Illumina (ILMN) shares tumbled 6.14% in after-hours trading on Thursday, even as the DNA sequencing company reported second-quarter revenue and adjusted earnings that topped analyst expectations and lifted its full-year outlook.

The company posted Q2 revenue of $1.16 billion, up 9.5% year-over-year and ahead of the $1.13 billion consensus, while adjusted earnings per share of $1.31 beat the $1.23 estimate. Illumina also raised its fiscal 2026 revenue guidance to $4.60-$4.64 billion and adjusted EPS view to $5.30-$5.40. However, GAAP diluted EPS fell 9.4% to $1.35, and non-GAAP operating margin narrowed 1.3 percentage points to 22.5%, signaling some underlying profitability pressures.

The sell-off may reflect concerns that the stock had run too far ahead of fundamentals. Despite the beats, Illumina's closing price of $194.82 on July 29 was already 12.7% above Wall Street's median 12-month price target of $170.00, and the shares traded at a rich 35 times forward earnings—up from 23 times just three months ago—leaving little room for disappointment.