Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 27 Apr, 26 | ILMN | Buy | USD 127.88 | USD 134.5 | USD 141.0 | 4 days | Closed |
6.18%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. 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; and Galleri, a multi-cancer early detection test. In addition, the company is developing solutions to help accelerate cancer diagnoses, blood-based detection for minimal residual disease, and other post-diagnostic applications. 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. It markets and distributes its products directly to customers, as well as through life-science distributors. Illumina, Inc. was incorporated in 1998 and is based in San Diego, California.
Increase in Free Cash Flow: USD 931 Mn in FY25 vs USD 695 Mn in FY24
Growth in Quarterly Revenue: USD 1,159 Mn in Q4FY25 vs USD 1,104 Mn in Q4FY24
Reduction in Gross Margin: 67.0% in Q4FY25 vs 67.4% in Q4FY24
Decline in Greater China Revenue: USD 55 Mn in Q4FY25 vs USD 80 Mn in Q4FY24
Dependence on regulatory approvals, geopolitical exposure in China, and uncertainty in research funding environments could impact demand and revenue growth trajectory
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 127.88 | 115.0 | 134.5 | 141.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Return to Growth Driven by Clinical Momentum: Illumina demonstrated a strong operational turnaround in Q4FY25, with revenue reaching USD 1.16 billion, reflecting a 5% year-on-year increase, supported by a 7% growth excluding China. The company successfully returned to growth in FY25 on an ex-China basis, highlighting improving demand conditions and execution strength. This recovery was primarily driven by accelerating clinical consumables demand, positioning the company on a stable growth trajectory entering FY26.
Clinical Consumables as Core Growth Engine: The clinical segment emerged as the primary growth driver, with consumables revenue growing 20% year-on-year (ex-China) in Q4FY25. This was supported by increased adoption of sequencing-based diagnostics, expanding reimbursement coverage, and rising demand for comprehensive genomic profiling and whole-genome sequencing. The shift toward more data-intensive applications significantly boosted sequencing volumes, strengthening recurring consumables revenue.
NovaSeq X Adoption and Platform Transition: Operationally, Illumina continued to benefit from the transition to its NovaSeq X platform, which drove both instrument placements and consumables demand. The company placed over 100 NovaSeq X systems in Q4FY25, contributing to an installed base of approximately 890 instruments globally. This transition has enhanced throughput and sequencing intensity, reinforcing long-term demand elasticity and improving utilization across both research and clinical applications.
Expansion into Multiomics and Strategic Acquisitions: Illumina advanced its long-term growth strategy through expansion into multiomics, highlighted by the acquisition of SomaLogic. This acquisition strengthens the company’s proteomics capabilities and broadens its integrated genomics ecosystem, enabling deeper biological insights. The integration of genomics, proteomics, and data analytics is expected to enhance the company’s positioning in emerging high-growth markets and diversify revenue streams.
AI and Data-Driven Innovation Enhancing Value Proposition: The launch of BioInsight underscores Illumina’s strategic push into AI-enabled drug discovery and data platforms. By combining sequencing, CRISPR-based perturbation, compute power, and AI, the company aims to accelerate drug development and improve success rates. Partnerships with major biopharma players further validate this initiative, strengthening Illumina’s presence in the biopharma research segment and expanding its total addressable market.
Margin Expansion and Profitability Improvement: Financially, Illumina delivered strong margin expansion, with non-GAAP operating margin improving to 23.7% in Q4FY25 from 19.7% in Q4FY24. Non-GAAP EPS increased significantly to USD 1.35, reflecting a 42% year-on-year rise. This improvement was driven by cost optimization initiatives, operating leverage, and favorable product mix, demonstrating enhanced profitability despite macro headwinds.
Outlook and Strategic Positioning for FY26: Looking ahead, Illumina expects revenue growth of 4%–6% in FY26, supported by continued clinical demand and contributions from the SomaLogic acquisition. While research markets remain subdued, the company anticipates sustained double-digit growth in clinical consumables, alongside stable instrument demand. The focus on integrated workflows, multiomics, and AI-driven solutions is expected to drive long-term value creation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Illumina Inc. (NASDAQ: ILMN) at the closing market price of USD 127.88, as on 24 April,2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Diagnostics & Research
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ILMN Illumina Inc |
5.29 2.86% | 189.97 | - | 129.87 | 4.49 | 3.52 | 4.76 | -35.2733 |
| TMO Thermo Fisher Scientific Inc |
-11.63 2.21% | 514.60 | 34.71 | 23.87 | 4.62 | 4.43 | 5.29 | 20.89 |
| DHR Danaher Corporation |
-27.55 13.70% | 173.56 | 29.09 | 28.01 | 5.67 | 3.20 | 6.00 | 19.09 |
| A Agilent Technologies Inc |
1.74 1.34% | 132.00 | 34.36 | 26.39 | 6.59 | 7.14 | 6.78 | 23.56 |
| IDXX IDEXX Laboratories Inc |
-9.59 1.70% | 554.22 | 49.99 | 45.66 | 11.29 | 27.85 | 11.46 | 34.46 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 27, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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