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Independent research · Est. October 2026
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Stock X-Ray · Health Care · S&P 500 Full Coverage — Phase 1

Illumina (ILMN)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: OVERVALUED

Forward P/E is 51.02x against a peer median of 30.58x, a ratio of 1.67x — well above the 1.15 fair-band ceiling — with trailing P/E 54.12x and PEG 4.54. Latest-quarter revenue grew 9.4% year over year (PRIMARY, EDGAR), only a little above the group pace, and the PEG is well above 1.5, so no growth exception applies. Delivered demand check: the Life sciences tools & services group's median growth was 8.1% year over year — demand rising, but not fast enough to pay for a two-thirds premium over peers.

51.0×
Forward P/E — price vs next year’s expected earnings (secondary source)
30.6×
Peer median forward P/E — closest comparable companies
54.1×
Trailing P/E — price vs the last twelve months of earnings
9.6×
Price / sales

What would change this label: Move to FAIRLY PRICED if the forward P/E compresses to about 35.2x or below (1.15x the peer median) at unchanged estimates, or if revenue growth rises above 20% year over year for two quarters with the PEG falling below about 1.5. Move further from fair value if the forward P/E rises above about 61.2x (2.0x the peer median) while growth stays near 10% year over year.

In simple words

Illumina sells machines that read DNA, used in research and medical testing. Its shares cost far more than similar companies — about 51 times expected earnings against about 31 times for peers — even though its sales grow only a little faster. That makes the shares overvalued.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
The share price vs the market — six years
Illumina (ILMN)S&P 500 (SPY)
6631211782362021202220232024202520262020-09-012026-10-27

Both lines start at 100 on 2020-09-01. Over the full window Illumina returned -18.17% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Illumina: -86.4% (2021-08-16 to 2025-04-08). Source: Nasdaq official daily history.

What the label rests on

Forward P/E is 51.02x against a peer median of 30.58x, a ratio of 1.67x — well above the 1.15 fair-band ceiling — with trailing P/E 54.12x and PEG 4.54. Latest-quarter revenue grew 9.4% year over year (PRIMARY, EDGAR), only a little above the group pace, and the PEG is well above 1.5, so no growth exception applies. Delivered demand check: the Life sciences tools & services group's median growth was 8.1% year over year — demand rising, but not fast enough to pay for a two-thirds premium over peers. The company’s forward P/E is 51.0× against a peer median of 30.6×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Life sciences tools & services group's median latest-quarter revenue growth was 8.1% year over year (SEC filings) — demand rising. This company grew 9.4%, only slightly faster than that pace. Latest-quarter sales growth was +9.4% versus a year earlier (SEC filings).

CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
Illumina (ILMN)$290.6551.0×54.1×
IQV—20.2×34.0×
WAT—30.9×216.8×
A—27.8×36.0×
MTD—34.9×38.6×
CRL—30.6×—
Peer median30.6×

Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.

Sales, profit and cash

Sales each quarter, and the gross margin
SalesGross margin (right axis)
$0B$0B$1B$1B0%43%85%Sep 2020Oct 2021Oct 2022Oct 2023Sep 2024Sep 2025Jun 2026

Gross margin = gross profit divided by sales, from SEC filings.

Cash left over each quarter (free cash flow)
PositiveNegative
$-0B$0B$0BSep 2020Oct 2021Oct 2022Oct 2023Sep 2024Sep 2025Jun 2026

Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.

QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Jun 2026
2026-06-28
$1.2B66.4%$207M1.35$161M
Q/E Mar 2026
2026-03-29
$1.1B66.1%$134M0.87$251M
Q/E Dec 2025
2025-12-28
$1.2B65.5%$334M—$266M
Q/E Sep 2025
2025-09-28
$1.1B67.6%$150M0.98$253M
Q/E Jun 2025
2025-06-29
$1.1B65.6%$235M1.49$204M
Q/E Mar 2025
2025-03-30
$1.0B65.6%$131M0.82$208M
Q/E Dec 2024
2024-12-29
$1.1B65.9%$186M—$335M
Q/E Sep 2024
2024-09-29
$1.1B69.0%$705M4.42$284M
Q/E Jun 2024
2024-06-30
$1.1B64.8%$-2.0B-12.48$49M
Q/E Mar 2024
2024-03-31
$1.1B62.0%$-126M-0.79$41M
Q/E Dec 2023
2023-12-31
$1.1B60.1%$-176M—$173M
Q/E Oct 2023
2023-10-01
$1.1B61.1%$-754M-4.77$94M

The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.

Earnings: getting better or worse?

Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.

Oct 2022
-24.26
Jan 2023
—
Apr 2023
0.02
Jul 2023
-1.48
Oct 2023
-4.77
Dec 2023
—
Mar 2024
-0.79
Jun 2024
-12.48
Sep 2024
4.42
Dec 2024
—
Mar 2025
0.82
Jun 2025
1.49
Sep 2025
0.98
Dec 2025
—
Mar 2026
0.87
Jun 2026
1.35

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

ItemValue
Company (legal name in filings)ILLUMINA, INC.
Chief executiveJacob Thaysen (source: https://www.prnewswire.com/news-releases/illumina-to-announce-third-quarter-2026-financial-results-on-thursday-october-29-2026-302902965.html)
SectorHealth Care — Life Sciences Tools & Services — sells DNA sequencing machines and gene-testing products
Share price (Oct 28, 2026)$290.65
Market value (market cap)$42.2B — share price times shares outstanding of 151,000,000 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest))
Sales, last twelve months$4.5B
Net income, last twelve months$825M
Free cash flow, last twelve months$931M
Latest reported quarterQ/E Jun 2026 (of 24 quarters in the data pack)
Six-year price return vs S&P 500-18.17% vs +118.28%
Worst peak-to-trough fall-86.4% (2021-08-16 to 2025-04-08)

What we could not verify

  • TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
  • Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
  • Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.

The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.

Sources

  • SEC EDGAR submissions — Filing index; company legal name. https://data.sec.gov/submissions/CIK0001110803.json
  • SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares. https://data.sec.gov/api/xbrl/companyfacts/CIK0001110803.json
  • Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates. https://api.nasdaq.com/api/quote/ILMN/historical?assetclass=stocks
  • Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.

Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.

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