Illumina (ILMN) AI Stock Analysis

• Market Cap: $18.79B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.28
• Revenue Growth: -2.39%
• EPS Growth: N/A
• Country: US
• Employees: 8,970
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.35
• Shares Outstanding: 152,900,000
• 10 Day Avg. Volume: 2,178,068
• 30 Day Avg. Volume: 2,195,964
• PEG Ratio: -0.14
• Price to Book (P/B): 7.56
• Price to Sales (P/S): 4.74
• P/FCF Ratio: 22.10
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 4.55
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 13.57
• 1Y Price Target: $129.81
• Price Target Upside: 5.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $125.00 ▲(1.71% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score reflects improving fundamentals (profitability rebound and strong free cash flow) and constructive 2026 outlook from management, tempered by weak technical momentum, elevated leverage, and notable near-term risks from China weakness, research-market softness, tariffs, and SomaLogic dilution.

Positive Factors

Strong cash generation

Illumina's TTM operating cash flow and near-$1B free cash flow signal durable cash conversion that funds R&D, strategic M&A and buybacks without immediate equity issuance. Reliable FCF provides flexibility to invest in multiomics, repay debt, and sustain operations through cyclical research demand shifts.

Sustained margin expansion and profitability rebound

Material margin expansion and return to positive operating profit reflect structural cost discipline and operating leverage. Management's 2026 margin guidance (~23.3–23.5%) implies margins are resilient, enabling reinvestment in products and multiomics while providing earnings durability even if top-line growth moderates.

Strategic multiomics expansion

Acquiring SomaLogic and integrating proteomics expands Illumina's addressable market into proteomics and multiomics, strengthening product breadth. Coupled with BioInsight and early pharma collaborations, this creates structural diversification toward recurring data/AI and drug-discovery revenue beyond cyclical research consumables.

Negative Factors

Elevated leverage

Debt roughly matching equity raises financial sensitivity: higher fixed obligations reduce flexibility to absorb downcycles or fund large strategic bets. Equity has declined materially since 2022–2023, so adverse growth or margin shocks could force tougher funding choices or constrain share repurchases and M&A pacing.

Greater China export restrictions and weakness

Export controls and China weakness are a structural risk: a one-point company revenue headwind and large instrument declines reduce the installed base growth that drives consumables. Prolonged restrictions could meaningfully undercut global placements and recurring consumables revenue for multiple quarters.

Muted research market and lumpy commercial timing

A sustained downturn in academic/research spend reduces demand for consumables historically central to Illumina's revenue. Combined with lumpy partnerships and instrument timing, this increases revenue volatility and heightens execution risk for targets like NovaSeq X placements and consistent consumables growth.

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

TTM results show a meaningful profitability and margin rebound with strong free cash flow conversion, but the recovery follows large 2023–2024 losses and the balance sheet carries elevated leverage (debt roughly matching equity), increasing sensitivity if growth or margins soften.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear profitability rebound (positive operating profit and ~$0.85B net income) with strong gross profitability (~66%) and solid operating profitability (~24%). Revenue growth is strong in TTM, but the prior two annual periods (2023–2024) were marked by steep operating losses and negative net margins, highlighting meaningful earnings volatility and execution risk if growth normalizes.

Balance Sheet

Leverage is elevated, with debt roughly matching equity in TTM (debt-to-equity ~1.08), which reduces flexibility versus earlier years when leverage was notably lower. Equity has also declined materially since 2022–2023, increasing balance-sheet sensitivity. Offsetting this, TTM profitability drives a strong return on equity (~30%), suggesting the balance sheet is currently supporting improved earnings power—but the higher leverage level remains a key risk.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow is solid (~$1.08B) and free cash flow is high (~$0.94B), with free cash flow closely tracking net income (~0.90x), indicating earnings are converting well into cash. However, free cash flow growth is negative in TTM, and cash-flow coverage remains moderate (operating cash flow is well below 2x of the referenced burden), suggesting less cushion if profitability softens.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.34B	4.37B	4.50B	4.58B	4.53B
Gross Profit	2.89B	2.86B	2.74B	2.97B	3.15B
EBITDA	1.46B	-725.00M	-608.00M	-3.92B	1.20B
Net Income	850.00M	-1.22B	-1.16B	-4.40B	762.00M
Balance Sheet
Total Assets	6.64B	6.30B	10.11B	12.25B	15.22B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.22B	1.05B	2.04B	1.34B
Total Debt	2.55B	2.62B	2.26B	3.56B	2.54B
Total Liabilities	3.92B	3.93B	4.37B	5.65B	4.48B
Stockholders Equity	2.72B	2.37B	5.75B	6.60B	10.74B
Cash Flow
Free Cash Flow	931.00M	709.00M	282.00M	106.00M	337.00M
Operating Cash Flow	1.08B	837.00M	478.00M	392.00M	545.00M
Investing Cash Flow	-55.00M	-178.00M	-231.00M	-591.00M	-1.07B
Financing Cash Flow	-744.00M	-570.00M	-1.21B	1.00B	-51.00M

Illumina Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 122.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ILMN, the sentiment is Neutral. The current price of 122.9 is below the 20-day moving average (MA) of 128.12, below the 50-day MA of 135.55, and above the 200-day MA of 109.15, indicating a neutral trend. The MACD of -5.69 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ILMN.

Illumina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	73 Outperform	$35.19B	27.17	20.62%	0.72%	6.73%	3.34%
QGEN	72 Outperform	$10.03B	23.22	11.57%	3.31%	5.32%	336.29%
DHR	67 Neutral	$147.76B	41.77	7.05%	0.53%	2.90%	-4.81%
TMO	61 Neutral	$193.72B	29.11	13.04%	0.30%	3.91%	7.09%
ILMN	59 Neutral	$18.79B	22.49	33.36%	―	-2.39%	―
IQV	59 Neutral	$27.98B	20.98	21.64%	―	3.85%	-4.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Illumina Corporate Events

Illumina Completes SomaLogic Acquisition, Expands Proteomics Capabilities

On January 30, 2026, Illumina completed its previously announced acquisition of SomaLogic and related aptamer-based and functional proteomics assets from Standard BioTools for $350 million in cash at closing, plus up to $75 million in performance-based milestone payments and royalties funded from cash on hand. The deal folds SomaLogic’s SomaScan proteomics assay, SomaSignal tests and other proteomics technologies into Illumina’s next-generation sequencing ecosystem, including DRAGEN software and Illumina Connected Multiomics, significantly deepening its capabilities in proteomics and multiomics and positioning the company for growth in the expanding proteomics market while committing to continuity of service and support for existing SomaLogic customers and partners.

The most recent analyst rating on (ILMN) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Illumina stock, see the ILMN Stock Forecast page.

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.