Illumina (ILMN) AI Stock Analysis

• Market Cap: $15.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.35
• Revenue Growth: -3.32%
• EPS Growth: N/A
• Country: US
• Employees: 8,970
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.19
• Shares Outstanding: 153,700,000
• 10 Day Avg. Volume: 1,369,834
• 30 Day Avg. Volume: 1,849,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 9.15
• 1Y Price Target: $112.53
• Price Target Upside: 15.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 64 Neutral
• Price Target: $105.00 ▲(7.49% Upside)

Illumina's overall stock score reflects a balanced outlook with significant strengths in financial performance and valuation. The company's strong cash flow management and reasonable valuation are key strengths. However, technical indicators and mixed earnings call sentiment highlight ongoing challenges, particularly in the research market and geopolitical constraints in China.

Positive Factors

Clinical Adoption

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

Financial Performance

Margins significantly exceeded expectations despite the impact of tariffs.

Sales and Guidance

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

Negative Factors

Pricing and Market Position

The updated price objective of $75 reflects skepticism about the company's current performance.

Product Transition

The NovaX transition unexpectedly slowed, affecting future targets.

Research Market

The research end market remained muted on budget constraints.

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 shows a mixed financial performance with signs of recovery. The income statement highlights improved profitability margins, although revenue has faced challenges. The balance sheet is stable, with balanced leverage, though the equity position has weakened. Cash flows are strong, reflecting effective cash management and operational recovery. Continued focus on revenue growth and maintaining profitability will be key for future financial success.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 66.55%, indicating efficient cost management relative to revenue. However, the net profit margin has fluctuated significantly, with recent TTM data showing a recovery to 29.37% from negative margins in prior years. Revenue has declined compared to previous periods, suggesting challenges in sustaining growth. The EBIT and EBITDA margins have improved in the TTM period, showing signs of operational recovery.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.97 in the TTM period, indicating a balanced leverage position. The return on equity has improved significantly to 48.27% in the TTM, driven by a positive net income. However, the equity ratio has decreased over time, reaching 42.82% in the TTM, suggesting a decrease in equity relative to total assets.

Cash Flow

The cash flow statement shows a robust recovery in free cash flow, with a strong growth rate of 45.42% from the previous period. The operating cash flow to net income ratio is favorable at 0.92 in the TTM, indicating effective cash generation from operations. Additionally, free cash flow to net income ratio is high at 0.82, suggesting efficient cash management. Overall, cash flows are well-managed, supporting financial flexibility.

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	1.78B	-725.00M	-608.00M	-3.92B	1.20B	1.09B
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	3.56B	2.54B	1.91B
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: Negative
• Last Price: 97.68
• 50DMA: Negative
• 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 Negative. The current price of 97.68 is below the 20-day moving average (MA) of 98.81, below the 50-day MA of 99.29, and below the 200-day MA of 102.91, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ILMN.

Illumina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQV	79 Outperform	$31.24B	26.74	19.80%	―	3.53%	-10.72%
A	79 Outperform	$35.50B	29.36	19.88%	0.76%	4.48%	-11.52%
TMO	78 Outperform	$184.10B	28.22	13.44%	0.34%	2.05%	7.03%
QGEN	70 Outperform	$10.16B	27.46	10.81%	2.68%	5.15%	412.41%
DHR	69 Neutral	$145.92B	43.28	6.68%	0.59%	-3.24%	-16.60%
ILMN	64 Neutral	$15.03B	12.17	68.11%	―	-3.32%	―
Sector *	51 Neutral	$7.91B	-0.36	-41.70%	2.23%	23.45%	-1.86%

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.