Illumina (ILMN) shares have returned 118% over six months and more than 100% year to date, versus 14% for the S&P 500 ETF, as its core sequencing business shows signs of recovery. Clinical markets make up about 65% of sequencing consumables revenue and grew 15% outside China in Q2, while research demand remains cautious and is expected to decline in 2026. Q2 revenue rose 9.5% to $1.16 billion with a 22.5% non-GAAP operating margin, and management raised its 2026 revenue outlook to $4.60–$4.64 billion and adjusted EPS guidance to $5.30–$5.40. More than 95 NovaSeq X instruments were placed in Q2, and since customers take six to nine months to reach normal consumables usage, these could support revenue into 2027, while multi-omics and the Billion Cell Atlas are still early. At 46.17x trailing and 40.32x forward earnings, the article argues much of the recovery already appears reflected in the share price, with risks from research funding, China, and higher freight and memory costs.
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