<div id="readability-page-1"><div><h2>Recent performance snapshot and context for Illumina (ILMN)</h2> <p>Illumina (ILMN) has attracted fresh attention after recent share price moves, with the stock closing at US$145.00 and showing double digit gains over the past month and past 3 months.</p> <p>That shift comes against a backdrop of annual revenue of US$4.39b and net income of US$853.0m from its sequencing and array based genetic analysis business, which serves research, clinical, and commercial customers worldwide.</p> <p>See our latest analysis for Illumina.</p> <p>Recent momentum has been strong, with a 14.21% 30 day share price return and 26.70% 90 day share price return, while the 1 year total shareholder return of 85.40% contrasts with weaker 3 and 5 year total shareholder returns.</p> <p>If Illumina’s recent rebound has you looking at genomics and healthcare AI more broadly, it could be worth scanning other opportunities through our curated list of 33 healthcare AI stocks.</p> <p>With Illumina’s share price rebounding and trading above the average analyst target, yet showing a 15% discount to one intrinsic estimate, the key question is simple: is there still a buying opportunity here or is future growth already priced in?</p> <h2>Most Popular Narrative: 6.5% Overvalued</h2> <p>Illumina’s most followed narrative places fair value at $136.11 per share, slightly below the last close at $145.00, and builds a case around earnings quality, growth, and competitive positioning.</p> <blockquote> <p><em>Analysts are assuming Illumina's revenue will grow by 5.1% annually over the next 3 years. Analysts assume that profit margins will increase from 19.6% today to 20.3% in 3 years time.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Want to see how steady top line growth, firmer margins, and a specific future earnings multiple combine into that fair value? The narrative leans on measured growth, improving profitability, and a required return anchored at a single discount rate, all tied together in a detailed earnings roadmap.</p> <p><strong>Result: Fair Value of $136.11 (OVERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, there is still real execution risk. Competition in sequencing and ongoing regulatory uncertainty in China are both capable of pressuring Illumina’s growth and margins.</p> <p>Find out about the key risks to this Illumina narrative.</p> <h2>Another Angle: What P/E Says About Illumina Today</h2> <p>While one narrative sees Illumina as 6.5% overvalued against a $136.11 fair value, the current P/E of 25.7x presents a more mixed picture. It is lower than the global Life Sciences industry at 35.7x and slightly below peers at 27.1x, yet still higher than a fair ratio of 20.3x that some investors may see as a more conservative benchmark. For investors, that difference can look like either valuation risk or potential upside, depending on which reference point feels more reasonable.</p> <p>So which signal matters more to you: the discount to industry and peers, or the premium to the fair ratio, and what does that indicate about your comfort with Illumina’s current price?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ac45b0ed-2e31-4654-92b7-31f343d0e66f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ac45b0ed-2e31-4654-92b7-31f343d0e66f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTE0"/><figcaption>NasdaqGS:ILMN P/E Ratio as at May 2026</figcaption></figure><h2>Next Steps</h2> <p>If this mix of optimism and caution feels familiar, that is the point. You are seeing a stock with both risks and rewards on the table. To weigh those trade offs for yourself, it helps to see the full picture in one place through 3 key rewards and 1 important warning sign</p> <h2>Looking for more investment ideas?</h2> <p>If you stop at just one stock, you could miss opportunities that fit your goals even better, so consider putting a few more ideas on your radar today.</p> <ul> <li>Target potential bargains early by scanning screener containing 23 high quality undiscovered gems that combine quality fundamentals with less crowded investor attention.</li> <li>Prioritise resilience by checking 68 resilient stocks with low risk scores that score well on risk, so your portfolio is not built on fragile stories.</li> <li>Anchor your research in financial strength by reviewing the solid balance sheet and fundamentals stocks screener (46 results) and see which companies may handle tough conditions more comfortably.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data         and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your         financial situation. We aim to bring you long-term focused analysis driven by fundamental data.         Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.         Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>Illumina (ILMN) has seen significant share price gains, closing at $145.00, with a 14.21% return over 30 days and 26.70% over 90 days. Despite a strong annual revenue of $4.39 billion and net income of $853 million, analysts consider the stock 6.5% overvalued with a fair value of $136.11. The current P/E ratio of 25.7x is lower than the industry average but higher than a conservative benchmark. Investors face risks from competition and regulatory uncertainties, making it crucial to weigh potential rewards against risks.</p>

Assessing Illumina (ILMN) Valuation After Strong Recent Share Price Gains