Should You Add Illumina Stock to Your Portfolio Now?

ILMN raised its 2026 revenue and earnings-per-share guidance after posting 9.5% year-over-year revenue growth in the second quarter. The genomics company cited strong oncology clinical growth and expanded multiomics offerings as key drivers behind the beat and raised outlook.

The upside comes with a margin squeeze. ILMN's adjusted gross margin fell 120 basis points year-over-year as tariffs, freight costs, and memory inflation weighed on profitability. Management noted the company maintains manageable leverage and sufficient liquidity to weather the cost pressures.

The 2026 guidance lift signals confidence in the oncology clinical pipeline and the company's ability to cross-sell multiomics platforms into its installed base. The margin compression, however, raises questions about pricing power and whether ILMN can offset input-cost inflation through volume or mix.