Canaccord Genuity has raised its price target for Illumina (NASDAQ:ILMN) to $150.00 from $130.00, while keeping a Hold rating on the shares. The stock is trading at $166.76, which coincides with its 52-week high, and has returned 80.18% over the past six months, according to InvestingPro data.
The move follows Illumina's preliminary fourth-quarter and full-year 2025 results published on Tuesday, January 13, which exceeded both analyst estimates and FactSet consensus expectations. Investors seeking further detail should note Illumina's next earnings release is scheduled for February 6, which the report notes is 11 days away.
Canaccord's review of the fourth-quarter performance highlighted a 7% year-over-year rise in revenue when excluding the company’s China operations. The firm also pointed to a robust gross profit margin of 68.38% on trailing twelve-month revenue of $4.29 billion as evidence of healthy unit economics.
Looking ahead, Canaccord expects continued momentum from Illumina's transition to the NovaSeq X platform, which the research firm believes will underpin consumables growth in 2026. The analyst note also cited early contributions from several newer initiatives - the Illumina Billion Cell Atlas, Illumina Protein Prep, and the 5-base solution - as incremental drivers for the business.
Despite those constructive elements, Canaccord elected to remain cautious, retaining a Hold stance until there is clearer visibility on the pace and durability of Illumina's recovery. The firm warned that while the company appears positioned for growth in 2026, research and applied markets may stay subdued relative to earlier years.
Additional company disclosures and developments were summarized alongside the Canaccord note. Illumina reported preliminary fourth-quarter 2025 revenue of approximately $1.155 billion, a 5% increase versus the same period in 2024. On a year-over-year basis, excluding China, revenue rose 7%. Preliminary GAAP diluted earnings per share were indicated in a range of $2.14 to $2.17.
Regulatory and reimbursement developments were also included among the recent updates. Illumina's TruSight Oncology Comprehensive test received reimbursement approval from the Centers for Medicare and Medicaid Services, effective January 1, 2026, with a reimbursement rate of $2,989.55 per test.
On the analyst front, Stifel raised its price target for Illumina to $155 and kept a Buy rating, while noting that Illumina did not provide formal guidance for the upcoming year. Corporate product launches were highlighted as well, including the Illumina Billion Cell Atlas - described as the world's largest genome-wide genetic perturbation dataset - which the company says is intended to advance AI-driven drug discovery with AstraZeneca, Merck, and Eli Lilly and Company named as founding participants.
Illumina also introduced Illumina Connected Multiomics, a cloud-based platform intended to facilitate analysis and visualization of multiomic datasets, aimed at helping researchers manage increasingly complex data workloads. Together, these product and platform moves were presented as part of Illumina's broader effort to advance genomic research and related technologies.
While the recent results, margin profile, reimbursement approval, and product pipeline updates provide several positive data points, Canaccord's Hold rating underscores an open question about how quickly end markets will recover and how sustainable near-term growth will be. The firm is signaling that additional clarity from forthcoming reporting and subsequent performance will be required before it moves to a more constructive stance.
Summary
Canaccord Genuity lifted its Illumina price target to $150 from $130 but kept a Hold rating after the company posted preliminary Q4 and full-year 2025 results that beat estimates. The company reported roughly $1.155 billion in Q4 revenue, 5% higher year over year, and 7% growth excluding China. Gross margin on TTM revenue stood at 68.38% on $4.29 billion. Reimbursement for TruSight Oncology Comprehensive was approved by CMS effective January 1, 2026 at $2,989.55 per test. Stifel raised its target to $155 and maintained a Buy rating. Illumina launched the Billion Cell Atlas and a Connected Multiomics platform.
Key points
- Canaccord raised its price target to $150 and retained a Hold rating while citing stronger-than-expected preliminary results and operational margin strength.
- Illumina reported preliminary Q4 revenue of about $1.155 billion, up 5% year over year, with 7% growth excluding China and a trailing twelve-month gross margin of 68.38% on $4.29 billion in revenue.
- Product and commercial developments include CMS reimbursement for the TruSight Oncology Comprehensive test and launches of the Billion Cell Atlas and Illumina Connected Multiomics platform; Stifel raised its target to $155 and kept a Buy rating.
Risks and uncertainties
- Visibility on recovery - Canaccord remains on the sidelines until it sees clearer evidence of the pace and durability of Illumina's recovery, which affects investor confidence in the genomics equipment and consumables markets.
- Muted end markets - Research and applied markets are expected to remain muted compared with prior years, which could limit near-term revenue expansion for Illumina and related suppliers.
- Guidance absence - Illumina did not provide formal guidance for the upcoming year, complicating forecasting for analysts and market participants across healthcare and life sciences technology sectors.