Illumina (ILMN) AI Stock Analysis

• Market Cap: $15.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -3.47%
• EPS Growth: 25.55%
• Country: US
• Employees: 8,970
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.97
• Shares Outstanding: 158,300,000
• 10 Day Avg. Volume: 2,701,661
• 30 Day Avg. Volume: 2,213,172
• PEG Ratio: -0.71
• Price to Book (P/B): 6.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.48
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: -3.31
• 1Y Price Target: $106.29
• Price Target Upside: 5.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 54 Neutral
• Price Target: $92.00 ▼(-8.31%Downside)

Illumina's overall stock score is primarily impacted by its weak financial performance, with significant losses and revenue declines. Technical analysis indicates some bullish momentum, but valuation remains low due to negative earnings and no dividends. The earnings call highlights both opportunities and risks, with corporate events like the SomaLogic acquisition expected to support long-term growth but not immediately impactful.

Positive Factors

Product Development

Owning SomaLogic IP outright will enable ILMN to accelerate product launches, including low to mid throughput panels and kits for other sample types.

Revenue Growth

The acquisition of SomaLogic is expected to be accretive to growth, with high single-digit to low double-digit growth driven primarily by kit sales.

Strategic Acquisition

The acquisition of SomaLogic is seen as a solid strategic fit for Illumina, particularly given their prior relationship and the potential synergies over time.

Negative Factors

Competitive Landscape

Macroeconomic challenges and potential competitive threats have negatively impacted the company's financial performance and investor sentiment.

Earnings Impact

The transaction is expected to be dilutive in the near term and won't be accretive to earnings until 2028 or beyond.

Market Uncertainty

The proteomics market is relatively nascent, and there is substantial uncertainty due to market conditions and potential margin dilution from SomaLogic.

Illumina Business Overview & Revenue Model

Company Description

Illumina, Inc. is a leading biotechnology company that specializes in the development, manufacturing, and marketing of life science tools and integrated systems for large-scale analysis of genetic variation and function. The company primarily operates in the genomics sector, providing innovative sequencing and array-based solutions that are used in a variety of applications including genetic research, clinical diagnostics, agriculture, and forensics. Illumina's core products include sequencing systems, consumables, and software that support researchers and clinicians in their pursuit of groundbreaking discoveries and advancements in personalized medicine.

How the Company Makes Money

Illumina makes money through the sale of its sequencing systems and related consumables, which are essential for conducting genomic analysis. The company's primary revenue streams include the sale of sequencing instruments, consumables (such as reagents and flow cells), and services, including software and informatics solutions. A significant portion of Illumina’s revenue is derived from ongoing consumable sales, as these are required for each sequencing run. Additionally, Illumina generates income through service contracts, training, and support services. Strategic partnerships and collaborations with research institutions, healthcare providers, and pharmaceutical companies also contribute to its earnings by expanding its market reach and driving innovation in genomic applications. The company's focus on maintaining a robust portfolio of intellectual property and continuous investment in research and development further solidify its revenue model.

Illumina Financial Statement Overview

Summary

Illumina faces significant financial challenges, primarily driven by operational inefficiencies and declining revenues. While gross margins remain strong, persistent losses impact overall financial health. The balance sheet is stable, yet moderately leveraged, and cash flows show some resilience and improvement. Strategic focus on improving operational efficiency and revenue growth is essential for enhancing financial performance.

Income Statement

The income statement reveals significant challenges. Gross profit margin is healthy at approximately 66.3% for TTM, yet the company faces declining revenues and negative profitability. Net income has been negative for the last few periods, with a net loss of $965 million in TTM. Revenue growth is negative, with a notable decline from $4.58 billion in 2022 to $4.34 billion in TTM 2025. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. These factors contribute to a weak financial position in terms of income generation.

Balance Sheet

The balance sheet shows a moderately leveraged position. The debt-to-equity ratio is approximately 1.10 in TTM, indicating some reliance on debt for financing. However, the equity ratio is reasonable at 38.3%. Return on equity is negative due to persistent losses, impacting shareholder value. Despite these issues, the company maintains a stable asset base, which provides some balance sheet strength.

Cash Flow

The cash flow statement shows some positive trends, with operating cash flow improving to $1 billion in TTM, reflecting better cash generation capabilities. Free cash flow has also increased to $869 million in TTM. The operating cash flow to net income ratio is positive, indicating that cash generation is better than reported earnings. However, the free cash flow to net income ratio is impacted by negative net income, limiting the overall score.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.34B	4.37B	4.50B	4.58B	4.53B	3.24B
Gross Profit	2.88B	2.86B	2.74B	2.97B	3.15B	2.20B
EBITDA	-465.00M	-725.00M	-608.00M	-3.92B	747.00M	767.00M
Net Income	-965.00M	-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	1.24B	1.22B	1.05B	2.04B	1.34B	3.47B
Total Debt	2.61B	2.62B	2.26B	3.48B	2.47B	1.85B
Total Liabilities	3.81B	3.93B	4.37B	5.65B	4.48B	2.89B
Stockholders Equity	2.37B	2.37B	5.75B	6.60B	10.74B	4.69B
Cash Flow
Free Cash Flow	869.00M	709.00M	282.00M	-74.00M	337.00M	891.00M
Operating Cash Flow	1.00B	837.00M	478.00M	392.00M	545.00M	1.08B
Investing Cash Flow	-193.00M	-178.00M	-231.00M	-591.00M	-1.07B	-554.00M
Financing Cash Flow	-800.00M	-570.00M	-1.21B	1.00B	-51.00M	-766.00M

Illumina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 100.34 is above the 20-day moving average (MA) of 90.12, above the 50-day MA of 83.74, and below the 200-day MA of 112.01, indicating a neutral trend. The MACD of 4.00 indicates Negative momentum. The RSI at 79.96 is Negative, neither overbought nor oversold. The STOCH value of 86.73 is Negative, 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
IDXX	82 Outperform	$43.65B	50.15	59.33%	―	5.56%	4.66%
A	79 Outperform	$34.22B	29.71	18.88%	0.82%	0.56%	-4.08%
IQV	77 Outperform	$28.48B	22.44	21.65%	―	2.84%	-0.16%
TMO	73 Outperform	$159.10B	24.73	13.73%	0.40%	0.96%	9.19%
DHR	72 Outperform	$144.92B	39.26	7.22%	0.63%	-9.19%	-12.75%
ILMN	54 Neutral	$15.88B	―	-23.82%	―	-3.47%	25.55%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%

Illumina Corporate Events

Illumina Acquires SomaLogic to Boost Proteomics

On June 22, 2025, Illumina entered into a definitive agreement to acquire SomaLogic and other assets from Standard BioTools for $350 million in cash, with additional performance-based milestones and royalties. This acquisition aims to enhance Illumina’s presence in the expanding proteomics market and advance its multiomics strategy, building on a co-development partnership with SomaLogic since 2021. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary conditions, and is anticipated to be profitable by 2027.

The most recent analyst rating on (ILMN) stock is a Buy with a $180.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.

Illumina Approves Key Proposals at Annual Meeting

On May 21, 2025, Illumina, Inc. held its annual meeting of stockholders where several key proposals were approved. These included the election of eleven directors to the board, the ratification of Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 28, 2025, the approval of executive compensation, and the amendment of the 2015 Stock and Incentive Plan. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (ILMN) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.