Illumina Reports Financial Results for Third Quarter of Fiscal Year 2026

Quarterly free cash flow increased to $378 million from $253 million in the prior-year period.

Rhea-AI Summary

Illumina (Nasdaq: ILMN) reported third-quarter fiscal 2026 revenue of $1.13 billion, up 4.2% from the prior-year quarter, and raised annual guidance. GAAP diluted earnings per share rose to $1.43 from $0.98, while operating margin increased to 27.0% from 21.0%. Operating cash flow reached $419 million versus $284 million.

Excluding tariff refunds, quarterly revenue was $1.166 billion, non-GAAP operating margin was 25.0%, and non-GAAP diluted earnings per share were $1.44. Tariff accounting included a $79 million cost-of-revenue benefit and a $37 million revenue reduction for expected customer credits.

For fiscal 2026, excluding tariff refunds, Illumina now expects revenue of $4.64–$4.66 billion, versus $4.60–$4.64 billion previously, and non-GAAP diluted earnings per share of $5.40–$5.45, versus $5.30–$5.40. Expected non-GAAP operating margin is 23.6%, versus a prior range of 23.4%–23.6%.

22 points · 1 major

PositiveiHow this balance works

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 revenue guidance increased to $4.64–$4.66 billion from $4.60–$4.64 billion, excluding tariff refunds.
• Moderate pointQ3 revenue rose 4.2% year over year to $1.13 billion.
• Moderate pointQ3 GAAP gross margin increased to 73.5% from 67.6% a year earlier.
• Moderate pointQ3 GAAP operating profit rose to $305 million from $227 million; margin reached 27.0% versus 21.0%.
• Moderate pointQ3 GAAP net income increased to $220 million from $150 million a year earlier.
• Moderate pointQ3 GAAP diluted EPS rose to $1.43 from $0.98 a year earlier.
• Moderate pointQ3 operating cash flow increased to $419 million from $284 million a year earlier.
• Moderate pointQ3 free cash flow increased to $378 million from $253 million a year earlier.

14 minor points

• Minor pointQ3 product revenue increased to $946 million from $927 million a year earlier.
• Minor pointQ3 service and other revenue increased to $183 million from $157 million a year earlier.
• Minor pointQ3 organic revenue growth was 4.8%, excluding tariff refunds, acquisitions and currency effects.
• Minor pointQ3 rest-of-world organic revenue growth was 4.7%, additionally excluding Greater China.
• Minor pointExpected tariff refunds included a $79 million benefit reducing Q3 cost of revenue.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 non-GAAP diluted EPS guidance increased to $5.40–$5.45 from $5.30–$5.40, excluding tariff refunds.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 non-GAAP operating margin guidance is now 23.6%, versus 23.4%–23.6% previously, excluding tariff refunds.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 organic growth guidance remains greater than 4%; rest-of-world growth remains greater than 5%, excluding tariff refunds.
• Minor pointNine-month revenue increased to $3.380 billion from $3.184 billion in the comparable 2025 period.
• Minor pointNine-month GAAP operating income increased to $759 million from $606 million in the comparable 2025 period.
• Minor pointNine-month GAAP net income increased to $561 million from $516 million in the comparable 2025 period.
• Minor pointNine-month GAAP diluted EPS increased to $3.65 from $3.29 in the comparable 2025 period.
• Minor pointNine-month operating cash flow increased to $909 million from $758 million in the comparable 2025 period.
• Minor pointNine-month free cash flow increased to $791 million from $665 million in the comparable 2025 period.

Negative

• Moderate pointQ3 other expense, net, increased to $41 million from $7 million a year earlier.
• Moderate pointNine-month other expense, net, was $78 million, versus $103 million of income in the comparable 2025 period.
• Moderate pointNine-month pretax income declined to $681 million from $709 million in the comparable 2025 period.
• Minor pointExpected customer tariff-refund credits reduced Q3 revenue by $37 million.
• Minor pointQ3 operating expenses increased to $525 million from $506 million a year earlier.

5 minor points

• Minor pointQ3 capital expenditures increased to $41 million from $31 million a year earlier.
• Minor pointNine-month operating expenses increased to $1.562 billion from $1.505 billion in the comparable 2025 period.
• Minor pointNine-month capital expenditures increased to $118 million from $93 million in the comparable 2025 period.
• Minor pointCash and cash equivalents declined to $1.289 billion at September 27, 2026, from $1.418 billion at December 28, 2025.
• Minor pointShort-term investments declined to $48 million at September 27, 2026, from $215 million at December 28, 2025.

News Explained

At September 27, 2026, Illumina reported $1.34 billion in cash, cash equivalents and short-term investments—a dated balance-sheet snapshot alongside the earnings and guidance update.

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Key Figures

Q3 revenue: $1.13 billion; up 4.2% GAAP operating margin: 27.0% Non-GAAP operating margin, excluding tariff refunds: 25.0% +5 more

Q3 revenue

$1.13 billion; up 4.2%

Q3 FY2026 versus Q3 FY2025

GAAP operating margin

27.0%

Q3 FY2026; 21.0% in Q3 FY2025

Non-GAAP operating margin, excluding tariff refunds

25.0%

Q3 FY2026; 24.5% in Q3 FY2025

GAAP diluted EPS

$1.43

Q3 FY2026; $0.98 in Q3 FY2025

Non-GAAP diluted EPS, excluding tariff refunds

$1.44

Q3 FY2026; $1.34 in Q3 FY2025

FY2026 revenue guidance

$4.64–$4.66 billion

Excluding tariff refunds; prior guidance was $4.60–$4.64 billion

FY2026 non-GAAP operating margin guidance

23.6%

Excluding tariff refunds; prior guidance was 23.4%–23.6%

FY2026 non-GAAP diluted EPS guidance

$5.40–$5.45

Excluding tariff refunds; prior guidance was $5.30–$5.40

Previous Earnings Reports

4 past events · Latest: Jul 30

Same Type 4 events

1. Jul 30

   Q2 earnings report

   24h Move

   +0.0%

   Raised FY2026 revenue and EPS guidance; set ROW organic growth expectation above 5%.

2. Apr 30

   Q1 earnings report

   24h Move

   +7.1%

   Reported Q1 FY2026 results and raised full-year revenue and non-GAAP EPS guidance.

3. Feb 05

   FY2025 earnings report

   24h Move

   -10.4%

   Reported FY2025 results and established initial FY2026 revenue and non-GAAP EPS ranges.

4. Oct 30

   Q3 earnings report

   24h Move

   +24.8%

   Reported Q3 FY2025 revenue, EPS and margins and raised fiscal 2025 guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non‑gaap, diluted eps, free cash flow

4 terms

gaap financial

"GAAP operating margin was 27.0%"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non‑gaap financial

"non‑GAAP operating margin, excluding tariff refunds, was 25.0%"

Non‑GAAP describes financial measures that companies report after removing or adding certain items that aren’t included under standard accounting rules, like one‑time charges, stock‑based pay, or restructuring costs. Investors use these adjusted numbers to try to see a company’s underlying performance—like looking at a household budget after excluding a rare, large expense—but they can vary between companies, so they must be compared carefully alongside standard figures.

diluted eps financial

"GAAP diluted EPS was $1.43"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

free cash flow financial

"Free cash flow was $378 million for the quarter"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN DIEGO, Oct. 29, 2026 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced its financial results for the third quarter of fiscal year 2026.

Third quarter 2026 results

• Reported revenue was $1.13 billion for Q3 2026, up 4.2% from Q3 2025. Revenue excluding tariff refunds was $1.17 billion, up 4.7% after also excluding the impacts of currency, acquisitions, and the Greater China region ("ROW^[1] organic revenue growth").
• GAAP operating margin was 27.0% and non‑GAAP operating margin, excluding tariff refunds, was 25.0%.
• GAAP diluted EPS was $1.43 and non‑GAAP diluted EPS, excluding tariff refunds, was $1.44.

"In the third quarter, healthy clinical demand and robust NovaSeq X placements drove results above our guidance. Based on continued momentum, we are raising our full year revenue and earnings guidance," said Jacob Thaysen, Chief Executive Officer of Illumina. "As we continue to execute our strategy, our innovation is broadening the value of the Illumina ecosystem. Together with our customers, we are laying the foundation for AI to transform our understanding of human biology and improve patient outcomes."

Fiscal year 2026 guidance
For fiscal year 2026 and excluding tariff refunds, Illumina now expects:

• Total revenue of $4.64-$4.66 billion versus prior guidance of $4.60-$4.64 billion.
• Organic revenue growth greater than 4% and ROW organic revenue growth greater than 5%, both unchanged versus prior guidance.
• Non-GAAP operating margin of 23.6% versus prior guidance of 23.4%-23.6%.
• Non-GAAP diluted EPS of $5.40-$5.45 versus prior guidance of $5.30-$5.40. 

Third quarter results

	GAAP				Non-GAAP (a)				Non-GAAP Excluding Tariff Refunds (b)
Dollars in millions, except per share amounts	Q3 2026		Q3 2025		Q3 2026		Q3 2025		Q3 2026
Revenue	$ 1,129		$ 1,084		$ 1,129		$ 1,084		$          1,166
Gross margin	73.5 %		67.6 %		75.3 %		69.2 %		69.4 %
Operating profit	$    305		$    227		$    325		$    265		$             292
Operating margin	27.0 %		21.0 %		28.8 %		24.5 %		25.0 %
Diluted EPS	$   1.43		$   0.98		$   1.62		$   1.34		$            1.44

(a)	See tables in "Results of Operations - Non-GAAP" section below for GAAP and non-GAAP reconciliations.
(b)	Excludes the impacts of International Emergency Economic Powers Act (IEEPA) tariff refunds expected to be recovered, consisting primarily of a $79 million benefit recognized as a reduction to cost of revenue in Q3 2026 and a reduction to revenue of $37 million for the portion of tariff refunds that we expect to credit to customers.

Capital expenditures for free cash flow purposes were $41 million for Q3 2026. Cash flow provided by operations was $419 million, compared to $284 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $378 million for the quarter, compared to $253 million in the prior year period. Depreciation and amortization expense was $71 million for Q3 2026. At the close of the quarter, the company held $1.34 billion in cash, cash equivalents and short-term investments.

1 ROW = rest-of-world, excluding Greater China region due to our inclusion on China's Unreliable Entities List

Conference call information
The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, October 29, 2026. Interested parties may access the live webcast via the Investor Info section of Illumina's website or directly through the following link - https://illumina-earnings-call-q3-2026.open-exchange.net/. To ensure timely connection, please join at least ten minutes before the scheduled start of the call. A replay of the conference call will be posted on Illumina's website after the event and will be available for at least 30 days following.

Statement regarding use of non-GAAP financial measures
The company reports non-GAAP results for diluted earnings per share, gross margin, operating margin, and free cash flow, among others, in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company's financial measures under GAAP include substantial charges such as amortization of acquired intangible assets, among others, that are listed in the reconciliations of GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance. Non-GAAP operating margin and diluted earnings per share are key components of the financial metrics utilized by the company's board of directors to measure, in part, management's performance and determine significant elements of management's compensation. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in this release.

The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the impact of items such as acquisition-related costs, fair value adjustments to contingent consideration, gains and losses from strategic investments, asset impairments, restructuring activities, and the ultimate outcome of pending litigation, among others, without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

Use of forward-looking statements
This release contains forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of growth in the markets we serve; (ii) the volume, timing and mix of customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our revenue expectations; (iv) uncertainty regarding the impact of our inclusion on the "unreliable entities list" by regulatory authorities in China; (v) uncertainty regarding tariffs imposed or threatened by the U.S. government and its trading partners, related court proceedings or administrative actions (including potential additional refund or relief programs), and other possible tariffs or trade protection measures and our efforts to mitigate the impact of such tariffs; (vi) our ability to manufacture robust instrumentation and consumables; (vii) the success of products and services competitive with our own; (viii) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (ix) the impact of recently launched or pre-announced products and services on existing products and services; (x) our ability to modify our business strategies to accomplish our desired operational goals; (xi) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (xii) our ability to further develop and commercialize our instruments, consumables, and products; (xiii) our ability to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xiv) the risk of additional litigation or other liabilities arising against us in connection with previous acquisitions, including the GRAIL acquisition; (xv) our ability to obtain approval by third-party payors to reimburse patients for our products; (xvi) changes in the regulatory landscape and our ability to obtain regulatory clearance for our products from government agencies; (xvii) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xviii) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xix) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (xx) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current quarter.

About Illumina
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X, Facebook, LinkedIn, Instagram, TikTok, and YouTube.

 

Illumina, Inc.
Condensed Consolidated Balance Sheets
(In millions)
	September 27, 2026		December 28, 2025
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$       1,289		$       1,418
Short-term investments	48		215
Accounts receivable, net	738		854
Inventory, net	667		564
Prepaid expenses and other current assets	293		238
Total current assets	3,035		3,289
Property and equipment, net	731		759
Operating lease right-of-use assets	356		370
Goodwill	1,284		1,113
Intangible assets, net	391		210
Deferred tax assets, net	454		454
Other assets	561		449
Total assets	$       6,812		$       6,644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$          241		$          240
Accrued liabilities	915		846
Term debt, current portion	—		499
Total current liabilities	1,156		1,585
Operating lease liabilities	439		486
Term debt	1,789		1,490
Other long-term liabilities	283		360
Stockholders' equity	3,145		2,723
Total liabilities and stockholders' equity	$       6,812		$       6,644

 

Illumina, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(unaudited)
	Three Months Ended				Nine Months Ended
	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Revenue:
Product revenue	$          946		$          927		$      2,845		$      2,719
Service and other revenue	183		157		535		465
Total revenue	1,129		1,084		3,380		3,184
Cost of revenue:
Cost of product revenue	199		267		763		795
Cost of service and other revenue	82		68		243		228
Amortization of acquired intangible assets	18		16		53		50
Total cost of revenue	299		351		1,059		1,073
Gross profit	830		733		2,321		2,111
Operating expense:
Research and development	244		229		736		728
Selling, general and administrative	281		277		826		777
Total operating expense	525		506		1,562		1,505
Income from operations	305		227		759		606
Other (expense) income, net	(41)		(7)		(78)		103
Income before income taxes	264		220		681		709
Provision for income taxes	44		70		120		193
Net income	$          220		$          150		$         561		$         516
Earnings per share:
Basic	$         1.46		$         0.98		$        3.70		$        3.30
Diluted	$         1.43		$         0.98		$        3.65		$        3.29
Shares used in computing earnings per share:
Basic	151		153		152		156
Diluted	154		154		154		157

 

Illumina, Inc.
Condensed Statements of Cash Flows
(In millions)
(unaudited)
	Three Months Ended				Nine Months Ended
	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Net cash provided by operating activities	$          419		$         284		$        909		$         758
Net cash provided by (used in) investing activities	50		(51)		(438)		(163)
Net cash used in financing activities	(223)		(115)		(602)		(681)
Effect of exchange rate changes on cash and cash equivalents	3		(2)		2		9
Net increase (decrease) in cash and cash equivalents	249		116		(129)		(77)
Cash and cash equivalents, beginning of period	1,040		934		1,418		1,127
Cash and cash equivalents, end of period	$       1,289		$      1,050		$      1,289		$      1,050
Calculation of free cash flow:
Net cash provided by operating activities	$          419		$         284		$        909		$         758
Purchases of property and equipment	(41)		(31)		(118)		(93)
Free cash flow (a)	$          378		$         253		$        791		$         665

(a)

Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating activities reduced by purchases of property and equipment. Free cash flow is useful to management as it is one of the metrics used to evaluate our performance and to compare us with other companies in our industry. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

 

Illumina, Inc.
Results of Operations - Non-GAAP
(unaudited)
TABLE 1: RECONCILIATION OF REVENUE GROWTH:
	Three Months Ended		Nine Months Ended
	September 27, 2026		September 27, 2026
Revenue growth	4.2 %		6.2 %
Impact of tariff refunds	3.4 %		1.1 %
Revenue growth, excluding tariff refunds (non-GAAP) (a)	7.6 %		7.3 %
Impact of acquisitions	(2.4) %		(2.1) %
Impact of currency exchange rates	(0.4) %		(1.0) %
Organic revenue growth (non-GAAP) (a)	4.8 %		4.2 %
Impact of China	(0.1) %		1.2 %
ROW organic revenue growth (non-GAAP) (a)	4.7 %		5.4 %

 

TABLE 2: RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:
	Three Months Ended				Nine Months Ended
	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
GAAP diluted earnings per share	$         1.43		$         0.98		$         3.65		$         3.29
Acquisition-related costs (d)	0.10		0.17		0.33		0.28
Transformational initiatives (e)	0.03		0.08		0.10		0.33
Strategic investment loss (gain), net (f)	0.19		(0.04)		0.27		(0.90)
Intangible impairment	—		—		—		0.15
Other (g)	—		—		—		0.03
Provision for income taxes (h)	(0.13)		0.15		(0.27)		0.31
Non-GAAP diluted earnings per share (b)	1.62		1.34		4.08		3.49
Tariff refunds (i)	(0.18)		—		(0.18)		—
Non-GAAP diluted earnings per share, excluding tariff refunds (b)	$         1.44		$         1.34		$         3.90		$         3.49

 

Illumina, Inc.
Results of Operations - Non-GAAP (continued)
(unaudited)
TABLE 3: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:
	Three Months Ended						Nine Months Ended
(Dollars in millions)	September 27, 2026			September 28, 2025			September 27, 2026			September 28, 2025
GAAP gross profit (c)	$    830	73.5 %		$    733	67.6 %		$  2,321	68.7 %		$  2,111	66.3 %
Acquisition-related costs (d)	20	1.8 %		16	1.5 %		64	1.9 %		50	1.6 %
Transformational initiatives (e)	—	— %		1	0.1 %		—	— %		3	0.1 %
Intangible impairment	—	— %		—	— %		—	— %		23	0.7 %
Non-GAAP gross profit (b)	850	75.3 %		750	69.2 %		2,385	70.6 %		2,187	68.7 %
Tariff refunds (i)	(41)	(5.9) %		—	— %		(41)	(2.0) %		—	— %
Non-GAAP gross profit, excluding tariff refunds (b)	$    809	69.4 %		$    750	69.2 %		$  2,344	68.6 %		$  2,187	68.7 %
GAAP operating profit	$    305	27.0 %		$    227	21.0 %		$    759	22.5 %		$    606	19.0 %
Acquisition-related costs (d)	15	1.4 %		26	2.5 %		50	1.5 %		44	1.4 %
Transformational initiatives (e)	5	0.4 %		12	1.0 %		15	0.4 %		51	1.6 %
Intangible impairment	—	— %		—	— %		—	— %		23	0.7 %
Other (g)	—	— %		—	— %		—	— %		5	0.2 %
Non-GAAP operating profit (b)	325	28.8 %		265	24.5 %		824	24.4 %		729	22.9 %
Tariff refunds (i)	(33)	(3.8) %		—	— %		(33)	(1.3) %		—	— %
Non-GAAP operating profit, excluding tariff refunds (b)	$    292	25.0 %		$    265	24.5 %		$    791	23.1 %		$    729	22.9 %

(a)	Revenue growth, excluding tariff refunds adjusts for the tariff refund to customers. Organic revenue growth adjusts for the impact from the tariff refund to customers, acquisitions and currency movements, which is calculated using comparative prior period foreign exchange rates to translate current period revenue, net of the effects of hedges. Rest of World (ROW) organic revenue growth also adjusts for the impact from our China region.
(b)	Non-GAAP gross profit, included within non-GAAP operating profit, is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and the average selling prices of our products and services. Non-GAAP diluted earnings per share and non-GAAP operating profit exclude the effects of the pro forma adjustments as detailed above. Non-GAAP operating margin and diluted earnings per share are key components of the financial metrics utilized by the company's board of directors to measure, in part, management's performance and determine significant elements of management's compensation. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing past and future operating performance.
(c)	Reconciling amounts are recorded in cost of revenue.
(d)	Amounts for Q3 2026 and YTD 2026 consist primarily of:
	•	Amortization of intangible assets of $18 million and $53 million (cost of revenue)
	•	Amortization of inventory fair value step-up for SomaLogic of $2 million and $10 million (cost of revenue)
	•	Expenses for the SomaLogic and GRAIL acquisitions of $5 million and $26 million (operating expense)
	•	Net gains on contingent consideration liabilities of ($11) million and ($43) million (operating expense)
	Amounts for Q3 2025 and YTD 2025 consist primarily of:
	•	Amortization of intangible assets of $16 million and $50 million (cost of revenue)
	•	Expenses for the SomaLogic and GRAIL acquisitions of $4 million and $19 million (operating expense)
	•	Net losses (gains) on contingent consideration liabilities of $3 million and ($29) million (operating expense)
	•	Lease impairment of $4 million (operating expense)
(e)	Amounts for Q3 2026 and YTD 2026 consist primarily of implementation costs to upgrade our ERP system. Amounts for Q3 2025 consist primarily of implementation costs to upgrade our ERP system. Amounts for YTD 2025 consist primarily of employee severance costs from restructuring activities and costs related to the ERP upgrade.
(f)	Amounts consist of realized and unrealized gains and losses and impairments on our investments.
(g)	Amount consists of $3 million for costs related to board membership changes and $2 million for a legal accrual.
(h)	Amounts represent the aggregate of the difference between book and tax accounting related to stock-based compensation cost and the tax impact related to non-GAAP adjustments. Amounts for Q3 2025 and YTD 2025 also include a one-time $42 million valuation allowance adjustment recorded in Q3 2025 against deferred tax assets associated with certain U.S. foreign tax credits as a result of the U.S. tax legislation that was signed on July 4, 2025.
(i)	Amounts represent the impacts of IEEPA tariff refunds, consisting primarily of the $79 million benefit recognized as a reduction to cost of revenue in Q3 2026 and the related reduction to revenue of $37 million for the portion of tariff refunds that we expect to credit to customers.

 

Investors:
Conor McNamara
+1.858.291.6421
ir@illumina.com 

Media:
Christine Douglass
pr@illumina.com 

 

View original content:https://www.prnewswire.com/news-releases/illumina-reports-financial-results-for-third-quarter-of-fiscal-year-2026-302923969.html

SOURCE Illumina, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Illumina's third-quarter fiscal 2026 earnings results?

Illumina reported $1.13 billion in revenue, up 4.2% year over year, and GAAP diluted earnings per share of $1.43, versus $0.98. Excluding tariff refunds, revenue was $1.166 billion and non-GAAP diluted earnings per share were $1.44.

What is Illumina's updated fiscal 2026 guidance?

Illumina expects fiscal 2026 revenue of $4.64–$4.66 billion and non-GAAP diluted earnings per share of $5.40–$5.45, excluding tariff refunds. The previous ranges were $4.60–$4.64 billion and $5.30–$5.40, respectively. Expected non-GAAP operating margin is now 23.6%, compared with 23.4%–23.6% previously.

How does Illumina calculate rest-of-world organic revenue growth?

Illumina's rest-of-world organic revenue growth excludes tariff refunds, acquisitions, currency effects and the Greater China region. This measure was 4.7% for the third quarter of fiscal 2026 and 5.4% for the nine months ended September 27, 2026.