Illumina Inc. (ILMN) 10-K Red Flags
Risk signals extracted deterministically from Illumina Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (15)
- Receivables outpacing revenue: Accounts receivable grew +16.2% YoY vs revenue growth of -0.7%. The +16.9% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Restatement of financial statements in latest filing: The term "restatement of" "previously issued" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Operating cash flow exceeds net income: OCF is 1.27x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- R&D intensity declining: R&D as % of revenue fell from 26.7% to 22.3%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Revenue grew -0.7% but receivables grew +16.2% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 5 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 2 new risk-language term(s) detected in filing text: Restatement of financial statements, Off-balance sheet arrangements.
- Market cap $28.43B at $188.29 per share.
- Trailing P/E 34.55, P/S 6.55, P/B 10.02.
- Latest annual report (10-K) filed Feb 12, 2026.
- Latest quarterly report (10-Q) filed Jul 31, 2026.
- Receivables outpacing revenue: Accounts receivable grew +16.2% YoY vs revenue growth of -0.7%. The +16.9% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Restatement of financial statements in latest filing: The term "restatement of" "previously issued" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Feb 12, 2026.
- Latest quarterly report (10-Q) filed Jul 31, 2026.
- 16 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 2 sell transactions — net selling $233.7K.
Full ILMN analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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