ILLUMINA, INC. (ILMN): Results of Operations and Financial Condition
ILLUMINA, INC. (ILMN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Investors: Conor McNamara +1.858.291.6421 ir@illumina.com Media: Christine Douglass pr@illumina.com Illumina Reports Financial Results for Second Quarter of Fiscal Year 2026 San Diego, July 30, 2026 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN) (“Illumina” or the “company”) today
How this was made
The 30-second read
Why it matters
The key tradable update is the guidance increase for revenue, ROW organic growth, and non-GAAP diluted EPS range, supported by Q2 margin and EPS performance.
Market read
A same-day earnings and guidance update typically drives estimate revisions and near-term positioning, especially when revenue and ROW organic growth targets are raised.
What to watch
The filing emphasizes non-GAAP metrics; traders may scrutinize GAAP EPS softness (GAAP diluted EPS $1.35 vs non-GAAP $1.31) and free cash flow decline versus the prior year quarter.
Illumina Reports Financial Results for Second Quarter of Fiscal Year 2026
Q2 revenue increased to $ 1,159 million from $ 1,059 million, GAAP operating margin expanded to 21.1% from 20.2%, and the company raised fiscal year 2026 revenue and non-GAAP diluted EPS guidance. Operating cash flow and free cash flow were below the prior-year period, while non-GAAP gross margin and operating margin declined year over year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $ 1,159 million | – | up 9.5% from Q2 2025 |
| ROW organic revenue growthother | up 8.1% excluding the impacts of currency, acquisitions, and China | – | up 8.1% |
| Gross profitGAAP | $ 770 million | – | – |
| Gross marginGAAP | 66.4% | – | – |
| Gross marginnon-GAAP | 68.2% | – | – |
| Income from operationsGAAP | $ 245 million | – | – |
| Operating profitnon-GAAP | $ 260 million | – | – |
| Operating marginGAAP | 21.1% | – | – |
| Operating marginnon-GAAP | 22.5% | – | – |
| Other income (expense), netGAAP | $ 15 million | – | – |
| Income before income taxesGAAP | $ 260 million | – | – |
| Provision for income taxesGAAP | $ 53 million | – | – |
| Net incomeGAAP | $ 207 million | – | – |
| Basic EPSGAAP | $ 1.37 | – | – |
| Diluted EPSGAAP | $ 1.35 | – | – |
| Diluted EPSnon-GAAP | $ 1.31 | – | – |
| Shares used in computing earnings per share: BasicGAAP | 151 million | – | – |
| Shares used in computing earnings per share: DilutedGAAP | 153 million | – | – |
| Cash flow provided by operationsGAAP | $ 201 million | – | – |
| Capital expenditures for free cash flow purposesother | $39 million | – | – |
| Free cash flownon-GAAP | $162 million | – | – |
| Depreciation and amortization expenseGAAP | $70 million | – | – |
| Total revenue, six months ended June 28, 2026GAAP | $ 2,251 million | – | – |
| Gross profit, six months ended June 28, 2026GAAP | $ 1,491 million | – | – |
| Income from operations, six months ended June 28, 2026GAAP | $ 454 million | – | – |
| Net income, six months ended June 28, 2026GAAP | $ 340 million | – | – |
| Diluted EPS, six months ended June 28, 2026GAAP | $ 2.22 | – | – |
| Net cash provided by operating activities, six months ended June 28, 2026GAAP | $ 490 million | – | – |
| Net cash used in investing activities, six months ended June 28, 2026GAAP | (488) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenueNo segment-specific driver was reported. | $ 982 million | – | – |
| Service and other revenueNo segment-specific driver was reported. | $ 177 million | – | – |
fiscal year 2026 outlook
- Revenue$4.60-$4.64 billion
- NoteROW organic revenue growth greater than 5%
- NoteNon-GAAP operating margin of 23.4%-23.6%
- NoteNon-GAAP diluted EPS of $5.30-$5.40
What drove it
- Management said momentum continued to build through the first half of 2026 as technology enabled clinical customers to expand sequencing-intensive applications.
- Management said demand for NovaSeq X remained high.
- Management cited expanding workflow and multiomics capabilities as broadening the value of Illumina’s ecosystem.
- Product revenue was $ 982 million, compared with $ 912 million in the prior-year quarter.
- Service and other revenue was $ 177 million, compared with $ 147 million in the prior-year quarter.
Concerns
- GAAP net income was $ 207 million, compared with $ 235 million in the prior-year quarter.
- GAAP diluted EPS was $ 1.35, compared with $ 1.49 in the prior-year quarter.
- Non-GAAP gross margin was 68.2%, compared with 69.4% in the prior-year quarter.
- Non-GAAP operating margin was 22.5%, compared with 23.8% in the prior-year quarter.
- Cash flow provided by operations was $201 million, compared with $234 million in the prior-year period.
- Free cash flow was $162 million, compared with $204 million in the prior-year period.
- The company identified uncertainty regarding its inclusion on China’s Unreliable Entities List, tariffs and trade protection measures, and integration of the SomaLogic Business among its risks.
What to watch
- Fiscal year 2026 total revenue guidance of $4.60-$4.64 billion.
- Fiscal year 2026 ROW organic revenue growth guidance greater than 5%.
- Fiscal year 2026 non-GAAP operating margin guidance of 23.4%-23.6%.
- Fiscal year 2026 non-GAAP diluted EPS guidance of $5.30-$5.40.
- Demand for NovaSeq X and adoption of workflow and multiomics capabilities.
- Operating cash flow and free cash flow following the year-over-year declines in Q2.
Balance sheet and cash flow
- Cash and cash equivalents: $ 1,040 million at June 28, 2026; $ 1,418 million at December 28, 2025.
- Short-term investments: 128 million at June 28, 2026; 215 million at December 28, 2025.
- Cash, cash equivalents and short-term investments: $1.17 billion at the close of the quarter.
- Accounts receivable, net: 764 million at June 28, 2026; 854 million at December 28, 2025.
- Inventory, net: 629 million at June 28, 2026; 564 million at December 28, 2025.
- Property and equipment, net: 745 million at June 28, 2026; 759 million at December 28, 2025.
- Goodwill: 1,284 million at June 28, 2026; 1,113 million at December 28, 2025.
- Intangible assets, net: 410 million at June 28, 2026; 210 million at December 28, 2025.
- Total assets: $ 6,650 million at June 28, 2026; $ 6,644 million at December 28, 2025.
- Term debt, current portion: 500 million at June 28, 2026; 499 million at December 28, 2025.
- Term debt: 1,491 million at June 28, 2026; 1,490 million at December 28, 2025.
- Stockholders’ equity: 2,838 million at June 28, 2026; 2,723 million at December 28, 2025.
- Net cash used in financing activities: (129) million for the three months ended June 28, 2026; (371) million for the three months ended June 29, 2025.
Analysis
Illumina reported Q2 2026 revenue of $ 1,159 million, compared with $ 1,059 million in Q2 2025, and described this as 9.5% growth. The company also reported ROW organic revenue growth of 8.1%, excluding currency, acquisitions, and China. Product revenue was $ 982 million versus $ 912 million, while service and other revenue was $ 177 million versus $ 147 million. Management attributed the period’s momentum to clinical customers expanding sequencing-intensive applications and said NovaSeq X demand remained high.
GAAP gross margin increased to 66.4% from 65.6%, and income from operations increased to $ 245 million from $ 214 million. GAAP operating margin rose to 21.1% from 20.2%. Non-GAAP operating profit increased to $ 260 million from $ 252 million, but non-GAAP gross margin declined to 68.2% from 69.4% and non-GAAP operating margin declined to 22.5% from 23.8%.
Below operating income, other income (expense), net declined to $ 15 million from $ 92 million. Income before income taxes was $ 260 million versus $ 306 million, and net income was $ 207 million versus $ 235 million. GAAP diluted EPS was $ 1.35 compared with $ 1.49, whereas non-GAAP diluted EPS increased to $ 1.31 from $ 1.19. The filing also reported six-month revenue of $ 2,251 million compared with $ 2,100 million and six-month income from operations of $ 454 million compared with $ 378 million.
Cash generation was lower year over year in the quarter. Cash flow provided by operations was $201 million compared with $234 million, capital expenditures for free cash flow purposes were $39 million, and free cash flow was $162 million compared with $204 million. At quarter-end, Illumina held $1.17 billion in cash, cash equivalents and short-term investments. The balance sheet listed term debt, current portion of 500 million and term debt of 1,491 million.
The company raised fiscal year 2026 total revenue guidance to $4.60-$4.64 billion from prior guidance of $4.52-$4.62 billion, raised ROW organic revenue growth guidance to greater than 5% from 2%-4%, and raised non-GAAP diluted EPS guidance to $5.30-$5.40 from $5.15-$5.30. Non-GAAP operating margin guidance of 23.4%-23.6% was unchanged. The key execution items are sustaining NovaSeq X demand and clinical sequencing applications while delivering the guided operating margin amid the stated China, tariff, integration, and competitive risks.
Management, verbatim
Illumina delivered strong results during the second quarter. Momentum continued to build through the first half of 2026, as our technology is enabling clinical customers to expand sequencing-intensive applications. Based on this performance, we are increasing our revenue and earnings guidance for the year.
Jacob Thaysen, Chief Executive Officer of Illumina
Demand for NovaSeq X remains high as we expand our workflow and multiomics capabilities, broadening the value of Illumina’s ecosystem.
Jacob Thaysen, Chief Executive Officer of Illumina
Not in the filing
stated, not guessed- Previous outlook section was not separately provided; therefore, vs_prior_guidance is empty.
- Prior-quarter comparisons for reported metrics were not provided.
- Segment-level percentage changes were not provided.
- Segment-specific revenue drivers were not provided.
- GAAP net income guidance was not provided.
- GAAP EPS guidance was not provided.
- Gross margin guidance was not provided.
- Operating expenses guidance was not provided.
- Tax-rate guidance was not provided.
- Share repurchases, dividends, and other capital-return actions were not reported.
- A full cash-flow statement was not available in the supplied filing text; six-month net cash used in financing activities and ending cash-flow balances were not visible.
- Non-GAAP net income was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) containing Illumina’s Q2 FY2026 results and updated FY2026 guidance.
Ticker impact
Illumina reported Q2 FY2026 revenue of $1.16B and raised FY2026 revenue guidance to $4.60-$4.64B and ROW organic growth to >5%.
Likely near-term positive bias as traders price higher 2026 revenue and EPS ranges; follow-through depends on whether NovaSeq X and multiomics demand sustains.
The filing is a primary disclosure (8-K with results and updated guidance) including specific numeric targets and margin/EPS outcomes, which typically drives immediate estimate revisions.
Market effects
Signals continued strength in sequencing and proteomics tooling demand, potentially supporting sentiment across genomics instrumentation and consumables peers.
ROW organic growth guidance (>5%) highlights ex-China momentum, which may shift regional demand expectations for sequencing spend.
China regulatory uncertainty remains a stated risk, but the guidance raise suggests management sees sufficient offset from other geographies.
Counterpoint
Raised guidance could still be vulnerable if China-related regulatory impacts or tariff/trade uncertainties materialize faster than management expects.
Key entities
- companyIllumina, Inc.
Nasdaq-listed genomics sequencing and proteomics platform provider reporting Q2 FY2026 results and raising FY2026 guidance.
- executiveJacob Thaysen
CEO quoted stating momentum and high NovaSeq X demand supported the guidance increase.
