# Illumina (ILMN.US)

Canonical: https://gigainvestors.com/s/ILMN

Analysis as of: 2026-10-16T07:29:19.007Z. Financial observations: FY2000–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $267.93 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 91.73×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.24×

- FY2017: 0.22×

- FY2018: 0.26×

- FY2019: 0.28×

- FY2020: 0.12×

- FY2021: -0.03×

- FY2022: -0.91×

- FY2023: -0.24×

- FY2024: -0.19×

- FY2025: 0.20×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 20.1%

- ROIC, second-lowest year: -24.7%

- Typical minus recent gross margin: 1.9 pp

- Typical gross margin (annual median): 67.4%

- Recent gross margin (lower of latest and 3-year median): 65.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.9%

- ROIC including acquisitions, ten-year median: 20.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 45.5%

- FY2017: 38.4%

- FY2018: 51.5%

- FY2019: 38.7%

- FY2020: 13.5%

- FY2021: -2.2%

- FY2022: -67.7%

- FY2023: -19.2%

- FY2024: -24.7%

- FY2025: 26.7%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$4.4B

- Net income, five-year total: -$5.2B

- Return on incremental invested capital: 55.4%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.6 pp

- Working capital / revenue, final three-year average: 25.4%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $805M

- FY2022: -$4.3B

- FY2023: -$924M

- FY2024: -$997M

- FY2025: $972M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 45.5% vs -19.2%

- Per-share earnings: 3.04 to -7.35 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: $1.4B

- Cumulative retained earnings: -$1.9B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$10.39

- Per-share value, starting three-year median: $3.04

- Per-share value, ending three-year median: -$7.35

- Buybacks concentrated in cheaper years (correlation): 0.68

- Average buyback yield: 1.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $9.5B

- Cumulative net income, 10 years: -$1.5B

- ROIC, first three-year median: 45.5%

- ROIC, last three-year median: -19.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.04

- FY2017: $4.77

- FY2018: $5.39

- FY2019: $6.54

- FY2020: $4.31

- FY2021: $4.91

- FY2022: -$28.05

- FY2023: -$7.35

- FY2024: -$7.69

- FY2025: $5.45

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.4%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 25.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.27×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.49×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.2%

- FY2017: -2.8%

- FY2018: -4.5%

- FY2019: -0.7%

- FY2020: -5.6%

- FY2021: 1.4%

- FY2022: -39.1%

- FY2023: -16.2%

- FY2024: -32.7%

- FY2025: -3.4%

## Holders

- [Samantha McLemore](https://gigainvestors.com/PTNT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Oct 2021 · "However, input-cost volatility may constrain incremental margin expansion over the next several quarters." (finance.yahoo.com, Aug 2026) · sales -0.8%

Story as of 2026-10-16T09:58:56.758Z; price observation 2026-10-15.

- 2025-05-12: Illumina Faces Uncertainties From China Ban, Research Slump, Morgan Stanley Says ([finance.yahoo.com](https://finance.yahoo.com/news/illumina-faces-uncertainties-china-ban-154108200.html))

- 2025-06-10: ILMN Q1 Earnings Call: Clinical Growth and Cost Actions Offset Research and China Headwinds ([finance.yahoo.com](https://finance.yahoo.com/news/ilmn-q1-earnings-call-clinical-122633415.html))

- 2026-01-06: Why Illumina (ILMN) Is Up 6.5% After Advancing Grail Divestiture Plan And What's Next ([finance.yahoo.com](https://finance.yahoo.com/news/why-illumina-ilmn-6-5-042447132.html))

- 2026-05-19: Earnings Beat, Buyback, China Signals Might Change The Case For Investing In Illumina (ILMN) ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/earnings-beat-buyback-china-signals-221421266.html))

- 2026-07-30: Illumina (NASDAQ:ILMN) Surprises With Q2 CY2026 Sales, Full-Year Outlook Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/illumina-nasdaq-ilmn-surprises-q2-202139521.html))

- 2026-08-03: Why Illumina (ILMN) Is Up 5.7% After Raising 2026 Revenue Outlook On Clinical Sequencing ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/why-illumina-ilmn-5-7-001537706.html))

### Sales · FY2024–2025

sales -0.8%; source https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm; observed 2026-02-12.

- FY2016: $2.4B 

- FY2017: $2.8B 

- FY2018: $3.3B 

- FY2019: $3.5B 

- FY2020: $3.2B 

- FY2021: $4.5B 

- FY2022: $4.6B 

- FY2023: $4.5B 

- FY2024: $4.4B 

- FY2025: $4.3B 

### Gross margin · FY2025

gross margin 66.7%; source https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm; observed 2026-02-12.

- FY2016: 69.5% 

- FY2017: 66.4% 

- FY2018: 69.0% 

- FY2019: 69.6% 

- FY2020: 68.0% 

- FY2021: 69.7% 

- FY2022: 64.8% 

- FY2023: 60.9% 

- FY2024: 65.4% 

- FY2025: 66.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 4.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm (filed 2026-02-12); FY2025: revenue 4338000000; grossProfit 2893000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ILMN.US: Illumina, Inc. provides sequencing- and array-based solutions for genetic and genomic analysis in the Americas, Europe, Greater China, the Asia Pacific, the Middle East, and Africa. The company offers sequencing- and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services. The company serves 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, as well as through life-science distributors. The company has a collaboration with Labcorp Holdings Inc. for the development of oncology treatments through applications of sequencing solutions across the healthcare ecosystem; and strategic collaboration with Integrated DNA Technologies to enable a DRAGEN, secondary analysis pipeline for IDT xGena, FFPE and cfDNA next generation sequencing (NGS) library preparation with custom panels, delivering an integrated, end-to-end solution for somatic oncology research. It also has a data partnership with Center for Data-Driven Discovery in Biomedicine to advance research in pediatric cancer and rare disease. Illumina, Inc. was incorporated in 1998 and is headquartered in San Diego, California.

### Why customers stay

Margins ranged from 60.9% to 66.7% during 2023–25; it earns 20.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 60.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 65.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 66.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.4548539487046895],[2017,0.3843210251853238],[2018,0.5152622255254435],[2019,0.38662552810870476],[2020,0.1349966696967539],[2021,-0.021960415674777974],[2022,-0.6767958179581796],[2023,-0.19158575317604357],[2024,-0.24720886551465063],[2025,0.2672897604437359]]; median 0.2011432150702449. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 10 years; bought back USD 742 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 31492774.71856326; upkeep 239888225.28143674; owner earnings 363760774.71856326. Growth capex / owner earnings = 0.08657551035547686.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 76045506.34978068; upkeep 235954493.65021932; owner earnings 646045506.3497807. Growth capex / owner earnings = 0.11770921026824428.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 117000000; upkeep 179000000; owner earnings 826000000. Growth capex / owner earnings = 0.14164648910411623.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 21000000; upkeep 188000000; owner earnings 1002000000. Growth capex / owner earnings = 0.020958083832335328.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 189000000; owner earnings 654000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 208000000; owner earnings 805000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 148000000; owner earnings 972000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,11558000],[2017,5000000],[2018,735000000],[2019,0],[2020,0],[2021,511000000],[2022,937000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm (filed 2026-02-12); FY2025: cash repurchases 742000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ILMN.US SharesStats.PercentInsiders = 0.21 percentage points; cache date 2026-10-16.

### What could break it

"Regulatory authorities in China have added Illumina to the List of Unreliable Entities" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm (filed 2026-02-12); Regulatory authorities in China have added Illumina to the List of Unreliable Entities

### What the price says

The price is 9.6 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Closing price 267.93 USD; reporting-to-trading FX 1; FY2025 annual sales per share 27.807692307692307; price multiple 9.635103734439834. FY2025 cash earnings/share 6.230769230769231. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $129.51 per share

- 2016-12: $124.55 per share

- 2017-01: $155.74 per share

- 2017-02: $162.84 per share

- 2017-03: $165.99 per share

- 2017-04: $179.82 per share

- 2017-05: $172.53 per share

- 2017-06: $168.79 per share

- 2017-07: $169.11 per share

- 2017-08: $198.89 per share

- 2017-09: $193.77 per share

- 2017-10: $199.60 per share

- 2017-11: $223.76 per share

- 2017-12: $212.54 per share

- 2018-01: $226.30 per share

- 2018-02: $221.81 per share

- 2018-03: $229.98 per share

- 2018-04: $234.37 per share

- 2018-05: $265.02 per share

- 2018-06: $271.68 per share

- 2018-07: $315.53 per share

- 2018-08: $345.17 per share

- 2018-09: $357.06 per share

- 2018-10: $302.68 per share

- 2018-11: $328.31 per share

- 2018-12: $291.76 per share

- 2019-01: $272.17 per share

- 2019-02: $304.25 per share

- 2019-03: $302.23 per share

- 2019-04: $303.50 per share

- 2019-05: $298.55 per share

- 2019-06: $358.12 per share

- 2019-07: $291.23 per share

- 2019-08: $273.68 per share

- 2019-09: $295.93 per share

- 2019-10: $287.47 per share

- 2019-11: $312.02 per share

- 2019-12: $322.70 per share

- 2020-01: $282.17 per share

- 2020-02: $258.43 per share

- 2020-03: $265.68 per share

- 2020-04: $310.34 per share

- 2020-05: $353.16 per share

- 2020-06: $360.26 per share

- 2020-07: $371.75 per share

- 2020-08: $347.49 per share

- 2020-09: $300.66 per share

- 2020-10: $284.73 per share

- 2020-11: $313.32 per share

- 2020-12: $359.92 per share

- 2021-01: $414.82 per share

- 2021-02: $427.44 per share

- 2021-03: $373.60 per share

- 2021-04: $382.14 per share

- 2021-05: $394.59 per share

- 2021-06: $460.32 per share

- 2021-07: $482.25 per share

- 2021-08: $444.71 per share

- 2021-09: $394.56 per share

- 2021-10: $403.75 per share

- 2021-11: $355.38 per share

- 2021-12: $370.08 per share

- 2022-01: $339.32 per share

- 2022-02: $317.70 per share

- 2022-03: $339.88 per share

- 2022-04: $288.57 per share

- 2022-05: $232.96 per share

- 2022-06: $179.34 per share

- 2022-07: $210.78 per share

- 2022-08: $196.15 per share

- 2022-09: $185.59 per share

- 2022-10: $222.59 per share

- 2022-11: $212.14 per share

- 2022-12: $196.69 per share

- 2023-01: $208.37 per share

- 2023-02: $193.77 per share

- 2023-03: $226.22 per share

- 2023-04: $199.96 per share

- 2023-05: $191.29 per share

- 2023-06: $182.38 per share

- 2023-07: $186.92 per share

- 2023-08: $160.72 per share

- 2023-09: $133.54 per share

- 2023-10: $106.44 per share

- 2023-11: $99.17 per share

- 2023-12: $135.45 per share

- 2024-01: $139.11 per share

- 2024-02: $136.02 per share

- 2024-03: $133.58 per share

- 2024-04: $119.70 per share

- 2024-05: $101.44 per share

- 2024-06: $104.38 per share

- 2024-07: $122.60 per share

- 2024-08: $131.40 per share

- 2024-09: $130.41 per share

- 2024-10: $144.14 per share

- 2024-11: $144.15 per share

- 2024-12: $133.63 per share

- 2025-01: $132.74 per share

- 2025-02: $88.74 per share

- 2025-03: $79.34 per share

- 2025-04: $77.60 per share

- 2025-05: $82.24 per share

- 2025-06: $95.41 per share

- 2025-07: $102.71 per share

- 2025-08: $99.96 per share

- 2025-09: $94.97 per share

- 2025-10: $123.54 per share

- 2025-11: $131.45 per share

- 2025-12: $131.16 per share

- 2026-01: $144.81 per share

- 2026-02: $134.46 per share

- 2026-03: $123.26 per share

- 2026-04: $126.74 per share

- 2026-05: $162.96 per share

- 2026-06: $175.83 per share

- 2026-07: $205.10 per share

- 2026-08: $213.63 per share

- 2026-09: $273.68 per share

- 2026-10: $271.17 per share

## Annual estimated value (USD per share)

- FY2016: low $36.06 per share, central $39.67 per share, high $44.46 per share

- FY2017: low $51.27 per share, central $56.44 per share, high $63.33 per share

- FY2018: low $71.95 per share, central $78.77 per share, high $87.84 per share

- FY2019: low $81.18 per share, central $89.36 per share, high $100.26 per share

- FY2020: low $77.02 per share, central $84.55 per share, high $94.58 per share

- FY2021: low $82.86 per share, central $93.17 per share, high $106.91 per share

- FY2022: low $76.83 per share, central $85.71 per share, high $97.54 per share

- FY2023: low $65.45 per share, central $78.67 per share, high $90.70 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:02.081Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1110803/000111080326000024/ilmn-20251228.htm); period 2025-12-28, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.