Illumina (ILMN) AI Stock Analysis

• Market Cap: $15.38B
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.36
• Revenue Growth: -3.32%
• EPS Growth: N/A
• Country: US
• Employees: 8,970
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.19
• Shares Outstanding: 153,700,000
• 10 Day Avg. Volume: 2,252,250
• 30 Day Avg. Volume: 2,137,572
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 10.22
• 1Y Price Target: $112.95
• Price Target Upside: 12.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 70 Neutral
• Price Target: $111.00 ▲(10.90% Upside)

Illumina's overall stock score reflects a positive outlook driven by strong earnings call guidance and technical indicators. Financial performance shows recovery, though revenue challenges remain. The valuation suggests potential for growth, making it an attractive investment despite some macroeconomic risks.

Positive Factors

Clinical Adoption

Clinical now accounts for 53% of the total shipped, indicating growing clinical adoption.

Financial Performance

Illumina reported 2Q25 sales at the higher end of guidance and ahead of expectations.

Negative Factors

Competitive Landscape

The slightly slower-than-expected NovaSeq X transition, coupled with an evolving competitive landscape, could be focal points for investors.

Product Transition

The NovaX transition unexpectedly slowed, affecting future targets.

Illumina Business Overview & Revenue Model

Company Description

Illumina, Inc. (ILMN) is a leading developer and manufacturer of life sciences tools and integrated systems for the analysis of genetic variation and function. Founded in 1998 and headquartered in San Diego, California, Illumina specializes in next-generation sequencing (NGS) technology, genotyping, and microarray solutions. Its products are primarily used in genomics research, clinical applications, and agricultural biotechnology, enabling advancements in personalized medicine, diagnostics, and drug discovery.

How the Company Makes Money

Illumina generates revenue primarily through the sale of its sequencing systems, consumables, and associated software and services. The company's main revenue streams include the sale of instruments, which are often sold at lower margins, and the recurring revenue from consumables, such as reagents and flow cells, which have higher margins. Additionally, Illumina earns revenue from its services, including genomics data analysis and bioinformatics. The company also collaborates with pharmaceutical companies, research institutions, and other organizations, forming partnerships that enhance its technology offerings and expand its market reach. These collaborations often lead to joint research initiatives and further drive demand for Illumina's products. Furthermore, as the healthcare industry increasingly adopts genomics-based solutions, Illumina stands to benefit from the growing market for personalized medicine and genomic testing.

Illumina Financial Statement Overview

Summary

Illumina's financial performance is strained due to negative profitability and declining revenues. Despite a strong gross profit margin, persistent losses and negative EBIT/EBITDA margins highlight operational inefficiencies. The balance sheet shows moderate leverage, while cash flows demonstrate some resilience with improved operating and free cash flow. Strategic improvements in efficiency and revenue growth are needed.

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	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.28B	4.37B	4.50B	4.58B	4.53B	3.24B
Gross Profit	2.85B	2.86B	2.74B	2.97B	3.15B	2.20B
EBITDA	1.60B	-725.00M	-608.00M	-3.92B	747.00M	767.00M
Net Income	1.26B	-1.22B	-1.16B	-4.40B	762.00M	656.00M
Balance Sheet
Total Assets	6.09B	6.30B	10.11B	12.25B	15.22B	7.58B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.22B	1.05B	2.04B	1.34B	3.47B
Total Debt	2.52B	2.62B	2.26B	3.48B	2.47B	1.85B
Total Liabilities	3.48B	3.93B	4.37B	5.65B	4.48B	2.89B
Stockholders Equity	2.61B	2.37B	5.75B	6.60B	10.74B	4.69B
Cash Flow
Free Cash Flow	1.03B	709.00M	282.00M	-74.00M	337.00M	891.00M
Operating Cash Flow	1.15B	837.00M	478.00M	392.00M	545.00M	1.08B
Investing Cash Flow	-201.00M	-178.00M	-231.00M	-591.00M	-1.07B	-554.00M
Financing Cash Flow	-945.00M	-570.00M	-1.21B	1.00B	-51.00M	-766.00M

Illumina Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 100.09 is below the 20-day moving average (MA) of 100.56, above the 50-day MA of 95.96, and below the 200-day MA of 106.38, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 72.01 is Neutral, 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
A	77 Outperform	$33.77B	29.32	18.88%	0.82%	0.56%	-4.08%
IDXX	77 Outperform	$52.32B	54.43	64.87%	―	6.68%	18.84%
TMO	77 Outperform	$183.16B	28.07	13.44%	0.34%	2.05%	7.03%
IQV	72 Outperform	$32.20B	27.43	19.80%	―	3.53%	-10.72%
ILMN	70 Neutral	$15.38B	12.68	68.11%	―	-3.32%	―
DHR	69 Neutral	$147.31B	43.69	6.68%	0.56%	-3.24%	-16.60%
Sector *	60 Neutral	HK$18.14B	5.28	-4.00%	3.33%	10.16%	-17.39%

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.