Illumina (ILMN) Stock Forecast & Price Target

Illumina's positive financial outlook is supported by a mid-single-digit year-over-year increase in clinical consumables revenue, highlighting robust demand for its sequencing products. Additionally, the successful introduction of the MiSeq i100 Plus model is attracting new customers to the sequencing market, further bolstering revenue streams. The company's revised non-GAAP diluted EPS guidance of $4.45-4.55, an increase from previous expectations, reflects improved clinical momentum and a favorable funding landscape, particularly in China and from the NIH.

Illumina has projected a year-over-year decline in constant currency revenue, expecting a decrease of 1.5-2.5% in 3Q25, which highlights ongoing revenue challenges. This guidance reflects disappointing performance in its sequencing instruments, with a forecasted decline of 4-6% year-over-year, while growth in sequencing consumables is limited to a modest 1-3%. Additionally, the company has reported a significant reduction in shipments of its NovaSeq X instruments compared to both the previous quarter and the same period last year, indicating potential weaknesses in demand.