Illumina (ILMN)
NASDAQ:ILMN
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Illumina
(NASDAQ:ILMN)
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Rating:70Outperform
Price Target:
$139.00
▲(3.35% Upside)
Action:UpgradedDate:05/01/26
The score is driven primarily by improved financial performance (strong cash flow and margin recovery) and a positive earnings update with raised guidance and execution on NovaSeq X. These are tempered by muted revenue growth/volatility, a mixed technical picture, and a valuation that is reasonable but not clearly cheap (with no dividend support).
Positive Factors
Strong free cash flow
Illumina's robust TTM operating cash flow (~$1.13B) and free cash flow (~$0.99B) create durable financial flexibility. High FCF funds R&D, manufacturing scale for NovaSeq X, opportunistic M&A and the substantial buyback program, helping the company weather cyclical demand swings.
Negative Factors
Multi‑year flat revenue
Despite margin gains, Illumina's revenue growth has been muted multi‑year, leaving the company reliant on mix and efficiency to drive profits. Persistent top‑line stagnation constrains long‑term earnings upside and makes results sensitive to sector funding cycles and adoption timing for new platforms.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Illumina's robust TTM operating cash flow (~$1.13B) and free cash flow (~$0.99B) create durable financial flexibility. High FCF funds R&D, manufacturing scale for NovaSeq X, opportunistic M&A and the substantial buyback program, helping the company weather cyclical demand swings.
Read all positive factors
Illumina (ILMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.25B
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)34.5
Beta (1Y)1.24
Revenue Growth1.25%
EPS GrowthN/A
CountryUS
Employees8,970
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)1.15
Shares Outstanding151,906,920
10 Day Avg. Volume1,461,192
30 Day Avg. Volume1,422,964
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 Cap1.01
Enterprise Value/Revenue4.42
Enterprise Value/Gross Profit6.59
Enterprise Value/Ebitda17.32
Forecast
1Y Price Target
$144.90Price Target Upside7.73% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)5.12
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a clear beat in Q1 with multiple key operational and financial positives: revenue and EPS outperformance, strong clinical consumables growth (~20% ex-China), robust NovaSeq X placements (80+ in the quarter), margin expansion, and an upwardly revised full-year guide. Offsetting items include continued weakness in research & applied consumables (down ~12% ex-China), a 20% decline in microarrays RoW organic, supply constraints on NovaSeq X that require scaling investments, and near-term inflationary pressures impacting Q2 margins. Management framed the negatives as transitory or manageable and emphasized product innovation, strong cash flow, and progress toward 2027 targets.Positive Updates
Top-Line Beat and Raised Full-Year Guidance
Q1 revenue of $1.09 billion, up 4.8% year-over-year (1.2% organic); came in $20 million above the midpoint of guidance. Company raised 2026 revenue guidance by $20 million to $4.52B–$4.62B and nudged EPS and margin guidance higher.
Negative Updates
Research & Applied Consumables Weakness
Sequencing consumables in research and applied declined 12% ex-China in Q1, and company maintains guidance that research & applied will be down mid- to high-single digits for the year due to funding uncertainty and cautious spend patterns.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Beat and Raised Full-Year Guidance
Q1 revenue of $1.09 billion, up 4.8% year-over-year (1.2% organic); came in $20 million above the midpoint of guidance. Company raised 2026 revenue guidance by $20 million to $4.52B–$4.62B and nudged EPS and margin guidance higher.
Read all positive updates
Company Guidance
Illumina raised its 2026 outlook, increasing reported revenue to $4.52–$4.62B (up $20M), with acquired revenue expected to add 1.5–2 points and currency ~1%, and guiding Rest‑of‑World organic growth toward the high end of its prior 2–4% range. Management expects RoW organic sequencing consumables to grow low‑ to‑mid single digits (clinical double‑digit to mid‑teens; research & applied down mid‑ to‑high single digits), raised instruments guidance to flat‑to‑low‑single‑digit growth, and provided Q2 guidance of $1.12–$1.14B revenue, RoW organic +4–6%, and non‑GAAP EPS $1.20–$1.25. Profitability was lifted: full‑year non‑GAAP operating margin now 23.4–23.6% (Q2 ~22%), non‑GAAP diluted EPS $5.15–$5.30 (top and bottom raised $0.10; Q1 non‑GAAP EPS was $1.15 on $1.09B revenue), with management expecting ~350 bps margin expansion by end‑2026 excluding acquisitions (on the path to a 500 bps target by 2027). Operationally, Illumina placed >80 NovaSeq X units in Q1 (82% of volumes and 55% of revenue transitioned to X; 90% of research volume on X; 76% of clinical volume on X, targeting 80–85% by year‑end), reported sequencing GB output >30% YoY, Q1 free cash flow $251M, cash ≈$1.16B, gross leverage ≈1.5x, closed SomaLogic for ~$363M, and authorized an additional $1.5B of buybacks.Illumina Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.39B | 4.34B | 4.37B | 4.50B | 4.58B | 4.53B |
| Gross Profit | 2.95B | 2.89B | 2.86B | 2.74B | 2.97B | 3.15B |
| EBITDA | 1.12B | 1.13B | -725.00M | -608.00M | -3.92B | 1.20B |
| Net Income | 853.00M | 850.00M | -1.22B | -1.16B | -4.40B | 762.00M |
Balance Sheet | ||||||
| Total Assets | 6.56B | 6.64B | 6.30B | 10.11B | 12.25B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 1.63B | 1.22B | 1.05B | 2.04B | 1.34B |
| Total Debt | 2.46B | 2.55B | 2.62B | 2.26B | 3.56B | 2.54B |
| Total Liabilities | 3.53B | 3.92B | 3.93B | 4.37B | 5.65B | 4.48B |
| Stockholders Equity | 3.03B | 2.72B | 2.37B | 5.75B | 6.60B | 10.74B |
Cash Flow | ||||||
| Free Cash Flow | 989.00M | 931.00M | 709.00M | 282.00M | 106.00M | 337.00M |
| Operating Cash Flow | 1.13B | 1.08B | 837.00M | 478.00M | 392.00M | 545.00M |
| Investing Cash Flow | -358.00M | -55.00M | -178.00M | -231.00M | -591.00M | -1.07B |
| Financing Cash Flow | -800.00M | -744.00M | -570.00M | -1.21B | 1.00B | -51.00M |
Illumina Technical Analysis
Positive
134.50
Price Trends
123.99
Positive
130.98
Positive
116.55
Positive
Market Momentum
1.79
Negative
62.08
Neutral
94.02
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 134.5 is above the 20-day moving average (MA) of 126.20, above the 50-day MA of 123.99, and above the 200-day MA of 116.55, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 94.02 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $19.25B | 34.48 | 34.94% | ― | 1.25% | ― | |
69 Neutral | $126.66B | 31.22 | 7.06% | 0.53% | 4.02% | 0.05% | |
67 Neutral | $177.99B | 26.66 | 13.26% | 0.30% | 5.36% | 6.54% | |
66 Neutral | $32.65B | 31.05 | 19.73% | 0.72% | 8.14% | 4.17% | |
65 Neutral | $7.13B | 23.17 | 11.85% | 3.31% | 5.65% | 411.58% | |
63 Neutral | $26.88B | 28.49 | 22.28% | ― | 5.84% | 4.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ILMN
Illumina
135.78
57.90
74.35%
A
Agilent
114.52
6.77
6.29%
DHR
Danaher
175.15
-22.54
-11.40%
QGEN
Qiagen
34.25
-8.73
-20.31%
TMO
Thermo Fisher
469.21
47.21
11.19%
IQV
IQVIA Holdings
157.77
4.29
2.80%
Illumina Corporate Events
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 ...
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 ...
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.