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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ILMN

Illumina's recent performance was positively driven by the launch of new products and innovative initiatives. The company's introduction of the Illumina Protein Prep Assay strengthens its multiomics capabilities, supporting disease insights. Additionally, the planned acquisition of SomaLogic and the new BioInsight division, which leverages AI and multiomic data, are expected to expand high-margin revenue streams. The company's Q3 2025 earnings beat estimates, with revenue of $1.08 billion and non-GAAP diluted EPS of $1.34. A share buyback of 1.2 million shares for $120 million also occurred. (Source: Illumina's Q3 2025 Earnings Report)

1.c. Company Highlights

2. Illumina's Q3 2025 Earnings: A Strong Comeback

Illumina reported a robust Q3 2025, with revenue reaching $1.08 billion, non-GAAP operating margin of 24.5%, and non-GAAP diluted EPS of $1.34, beating analyst estimates of $1.16. The company's return to growth ex-China was notable, with revenue up 2% year-over-year. Sequencing consumables revenue grew 3% year-over-year, excluding China, driven by strong demand for the NovaSeq X instruments. As Jacob Thaysen mentioned, "customers are taking advantage of X's capabilities to increase content on their assays, expand into new indications, and take whole genome-based approaches."

Publication Date: Nov -06

📋 Highlights
  • Strong Q3 Revenue and Margins: Illumina reported $1.08 billion revenue, 24.5% non-GAAP operating margin, and $1.34 non-GAAP diluted EPS, exceeding prior guidance.
  • Ex-China Growth Resumes: Revenue outside China rose 2% YoY, driven by 3% growth in sequencing consumables fueled by NovaSeq X adoption (51% of Q3 revenue from X).
  • Clinical Segment Momentum: Double-digit clinical revenue growth outside China, driven by new assay approvals and sequencing-intensive applications, with NovaSeq X enabling higher content and whole-genome approaches.
  • Multiomics and Innovation Expansion: Launched Illumina Protein Prep and 5-base solution, expanding into proteomics and integrated multiomics. BioInsight now consolidates data partnerships and AI for drug discovery.
  • 2026 Outlook and Margin Resilience: Raised 2025 revenue guidance to $4.27–$4.31B (+$20M), with non-GAAP EPS guidance increased to $4.65–$4.75 (13% YoY growth). Gross margin improved 90 bps despite 220 bps tariff impact.

Segment Performance

The clinical segment remained a strong growth driver, with double-digit revenue growth outside of China, fueled by new assay approvals and growing use of sequencing-intensive applications. The NovaSeq X transition has progressed significantly, with 78% of volumes and 51% of revenue in Q3 sequenced on X. Illumina made significant progress across its three pillars: growing its core sequencing business, scaling into multiomics, and expanding its services, data, and software capabilities.

Guidance and Outlook

Illumina raised its total full-year 2025 outlook, with revenue guidance increasing $20 million to $4.27 billion to $4.31 billion. The company expects sequencing consumables growth between 2.5% and 3% and sequencing instruments decline of minus 6% to minus 4%. Illumina increased its non-GAAP operating margin guidance by approximately 60 basis points to a range of 22.75% to 23%. The company raised its non-GAAP diluted EPS guidance by $0.20 at the midpoint to a range of $4.65 to $4.75, reflecting 13% growth year-over-year at midpoint.

Valuation

With a P/E Ratio of 27.17 and an EV/EBITDA of 15.93, Illumina's valuation appears to be reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at 2.1%. The company's ROE (%) of 29.98 and ROIC (%) of 11.6 indicate strong profitability. The current P/S Ratio of 4.36 suggests that the stock is not overly expensive.

Growth Prospects

The company's guidance for 2026, as discussed during the earnings call, suggests a framework of flat to down low singles in research revenue, mid-single digits to high single digits in clinical revenue, and a 50 to 100 basis point headwind from China. The clinical consumables growth rate was driven by strong momentum in the clinical space, and the company expects the trend to continue into 2026.

3. NewsRoom

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New Strong Buy Stocks for December 4th

Dec -04

Source: zacks.com

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Illumina (ILMN) Moves to Strong Buy: Rationale Behind the Upgrade

Dec -03

Source: zacks.com

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AlphaCore Capital LLC Makes New Investment in Illumina, Inc. $ILMN

Nov -26

Source: defenseworld.net

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Illumina, Inc. (ILMN) Presents at 7th Annual Wolfe Research Healthcare Conference Transcript

Nov -19

Source: seekingalpha.com

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Banco Bilbao Vizcaya Argentaria S.A. Has $4.50 Million Stock Holdings in Illumina, Inc. $ILMN

Nov -16

Source: defenseworld.net

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Illumina whole-genome sequencing provides greater insight into genetic signals behind common diseases--according to Nature study

Nov -12

Source: prnewswire.com

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Investors Purchase High Volume of Illumina Call Options (NASDAQ:ILMN)

Nov -12

Source: defenseworld.net

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Illumina To Webcast Upcoming Investor Conference

Nov -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.47%)

6. Segments

Core Illumina

Expected Growth: 6.5%

Illumina's Core Illumina segment growth of 6.5% is driven by increasing adoption of Next-Generation Sequencing (NGS) in research and clinical markets, growing demand for genetic testing, and expanding use of NGS in emerging markets. Additionally, the company's innovative product portfolio, including the NovaSeq and iSeq platforms, is contributing to growth.

Grail

Expected Growth: 7.0%

Illumina's Grail segment growth is driven by increasing adoption of liquid biopsy tests for early cancer detection, expansion into new markets, and growing demand for non-invasive genetic testing. Additionally, strategic partnerships, investments in R&D, and regulatory approvals are fueling growth, with a 7.0% growth rate.

Eliminations

Expected Growth: 0.0%

Illumina, Inc.'s eliminations growth rate of 0.0% is driven by stagnant sales, lack of innovation, and intense competition in the genomics industry. The company's failure to diversify its product portfolio and expand into new markets has resulted in flat growth. Additionally, increasing research and development expenses have not yielded significant returns, further contributing to the stagnant growth.

7. Detailed Products

NextSeq 1000/2000

High-throughput sequencing systems for a wide range of applications, from genomics and transcriptomics to epigenomics and gene regulation.

NovaSeq 6000

High-throughput sequencing system for large-scale genomics and transcriptomics applications.

iSeq 100

Benchtop sequencing system for small-scale genomics and transcriptomics applications.

MiSeq

Benchtop sequencing system for small-scale genomics and transcriptomics applications.

VeriSeq NIPT Solution

Non-invasive prenatal testing (NIPT) solution for detecting chromosomal abnormalities during pregnancy.

TruSight Oncology

Comprehensive genomic profiling assay for cancer research and clinical applications.

TruSight Tumor 170

Comprehensive genomic profiling assay for cancer research and clinical applications.

AmpliSeq for Illumina

Targeted sequencing assay for detecting genetic variants associated with disease.

DesignStudio

Software tool for designing targeted sequencing assays.

8. Illumina, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Illumina's products are highly specialized and there are limited substitutes available in the market, reducing the threat of substitutes.

Bargaining Power Of Customers

Illumina's customers have some bargaining power due to the availability of alternative sequencing technologies, but the company's strong brand reputation and high-quality products mitigate this power.

Bargaining Power Of Suppliers

Illumina has a diverse supplier base and is not heavily dependent on any single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The high barriers to entry in the genomics industry, including significant capital expenditures and regulatory hurdles, reduce the threat of new entrants.

Intensity Of Rivalry

The genomics industry is moderately competitive, with a few established players, but Illumina's strong market position and innovative products help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.52%
Debt Cost 3.95%
Equity Weight 78.48%
Equity Cost 9.97%
WACC 8.67%
Leverage 27.42%

11. Quality Control: Illumina, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Guardant Health

A-Score: 5.2/10

Value: 8.0

Growth: 4.7

Quality: 6.2

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Exact Sciences

A-Score: 3.4/10

Value: 4.8

Growth: 6.0

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Illumina

A-Score: 3.3/10

Value: 4.6

Growth: 2.8

Quality: 7.4

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Sotera Health

A-Score: 3.3/10

Value: 1.4

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Revvity

A-Score: 3.3/10

Value: 3.0

Growth: 3.1

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Neogen

A-Score: 2.5/10

Value: 7.9

Growth: 1.3

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

128.96$

Current Price

128.96$

Potential

-0.00%

Expected Cash-Flows