Illumina Reports Financial Results for Third Quarter of Fiscal Year 2026
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 Third Quarter of Fiscal Year 2026 San Diego, October 29, 2026 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN) (“Illumina” or the “company”) tod
How this was made
The 30-second read
Why it matters
The raised guidance may attract new buying and support the stock ahead of the earnings call.
Market read
Earnings release with raised guidance is a primary catalyst for Illumina and its peers.
What to watch
Potential headwinds from tariff refunds and China market restrictions could temper upside.
Illumina reported Q3 2026 revenue of $1,129 million, GAAP diluted EPS of $1.43, and raised fiscal year 2026 revenue and non-GAAP diluted EPS guidance excluding tariff refunds.
Revenue increased 4.2%, GAAP operating margin expanded to 27.0% from 21.0%, operating cash flow increased to $419 million from $284 million, and the company raised full-year revenue and non-GAAP diluted EPS guidance. Reported results also include IEEPA tariff-refund impacts.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 product revenueGAAP | $946M | – | – |
| Q3 2026 service and other revenueGAAP | $183M | – | – |
| Q3 2026 total revenueGAAP | $1.13B | – | 4.2% |
| Q3 2026 revenue excluding tariff refundsnon-GAAP | $1.17B | – | 7.6% |
| Q3 2026 organic revenue growthnon-GAAP | 4.8% | – | 4.8% |
| Q3 2026 ROW organic revenue growthnon-GAAP | 4.7% | – | 4.7% |
| Q3 2026 cost of product revenueGAAP | $199M | – | – |
| Q3 2026 cost of service and other revenueGAAP | $82M | – | – |
| Q3 2026 amortization of acquired intangible assetsGAAP | $18M | – | – |
| Q3 2026 total cost of revenueGAAP | $299M | – | – |
| Q3 2026 gross profitGAAP | $830M | – | – |
| Q3 2026 gross marginGAAP | 73.5% | – | – |
| Q3 2026 non-GAAP gross profitnon-GAAP | $850M | – | – |
| Q3 2026 non-GAAP gross marginnon-GAAP | 75.3% | – | – |
| Q3 2026 non-GAAP gross profit excluding tariff refundsnon-GAAP | $809M | – | – |
| Q3 2026 non-GAAP gross margin excluding tariff refundsnon-GAAP | 69.4% | – | – |
| Q3 2026 research and development expenseGAAP | $244M | – | – |
| Q3 2026 selling, general and administrative expenseGAAP | $281M | – | – |
| Q3 2026 total operating expenseGAAP | $525M | – | – |
| Q3 2026 operating profitGAAP | $305M | – | – |
| Q3 2026 operating marginGAAP | 27.0% | – | – |
| Q3 2026 non-GAAP operating profitnon-GAAP | $325M | – | – |
| Q3 2026 non-GAAP operating marginnon-GAAP | 28.8% | – | – |
| Q3 2026 non-GAAP operating profit excluding tariff refundsnon-GAAP | $292M | – | – |
| Q3 2026 non-GAAP operating margin excluding tariff refundsnon-GAAP | 25.0% | – | – |
| Q3 2026 other expense, netGAAP | −$41M | – | – |
| Q3 2026 income before income taxesGAAP | $264M | – | – |
| Q3 2026 provision for income taxesGAAP | $44M | – | – |
| Q3 2026 net incomeGAAP | $220M | – | – |
| Q3 2026 basic EPSGAAP | $1.46 | – | – |
| Q3 2026 diluted EPSGAAP | $1.43 | – | – |
| Q3 2026 non-GAAP diluted EPSnon-GAAP | $1.62 | – | – |
| Q3 2026 non-GAAP diluted EPS excluding tariff refundsnon-GAAP | $1.44 | – | – |
| Q3 2026 cash flow provided by operationsGAAP | $419M | – | – |
| Q3 2026 purchases of property and equipmentGAAP | −$41M | – | – |
| Q3 2026 free cash flownon-GAAP | $378M | – | – |
| Q3 2026 depreciation and amortization expenseGAAP | $71M | – | – |
| Nine months ended September 27, 2026 total revenueGAAP | $3.38B | – | 6.2% |
| Nine months ended September 27, 2026 product revenueGAAP | $2.85B | – | – |
| Nine months ended September 27, 2026 service and other revenueGAAP | $535M | – | – |
| Nine months ended September 27, 2026 organic revenue growthnon-GAAP | 4.2% | – | 4.2% |
| Nine months ended September 27, 2026 ROW organic revenue growthnon-GAAP | 5.4% | – | 5.4% |
| Nine months ended September 27, 2026 gross profitGAAP | $2.32B | – | – |
| Nine months ended September 27, 2026 gross marginGAAP | 68.7% | – | – |
| Nine months ended September 27, 2026 operating profitGAAP | $759M | – | – |
| Nine months ended September 27, 2026 operating marginGAAP | 22.5% | – | – |
| Nine months ended September 27, 2026 net incomeGAAP | $561M | – | – |
| Nine months ended September 27, 2026 diluted EPSGAAP | $3.65 | – | – |
| Nine months ended September 27, 2026 non-GAAP diluted EPS excluding tariff refundsnon-GAAP | $3.90 | – | – |
| Nine months ended September 27, 2026 cash flow provided by operating activitiesGAAP | $909M | – | – |
| Nine months ended September 27, 2026 free cash flownon-GAAP | $791M | – | – |
Fiscal year 2026, excluding tariff refunds outlook
- RevenueTotal revenue of $4.64-$4.66 billion
- NoteOrganic revenue growth greater than 4%
- NoteROW organic revenue growth greater than 5%
- NoteNon-GAAP operating margin of 23.6%
- NoteNon-GAAP diluted EPS of $5.40-$5.45
What drove it
- Management cited healthy clinical demand and robust NovaSeq X placements.
- Revenue excluding tariff refunds was $1.17 billion.
- The Q3 2026 tariff-refund impact consisted primarily of a $79 million benefit recognized as a reduction to cost of revenue and a reduction to revenue of $37 million for refunds expected to be credited to customers.
- Q3 2026 acquisition-related costs consisted primarily of amortization of intangible assets of $18 million, amortization of inventory fair value step-up for SomaLogic of $2 million, expenses for the SomaLogic and GRAIL acquisitions of $5 million, and net gains on contingent consideration liabilities of $(11) million.
- Q3 2026 transformational initiatives consisted primarily of implementation costs to upgrade the ERP system.
Concerns
- The company remains subject to uncertainty from its inclusion on China’s Unreliable Entities List.
- The filing cites uncertainty regarding tariffs, related court proceedings or administrative actions, and potential additional refund or relief programs.
- GAAP other expense, net was $(41) million in Q3 2026, compared with $(7) million in Q3 2025.
- The company cited risks related to order volume, timing and mix, competitive products, manufacturing, third-party suppliers, reimbursement, regulatory clearance, and litigation or liabilities related to previous acquisitions.
What to watch
- Execution against fiscal year 2026 total revenue guidance of $4.64-$4.66 billion excluding tariff refunds.
- Delivery of organic revenue growth greater than 4% and ROW organic revenue growth greater than 5%.
- Whether non-GAAP operating margin reaches 23.6% excluding tariff refunds.
- Clinical demand and NovaSeq X placements.
- The ongoing revenue and cost effects of tariff refunds and the portion expected to be credited to customers.
- China-related operating conditions following the company’s inclusion on China’s Unreliable Entities List.
Balance sheet and cash flow
- Cash and cash equivalents were $1,289 million at September 27, 2026.
- Short-term investments were $48 million at September 27, 2026.
- Cash, cash equivalents and short-term investments were $1.34 billion at the close of the quarter.
- Term debt was $1,789 million at September 27, 2026.
- Term debt, current portion was — at September 27, 2026.
- Net cash provided by operating activities was $419 million for Q3 2026, compared to $284 million in the prior year period.
- Free cash flow was $378 million for Q3 2026, compared to $253 million in the prior year period.
Analysis
Illumina reported Q3 2026 revenue of $1,129 million, compared with $1,084 million in Q3 2025, with reported revenue growth of 4.2%. Product revenue was $946 million versus $927 million, while service and other revenue was $183 million versus $157 million. Revenue excluding tariff refunds was $1.17 billion. The company reported organic revenue growth of 4.8% and ROW organic revenue growth of 4.7%, and management attributed the quarter to healthy clinical demand and robust NovaSeq X placements.
Profitability improved on the reported GAAP basis. Gross margin was 73.5%, compared with 67.6%, and operating margin was 27.0%, compared with 21.0%. The tariff-refund-adjusted non-GAAP gross margin was 69.4%, compared with 69.2%, while tariff-refund-adjusted non-GAAP operating margin was 25.0%, compared with 24.5%. GAAP operating profit was $305 million versus $227 million, and GAAP diluted EPS was $1.43 versus $0.98. Non-GAAP diluted EPS excluding tariff refunds was $1.44, compared with $1.34.
Tariff refunds materially affected reported Q3 results. The company recognized primarily a $79 million benefit as a reduction to cost of revenue and recorded a $37 million reduction to revenue for the portion of refunds expected to be credited to customers. The reconciliation shows a $(41) million effect on non-GAAP gross profit and a $(33) million effect on non-GAAP operating profit. Investors should distinguish the reported GAAP gross margin of 73.5% from the 69.4% non-GAAP gross margin excluding tariff refunds.
Cash generation increased. Cash flow provided by operations was $419 million, compared with $284 million in the prior-year period, and free cash flow was $378 million, compared with $253 million. At quarter-end, Illumina held $1.34 billion in cash, cash equivalents and short-term investments. The company reported $1,789 million of term debt and no current portion of term debt at September 27, 2026.
For fiscal year 2026, excluding tariff refunds, Illumina raised total revenue guidance to $4.64-$4.66 billion from prior guidance of $4.60-$4.64 billion and raised non-GAAP diluted EPS guidance to $5.40-$5.45 from $5.30-$5.40. It maintained organic revenue growth greater than 4%, ROW organic revenue growth greater than 5%, and non-GAAP operating margin guidance of 23.6%. The filing identifies China-related restrictions, tariff uncertainty, order timing and product mix, competition, manufacturing, and regulatory and reimbursement matters as continuing risks.
Management, verbatim
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.
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.
Jacob Thaysen, Chief Executive Officer of Illumina
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics were not provided.
- Segment revenue disclosures were not provided.
- Capital-return disclosures, including share repurchases and dividends, were not provided.
- Fiscal year 2026 gross-margin, operating-expense, and tax-rate guidance were not provided.
- A prior-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
AlphAI 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
Illumina reported Q3 FY2026 results with modest revenue growth and announced higher full‑year guidance.
Ticker impact
Illumina issued guidance raising full‑year revenue to $4.64‑$4.66 B and EPS to $5.40‑$5.45 after Q3 2026 results.
likely upward pressure as market prices in the raised guidance
Revenue and EPS outlook were increased, indicating better than expected performance and prompting buying interest.
Market effects
Higher guidance may boost sentiment in the genomics and biotech sector.
Positive for US biotech equities and related ADRs.
Limited to investors tracking life‑science earnings.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pullback.
Key entities
- ExecutiveJacob Thaysen
CEO of Illumina who announced the raised guidance.
