Illumina (ILMN) Stock Forecast & Price Target

Illumina has demonstrated strong clinical momentum, with a mid-single-digit year-over-year increase in clinical consumables revenue and ongoing success in attracting new customers through the MiSeq i100 Plus. The company's revised non-GAAP diluted EPS guidance has improved to a range of $4.45 to $4.55, reflecting a positive outlook bolstered by favorable legislative changes and funding prospects from China and the National Institutes of Health. Additionally, Illumina's diverse product offerings, including high-throughput sequencing technologies and lower-cost microarrays, position the company well for continued revenue growth across various applications, including consumer and agricultural markets.

Illumina's financial outlook is characterized by a projected decline in constant currency revenue of 1.5-2.5% year-over-year for the third quarter of 2025, with reported revenue guidance of $1.06-1.07 billion, indicating a 1% decrease at the midpoint. This outlook is compounded by anticipated challenges in their sequencing instruments segment, which is expected to experience a decline of 4-6% year-over-year, alongside only modest growth of 1-3% in sequencing consumables when excluding China. Additionally, the significant reduction in NovaSeq X shipments compared to both the first quarter of 2025 and previous year levels raises further concerns regarding the company's ability to sustain revenue growth.