IlluminaXSWX:ILMN -0.79%76 Altman Z2-Score is 2.98 as of Jun. 27, 2026, which is 48% below its 10-year median of 5.70. GuruFocus rates XSWX:ILMN with a GF Score™ of 76/100 and a GF Value™ of CHF105.51. The stock has 7 warning signs investors should review. Among 211 Medical Diagnostics & Research companies, Illumina ranks better than 58.77% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Good Sign:
Illumina has a Altman Z2-Score of 2.98, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Illumina's Altman Z2-Score or its related term are showing as below:
XSWX:ILMN'
s Altman Z2-Score Range Over the Past 10 Years
Min: -3.82 Med: 5.7 Max: 8.07
Current: 2.96
During the past 13 years, Illumina's highest Altman Z2-Score was 8.07. The lowest was -3.82. And the median was 5.70.
Illumina (XSWX:ILMN) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Illumina Altman Z2-Score Related Terms
Illumina Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Illumina's Altman Z2-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ILMN vs MTD, DGX, LH: Altman Z2-Score Comparison
For the Diagnostics & Research subindustry, Illumina's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Illumina Altman Z2-Score vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Illumina's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Illumina's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Illumina's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.1787
+
3.26
*
-0.0393
+
6.72
*
0.1797
+
1.05
*
0.6892
=
2.98
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Illumina (XSWX:ILMN) has a Altman Z2-Score of 2.98 as of Jun. 27, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Illumina and its competitors. This is 48% below median its historical median of 5.70. According to the industry distribution chart, Illumina ranks #87 out of 211 companies in the Medical Diagnostics & Research industry, placing it in the top 41.2%.
Is Illumina's Altman Z2-Score too high?
Illumina's current Altman Z2-Score of 2.98 is 48% below median its 10-year median of 5.70. The Medical Diagnostics & Research industry median Altman Z2-Score is 1.66. Illumina's value of 2.98 is 79.5% above this industry median. Based on the distribution chart, Illumina ranks #87 out of 211 companies in the Medical Diagnostics & Research industry, which is above the industry midpoint. Overall, Illumina has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Illumina's Altman Z2-Score compare to MTD and DGX?
According to the Medical Diagnostics & Research industry distribution chart, Illumina ranks #87 out of 211 companies for Altman Z2-Score. This puts Illumina in the upper half of its industry. The industry median Altman Z2-Score is 1.66. Illumina's value of 2.98 is 79.5% above this benchmark. While the company's 10-year median is 5.70 vs. the industry median of 1.66, Illumina has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z2-Score for a Medical Diagnostics & Research company?
The median Altman Z2-Score among Medical Diagnostics & Research companies is 1.66, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illumina's current Altman Z2-Score of 2.98 is 79.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Illumina and its competitors. For the Medical Diagnostics & Research industry, the median Altman Z2-Score is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illumina's current Altman Z2-Score is 2.98, which is 48% below median its own 10-year median of 5.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illumina stock overvalued right now?
Illumina (XSWX:ILMN) has a current Altman Z2-Score of 2.98. The stock's GF Value™ is CHF105.51, compared to a current price of CHF143.95 — trading 36.4% above its estimated fair value. The current Altman Z2-Score is 2.98, which is 48% below median its 10-year median of 5.70 and 79.5% above the Medical Diagnostics & Research industry median of 1.66. Illumina's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Illumina (XSWX:ILMN), the current Altman Z2-Score is 2.98 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Illumina (XSWX:ILMN) Overvalued in 2026?
Based on GuruFocus' analysis, Illumina stock appears to be overvalued.
The current stock price of CHF143.95 is trading 36.4% above its estimated GF Value™ of CHF105.51.
Key valuation signals for XSWX:ILMN:
Altman Z2-Score: 2.98 (48% below median its 10-year median of 5.70)
GF Value™: CHF105.51 vs. price of CHF143.95 (36.4% above fair value)
Industry Position: 79.5% above the Medical Diagnostics & Research median (#87 of 211)
No single metric tells the full story. See the XSWX:ILMN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates over 90% of its revenue from sequencing instruments, consumables, and services. Illumina's high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (9% of 2024 sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications.
76GF Score
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