📊 ILMN Key Takeaways
Is Illumina, Inc.. (ILMN) a Good Investment?
Illumina demonstrates fortress-like financial health with exceptional free cash flow (251M, 23% FCF margin) and conservative leverage (0.25x debt/equity), but faces material operational headwinds with declining revenue (-0.7% YoY) and weak capital returns (ROE 5%, ROA 2%) that are inconsistent with expectations for a life sciences company in a growth industry.
Illumina shows strong core fundamentals with high gross margins, solid operating profitability, strong free cash flow generation, and a conservative balance sheet. However, revenue is slightly declining, which weakens growth quality, and the sharp jump in net income appears stronger than underlying sales growth, suggesting investors should watch whether earnings strength is sustainable.
Why Buy Illumina, Inc.. Stock? ILMN Key Strengths
- Exceptional free cash flow generation of 251M annually with 23% FCF margin, providing financial flexibility
- Strong gross margins of 66.1% demonstrate pricing power and operational efficiency in core sequencing business
- Fortress balance sheet with conservative leverage (0.25x debt/equity), strong liquidity (1.75x current ratio), 1.1B cash, and 11.6x interest coverage
- High profitability with 66.1% gross margin, 18.6% operating margin, and 19.6% net margin
- Strong financial health with 2.08x current ratio, low 0.25x debt-to-equity, and 44.8x interest coverage
- Robust cash generation with $1.08B operating cash flow and $931M free cash flow
ILMN Stock Risks: Illumina, Inc.. Investment Risks
- Revenue contraction of -0.7% YoY signals operational challenges in a market segment expected to experience growth
- Extremely weak capital returns (ROE 5%, ROA 2%) indicate poor deployment of 6.6B asset base despite profitable operations
- EPS growth of 170.9% YoY appears driven by financial engineering (likely share buybacks) rather than organic operational improvement given concurrent revenue decline
- Revenue declined 0.7% year over year, indicating limited near-term top-line momentum
- Net income growth far exceeded revenue growth, raising questions about earnings quality and sustainability
- Business may face operating leverage pressure if revenue softness persists
Key Metrics to Watch
- Revenue growth stabilization and return to positive YoY growth trajectory
- Return on equity and return on invested capital improvement to minimum 10-12% range
- Operating cash flow sustainability and organic earnings contribution excluding one-time items
- Revenue growth trend and instrument/consumables demand
- Operating margin and free cash flow consistency
Illumina, Inc.. (ILMN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
ILMN Profit Margin, ROE & Profitability Analysis
ILMN vs Industrial Sector: How Illumina, Inc.. Compares
How Illumina, Inc.. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Illumina, Inc.. Stock Overvalued? ILMN Valuation Analysis 2026
Based on fundamental analysis, Illumina, Inc.. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Illumina, Inc.. Balance Sheet: ILMN Debt, Cash & Liquidity
ILMN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Illumina, Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-7.34 indicates the company is currently unprofitable.
ILMN Revenue Growth, EPS Growth & YoY Performance
ILMN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $131.0M | $0.82 |
| Q3 2025 | $1.1B | -$126.0M | $0.98 |
| Q2 2025 | $1.1B | -$126.0M | $1.49 |
| Q1 2025 | $1.0B | -$126.0M | $-0.79 |
| Q3 2024 | $1.1B | $3.0M | $4.42 |
| Q2 2024 | $1.1B | $3.0M | $-1.46 |
| Q1 2024 | $1.1B | $3.0M | $0.02 |
| Q3 2023 | $1.1B | $3.0M | $-4.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Illumina, Inc.. Dividends, Buybacks & Capital Allocation
ILMN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Illumina, Inc.. (CIK: 0001110803)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ILMN
What is the AI rating for ILMN?
Illumina, Inc.. (ILMN) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ILMN's key strengths?
Claude: Exceptional free cash flow generation of 251M annually with 23% FCF margin, providing financial flexibility. Strong gross margins of 66.1% demonstrate pricing power and operational efficiency in core sequencing business. ChatGPT: High profitability with 66.1% gross margin, 18.6% operating margin, and 19.6% net margin. Strong financial health with 2.08x current ratio, low 0.25x debt-to-equity, and 44.8x interest coverage.
What are the risks of investing in ILMN?
Claude: Revenue contraction of -0.7% YoY signals operational challenges in a market segment expected to experience growth. Extremely weak capital returns (ROE 5%, ROA 2%) indicate poor deployment of 6.6B asset base despite profitable operations. ChatGPT: Revenue declined 0.7% year over year, indicating limited near-term top-line momentum. Net income growth far exceeded revenue growth, raising questions about earnings quality and sustainability.
What is ILMN's revenue and growth?
Illumina, Inc.. reported revenue of $1.1B.
Does ILMN pay dividends?
Illumina, Inc.. does not currently pay dividends.
Where can I find ILMN SEC filings?
Official SEC filings for Illumina, Inc.. (CIK: 0001110803) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ILMN's EPS?
Illumina, Inc.. has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ILMN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Illumina, Inc.. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ILMN stock overvalued or undervalued?
Valuation metrics for ILMN: ROE of 5.0% (sector avg: 15%), net margin of 12.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ILMN stock in 2026?
Our dual AI analysis gives Illumina, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ILMN's free cash flow?
Illumina, Inc..'s operating cash flow is $289.0M, with capital expenditures of $38.0M. FCF margin is 23.0%.
How does ILMN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 12.3% (avg: 10%), ROE 5.0% (avg: 15%), current ratio 1.75 (avg: 1.8).