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Illumina
(NASDAQ:ILMN)
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Rating:73Outperform
Price Target:
$310.00
▲(37.88% Upside)
Action:Reiterated
Date:09/18/26
ILMN scores well primarily due to improving financial performance (strong margins and solid free cash flow) and a constructive earnings update that raised full-year guidance. Technicals also support the score with a clear uptrend, though momentum appears stretched (RSI/Stoch elevated). The main offset is valuation (high P/E and no dividend yield provided), which reduces the margin of safety.
Positive Factors
NovaSeq X installed-base expansion supports recurring consumables demand
Continued NovaSeq X placements expand Illumina’s installed base and create a durable opportunity for recurring sequencing-consumables revenue. The growing clinical footprint and expected pull-through into 2027 can improve utilization, deepen customer relationships, and support longer-term revenue visibility.
Negative Factors
Research and applied consumables remain structurally weak
Persistent weakness in research consumables indicates that part of Illumina’s customer base remains constrained, limiting the benefit of stronger clinical demand. If research funding and purchasing remain cautious, lower instrument utilization can reduce recurring consumables revenue and delay a broader recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
NovaSeq X installed-base expansion supports recurring consumables demand
Continued NovaSeq X placements expand Illumina’s installed base and create a durable opportunity for recurring sequencing-consumables revenue. The growing clinical footprint and expected pull-through into 2027 can improve utilization, deepen customer relationships, and support longer-term revenue visibility.
Read all positive factors
Illumina Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyIllumina (ILMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.78B
Dividend YieldN/A
Average Volume (3M)3.57M
Price to Earnings (P/E)51.1
Beta (1Y)1.11
Revenue Growth4.97%
EPS Growth-31.78%
CountryUS
Employees8,600
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)5.41
Shares Outstanding151,000,000
10 Day Avg. Volume2,955,383
30 Day Avg. Volume3,567,900
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)7.65
Price to Sales (P/S)4.81
P/FCF Ratio22.39
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue6.31
Enterprise Value/Gross Profit9.45
Enterprise Value/Ebitda20.82
Forecast
1Y Price Target
$232.93Price Target Upside3.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.35
Revenue Forecast (FY)$4.62B
Illumina Business Overview & Revenue Model
Company Description
Illumina, Inc. specializes in delivering advanced genetic and genomic analysis tools, primarily through sequencing and array technologies. The company's offerings empower clients across various sectors to integrate genomic insights into both resea...
How the Company Makes Money
Illumina primarily makes money by selling NGS sequencing systems and generating recurring revenue from the ongoing use of those systems. A major revenue stream comes from consumables (e.g., sequencing reagents, flow cells, and sample preparation p...
Illumina Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Illumina delivered a quarter with strong top-line beats, materially higher instrument placements (especially NovaSeq X), margin outperformance, raised full-year guidance and strengthened multi-omics and BioInsight momentum (Billion Cell Atlas revenue and partners). Headwinds remain—memory and freight costs, inventory/tax timing impacts, and continued weakness in research consumables and some regions—but management has absorbed costs, secured supply, and raised guidance while reaffirming long-term targets. The positive operational and financial beats and the upgraded outlook outweigh the listed challenges.Positive Updates
Revenue Beat and Growth
Q2 revenue of $1.16B, up 9.5% year-over-year reported and ~6.5% organic; Rest-of-World organic revenue growth of 8.1%. Management called this the fastest revenue growth since the CEO joined.
Negative Updates
Research & Applied Consumables Weakness
Research and applied sequencing consumables declined ~7% Rest-of-World year-to-date; management still expects mid- to high-single-digit declines for research consumables in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Growth
Q2 revenue of $1.16B, up 9.5% year-over-year reported and ~6.5% organic; Rest-of-World organic revenue growth of 8.1%. Management called this the fastest revenue growth since the CEO joined.
Read all positive updates
Company Guidance
Following a strong Q2 (revenue $1.16B; rest‑of‑world organic growth 8.1%; non‑GAAP gross margin 68.2%; non‑GAAP operating margin 22.5%; non‑GAAP EPS $1.31), Illumina raised its 2026 outlook: full‑year rest‑of‑world organic revenue growth is now guided greater than 5% (up from 2–4%), reported revenue guidance was increased by $50M at the midpoint to $4.60–4.64B, and sequencing consumables rest‑of‑world organic is expected to grow mid‑single‑digits with clinical consumables up mid‑teens and research/applied consumables down mid‑to‑high single‑digits; sequencing instruments are now expected to grow low‑single‑digits rest‑of‑world organic. The company maintained non‑GAAP operating margin guidance of 23.4%–23.6% and raised full‑year diluted non‑GAAP EPS to $5.30–$5.40 (up $0.12 at the midpoint; ~11% y/y at midpoint, ~14% ex‑acquisitions). For Q3, management expects ~4.5% rest‑of‑world organic growth, reported revenue of $1.14–1.16B, non‑GAAP EPS $1.33–1.38 and ~24% operating margin (≈150 bps sequential expansion). Management reiterated that elevated NovaSeq X placements (Q2 placements >95) and an expanding X installed base (≈78% of clinical volume on X, ~83% of volumes and 59% of revenue transitioned overall; clinical conversion target ~80–85% by year‑end) will drive consumables pull‑through into 2027 and support the path to high‑single‑digit revenue growth next year.Illumina Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49B | 4.34B | 4.37B | 4.50B | 4.58B | 4.53B |
| Gross Profit | 3.00B | 2.89B | 2.86B | 2.74B | 2.97B | 3.15B |
| EBITDA | 1.36B | 1.46B | -725.00M | -608.00M | -3.92B | 1.20B |
| Net Income | 825.00M | 850.00M | -1.22B | -1.16B | -4.40B | 762.00M |
Balance Sheet | ||||||
| Total Assets | 6.65B | 6.64B | 6.30B | 10.11B | 12.25B | 15.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.63B | 1.22B | 1.05B | 2.04B | 1.34B |
| Total Debt | 2.53B | 2.55B | 2.62B | 2.26B | 3.56B | 2.54B |
| Total Liabilities | 3.81B | 3.92B | 3.93B | 4.37B | 5.65B | 4.48B |
| Stockholders Equity | 2.84B | 2.72B | 2.37B | 5.75B | 6.60B | 10.74B |
Cash Flow | ||||||
| Free Cash Flow | 939.00M | 931.00M | 709.00M | 282.00M | 106.00M | 337.00M |
| Operating Cash Flow | 1.09B | 1.08B | 837.00M | 478.00M | 392.00M | 545.00M |
| Investing Cash Flow | -431.00M | -55.00M | -178.00M | -231.00M | -591.00M | -1.07B |
| Financing Cash Flow | -558.00M | -744.00M | -570.00M | -1.21B | 1.00B | -51.00M |
Illumina Technical Analysis
Positive
224.84
Price Trends
226.92
Positive
200.54
Positive
166.27
Positive
Market Momentum
15.16
Positive
62.85
Neutral
25.91
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 224.84 is below the 20-day moving average (MA) of 258.19, below the 50-day MA of 226.92, and above the 200-day MA of 166.27, indicating a bullish trend. The MACD of 15.16 indicates Positive momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ILMN.
Illumina Risk Analysis
Illumina disclosed 29 risk factors in its most recent earnings report. Illumina reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Illumina Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $244.86B | 35.57 | 13.35% | 0.28% | 7.23% | 7.47% | |
74 Outperform | $9.34B | 23.24 | 11.60% | 5.82% | 2.96% | 9.52% | |
73 Outperform | $41.78B | 51.14 | 31.08% | ― | 4.97% | -31.78% | |
67 Neutral | $57.34B | -292.48 | -11.73% | ― | 37.82% | 28.02% | |
60 Neutral | $21.85B | -46.64 | 211.46% | ― | 42.74% | -4.60% | |
59 Neutral | $10.00B | -68.41 | -29.89% | ― | 19.19% | -53.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ILMN
Illumina
276.67
181.64
191.14%
QGEN
Qiagen
45.31
-1.57
-3.34%
TMO
Thermo Fisher
662.24
139.50
26.69%
NTRA
Natera
397.77
223.60
128.38%
GH
Guardant Health
162.79
101.06
163.71%
TWST
Twist Bioscience
151.86
121.72
403.85%
Illumina Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Illumina Completes $300 Million Debt Refinancing Offering
Positive
Aug 17, 2026
On August 17, 2026, Illumina completed a public offering of $300 million in 4.950% notes due 2029, issued under an existing Indenture with U.S. Bank Trust Company as trustee. The notes pay interest semi-annually and may be redeemed by the company ...
Private Placements and Financing
Illumina Secures New Syndicated Credit Facility Agreement
Positive
Aug 13, 2026
On August 13, 2026, Illumina, Inc. entered into a credit agreement with a syndicate of lenders, with Bank of America, N.A. acting as administrative agent, issuing bank, and swingline lender. The agreement designates Illumina as the borrower and pr...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Illumina Announces $300 Million Senior Notes Offering
Positive
Aug 12, 2026
On August 10, 2026, Illumina entered into an underwriting agreement with J.P. Morgan Securities LLC and Citigroup Global Markets Inc. for the issuance and sale of $300 million of 4.950% notes due 2029. The offering, expected to close on August 17,...
Legal Proceedings
Illumina Seeks Court Approval of GRAIL Settlement
Positive
Aug 7, 2026
On August 21, 2025, Illumina entered into a Release Agreement with Icahn-affiliated plaintiffs and former and current directors to settle Delaware litigation tied to its $8 billion reacquisition of GRAIL, Inc., which had drawn intense U.S. and EU ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.