Illumina (ILMN) AI Stock Analysis

• Market Cap: $22.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.24
• 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: 1,947,934
• 30 Day Avg. Volume: 1,570,027
• 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: 1.07
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: 18.26
• 1Y Price Target: $131.86
• Price Target Upside: -8.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $163.00 ▲(12.56% Upside)

The score is driven by solid momentum and a positive fundamental trajectory supported by an earnings-guidance raise and strong clinical/NovaSeq X execution. Offsetting factors include meaningful leverage and mixed cash-flow trends, plus a premium valuation (P/E 33.5) and ongoing risks in research demand and China.

Positive Factors

NovaSeq X transition & clinical consumables

Rapid adoption of NovaSeq X increases throughput and shifts a large share of sequencing volume to a newer platform, strengthening consumables attach rates and recurring revenue. Over months this supports higher utilization, more predictable consumable sales, and a durable competitive moat in high‑throughput genomics.

Acquisition expands multiomics capabilities

SomaLogic adds aptamer‑based proteomics and SomaScan assays to Illumina's sequencing and DRAGEN ecosystem, enabling integrated multiomics offerings. This diversification supports cross‑sell into clinical and pharma partnerships, broadening long‑term addressable market and reducing single‑product exposure.

Reimbursement for TSO Comprehensive

CMS reimbursement materially increases clinical access and demand for an FDA‑approved comprehensive genomic profiling test. Durable reimbursement pathways translate into steady test volumes, predictable revenue for clinical consumables and services, and stronger commercial adoption across labs of all sizes.

Negative Factors

Elevated leverage on balance sheet

A D/E around 1.05 and a declining equity ratio indicate meaningful leverage that reduces financial flexibility. Over 2–6 months this raises interest and refinancing risk, limits capital allocation optionality for R&D or M&A, and heightens vulnerability if research funding or consumable demand softens.

Mixed cash generation and declining FCF growth

Declining FCF growth and moderate OCF/NI conversion suggest the firm is less efficient at converting profits into cash. Persisting cash conversion headwinds can constrain reinvestment in product development, margin expansion initiatives, and debt repayment capacity, pressuring long‑term operational flexibility.

China export restrictions and tariff pressure

Ongoing export restrictions in China and tariff impacts that shaved ~220bps off gross margin represent structural geopolitical and trade risks. Over months these can cap growth in a key market, raise cost of goods sold, and complicate supply chains, pressuring margin sustainability and global commercial execution.

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

Income statement reflects a meaningful recovery (TTM revenue growth 12.6% and net margin 16.39% with strong gross margin), but balance-sheet leverage is notable (D/E 1.05 and declining equity ratio) and cash generation is mixed (FCF growth -4.45% and moderate cash conversion with OCF/NI at 0.57).

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: 144.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 144.81 is below the 20-day moving average (MA) of 146.83, above the 50-day MA of 136.99, and above the 200-day MA of 105.38, indicating a neutral trend. The MACD of 3.97 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 60.01 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	73 Outperform	$37.86B	29.28	20.62%	0.72%	6.73%	3.34%
QGEN	73 Outperform	$11.10B	27.50	11.29%	3.31%	5.32%	336.29%
IQV	73 Outperform	$39.19B	31.60	19.55%	―	3.85%	-4.74%
ILMN	68 Neutral	$22.13B	32.44	31.20%	―	-2.39%	―
DHR	67 Neutral	$154.61B	43.34	7.05%	0.53%	2.90%	-4.81%
TMO	66 Neutral	$217.39B	32.62	13.04%	0.30%	3.91%	7.09%
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.