Illumina (ILMN) AI Stock Analysis

Company Guidance

Illumina raised fiscal-year 2026 revenue guidance by $30 million at the midpoint to $4.64 to 4.66 billion, expects rest of world organic growth greater than 5%, rest of world organic sequencing consumable growth of mid-single digits, low double-digit instrument growth, operating margins of approximately 23.6% at the high end of our previous guidance, and diluted EPS guidance of $5.40 to $5.45, representing year-over-year growth of 12% to 13%; for the fourth quarter, it expects revenue of $1.22 to 1.24 billion, rest of the world organic growth of approximately 4.5%, EPS of $1.51 to $1.56, operating margin of approximately 25%, and 5% to 6% growth in consumables overall. For 2026, it continues to expect mid-teens clinical growth and mid to high single-digit declines in research and applied sequencing consumables for rest of world, while clinical growth is expected to remain in the mid-teens; it also expects operating margins of approximately 25% in the second half of 2026, up about 400 basis points versus 2024. For 2027, management said it will provide full guidance on the fourth quarter earnings call, described high single digit in that range as the current consumables framework, and said new products and BioInsight could add one to two points of growth for 2027.