📊 ILMN Key Takeaways
Is Illumina, Inc.. (ILMN) a Good Investment?
Illumina demonstrates exceptional financial health with robust profitability metrics (66.1% gross margin, 19.6% net margin) and outstanding ROE of 31.2%, despite flat revenue growth. The company generates substantial free cash flow of $931M (21.4% margin) with minimal leverage (0.25x D/E) and strong liquidity, providing financial flexibility for investments and shareholder returns. Net income surged 169.5% YoY, indicating operational efficiency improvements and potential margin expansion even in a growth-constrained environment.
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 profitability with 66.1% gross margin and 19.6% net margin
- Outstanding return metrics with 31.2% ROE and 12.8% ROA
- Strong free cash flow generation of $931M with 21.4% FCF margin
- Fortress balance sheet with 2.08x current ratio and 0.25x debt-to-equity
- Net income jumped 169.5% YoY indicating significant operational leverage
- Exceptional interest coverage of 44.8x demonstrates minimal solvency risk
- 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 declined 0.7% YoY indicating top-line stagnation and potential market headwinds
- Operating margin of 18.6% may be vulnerable if revenue declines persist
- Heavy concentration in life sciences instrumentation sector creates cyclical exposure
- Capital intensity with $148M annual capex required to maintain competitive position
- Sharp 169.5% net income increase appears unsustainable and may reflect one-time items or cost restructuring
- 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 trajectory and customer demand trends
- Gross margin sustainability as scale potentially becomes challenged
- Free cash flow conversion and capex requirements for R&D
- Operating leverage and ability to maintain net income growth with flat revenues
- Debt levels and covenant compliance on $673M long-term debt
- 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 21.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.08x current ratio provides a solid financial cushion.
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.. appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.2B | $3.0M | $-1.46 |
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 BUY from Claude (STRONG BUY) and ChatGPT (HOLD) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ILMN's key strengths?
Claude: Exceptional profitability with 66.1% gross margin and 19.6% net margin. Outstanding return metrics with 31.2% ROE and 12.8% ROA. 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 declined 0.7% YoY indicating top-line stagnation and potential market headwinds. Operating margin of 18.6% may be vulnerable if revenue declines persist. 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 $4.3B.
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 $5.45.
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 April 2026, Illumina, Inc.. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ILMN stock overvalued or undervalued?
Valuation metrics for ILMN: ROE of 31.2% (sector avg: 15%), net margin of 19.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy ILMN stock in 2026?
Our dual AI analysis gives Illumina, Inc.. a combined BUY 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 $1.1B, with capital expenditures of $148.0M. FCF margin is 21.4%.
How does ILMN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 19.6% (avg: 10%), ROE 31.2% (avg: 15%), current ratio 2.08 (avg: 1.8).
Why is ILMN's return on equity (ROE) so high?
Illumina, Inc.. has a return on equity of 31.2%, significantly above the Industrial sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 19.6% net margin.