugs are performing. And that is going to be a huge shift in drug discovery over the years to come. And Illumina is absolutely beautiful center to take and help customers be successful and really start to build a huge growth opportunity and business around that.

Okay. Well, it looks like we're approaching time. So thank you, everybody, for joining us today. Thank you to the Illumina management team. Enjoy the rest of the conference.

Thank you.