Research · Sep 3, 2026
[ILMN] Illumina Thesis 2026: Revenue Returns to Growth as Cost Discipline and M&A Expand Platform
Illumina Inc. FY25 revenue $4.34B (-1% reported but +2% ex-China FY / +7% ex-China Q4); op income $865M (vs -$833M FY24, $1.7B inflection); NI $850M; EPS $5.44 (vs -$7.69). Q4 revenue $1.16B (+5% YoY / +4% cc / +7% ex-China). Sequencing consumables Q4 $755M (+8% / +11% ex-China). Sequencing instruments Q4 $154M (flat / +3% ex-China). Sequencing service Q4 $157M (+3% / +4% ex-China). Clinical consumables Q4 +20% ex-China; H2 +mid-teens. Non-GAAP operating margins +180bp; non-GAAP EPS +16%. NovaSeq X high-throughput transition successful. BioInsight launched. Billion Cell Atlas with AstraZeneca + Merck + Lilly collaborations. SomaLogic acquired (multiomics expansion). Illumina Connected Multiomics software launched. ~$740M returned to shareholders via share repurchases. FY26 guide: total revenue $4.5-$4.6B (+4-6% reported); organic ex-China +2-4%; clinical consumables double-digit to mid-teens growth; research + applied consumables decline mid- to high-single-digit; instruments flat to slightly down (50-60 NovaSeq X placements/quarter average); operating margins 23.3-23.5%; EPS $5.00-$5.20 (incl SomaLogic dilution).