Illumina (ILMN) Stock Forecast & Price Target

Illumina's strong historical performance, characterized by revenue growth despite declining sequencing costs, demonstrates its ability to leverage demand elasticity to its advantage. The company's goal to achieve high single-digit revenue growth by 2027, supported by a robust pipeline of multiomic technologies and workflows, indicates a solid foundation for future expansion. Additionally, projected earnings per share (EPS) growth of approximately 14% in 2026, even in light of potential challenges in the Chinese market, highlights Illumina's resilience and reinforces a positive long-term outlook for the company.

Illumina has lowered its 2025 guidance for non-GAAP diluted EPS to $4.50, reflecting anticipated reduced earnings contributions from China and ongoing macroeconomic challenges. The company’s stock has declined approximately 40% due to concerns surrounding its market share in the next-generation sequencing (NGS) market and potential operational limitations in China, which constitutes 7% of its sales. Furthermore, with the life science tools sector experiencing persistent demand weakness, especially in China, the outlook for Illumina’s revenue and earnings growth remains uncertain, suggesting that its stock may continue to trade at a relative discount compared to peers.