Company Reports

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

Illumina's second-quarter results included organic sales growth of just under 7% (up from 4% in the first quarter) and 10% adjusted EPS growth to $1.31, which was above FactSet consensus of $1.23. Management raised its 2026 outlook on these results.

Illumina's first-quarter results included 4% organic sales growth, 13% adjusted operating profit growth, and 19% adjusted earnings per share growth to $1.15, about 10 cents above FactSet consensus. Management raised its 2026 outlook on these results, including a $0.10 higher 2026 EPS outlook range.

Life science stocks have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 on average and potentially accelerate even further in 2027-30 due to upcoming catalysts, we see growing momentum in the industry’s profit growth trajectory.

Illumina reported financial results that exceeded its preliminary view for 2025 given at a January investor conference, including 16% adjusted EPS growth to $4.84. Management is only calling for low- to mid-single-digit revenue growth and mid-single-digit adjusted EPS growth for 2026, though.

At an investor conference on Jan. 13, Illumina presented preliminary 2025 financial results of flat revenue growth in constant currency, or above its prior goal of a 0.5% to 1.5% decline, and midteens earnings per share growth to $4.76-4.79, or above its prior outlook of $4.65-$4.75.

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

Illumina reported third-quarter results that exceeded previous guidance, including flat revenue (versus an expected 1.5% to 2.5% decline) and adjusted EPS growth of 18% to $1.38 (versus 1% to 4% growth previously expected). Management also raised its guidance for 2025.

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

While second-quarter Illumina sales declined 3% on a core basis, adjusted EPS grew 9% to $1.19 primarily on margin expansion. With these stronger results than management previously expected, the firm increased its 2025 guidance, including adjusted EPS of $4.45-$4.55 by $0.25.

In the quarter, Illumina turned in flat revenue and 1% lower adjusted EPS, or at the high end of its previous view. However, management cut its 2025 profit outlook due to its negative status in China and new tariffs, despite new cost-cutting initiatives.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

At a launch event on Feb. 20, Roche detailed plans to enter Illumina's sequencing stronghold with a new platform. Roche's platform is in testing now and scheduled to launch commercially in 2026.

Illumina's 2024 results mildly exceeded preliminary results announced in January and kept its 2025 guidance for low-single-digit core sales growth and 10% adjusted earnings per share growth intact, excluding the potential impact of being placed on China's unreliable entity list this week.

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

Narrow-moat Illumina announced third-quarter results that looked strong on the bottom line, and management increased its adjusted earnings per share guidance moderately for 2024. After tinkering with our near-term assumptions and keeping our longer-term view roughly intact, our $144 fair value estimate still looks appropriate. Shares appear fairly valued to us.

Illumina continues to focus on transforming human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.

Narrow-moat Illumina's new management team gave long-term goals at its investor day that were weaker than we previously expected. As a result, we are reducing our fair value estimate to $144 per share from $188 previously, on a weaker assumptions for the sequencing business, which was informed by management's disclosures at the investor day.

Illumina aims to transform human health practices through its leadership of genomic sequencing and related applications. The firm provides a broad range of instruments and related consumables to help researchers and clinicians identify and understand genetic variations. The scale of these projects can be wide, such as population genomic initiatives being pursued in many countries, or narrow, such as noninvasive prenatal screening. We believe Illumina will continue to benefit from the rapidly expanding applications of genomic sequencing tools through its own innovation and select acquisitions.