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Illumina
(NASDAQ:ILMN)
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Rating:75Outperform
Price Target:
$231.00
▲(19.02% Upside)
Action:Reiterated
Date:07/31/26
ILMN scores well on earnings momentum and outlook (raised 2026 guidance, strong NovaSeq X placements, and margin expansion expectations) and is supported by a clear multi-timeframe uptrend in the stock price. The score is held back by only moderate financial-statement stability (historical earnings volatility, moderate leverage, and softer recent FCF growth) and a less attractive valuation profile with a P/E around 34.8 and no dividend support.
Positive Factors
Recurring consumables (razor-and-blades)
Illumina’s consumables-led model creates durable, recurring revenue once customers adopt its sequencing platforms. Installed-base pull-through aligns customer usage with ongoing reagent purchases, supporting predictable revenue, high gross margins and long-term cash flow visibility tied to sequencing volumes.
Negative Factors
Moderate-to-elevated leverage
Leverage near 1x equity limits financial flexibility if headwinds re-emerge. In downturns higher interest or constrained cash flows could force tougher capital-allocation trade-offs, reduce capacity for opportunistic M&A or R&D, and increase vulnerability to working-capital swings tied to instrument cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables (razor-and-blades)
Illumina’s consumables-led model creates durable, recurring revenue once customers adopt its sequencing platforms. Installed-base pull-through aligns customer usage with ongoing reagent purchases, supporting predictable revenue, high gross margins and long-term cash flow visibility tied to sequencing volumes.
Read all positive factors
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.
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The Fly
The FlyIllumina (ILMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.03B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)37.9
Beta (1Y)1.24
Revenue Growth4.97%
EPS Growth-31.78%
CountryUS
Employees8,600
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)5.41
Shares Outstanding151,300,000
10 Day Avg. Volume1,430,344
30 Day Avg. Volume1,800,596
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)7.65
Price to Sales (P/S)4.81
P/FCF Ratio22.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$192.93Price Target Upside-0.60% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.23
Revenue Forecast (FY)$4.57B
Illumina Business Overview & Revenue Model
Company Description
Illumina, Inc. specializes in delivering advanced genetic and genomic analysis tools, primarily through sequencing and array technologies. The company's offerings empower clients across various sectors to integrate genomic insights into both resea...
How the Company Makes Money
Illumina primarily makes money by selling (1) consumables used on its sequencing and array platforms, (2) instruments (sequencing systems and array scanners), and (3) software/informatics and services. Consumables are the core recurring revenue dr...
Illumina Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Illumina delivered a quarter with strong top-line beats, materially higher instrument placements (especially NovaSeq X), margin outperformance, raised full-year guidance and strengthened multi-omics and BioInsight momentum (Billion Cell Atlas revenue and partners). Headwinds remain—memory and freight costs, inventory/tax timing impacts, and continued weakness in research consumables and some regions—but management has absorbed costs, secured supply, and raised guidance while reaffirming long-term targets. The positive operational and financial beats and the upgraded outlook outweigh the listed challenges.Positive Updates
Revenue Beat and Growth
Q2 revenue of $1.16B, up 9.5% year-over-year reported and ~6.5% organic; Rest-of-World organic revenue growth of 8.1%. Management called this the fastest revenue growth since the CEO joined.
Negative Updates
Research & Applied Consumables Weakness
Research and applied sequencing consumables declined ~7% Rest-of-World year-to-date; management still expects mid- to high-single-digit declines for research consumables in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Growth
Q2 revenue of $1.16B, up 9.5% year-over-year reported and ~6.5% organic; Rest-of-World organic revenue growth of 8.1%. Management called this the fastest revenue growth since the CEO joined.
Read all positive updates
Company Guidance
Following a strong Q2 (revenue $1.16B; rest‑of‑world organic growth 8.1%; non‑GAAP gross margin 68.2%; non‑GAAP operating margin 22.5%; non‑GAAP EPS $1.31), Illumina raised its 2026 outlook: full‑year rest‑of‑world organic revenue growth is now guided greater than 5% (up from 2–4%), reported revenue guidance was increased by $50M at the midpoint to $4.60–4.64B, and sequencing consumables rest‑of‑world organic is expected to grow mid‑single‑digits with clinical consumables up mid‑teens and research/applied consumables down mid‑to‑high single‑digits; sequencing instruments are now expected to grow low‑single‑digits rest‑of‑world organic. The company maintained non‑GAAP operating margin guidance of 23.4%–23.6% and raised full‑year diluted non‑GAAP EPS to $5.30–$5.40 (up $0.12 at the midpoint; ~11% y/y at midpoint, ~14% ex‑acquisitions). For Q3, management expects ~4.5% rest‑of‑world organic growth, reported revenue of $1.14–1.16B, non‑GAAP EPS $1.33–1.38 and ~24% operating margin (≈150 bps sequential expansion). Management reiterated that elevated NovaSeq X placements (Q2 placements >95) and an expanding X installed base (≈78% of clinical volume on X, ~83% of volumes and 59% of revenue transitioned overall; clinical conversion target ~80–85% by year‑end) will drive consumables pull‑through into 2027 and support the path to high‑single‑digit revenue growth next year.Illumina Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49B | 4.34B | 4.37B | 4.50B | 4.58B | 4.53B |
| Gross Profit | 3.00B | 2.89B | 2.86B | 2.74B | 2.97B | 3.15B |
| EBITDA | 1.36B | 1.46B | -725.00M | -608.00M | -3.92B | 1.20B |
| Net Income | 825.00M | 850.00M | -1.22B | -1.16B | -4.40B | 762.00M |
Balance Sheet | ||||||
| Total Assets | 6.65B | 6.64B | 6.30B | 10.11B | 12.25B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.63B | 1.22B | 1.05B | 2.04B | 1.34B |
| Total Debt | 2.53B | 2.55B | 2.62B | 2.26B | 3.56B | 2.54B |
| Total Liabilities | 3.81B | 3.92B | 3.93B | 4.37B | 5.65B | 4.48B |
| Stockholders Equity | 2.84B | 2.72B | 2.37B | 5.75B | 6.60B | 10.74B |
Cash Flow | ||||||
| Free Cash Flow | 939.00M | 931.00M | 709.00M | 282.00M | 106.00M | 337.00M |
| Operating Cash Flow | 1.09B | 1.08B | 837.00M | 478.00M | 392.00M | 545.00M |
| Investing Cash Flow | -431.00M | -55.00M | -178.00M | -231.00M | -591.00M | -1.07B |
| Financing Cash Flow | -558.00M | -744.00M | -570.00M | -1.21B | 1.00B | -51.00M |
Illumina Technical Analysis
Positive
194.09
Price Trends
176.55
Positive
153.30
Positive
140.22
Positive
Market Momentum
6.72
Negative
59.27
Neutral
83.26
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 194.09 is above the 20-day moving average (MA) of 192.67, above the 50-day MA of 176.55, and above the 200-day MA of 140.22, indicating a bullish trend. The MACD of 6.72 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 83.26 is Negative, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $213.42B | 30.84 | 13.35% | 0.32% | 7.23% | 7.47% | |
75 Outperform | $31.03B | 37.91 | 31.08% | ― | 4.97% | -31.78% | |
74 Outperform | $8.53B | 21.90 | 11.28% | 6.38% | 4.79% | 333.61% | |
74 Outperform | $38.68B | 28.91 | 21.95% | ― | 8.22% | 16.68% | |
72 Outperform | $137.07B | 34.53 | 7.66% | 0.75% | 4.56% | 19.34% | |
71 Outperform | $39.08B | 27.73 | 20.84% | 0.59% | 9.11% | 22.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ILMN
Illumina
198.16
99.72
101.30%
A
Agilent
139.80
25.88
22.71%
DHR
Danaher
197.50
1.49
0.76%
QGEN
Qiagen
42.33
-7.55
-15.14%
TMO
Thermo Fisher
574.03
109.15
23.48%
IQV
IQVIA Holdings
233.36
50.61
27.69%
Illumina Corporate Events
Business Operations and StrategyExecutive/Board Changes
Illumina Adds Eli Lilly Executive to Board
Positive
Jun 23, 2026
On June 16, 2026, Illumina expanded its Board of Directors from nine to ten members and appointed Daniel M. Skovronsky, M.D., Ph.D., as an independent director, with the move announced on June 23, 2026. Skovronsky, Eli Lilly’s Chief Scientif...
Executive/Board ChangesShareholder Meetings
Illumina Shareholders Back Board, Auditor and Executive Pay
Positive
May 26, 2026
Illumina held its 2026 annual meeting of stockholders on May 21, 2026, where shareholders elected nine nominees, including Chief Executive Jacob Thaysen and several incumbent and independent directors, to serve one-year terms on the board through ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Illumina lifts 2026 outlook and expands share buybacks
Positive
Apr 30, 2026
In the first quarter of fiscal 2026, reported on April 30, 2026, Illumina posted revenue of $1.09 billion, up 4.8% year over year, with GAAP operating margin rising to 19.2% and GAAP diluted EPS increasing to $0.87. Strong operating cash flow and ...
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.