Illumina (ILMN) AI Stock Analysis

• Market Cap: $20.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.29
• Revenue Growth: -2.39%
• EPS Growth: N/A
• Country: US
• Employees: 8,970
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.34
• Shares Outstanding: 152,800,000
• 10 Day Avg. Volume: 1,655,588
• 30 Day Avg. Volume: 1,557,075
• PEG Ratio: -3.75
• Price to Book (P/B): 8.95
• Price to Sales (P/S): 4.86
• P/FCF Ratio: 29.95
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 11.91
• 1Y Price Target: $120.54
• Price Target Upside: -10.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.71
• Revenue Forecast (FY): $4.29B

• Rating: 71 Outperform
• Price Target: $141.00 ▲(4.61% Upside)

Illumina's overall stock score is driven by strong earnings performance and positive technical indicators. The strategic financial move with the notes issuance supports future growth. However, valuation concerns and cash flow challenges slightly temper the score.

Positive Factors

Strong Clinical Market Performance

Illumina's robust growth in clinical markets demonstrates its strong position and demand for its products, supporting long-term revenue stability.

Successful NovaSeq X Transition

The successful transition to NovaSeq X indicates strong product adoption, enhancing Illumina's competitive edge in high-throughput sequencing.

Expansion in Multiomics

Expanding into multiomics with new products positions Illumina for growth in emerging genomic applications, broadening its market reach.

Negative Factors

Increased Leverage

Increased leverage could pose financial risks if not managed carefully, potentially impacting Illumina's financial flexibility and stability.

Cash Flow Challenges

Challenges in cash generation could limit Illumina's ability to invest in growth opportunities and manage operational expenses effectively.

Ongoing Challenges in China

Continued challenges in China, despite lifting of export ban, may hinder Illumina's growth in a key market, affecting long-term revenue potential.

Illumina Business Overview & Revenue Model

Company Description

Illumina, Inc. is a global leader in genomics, providing innovative sequencing and array-based solutions for genetic analysis. Founded in 1998 and headquartered in San Diego, California, the company operates primarily in the life sciences sector, focusing on advancing genomics through its cutting-edge technologies. Illumina's core products include next-generation sequencing (NGS) systems, consumables, and bioinformatics software, enabling researchers and healthcare providers to analyze genetic variations and improve disease prevention, diagnosis, and treatment.

How the Company Makes Money

Illumina generates revenue primarily through the sale of its sequencing systems, reagents, and consumables, which are essential for genetic analysis. The company offers a range of NGS platforms, each catering to different market needs, from large-scale genomic research to targeted applications in clinical settings. Key revenue streams include the sale of instruments, consumables (such as reagents and flow cells), and services related to genomic data analysis. Additionally, Illumina benefits from ongoing partnerships with academic institutions, research organizations, and pharmaceutical companies, which often involve collaborative projects and joint ventures that can lead to increased sales of their products. Furthermore, the company has expanded its revenue potential by entering the clinical diagnostics market, providing tools for personalized medicine and expanding its customer base beyond research to include healthcare providers.

Illumina Financial Statement Overview

Summary

Illumina demonstrates a solid financial recovery with improved profitability and revenue growth in the TTM period. The income statement shows strong revenue growth and positive net profit margins. However, the balance sheet indicates increased leverage, and cash flow analysis reveals challenges in cash generation.

Income Statement

Illumina's income statement shows a strong recovery in the TTM period with a revenue growth rate of 12.6% and a positive net profit margin of 16.39%, compared to negative margins in previous years. The gross profit margin remains robust at 66.21%. However, the EBIT and EBITDA margins, while positive, are lower than historical highs, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 1.05 in the TTM period, slightly improved from the previous year. Return on equity has turned positive at 28.95%, showcasing effective utilization of equity. However, the equity ratio has decreased over time, suggesting increased leverage which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 4.45% in the TTM period, indicating potential challenges in cash generation. The operating cash flow to net income ratio is 0.57, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is healthy at 0.89, reflecting good cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.29B	4.37B	4.50B	4.58B	4.53B	3.24B
Gross Profit	2.84B	2.86B	2.74B	2.97B	3.15B	2.20B
EBITDA	1.29B	-725.00M	-608.00M	-3.92B	1.20B	1.09B
Net Income	703.00M	-1.22B	-1.16B	-4.40B	762.00M	656.00M
Balance Sheet
Total Assets	6.18B	6.30B	10.11B	12.25B	15.22B	7.58B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.22B	1.05B	2.04B	1.34B	3.47B
Total Debt	2.58B	2.62B	2.26B	3.56B	2.54B	1.91B
Total Liabilities	3.80B	3.93B	4.37B	5.65B	4.48B	2.89B
Stockholders Equity	2.38B	2.37B	5.75B	6.60B	10.74B	4.69B
Cash Flow
Free Cash Flow	1.01B	709.00M	282.00M	106.00M	337.00M	891.00M
Operating Cash Flow	1.12B	837.00M	478.00M	392.00M	545.00M	1.08B
Investing Cash Flow	-211.00M	-178.00M	-231.00M	-591.00M	-1.07B	-554.00M
Financing Cash Flow	-728.00M	-570.00M	-1.21B	1.00B	-51.00M	-766.00M

Illumina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 134.78 is above the 20-day moving average (MA) of 130.44, above the 50-day MA of 117.50, and above the 200-day MA of 96.95, indicating a bullish trend. The MACD of 4.06 indicates Positive momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ILMN.

Illumina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	77 Outperform	$9.88B	24.59	11.29%	3.31%	5.32%	336.29%
DHR	75 Outperform	$158.82B	46.27	6.84%	0.53%	2.22%	-7.60%
A	73 Outperform	$38.85B	30.03	20.62%	0.72%	6.73%	3.34%
IQV	73 Outperform	$37.58B	30.30	19.55%	―	3.85%	-4.74%
TMO	72 Outperform	$213.34B	32.81	13.14%	0.30%	3.22%	8.26%
ILMN	71 Outperform	$20.59B	30.20	31.20%	―	-2.39%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Illumina Corporate Events

Illumina Completes $500M Notes Offering for Expansion

On November 25, 2025, Illumina, Inc. completed a public offering of $500 million in 4.750% notes due 2030. The company plans to use the proceeds for general corporate purposes, including repaying existing debt and potentially completing the acquisition of SomaLogic, Inc., which could impact its market positioning and stakeholder interests.

Illumina Announces $500M Notes Issuance Agreement

On November 10, 2025, Illumina, Inc. announced it had entered into an Underwriting Agreement with Goldman Sachs & Co. LLC and BofA Securities, Inc. for the issuance and sale of $500 million in notes due 2030. The proceeds from this offering are expected to be used for general corporate purposes, including the repayment of existing notes and the acquisition of SomaLogic, Inc. This strategic financial move is likely to impact Illumina’s operations and market positioning by potentially enhancing its financial flexibility and supporting its expansion plans.