Illumina (ILMN)
NASDAQ:ILMN
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Illumina
(NASDAQ:ILMN)
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Rating:61Neutral
Price Target:
$134.00
▲(4.69% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by the TTM financial turnaround and strong cash generation, reinforced by constructive 2026 guidance and clinical/NovaSeq X momentum. Offsetting factors include elevated leverage and prior-year earnings volatility, plus mixed technical signals and notable near-term headwinds (China/export restrictions, research softness, tariffs, and SomaLogic dilution).
Positive Factors
Recurring consumables tied to large installed base
Illumina's large installed base and rapid NovaSeq X adoption create durable recurring consumables demand. Each instrument placed increases high‑margin reagent pull‑through and sequencing throughput, supporting steadier revenue and margin sustainability over the next several quarters.
Negative Factors
Elevated leverage weakens financial flexibility
Higher leverage reduces Illumina's maneuverability for strategic investments, R&D, and acquisitions, and amplifies downside risk if growth slows. Even with strong ROE now, a debt load near equity levels constrains optionality and increases the impact of cash‑flow volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables tied to large installed base
Illumina's large installed base and rapid NovaSeq X adoption create durable recurring consumables demand. Each instrument placed increases high‑margin reagent pull‑through and sequencing throughput, supporting steadier revenue and margin sustainability over the next several quarters.
Read all positive factors
Illumina (ILMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.57B
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)24.2
Beta (1Y)1.27
Revenue Growth-2.39%
EPS GrowthN/A
CountryUS
Employees8,970
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)1.35
Shares Outstanding152,900,000
10 Day Avg. Volume1,022,340
30 Day Avg. Volume1,570,813
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)7.56
Price to Sales (P/S)4.74
P/FCF Ratio22.10
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue4.62
Enterprise Value/Gross Profit6.94
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$136.33Price Target Upside6.51% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)5.13
Revenue Forecast (FY)$4.54B
Illumina Business Overview & Revenue Model
Company Description
Illumina, Inc. provides sequencing and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets enabling the adoption of genomic solutions in research and clinical settings for applica...
How the Company Makes Money
Illumina primarily makes money by selling (1) sequencing consumables and (2) sequencing instruments, with additional revenue from (3) services and (4) software/informatics offerings.
1) Consumables (recurring revenue): A large portion of Illumina...
Illumina Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyIllumina Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a positive operational rebound: Illumina beat Q4 expectations, returned to ex‑China growth for the year, delivered strong clinical consumables acceleration (+20% ex‑China in Q4), expanded margins and EPS, generated healthy cash flow, advanced multiomics (Somalogic) and data/AI initiatives (BioInsight). Key near‑term headwinds are concentrated in Greater China (export restrictions and revenue decline), a muted academic/research market (expected mid‑high single‑digit declines), tariff impacts on gross margins (~205 bps), and short‑term dilution from the Somalogic acquisition (~$0.18 EPS, ~100 bps margin). Overall the positive commercial momentum, profitability and cash generation outweigh these challenges, though execution and geopolitics are notable risks.Positive Updates
Quarterly Revenue Beat and Return to Growth
Q4 revenue of $1.16B came in above expectations (up 5% YoY reported, +4% constant currency). Illumina returned to full-year ex‑China growth of 2% in 2025 and reported ex‑China revenue growth of 7% in Q4.
Negative Updates
Greater China Weakness and Export Restrictions
Greater China revenue was $55M in Q4, a $25M decline from 2024. Instruments sales in Greater China were down ~55% due to export restrictions. Management expects China to be roughly a one‑point headwind to total company revenue in 2026 and noted uncertainty around instrument imports.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Beat and Return to Growth
Q4 revenue of $1.16B came in above expectations (up 5% YoY reported, +4% constant currency). Illumina returned to full-year ex‑China growth of 2% in 2025 and reported ex‑China revenue growth of 7% in Q4.
Read all positive updates
Company Guidance
Illumina guided 2026 organic (ex‑China) revenue growth of 2–4% with total company revenue of $4.5–$4.6 billion (reported growth 4–6% after roughly +1 point from currency), noting Somalogic should contribute ~1.5–2 points of revenue but dilute EPS by ~$0.18; China is modeled as a ~1‑point headwind with China sales of $210–$220 million. Management expects total sequencing consumables to grow low‑ to mid‑single digits with clinical consumables up double‑digit to mid‑teens and research/applied consumables down mid‑ to high‑single digits; instruments are expected to be roughly flat to down low single digits (targeting ~50–60 NovaSeq X placements per quarter, ~200–240/year). Full‑year operating margin is guided to 23.3–23.5% (ex‑Somalogic expansion of ~130 basis points; Somalogic ~100 bps headwind), EPS $5.00–$5.20 (ex‑Somalogic implies ~10% y/y growth at the midpoint), and Q1 2026 rest‑of‑world organic revenue is $1.06–$1.08 billion with Q1 EPS $1.02–$1.07 (including ~$0.04 dilution).Illumina Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.34B | 4.37B | 4.50B | 4.58B | 4.53B |
| Gross Profit | 2.89B | 2.86B | 2.74B | 2.97B | 3.15B |
| EBITDA | 1.46B | -725.00M | -608.00M | -3.92B | 1.20B |
| Net Income | 850.00M | -1.22B | -1.16B | -4.40B | 762.00M |
Balance Sheet | |||||
| Total Assets | 6.64B | 6.30B | 10.11B | 12.25B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.22B | 1.05B | 2.04B | 1.34B |
| Total Debt | 2.55B | 2.62B | 2.26B | 3.56B | 2.54B |
| Total Liabilities | 3.92B | 3.93B | 4.37B | 5.65B | 4.48B |
| Stockholders Equity | 2.72B | 2.37B | 5.75B | 6.60B | 10.74B |
Cash Flow | |||||
| Free Cash Flow | 931.00M | 709.00M | 282.00M | 106.00M | 337.00M |
| Operating Cash Flow | 1.08B | 837.00M | 478.00M | 392.00M | 545.00M |
| Investing Cash Flow | -55.00M | -178.00M | -231.00M | -591.00M | -1.07B |
| Financing Cash Flow | -744.00M | -570.00M | -1.21B | 1.00B | -51.00M |
Illumina Technical Analysis
Positive
128.00
Price Trends
126.11
Positive
130.41
Negative
115.33
Positive
Market Momentum
0.29
Negative
55.03
Neutral
75.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ILMN, the sentiment is Positive. The current price of 128 is above the 20-day moving average (MA) of 123.41, above the 50-day MA of 126.11, and above the 200-day MA of 115.33, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 75.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ILMN.
Illumina Risk Analysis
Illumina disclosed 29 risk factors in its most recent earnings report. Illumina reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Illumina Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.50B | 23.17 | 11.85% | 3.31% | 5.32% | 336.29% | |
67 Neutral | $138.73B | 44.80 | 6.99% | 0.53% | 2.90% | -4.81% | |
66 Neutral | $33.04B | 31.05 | 19.73% | 0.72% | 6.73% | 3.34% | |
63 Neutral | $187.03B | 32.34 | 13.15% | 0.30% | 3.91% | 7.09% | |
61 Neutral | $19.57B | 24.21 | 34.94% | ― | -2.39% | ― | |
59 Neutral | $29.28B | 28.49 | 22.28% | ― | 3.85% | -4.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ILMN
Illumina
128.00
56.74
79.62%
A
Agilent
116.92
17.78
17.94%
DHR
Danaher
196.19
16.67
9.28%
QGEN
Qiagen
41.27
1.36
3.41%
TMO
Thermo Fisher
503.46
77.59
18.22%
IQV
IQVIA Holdings
172.54
29.32
20.47%
Illumina Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Illumina Announces Board Retirements and New Director Nominee
Positive
Apr 2, 2026
On April 2, 2026, Illumina announced that board members Frances Arnold, Robert S. Epstein, and Gary S. Guthart will retire from the board effective May 21, 2026, coinciding with the company’s 2026 annual meeting of stockholders. The company ...
Business Operations and StrategyM&A Transactions
Illumina Completes SomaLogic Acquisition, Expands Proteomics Capabilities
Positive
Jan 30, 2026
On January 30, 2026, Illumina completed its previously announced acquisition of SomaLogic and related aptamer-based and functional proteomics assets from Standard BioTools for $350 million in cash at closing, plus up to $75 million in performance-...
Business Operations and StrategyExecutive/Board Changes
Illumina appoints new chief medical officer amid leadership shifts
Positive
Jan 8, 2026
On January 8, 2026, Illumina announced that veteran genomics leader Eric D. Green, M.D., Ph.D., former director of the U.S. National Human Genome Research Institute, will join the company as Chief Medical Officer effective February 2, 2026, report...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.