Illumina beats Q4 adjusted EPS estimates

Overview

• DNA sequencing firm's Q4 revenue rose 5%, adjusted EPS beat analyst expectations

• Company completed SomaLogic acquisition, expanding multiomics portfolio

• Fiscal 2026 revenue expected to grow 4% to 6%

Outlook

• Illumina expects fiscal year 2026 revenue between $4.5 bln and $4.6 bln

• Company forecasts non-GAAP diluted EPS of $5.05 - $5.20 for fiscal year 2026

• Illumina anticipates non-GAAP operating margin of 23.3% - 23.5% in 2026

Result Drivers

• CLINICAL MARKET GROWTH - Illumina saw increased adoption of NGS-based testing in clinical markets, contributing to Q4 revenue growth

• SOMALOGIC ACQUISITION - The acquisition of SomaLogic is expected to add 1.5% - 2.0% to fiscal 2026 revenue growth

• CHINA MARKET PROGRESS - Illumina achieved progress in China with the lifting of the export ban on sequencers, though challenges remain due to its inclusion on the Unreliable Entities List

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Illumina Inc is $131.00, about 2.4% below its February 4 closing price of $134.19

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nPn22YyLga

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