olivLaw · US equity research
Illumina, Inc. ILMN
Laboratory Analytical Instruments · SIC 3826 · Vertical: Laboratory Analytical Instruments (SIC 3826)
Illumina is a global leader in sequencing and array-based genetic analysis. In the second quarter of fiscal 2026 revenue reached 1.16 billion USD, up 9.5% year over year, and management raised its annual revenue guidance to 4.60-4.64 billion USD. Demand for NovaSeq X remains high, while the integration of SomaLogic and trade restrictions in China remain items to watch.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Illumina, Inc. (ILMN) stock was 226.54 USD (−4.90% on the day), with market capitalisation 34.3 bn USD, P/E 38.8 on diluted EPS of 5.83 USD over the last 12 months, beta 1.08, 52-week range 114.44–293.69 USD. Latest reported quarter (Q3 2026): revenue of 1.1 bn USD (+4.2% YoY), net income of 220.0 m USD (+46.7% YoY), diluted EPS 1.43 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 37.9
- weak (30–45)
- Bollinger (20, 2)
- 228.39 – 301.79
- below the lower band · %B -0.03 · band width 27.7%
- SMA 50 / 200
- 249.77 / 177.39
- mixed trend
- MACD (12, 26, 9)
- -3.50 / 3.49
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −22.9% | −1.1% | −21.8 pp | — |
| 3 months | +13.3% | −0.5% | +13.8 pp | — |
| 6 months | +58.9% | +4.4% | +54.5 pp | — |
| Year to date | +72.7% | +12.3% | +60.4 pp | — |
| 1 year | +93.9% | +13.5% | +80.3 pp | +14.4% |
| 3 years | +99.2% | +76.4% | +22.8 pp | −8.6% |
| 5 years | −42.9% | +63.7% | −106.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.1 bn | 1.2 bn | 1.1 bn |
| Cost of revenue | 376.0 m | 358.0 m | 364.0 m | 351.0 m | 400.0 m | 370.0 m | 389.0 m | 299.0 m |
| Gross profit | 728.0 m | 683.0 m | 695.0 m | 733.0 m | 759.0 m | 721.0 m | 770.0 m | 830.0 m |
| Research & development | 256.0 m | 252.0 m | 247.0 m | 229.0 m | 239.0 m | 240.0 m | 252.0 m | 244.0 m |
| SG&A | 279.0 m | 267.0 m | 234.0 m | 277.0 m | 309.0 m | 272.0 m | 273.0 m | 281.0 m |
| Operating income | 175.0 m | 164.0 m | 214.0 m | 227.0 m | 201.0 m | 209.0 m | 245.0 m | 305.0 m |
| Depreciation & amortisation | 71.0 m | 69.0 m | 68.0 m | 67.0 m | 66.0 m | — | — | — |
| Interest expense | 25.0 m | 25.0 m | 25.0 m | 25.0 m | 26.0 m | 24.0 m | 24.0 m | 24.0 m |
| Pre-tax income | 187.0 m | 182.0 m | 306.0 m | 220.0 m | 377.0 m | 157.0 m | 260.0 m | 264.0 m |
| Income tax | 0 | 51.0 m | 71.0 m | 70.0 m | 43.0 m | 23.0 m | 53.0 m | 44.0 m |
| Net income | 186.0 m | 131.0 m | 235.0 m | 150.0 m | 334.0 m | 134.0 m | 207.0 m | 220.0 m |
| Diluted EPS | 1.17 ≈ | 0.82 | 1.49 | 0.98 | 2.18 ≈ | 0.87 | 1.35 | 1.43 |
| Operating cash flow | 364.0 m | 240.0 m | 234.0 m ≈ | 284.0 m ≈ | 321.0 m | 289.0 m | 201.0 m ≈ | 419.0 m ≈ |
| Capex | 29.0 m | 32.0 m | 30.0 m ≈ | 31.0 m ≈ | 55.0 m | 38.0 m | 40.0 m ≈ | 40.0 m ≈ |
| Share repurchases | 17.0 m | 200.0 m | 370.0 m ≈ | 130.0 m ≈ | 42.0 m | 242.0 m | 128.0 m ≈ | 9.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 31 percentile of its own 26-quarter history (min 12.0, median 52.5, max 136.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.8 bn | 3.3 bn | 3.5 bn | 3.2 bn | 4.5 bn | 4.5 bn | 4.4 bn | 4.3 bn |
| Revenue YoY | +24.0% | +21.1% | +6.3% | unavailable | +39.7% | −0.5% | −2.9% | −0.7% |
| Net income | 726.0 m | 826.0 m | 1.0 bn | 656.0 m | 762.0 m | -1.2 bn | -1.2 bn | 850.0 m |
| Net income YoY | +57.1% | +13.8% | +21.3% | unavailable | +16.2% | −252.4% | unavailable | unavailable |
| Diluted EPS | 4.92 | 5.56 | 6.74 | 4.45 | 5.04 | -7.34 | -7.69 | 5.45 |
| Diluted EPS YoY | +58.7% | +13.0% | +21.2% | unavailable | +13.3% | −245.6% | unavailable | unavailable |
| net % | 26.4% | 24.8% | 28.3% | 20.3% | 16.8% | -25.8% | -28.0% | 19.6% |
| Free cash flow | 565.0 m | 846.0 m | 842.0 m | 891.0 m | 337.0 m | 283.0 m | 709.0 m | 931.0 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 28 Dec 2025
- Cash
- 1.4 bn USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 2.7 bn USD
- Total assets
- 6.6 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.08x
- ROE
- 33.4%
- ROA
- 13.1%
- FCF margin
- 21.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.5 bn | 3.2 bn | 4.5 bn | 4.5 bn | 4.4 bn | 4.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 1.1 bn | 1.0 bn | 1.4 bn | 1.8 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 2.5 bn | 2.2 bn | 3.2 bn | 2.7 bn | 2.9 bn | 2.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Research & development | 647.0 m | 682.0 m | 1.2 bn | 1.4 bn | 1.2 bn | 967.0 m | SEC (XBRL)· 12 Feb 2026verified |
| SG&A | 835.0 m | 941.0 m | 2.1 bn | 1.6 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Operating income | 985.0 m | 580.0 m | -123.0 m | -1.1 bn | -833.0 m | 807.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Depreciation & amortisation | 188.0 m | 187.0 m | 251.0 m | 432.0 m | 354.0 m | 270.0 m | SEC (XBRL)· 12 Feb 2026verified |
| EBITDA | 1.2 bn ≈ | 767.0 m ≈ | 128.0 m ≈ | -637.0 m ≈ | -479.0 m ≈ | 1.1 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Interest expense | 52.0 m | 49.0 m | 61.0 m | 77.0 m | 100.0 m | 101.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 1.1 bn | 856.0 m | 884.0 m | -1.1 bn | -1.2 bn | 1.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 128.0 m | 200.0 m | 122.0 m | 44.0 m | 44.0 m | 236.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 1.0 bn | 656.0 m | 762.0 m | -1.2 bn | -1.2 bn | 850.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 6.74 | 4.45 | 5.04 | -7.34 | -7.69 | 5.45 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 149.0 m | 148.0 m | 151.0 m | 158.0 m | 159.0 m | 156.0 m | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 2.0 bn | 1.8 bn | 1.2 bn | 1.0 bn | 1.1 bn | 1.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Receivables | 573.0 m | 487.0 m | 648.0 m | 734.0 m | 735.0 m | 854.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Inventories | 359.0 m | 372.0 m | 431.0 m | 587.0 m | 547.0 m | 564.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Current assets | 4.5 bn | 4.5 bn | 2.7 bn | 2.6 bn | 2.7 bn | 3.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Property, plant & equipment, net | 889.0 m | 922.0 m | 1.0 bn | 1.0 bn | 815.0 m | 759.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Goodwill | 897.0 m | 897.0 m | 7.1 bn | 2.5 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Intangibles (excl. goodwill) | 145.0 m | 142.0 m | 3.3 bn | 3.0 bn | 295.0 m | 210.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 7.3 bn | 7.6 bn | 15.2 bn | 10.1 bn | 6.3 bn | 6.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Accounts payable | 149.0 m | 192.0 m | 332.0 m | 245.0 m | 221.0 m | 240.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Short-term debt | 0 | 511.0 m | 0 | — | — | — | SEC (XBRL)· 05 May 2022verified |
| Long-term debt | 1.1 bn | 673.0 m | — | — | — | — | SEC (XBRL)· 17 Feb 2021verified |
| Current liabilities | 665.0 m | 1.2 bn | 1.1 bn | 1.6 bn | 1.5 bn | 1.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Equity | 4.6 bn | 4.7 bn | 10.7 bn | 5.7 bn | 2.4 bn † | 2.7 bn † | SEC (XBRL)· 12 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.1 bn | 1.1 bn | 545.0 m | 478.0 m | 837.0 m | 1.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 209.0 m | 189.0 m | 208.0 m | 195.0 m | 128.0 m | 148.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 842.0 m ≈ | 891.0 m ≈ | 337.0 m ≈ | 283.0 m ≈ | 709.0 m ≈ | 931.0 m ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | 745.0 m | -554.0 m | -1.1 bn | -231.0 m | -178.0 m | -55.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | -897.0 m | -766.0 m | -51.0 m | -1.2 bn | -570.0 m | -744.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Share repurchases | 324.0 m | 736.0 m | 0 | 0 | 116.0 m | 742.0 m | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 49 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 34.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation36
- Returns18
- Quality95
- Balance sheet100
- Growth9
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 193.65 – 214.99 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E193.65 – 214.99 (Mid 203.72)3 companies used · median multiple 34.9x · quartiles 33.2x – 36.9xA, AVTR, MTD
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 49/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 19.7% | 89 (vs peers) | 10% |
| FCF conversion · Quality | 118.1% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -1.4% | 0 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 2.6% | 18 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 9.8x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 2.6x | 100 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 38.8x | 33 (vs peers) | 16% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.1% | 39 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.2% | 18 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth9/100 · 2/2 factors with a value
- Quality95/100 · 2/3 factors with a value
- Returns· partial18/100 · 1/2 factors with a value
- Valuation36/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Illumina, Inc. (ILMN). Latest full fiscal year: 2025; data up to 2026-09-27.
Figures computed from the financial statements: revenue 4.3 bn USD in 2025; YoY growth -0.7%; net margin 19.7%; ROE 32.4%.
The estimated value range is 193.65–214.99 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 203.72 USD, the price of 226.54 USD leaves a potential of -10.1% (value / price − 1) and a margin of safety of -11.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 49/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 19.7%
- FCF conversion: 118.1%
- Interest coverage: 9.8x
- Current ratio: 2.6x
What contradicts it
- Revenue CAGR 3Y: -1.4%
- EPS CAGR 3Y: 2.6%
- Shareholder yield (distributions): 1.2%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Laboratory Analytical Instruments (SIC 3826) · same industry (4-digit SIC) · compared with 20 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AAgilent Technologies, Inc. | 49.9 bn | 34.9 | 21.0% | 19.5% | +6.7% | +15% / +39% |
| WATWaters Corporation | 45.9 bn | 116.6 | 1.9% | 3.6% | +7.0% | +16% / +67% |
| MTDMettler-Toledo International Inc. | 34.5 bn | 38.8 | — | 21.9% | +4.0% | +17% / +58% |
| ILMNIllumina, Inc. | 34.3 bn | 38.8 | 32.4% | 19.7% | −0.7% | +94% / +99% |
| RVTYRevvity, Inc | 17.8 bn | 76.0 | 3.2% | 8.2% | +3.7% | +53% / +79% |
| AVTRAvantor, Inc. | 10.6 bn | 31.5 | 5.9% | 5.1% | −3.4% | +33% / −26% |
| BRKRBruker Corporation | 9.7 bn | — | -3.4% | -2.0% | +2.1% | +31% / −2% |
| TXG10x Genomics, Inc. | 8.6 bn | — | -9.4% | -12.2% | +5.2% | +259% / +55% |
| PACBPacific Biosciences of California, Inc. | 792.6 m | — | -929.3% | -82.5% | +3.9% | +10% / −70% |
| CTKBCytek Biosciences, Inc. | 769.0 m | — | -23.2% | -39.1% | +0.5% | +4% / −15% |
| MASS908 Devices Inc. | 457.6 m | — | -25.2% | -57.0% | +17.7% | +74% / +39% |
| NAUTNautilus Biotechnology, Inc. | 291.7 m | — | -41.0% | — | unavailable | +2% / −17% |
| QTRXQuanterix Corporation | 143.8 m | — | -46.5% | -80.2% | +1.1% | −58% / −87% |
| SEERSeer, Inc. | 94.1 m | — | -26.4% | -478.0% | +17.0% | −11% / +6% |
| HBIOHarvard Bioscience, Inc. | 39.2 m | — | -89.9% | -11.9% | −8.1% | +13% / −80% |
| PRPOPrecipio, Inc. | 35.0 m | — | -9.0% | -4.5% | +29.8% | −20% / +187% |
| EYPTEyePoint, Inc. | 34.1 m | — | -148.7% | -10,994.7% | −27.5% | −97% / −94% |
| BNGOBionano Genomics, Inc. | 14.0 m | — | -83.6% | -106.6% | −7.4% | −36% / −99% |
| ASTCAstrotech Corporation | 9.1 m | — | -75.4% | -1,580.2% | −8.7% | +41% / −44% |
| BIOBio-Rad Laboratories, Inc. | — | 10.0 | 14.3% | 39.5% | +0.7% | +17% / +25% |
| RPIDRapid Micro Biosystems, Inc. | — | — | -141.6% | -145.6% | +19.7% | −84% / −42% |
1- and 3-year price returns: for ILMN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 127.87 Total return -44% · Per year -44% | 226.75 Total return 0% · Per year 0% | 342.48 Total return 51% · Per year 51% |
| 3 years | 109.90 Total return -51% · Per year -21% | 220.60 Total return -3% · Per year -1% | 367.82 Total return 62% · Per year 18% |
| 5 years | 94.46 Total return -58% · Per year -16% | 214.61 Total return -5% · Per year -1% | 395.03 Total return 74% · Per year 12% |
- Exit P/E± 55.15
- Net margin± 38.60
- Annual revenue growth± 33.58
- Annual dilution± 3.24
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results), 10-Q (31 Jul 2026).
In brief
Illumina is a global leader in sequencing and array-based genetic analysis. In the second quarter of fiscal 2026 revenue reached 1.16 billion USD, up 9.5% year over year 2, and management raised its annual revenue guidance to 4.60-4.64 billion USD 2. Demand for NovaSeq X remains high, while the integration of SomaLogic and trade restrictions in China remain items to watch 12.
SWOT
Strengths
- Recognized leadership in sequencing and microarrays, with a broad portfolio of platforms, consumables and informatics tools.
- A large user base and an extensive patent portfolio that support innovation and barriers to entry.
- High recurring revenue from consumables, which stabilizes the business relative to instrument sales.
Weaknesses
- High dependence on academic and government research funding, which can fluctuate.
- Reliance on some single-source suppliers for components, which can complicate production.
- Operating and integration costs that can pressure margins during acquisitions and restructuring.
Opportunities
- Expansion of clinical applications in oncology, genetic health and reproductive health could generate further growth.
- Integrating proteomics and multiomic solutions could open new markets and consumable streams.
- Growth in rest-of-world sales, particularly if momentum in external markets holds.
Threats
- Inclusion on China's unreliable entities list may restrict access to one of the largest markets.
- Tariffs and trade restrictions can raise costs and shift international trade flows.
- Competitors with greater resources or alternative technologies could erode market share.
Risks
- China unreliable entities listhigh
Inclusion on the list maintained by Chinese authorities may affect sales and customer relationships in China, and the effects remain uncertain.
- Tariffs and trade policyhigh
Tariffs imposed by the US government and other countries could raise production costs and reduce margins, and mitigation measures may not be sufficient.
- SomaLogic integrationmedium
Integrating the acquired assets and proteomics products could encounter technical and commercial difficulties, affecting expectations.
- Public research fundingmedium
Reduced or cancelled federal grants could lower demand from academic and government customers.
- GRAIL-related litigationlow
Litigation that could arise in connection with the GRAIL separation and contingent value rights could generate unexpected costs.
Investment thesis
What would need to be true (bull case)
- Guidance for revenue and non-GAAP earnings per share was raised, which could signal solid demand if the trend holds through the rest of the year.
- Clinical adoption of sequencing and demand for NovaSeq X could support growth in recurring consumables revenue.
- An extensive patent portfolio and multiomic platforms could strengthen the competitive position over the long term.
What would break the thesis
- Restrictions in China and trade tariffs could limit growth and pressure margins in coming quarters.
- Dependence on public research funding could reduce orders if government budgets decline.
- Acquisition integration and research spending could remain high, weighing on profitability.
What to watch
- Rest-of-world organic growth versus the guided growth rate, excluding Greater ChinaQ3 2026
- SomaLogic integration and the contribution of proteomics to revenue2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results), 10-Q (31 Jul 2026).
The business
Illumina designs, manufactures and sells sequencing and microarray systems, consumables, reagents and informatics tools for genetic and genomic analysis. Its customers include genomic research centers, universities, government laboratories, hospitals, pharmaceutical and biotechnology companies, molecular diagnostic laboratories and consumer genomics companies 1. Its products rest on proprietary platforms built on SBS chemistry, and the company aims to lower sequencing costs and expand clinical applications, including oncology and reproductive health 1.
By revenue mix, consumables represented 74% of total revenue in fiscal 2025, instruments 11% and services and other 15% 1. Sequencing generated 92% of revenue and arrays 8% 1. The company has one reportable segment, Core Illumina, after the spin-off of GRAIL in June 2024, when Illumina distributed 26,547,021 GRAIL shares to stockholders and kept about 14.5% of GRAIL's common stock 1.
In the second quarter of 2026 cash flow from operations was 201 million USD, and cash, cash equivalents and short-term investments stood at 1.17 billion USD at quarter end 2. Backlog was 738 million USD at the end of fiscal 2025, of which 77% was expected to ship in 2026 1.
Segments
Consumables
Consumables include library preparation kits, reagents, flow cells and sequencing kits, and are the main source of recurring revenue. They represented 74% of revenue in 2025 1. Launches in 2025 included workflows for single-cell transcriptomics, sequencing-based proteomics and five-base methylation 1.
Services and informatics
Services include human whole-genome sequencing in a CLIA-certified laboratory, genotyping, noninvasive prenatal testing and product support. On the informatics side the portfolio includes BaseSpace, DRAGEN, Illumina Connected Analytics and interpretation tools such as Emedgene 1. Services and other revenue were 15% of the total in 2025 1.
Market context
The company serves life-science research, where customers are universities, research centers, government institutions, and biotechnology and pharmaceutical companies, as well as clinical markets in oncology, genetic health and reproductive health 1. About 48% of 2025 shipments, or 2,100 million USD, went to customers outside the United States 1.
The share of international sales has held steady, but China was placed on the unreliable entities list, which led the company to report rest-of-world growth separately from Greater China 2. The proteomics market, which the company entered through the SomaLogic acquisition, is an adjacent field with its own dynamics and will shape growth in coming years 12.
Trends
- Shift toward clinical applicationstailwind
Clinical customers are expanding sequencing applications, particularly in oncology and genetic testing, which could support demand for the company's platforms and consumables, according to management 2.
- US research fundingheadwind
Possible reductions or cancellations of NIH funding and federal grants could affect academic customers and demand for research products 1.
- Trade tariffsheadwind
Tariffs imposed by the US government and its trading partners add uncertainty to costs and margins, and mitigation efforts may not fully offset the impact 12.
- Multiomic expansionmixed
Launches in transcriptomics, proteomics and methylation could broaden the value of the ecosystem if customer adoption follows the company's plans 12.
Competitive position
Management acknowledges intense competition in sequencing, genotyping, gene expression, proteomics and molecular diagnostics 1. Some competitors have greater financial, technical and artificial intelligence resources, larger sales and distribution organizations and stronger brand recognition 1.
The company argues its products offer advantages in throughput, cost and accuracy, but expects competitive intensity to rise as new entrants appear 1. Some rival products are complementary, while others compete directly for the same biological questions 1.
- Thermo Fisher ScientificTMO
Large laboratory instrument and consumables supplier that competes with Illumina in adjacent molecular analysis segments, per the SEC competition discussion.
- Pacific BiosciencesPACB
Sequencing company with an alternative technology, named within the general category of sequencing competitors.
- Oxford Nanopore Technologies
Nanopore sequencing company that is not listed in the United States and competes in the same research segments.
- Danaher, through its diagnostics and life sciences businessesDHR
Industrial group active in laboratory instruments and molecular diagnostics, present in several categories where the company competes.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report30 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report13 Oct 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report17 Aug 2026Other events · Financial statements and exhibits
- Current report13 Aug 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report12 Aug 2026Other events · Financial statements and exhibits
- Current report07 Aug 2026Other events · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report23 Jun 2026Departure or appointment of officers
Sources
- [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / Illumina, Inc. · 12 Feb 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Illumina, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.