Stronger Q1 prompts Illumina (NASDAQ: ILMN) $1.5B share buyback
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Illumina reported a solid first quarter of fiscal 2026 and increased its full-year outlook. Q1 2026 revenue was $1.09 billion, up 4.8% from Q1 2025, with GAAP operating margin improving to 19.2% and non-GAAP operating margin to 21.9%. GAAP diluted EPS rose to $0.87 from $0.82, while non-GAAP diluted EPS increased to $1.15 from $0.97.
Free cash flow was $251 million, up from $208 million, and cash flow from operations reached $289 million. For fiscal 2026, Illumina now guides to $4.52–$4.62 billion in revenue and non-GAAP EPS of $5.15–$5.30. The board also authorized a new share repurchase program of up to $1.5 billion, on top of $314 million remaining under a prior $1.5 billion authorization.
Positive
- Strong Q1 and upgraded outlook: Revenue grew 4.8% to $1.09 billion, margins and non-GAAP EPS expanded, full-year 2026 revenue and EPS guidance were raised, and a new $1.5 billion share repurchase program was authorized, indicating management confidence and meaningful planned capital return.
Negative
- None.
Insights
Q1 growth, margin expansion, raised guidance and a large new buyback are collectively favorable for Illumina.
Illumina delivered Q1 2026 revenue of $1.09 billion, up 4.8%, with GAAP operating margin rising from 15.8% to 19.2%. Non-GAAP EPS increased to $1.15 from $0.97, showing stronger profitability alongside modest top-line growth.
Cash generation remained healthy, with operating cash flow of $289 million and free cash flow of $251 million. Management raised full-year 2026 guidance to $4.52–$4.62 billion of revenue and non-GAAP EPS of $5.15–$5.30, and the board authorized an additional $1.5 billion share repurchase program. Taken together, the outlook increase and capital return plan signal confidence in the business trajectory, subject to the macro, competitive, regulatory and integration risks outlined in the forward‑looking statements.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $1.09 billion
Q1 2026 GAAP diluted EPS: $0.87
Q1 2026 non-GAAP diluted EPS: $1.15
+5 more
8 metrics
Q1 2026 revenue
$1.09 billion
Up 4.8% vs Q1 2025
Q1 2026 GAAP diluted EPS
$0.87
Q1 2025 GAAP diluted EPS was $0.82
Q1 2026 non-GAAP diluted EPS
$1.15
Q1 2025 non-GAAP diluted EPS was $0.97
Q1 2026 GAAP operating margin
19.2%
Improved from 15.8% in Q1 2025
Q1 2026 free cash flow
$251 million
Free cash flow was $208 million in prior-year quarter
Cash, cash equivalents and short-term investments
$1.16 billion
Balance at March 29, 2026
New share repurchase authorization
$1.5 billion
2026 repurchase program approved April 28, 2026
2026 revenue guidance range
$4.52–$4.62 billion
Total revenue outlook for fiscal year 2026
Key Terms
non-GAAP operating margin, organic revenue growth, free cash flow, share repurchase program, +2 more
6 terms
non-GAAP operating margin financial
"GAAP operating margin of 19.2% and non-GAAP operating margin of 21.9%"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
organic revenue growth financial
"Revenue of $1.09 billion for Q1 2026, up 4.8% from Q1 2025 (ROW1 organic revenue growth of 3.5%)"
Organic revenue growth is the increase in a company's sales that comes from its existing products and services, without including any gains from acquisitions or selling off parts of the business. It reflects the company’s ability to attract more customers or encourage existing customers to buy more over time. For investors, it indicates the company's underlying strength and efficiency in expanding its core operations.
free cash flow financial
"Free cash flow (cash flow provided by operations less capital expenditures) was $251 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.
contingent consideration liabilities financial
"offset by $16 million for fair value adjustments on our contingent consideration liabilities"
ERP system technical
"Amounts for Q1 2026 consist primarily of costs related to implementation efforts to upgrade our ERP system."
An ERP system is integrated software that brings a company’s core operations—such as accounting, inventory, sales, human resources and purchasing—into a single platform so information flows smoothly between departments. Like replacing a stack of separate tools with one central dashboard, it can lower costs, speed decisions, improve reporting and make scaling easier; investors watch ERP projects because they affect profitability, transparency and execution risk during rollout.
Earnings Snapshot
Revenue: $1.09 billion · Guidance included
Q1 2026
Revenue
$1.09 billion
+4.8% year over year
GAAP diluted EPS
$0.87
from $0.82 in Q1 2025
Non-GAAP diluted EPS
$1.15
from $0.97 in Q1 2025
GAAP operating margin
19.2%
from 15.8% in Q1 2025
Guidance
For fiscal 2026, Illumina expects total revenue of $4.52–$4.62 billion, reported revenue growth of 4%–6%, non-GAAP operating margin of 23.4%–23.6%, and non-GAAP diluted EPS of $5.15–$5.30.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2026
(Exact name of registrant as specified in its charter)
(Commission File Number)
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) (Zip code)
(858 ) 202-4500
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13a of the Exchange Act. o
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
Item 8.01 Other Events
Item 9.01 Financial Statements and Exhibits
SIGNATURES
Exhibit Index
Table of Contents
Item 2.02 Results of Operations and Financial Condition.
On April 30, 2026, Illumina, Inc. (the “Company”) issued a press release announcing financial results for the first quarter ended March 29, 2026. The full text of the Company’s press release is attached hereto as Exhibit 99.1.
The information furnished pursuant to this Item 2.02 (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Table of Contents
Item 8.01 Other Events.
On April 28, 2026, the Company’s Board of Directors authorized a new share repurchase program for up to $1.5 billion of the Company’s common stock (the “2026 Repurchase Program”). The 2026 Repurchase Program is in addition to the $1.5 billion repurchase program authorized by the Board of Directors in August 2024, under which approximately $314 million of repurchase capacity remained as of April 29, 2026.
Table of Contents
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press release dated April 30, 2026, announcing Illumina, Inc.’s financial results for the first quarter ended March 29, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ILLUMINA, INC. | ||||||||||||||
| Date: | April 30, 2026 | By: | /s/ ANKUR DHINGRA | |||||||||||
| Name: | Ankur Dhingra | |||||||||||||
| Title: | Chief Financial Officer | |||||||||||||
Table of Contents
Exhibit Index
| Exhibit Number | Description | |||||||
99.1 | Press release dated April 30, 2026 announcing Illumina, Inc.’s financial results for the first quarter ended March 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
Investors: Conor McNamara +1.858.291.6421 ir@illumina.com | ||||||||||||||
 | ||||||||||||||
Media: Christine Douglass pr@illumina.com | ||||||||||||||
Illumina Reports Financial Results for First Quarter of Fiscal Year 2026
San Diego, April 30, 2026 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN) (“Illumina” or the “company”) today announced its financial results for the first quarter of fiscal year 2026.
First quarter 2026 results:
•Revenue of $1.09 billion for Q1 2026, up 4.8% from Q1 2025 (ROW1 organic revenue growth of 3.5%)
•GAAP operating margin of 19.2% and non-GAAP operating margin of 21.9%
•GAAP diluted EPS of $0.87 and non-GAAP diluted EPS of $1.15
•On April 28, 2026, our Board of Directors authorized an additional $1.5 billion in share repurchases
“Illumina delivered a strong start to 2026, reflecting strength of the Illumina ecosystem and progress against our strategy,” said Jacob Thaysen, Chief Executive Officer of Illumina. “Demand for NovaSeq X is increasing as we help our clinical customers expand into new application areas. With our strong first quarter performance, we are raising our full-year revenue and EPS guidance.”
Fiscal year 2026 guidance:
For fiscal year 2026, we now expect:
•Total revenue of $4.52-$4.62 billion, a $20 million increase at the mid-point versus our prior guidance
•Reported revenue growth of 4%-6% and ROW organic revenue growth of 2%-4%, both unchanged from prior guidance
•Non-GAAP operating margin of 23.4%-23.6% versus our prior guidance of 23.3%-23.5%
•Non-GAAP diluted EPS of $5.15-$5.30 versus our prior guidance of $5.05-$5.20
First quarter results
| GAAP | Non-GAAP (a) | ||||||||||||||||||||||
Dollars in millions, except per share amounts | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | |||||||||||||||||||
Revenue | $ | 1,091 | $ | 1,041 | $ | 1,091 | $ | 1,041 | |||||||||||||||
Gross margin | 66.1 | % | 65.6 | % | 68.2 | % | 67.4 | % | |||||||||||||||
Operating profit | $ | 209 | $ | 164 | $ | 239 | $ | 212 | |||||||||||||||
| Operating margin | 19.2 | % | 15.8 | % | 21.9 | % | 20.4 | % | |||||||||||||||
| Diluted EPS | $ | 0.87 | $ | 0.82 | $ | 1.15 | $ | 0.97 | |||||||||||||||
(a)See tables in “Results of Operations - Non-GAAP” section below for GAAP and non-GAAP reconciliations.
Capital expenditures for free cash flow purposes were $38 million for Q1 2026. Cash flow provided by operations was $289 million, compared to $240 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $251 million for the quarter, compared to $208 million in the prior year period. Depreciation and amortization expense was $69 million for Q1 2026. At the close of the quarter, the company held $1.16 billion in cash, cash equivalents and short-term investments.
1 ROW = rest-of-world, excluding Greater China region
1
Financial outlook and guidance
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.
Conference call information
The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, April 30, 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-q1-2026.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 the tables of this release.
2
Use of forward-looking statements
This release may contain 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, including the proteomics market; (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) our ability to successfully integrate SomaLogic, Inc. and certain other assets we acquired from Standard BioTools Inc. (the SomaLogic Business) into our existing operations and the SomaLogic Business’ technology and products into our portfolio; (v) our ability to successfully manage partner and customer relationships in the proteomics market; (vi) uncertainty regarding the impact of our inclusion on the “unreliable entities list” by regulatory authorities in China; (vii) uncertainty regarding tariffs imposed or threatened by the U.S. government and its trading partners, related court proceedings or administrative actions (including potential refund or relief programs), and other possible tariffs or trade protection measures and our efforts to mitigate the impact of such tariffs; (viii) our ability to manufacture robust instrumentation and consumables, including the SomaLogic Business’ products; (ix) the success of products and services competitive with our own; (x) 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; (xi) the impact of recently launched or pre-announced products and services on existing products and services; (xii) our ability to modify our business strategies to accomplish our desired operational goals; (xiii) 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; (xiv) our ability to further develop and commercialize our instruments, consumables, and products; (xv) to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xvi) the risk of additional litigation arising against us in connection with the GRAIL acquisition; (xvii) our ability to obtain approval by third-party payors to reimburse patients for our products; (xviii) our ability to obtain regulatory clearance for our products from government agencies; (xix) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xx) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xxi) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (xxii) 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.
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3
Illumina, Inc.
Condensed Consolidated Balance Sheets
(In millions)
| March 29, 2026 | December 28, 2025 | ||||||||||
| ASSETS | (unaudited) | ||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,089 | $ | 1,418 | |||||||
| Short-term investments | 66 | 215 | |||||||||
| Accounts receivable, net | 738 | 854 | |||||||||
| Inventory, net | 611 | 564 | |||||||||
| Prepaid expenses and other current assets | 234 | 238 | |||||||||
| Total current assets | 2,738 | 3,289 | |||||||||
| Property and equipment, net | 755 | 759 | |||||||||
| Operating lease right-of-use assets | 371 | 370 | |||||||||
| Goodwill | 1,284 | 1,113 | |||||||||
| Intangible assets, net | 430 | 210 | |||||||||
| Deferred tax assets, net | 458 | 454 | |||||||||
| Other assets | 523 | 449 | |||||||||
| Total assets | $ | 6,559 | $ | 6,644 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 218 | $ | 240 | |||||||
| Accrued liabilities | 849 | 846 | |||||||||
| Term debt, current portion | 499 | 499 | |||||||||
| Total current liabilities | 1,566 | 1,585 | |||||||||
| Operating lease liabilities | 475 | 486 | |||||||||
| Term debt | 1,490 | 1,490 | |||||||||
| Other long-term liabilities | 352 | 360 | |||||||||
| Stockholders’ equity | 2,676 | 2,723 | |||||||||
| Total liabilities and stockholders’ equity | $ | 6,559 | $ | 6,644 | |||||||
4
Illumina, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(unaudited)
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Revenue: | |||||||||||
| Product revenue | $ | 917 | $ | 880 | |||||||
| Service and other revenue | 174 | 161 | |||||||||
| Total revenue | 1,091 | 1,041 | |||||||||
| Cost of revenue: | |||||||||||
| Cost of product revenue | 273 | 253 | |||||||||
| Cost of service and other revenue | 80 | 88 | |||||||||
| Amortization of acquired intangible assets | 17 | 17 | |||||||||
| Total cost of revenue | 370 | 358 | |||||||||
| Gross profit | 721 | 683 | |||||||||
| Operating expense: | |||||||||||
| Research and development | 240 | 252 | |||||||||
| Selling, general and administrative | 272 | 267 | |||||||||
| Total operating expense | 512 | 519 | |||||||||
| Income from operations | 209 | 164 | |||||||||
| Other (expense) income, net | (52) | 18 | |||||||||
| Income before income taxes | 157 | 182 | |||||||||
| Provision for income taxes | 23 | 51 | |||||||||
| Net income | $ | 134 | $ | 131 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.88 | $ | 0.83 | |||||||
| Diluted | $ | 0.87 | $ | 0.82 | |||||||
| Shares used in computing earnings per share: | |||||||||||
| Basic | 153 | 159 | |||||||||
| Diluted | 154 | 159 | |||||||||
5
Illumina, Inc.
Condensed Statements of Cash Flows
(In millions)
(unaudited)
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Net cash provided by operating activities | $ | 289 | $ | 240 | |||||||
| Net cash used in investing activities | (366) | (63) | |||||||||
| Net cash used in financing activities | (251) | (195) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1) | 4 | |||||||||
| Net decrease in cash and cash equivalents | (329) | (14) | |||||||||
| Cash and cash equivalents, beginning of period | 1,418 | 1,127 | |||||||||
| Cash and cash equivalents, end of period | $ | 1,089 | $ | 1,113 | |||||||
| Calculation of free cash flow: | |||||||||||
| Net cash provided by operating activities | $ | 289 | $ | 240 | |||||||
| Purchases of property and equipment | (38) | (32) | |||||||||
| Free cash flow (a) | $ | 251 | $ | 208 | |||||||
(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.
6
Illumina, Inc.
Results of Operations - Non-GAAP
(unaudited)
TABLE 1: RECONCILIATION OF REVENUE GROWTH:
| Three Months Ended | |||||
| March 29, 2026 | |||||
| Revenue growth | 4.8 | % | |||
Impact of acquisitions | (1.7) | % | |||
Impact of currency exchange rates | (1.9) | % | |||
Organic revenue growth (non-GAAP) (a) | 1.2 | % | |||
| Impact of China | 2.3 | % | |||
| ROW organic revenue growth (non-GAAP) (a) | 3.5 | % | |||
TABLE 2: RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| GAAP diluted earnings per share | $ | 0.87 | $ | 0.82 | |||||||
Acquisition-related costs (d) | 0.15 | 0.09 | |||||||||
Transformational initiatives (e) | 0.04 | 0.19 | |||||||||
Strategic investment loss (gain), net (f) | 0.24 | (0.21) | |||||||||
Other (g) | — | 0.03 | |||||||||
Provision for income taxes (h) | (0.15) | 0.05 | |||||||||
| Non-GAAP diluted earnings per share (b) | $ | 1.15 | $ | 0.97 | |||||||
TABLE 3: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:
| Three Months Ended | |||||||||||||||||
(Dollars in millions) | March 29, 2026 | March 30, 2025 | |||||||||||||||
GAAP gross profit (c) | $ | 721 | 66.1 | % | $ | 683 | 65.6 | % | |||||||||
Acquisition-related costs (d) | 23 | 2.1 | % | 17 | 1.6 | % | |||||||||||
Transformational initiatives (e) | — | — | % | 2 | 0.2 | % | |||||||||||
| Non-GAAP gross profit (b) | $ | 744 | 68.2 | % | $ | 702 | 67.4 | % | |||||||||
| GAAP operating profit | $ | 209 | 19.2 | % | $ | 164 | 15.8 | % | |||||||||
Acquisition-related costs (d) | 24 | 2.2 | % | 13 | 1.2 | % | |||||||||||
Transformational initiatives (e) | 6 | 0.5 | % | 30 | 3.0 | % | |||||||||||
Other (g) | — | — | % | 5 | 0.4 | % | |||||||||||
| Non-GAAP operating profit (b) | $ | 239 | 21.9 | % | $ | 212 | 20.4 | % | |||||||||
7
(a)Organic revenue growth adjusts for the impact from 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 Q1 2026 consist primarily of $17 million for amortization of intangible assets (cost of revenue), $15 million related primarily to legal and other expenses for the SomaLogic acquisition (operating expense), and $6 million related to the amortization of an inventory fair value step-up recognized in SomaLogic purchase accounting (cost of revenue), offset by $16 million for fair value adjustments on our contingent consideration liabilities (operating expense). Amounts for Q1 2025 consist of $17 million for amortization of intangible assets (cost of revenue) and $7 million related primarily to legal expenses for the GRAIL acquisition (operating expense), offset by $11 million for fair value adjustments on our contingent consideration liabilities (operating expense).
(e)Amounts for Q1 2026 consist primarily of costs related to implementation efforts to upgrade our ERP system. Amounts for Q1 2025 consist primarily of employee severance costs related to restructuring activities.
(f)Amounts consist of realized and unrealized gains (losses) and impairments on our investments.
(g)Amount consists of $3 million for costs related to board membership changes and $2 million for 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.
8
FAQ
How did Illumina (ILMN) perform financially in Q1 2026?
Illumina delivered higher revenue and profits in Q1 2026. Revenue reached $1.09 billion, up 4.8% year over year, while GAAP diluted EPS rose to $0.87 and non-GAAP diluted EPS increased to $1.15, reflecting stronger margins and improved operating performance.
Did Illumina (ILMN) raise its fiscal year 2026 guidance?
Illumina increased its full-year 2026 outlook. It now expects total revenue of $4.52–$4.62 billion and non-GAAP diluted EPS of $5.15–$5.30, up from prior EPS guidance of $5.05–$5.20, alongside a slightly higher non-GAAP operating margin range of 23.4%–23.6%.
How did Illumina’s profitability and margins change in Q1 2026?
Illumina’s margins improved alongside revenue growth. GAAP operating margin increased to 19.2% from 15.8% a year earlier, and non-GAAP operating margin rose to 21.9% from 20.4%. Non-GAAP diluted EPS also climbed to $1.15 compared with $0.97 in the prior-year quarter.
What were Illumina’s cash flow and cash levels in Q1 2026?
Illumina generated stronger cash flow in Q1 2026. Cash flow from operations was $289 million, up from $240 million, and free cash flow reached $251 million versus $208 million. At quarter-end, the company held $1.16 billion in cash, cash equivalents and short-term investments.
How fast did Illumina’s organic revenue grow outside Greater China in Q1 2026?
Illumina’s rest-of-world organic revenue, excluding Greater China, grew moderately. Overall revenue growth was 4.8%, with organic revenue growth of 1.2%. Rest-of-world organic revenue growth reached 3.5%, highlighting underlying demand when excluding acquisitions, currency effects and the China region impact.