All research in Life Science Tools (Gene Sequencing) — 1 reports.
Illumina is the undisputed global leader in next-generation sequencing, with more than 80% share of sequencing data output and more than 90% share in clinical genomic testing. Its razor-razorblade model, selling instruments and locking in proprietary high-margin consumables, still produces roughly 68% non-GAAP gross margin and about $900 million of free cash flow, while the June 2024 GRAIL spin-off makes FY2025 the first clean earnings year. Rating Watch: a high-quality sequencing leader, but the current price leaves too little margin of safety given a true 31-33x valuation, narrowing moat trends, and growth that likely needs until 2027 to restart.
