ILMNNEUTRAL

Gross Margin

66.1%

Updated 131h ago

Sector Performance

82th percentile

ILMN

66.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin is the percentage of revenue left after covering the direct costs of producing goods, so ILMN's 66.1% means it retains about 66 cents of every dollar in sales from its core operations.

Compared to the sector median of 44.2%, ILMN ranks at the 82nd percentile among peers, showing it is well above average in profitability efficiency. Over the last eight quarters the trend is labeled stable, though the year-over-year change is not available and the quarter-over-quarter change is -3.1% (dropping from 68.2% to 66.1%). A high gross margin combined with a stable trend implies limited immediate risk from cost increases, but the recent quarterly decline suggests an area to watch. This metric supports the overall NEUTRAL verdict because the strong margin level is a positive, yet the absence of growth and the small quarterly dip prevent a more bullish assessment.

Frequently Asked Questions

What does the Gross Margin tell investors about ILMN?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ILMN's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.