Illumina (ILMN) AI Stock Analysis

• Market Cap: $22.28B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.27
• 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: 1,275,190
• 30 Day Avg. Volume: 1,459,545
• 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: 0.69
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 11.91
• 1Y Price Target: $124.12
• Price Target Upside: -14.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $163.00 ▲(11.77% Upside)

ILMN scores well on recovering fundamentals and a strong technical uptrend, supported by an earnings call with upside execution and raised outlook driven by clinical/NovaSeq X momentum. The score is held back by weaker cash-flow trends, higher leverage risk, and a relatively expensive valuation, with some added execution uncertainty from recent leadership shifts.

Positive Factors

NovaSeq X Platform Adoption

Successful NovaSeq X adoption reflects durable platform-led competitiveness: higher-throughput systems drive stronger consumables attach rates and recurring revenue. That sustained volume shift supports long-term margin expansion, lifecycle-driven demand, and reinforced leadership in high-throughput sequencing.

Clinical Consumables Momentum

Consistent high-single-digit growth in clinical consumables signals resilient demand in diagnostics versus cyclical research markets. Clinical adoption creates recurring, higher-visibility revenue streams, improves customer stickiness, and broadens the addressable market for precision medicine over the next several quarters.

Multiomics Expansion and M&A

Moving into multiomics and acquiring SomaLogic diversifies Illumina beyond sequencing into protein and integrated multiomic services. This strategic expansion strengthens product breadth, creates cross-sell opportunities with clinical customers, and builds a more resilient, service-oriented revenue profile over time.

Negative Factors

Weakening Cash Generation

A decline in free cash flow growth and only moderate cash conversion indicate cash generation lags reported earnings. That limits internal funding for capex, integration, or debt paydown, increasing reliance on external financing and reducing operational flexibility over the medium term.

Rising Leverage from Notes Issuance

Issuing $500M of notes amid a TTM debt-to-equity around 1.05 raises financial leverage. Higher debt increases interest and refinancing burdens, tightening liquidity cushions and making the firm more sensitive to cash-flow volatility during integration or cyclical soft patches.

China Export Restrictions

Ongoing export restrictions in China present a structural market-access risk for a major region. Prolonged limitations can cap revenue recovery in APAC, complicate customer relationships and supply chains, and sustain regulatory uncertainty that hinders long-term adoption in that market.

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 applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. The company provides instruments and consumables used in genetic analysis; and genotyping and sequencing services, instrument service contracts, and development and licensing agreements, as well as cancer detection testing services. Its customers include genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers in North America, Europe, Latin America, and the Asia-Pacific region, as well as sells through life-science distributors in various markets within Europe, the Asia-Pacific region, Latin America, the Middle East, and Africa. The company was incorporated in 1998 and is based in San Diego, California.

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: 145.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 145.83 is above the 20-day moving average (MA) of 136.44, above the 50-day MA of 127.52, and above the 200-day MA of 100.12, indicating a bullish trend. The MACD of 4.96 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.55 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
QGEN	77 Outperform	$9.99B	24.75	11.29%	3.31%	5.32%	336.29%
DHR	75 Outperform	$165.99B	49.06	6.84%	0.53%	2.22%	-7.60%
A	73 Outperform	$41.32B	32.49	20.62%	0.72%	6.73%	3.34%
IQV	73 Outperform	$41.42B	33.39	19.55%	―	3.85%	-4.74%
TMO	72 Outperform	$227.87B	35.76	13.14%	0.30%	3.22%	8.26%
ILMN	67 Neutral	$22.28B	32.67	31.20%	―	-2.39%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Illumina Corporate Events

Illumina appoints new chief medical officer amid leadership shifts

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, reporting to the CEO and serving on the executive leadership team to help advance the clinical use of genomics, expand access to precision medicine, and increase diversity in genomic data. The company also disclosed that Chief Commercial Officer Everett Cunningham notified Illumina on January 4, 2026, that he will resign effective January 16, 2026, to become CEO of a life science tools company, with CEO Jacob Thaysen assuming the CCO responsibilities on an interim basis, signaling a significant reshaping of Illumina’s top leadership at a pivotal time for its medical and commercial strategy.

The most recent analyst rating on (ILMN) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.

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.

The most recent analyst rating on (ILMN) stock is a Buy with a $195.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.

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.

The most recent analyst rating on (ILMN) stock is a Buy with a $195.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.