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ILMNIllumina, Inc.

Health care · Lab Instruments · Nasdaq
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The 10-K against last year's

95 changes: 11 added, 17 removed, 64 reworded, 3 quiet changes

10-K Feb 12, 2026 vs Feb 12, 2025
Risk FactorsRedline ↓
13.5%
of the text changed · 10,483 words now
19.9%
of the text changed · 7,870 words now
Legal ProceedingsRedline ↓
52.5%
of the text changed · 2,155 words now
Accounting PoliciesRedline ↓
9.0%
of the text changed · 6,518 words now

10-K 0001110803-26-000024 (2026-02-12) vs 10-K 0001110803-25-000019 (2025-02-12)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 189 words changed in this paragraph; it is 39% similar to last year's version.
In 2024, 2025, the variance from the U.S. federal statutory tax rate of 21% was primarily because due to the release of a valuation allowance of $74 million against certain deferred tax assets in Singapore. This was partially offset by the implications of the $308 million income U.S. tax expense impact legislation that was signed on July 4, 2025, which included changes to no longer require capitalization of U.S. based research and development expenses. While the changes from the impairment recent U.S. tax legislation were favorable, based on available evidence, the increased U.S. tax deductions resulted in a determination that it is more likely than not the future realization of goodwill, which is nondeductible for deferred tax purposes, $90 million income tax expense impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of assets associated with certain U.S. foreign tax credits, and credits may not be achieved. Therefore, a valuation allowance of $62 million was recorded against the Pillar Two global minimum top-up tax, and the $52 million income deferred tax expense impact of capitalizing research and development expenses for assets associated with certain U.S. foreign tax purposes. credits. The income tax rate in 2024 2025 was favorably impacted by the $99 million income tax expense impact of the reversal of the European Commission fine related to the GRAIL acquisition, which is excluded from taxable income, and by the mix of earnings in jurisdictions with lower statutory tax rates than the U.S. federal statutory tax rate, such as in Singapore.

Source: Item 7, 10-K 0001110803-26-000024 vs Item 7, 10-K 0001110803-25-000019

Risk Factors 179 words changed in this paragraph; it is 73% similar to last year's version.
Furthermore, we have and may continue to become subject to stockholder inspection demands under Delaware law, investigations initiated by regulators and law firms, and derivative or other similar litigation that can be expensive, divert management attention and human and financial capital to less productive uses and result in potential reputational damage. The GRAIL acquisition and subsequent litigation resulted in in, among other things (i) the announcement of an investigation by the SEC and others by law firms of possible securities law violations; (ii) stockholder inspection demands seeking to investigate possible breaches of fiduciary duties, corporate wrongdoing or a lack of independence of the members of the Board, including a complaint filed in the Delaware Court of Chancery seeking to inspect books and records captioned Pavers and Road Builders Benefit Funds v. Illumina, Inc.; (iii) the filing of securities class actions in the United States District Court for the Southern District of California: Kangas v. Illumina, Inc. et al., Roy v. Illumina, Inc. et al., and Louisiana Sheriffs’ Pension & Relief Fund v. Illumina, Inc. et al.; (iv) the filing of a stockholder derivative complaint in the United States District Court for the Southern District of California captioned Warner v. deSouza et al.; (v) the filing of a stockholder derivative complaint in the United States District Court for the District of Delaware captioned Wang v. deSouza et al.; (vi) (ii) the filing of two securities class actions in the Superior Court of the State of California, County of San Mateo: Loren Scott Mar v. Illumina, et al. and Scott Zerzanek v. Illumina, Inc. et al.; (vii) (iii) the filing of a stockholder derivative and class action complaint captioned Icahn Partners LP, et al. v. deSouza, et al.; (viii) (iv) the filing of a stockholder derivative complaint captioned City of Omaha Police and Firefighters Retirement System v. deSouza, et al.; (ix) (v) the filing of a stockholder derivative complaint captioned City of Roseville General Employees Retirement System, et al. v. deSouza, et al.; and (x) the filing of a stockholder derivative complaint captioned Thomas P. DiNapoli v. John Thompson et al.; and (xi) (vi) the filing of a stockholder derivative complaint captioned Pavers and Road Builders Benefit Funds v. John Thompson et al. See note 9. Legal Proceedings within the Consolidated Financial Statements for further details. In the event that any of the matters described above result in one or more adverse judgments or settlements, we may experience an adverse impact on our financial condition, results of operations or stock price.

Source: Item 1A, 10-K 0001110803-26-000024 vs Item 1A, 10-K 0001110803-25-000019

Legal Proceedings 169 words changed in this paragraph; it is 54% similar to last year's version.
On February 26, 2024, a stockholder derivative complaint captioned City of Omaha Police and Firefighters Retirement System v. deSouza, et al., purportedly brought on behalf of Illumina, was filed in the Delaware Court of Chancery against certain current and former directors. On April 16, 2024, a stockholder derivative complaint captioned City of Roseville General Employees Retirement System, et al. v. deSouza, et al., purportedly brought on behalf of Illumina, was filed in the Delaware Court of Chancery against certain current and former directors and officers. On August March 26, 2024, the defendants filed a motion to dismiss the complaint in the lawsuit filed by City of Omaha Police and Firefighters Retirement System. On May 16, 2024, the defendants filed a stockholder derivative motion to dismiss the complaint captioned Thomas P. DiNapoli v. John Thompson et al., purportedly brought on behalf of Illumina, was filed in the Delaware Court lawsuit filed by City of Chancery against certain current and former directors. We are named as a nominal defendant in the complaints. The lawsuits allege the named directors and officers breached their fiduciary duties by knowingly causing Illumina to unlawfully close the GRAIL acquisition. The stockholders previously made requests to inspect certain books and records under Delaware law, and they purport to base their complaint in part on documents obtained from Illumina in response to those requests. Before the filing of the complaint, the purported stockholders did not make a demand that our Board of Directors pursue the claim asserted therein. The complaints seek damages against the individual defendants, costs and expenses, including attorney fees and other equitable relief. Roseville General Employees Retirement System, et al.

Source: Item 3, via Note 9 – LEGAL PROCEEDINGS, 10-K 0001110803-26-000024 vs Item 3, via Note 9 – LEGAL PROCEEDINGS, 10-K 0001110803-25-000019

Accounting Policies 128 words changed in this paragraph; it is 37% similar to last year's version.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) 2023-07, Segment Reporting - Improvements to Income Tax Reportable Segment Disclosures. The new standard requires a company to expand its existing income tax disclosures, specifically related disclose incremental segment information on an annual and interim basis, including significant segment expenses and measures of profit or loss that are regularly provided to the rate reconciliation and income taxes paid. CODM. The standard is does not change how an entity identifies its operating segments. The standard was effective for us beginning in fiscal year 2025, with early adoption permitted, 2024 and is expected interim periods within fiscal year 2025. We adopted the standard on its effective date in fiscal year 2024 and applied the amendments retrospectively to be applied prospectively, but retrospective application is permitted. We are currently evaluating the impact of ASU 2023-09 on all prior periods presented in the consolidated financial statements statements. See note 12. Segment and related disclosures. Geographic Information for additional details.

Source: Item 8, Note 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001110803-26-000024 vs Item 8, Note 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001110803-25-000019

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of ILMN's Risk Factors and MD&A, 10-K 2026-02-12 against 10-K 2025-02-12. Each links to the text at sec.gov.

AddedRisk Factors
In addition, a reduction or delay in research and development budgets and government funding may adversely affect our business. Many of our customers’, and a portion of our own, research and development and other activities have been funded, or may be funded in the future, by government grants, including from the U.S. National Institutes of Health, or NIH. Any reduction, delay, or elimination of government funding, or failure to comply with grant requirements, could materially and adversely affect our or our customers’ research programs, product development, manufacturing operations and financial condition.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
A portion of our revenue is increasingly derived from a small number of large, centralized laboratory customers. If these customers continue to represent a growing share of our total sales, the loss of, or reduction in purchases by, any one of these key customers could materially and adversely affect our business, financial condition, and results of operations. Increased customer concentration may result in greater pricing pressure, reduced negotiating leverage, and increased exposure to credit risk. As a result, our operating results could therefore fluctuate more significantly from period to period in the future, depending on the purchasing patterns of these large customers.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
Changes in tariffs, trade restrictions, and customs or export/import regulations have impacted, and we expect will continue to impact, our business by increasing costs and administrative burdens, disrupting cross-border flows, and affecting customer demand.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
We operate a diversified, global supply chain. Recent tariff measures and related policy actions have already resulted in higher input costs and longer lead times, and we expect continued volatility in tariff rates, sector-specific duties, and licensing or other trade requirements in the U.S. and key international markets (including China) that may further raise costs, constrain pricing, reduce demand, or cause inventory imbalances. While we pursue mitigation efforts, these actions may not be successful, timely, or economically feasible, and our ability to pass cost increases to customers may be limited, any of which could adversely affect our business, cash flows, financial condition, and results of operations.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
In addition, from time to time, we develop and implement product updates, including significant hardware or software updates to in-service products, such as our NovaSeq X sequencing platform. Such product updates may materially impact how such products operate. Therefore, if we are unable to implement such updates on a cost-effective and timely basis, or if such updates are not successful technologically or operationally for our customers, our business and reputation could be adversely affected, and our financial results could suffer.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
In addition, we market certain products “For Research Use Only. Not for use in diagnostic procedures,” or RUO. Although some decentralized clinical laboratories may independently choose to incorporate RUO components into laboratory‑developed tests (LDTs) under applicable frameworks, our RUO labeling and policies prohibit promoting clinical use. Nevertheless, regulators could interpret our interactions with such labs—including sales practices, training, technical support, collateral, or performance data sharing—as evidence of diagnostic intended use or off‑label promotion, exposing us to inspections, warning letters, civil or criminal penalties, injunctions, product seizures, mandatory recalls, or requirements to obtain clearances/approvals or to re‑label products. Outside the U.S., under the EU IVDR, a lab that uses RUO products for patient testing can be deemed the manufacturer of the test, which increases scrutiny of our role and could result in parallel regulatory or reputational risk. Even with robust compliance training and operating procedures, government investigations (including qui tam actions), customer audits, loss of key customers, and delays in product availability could arise, which could have material adverse effects on our business, financial condition, results of operations, and reputation.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedRisk Factors
In addition, from time to time, we undertake significant changes to our enterprise applications, including enterprise resource planning and adjacent systems. If these projects are delayed, exceed cost estimates, or do not perform as intended, we could experience operational disruptions (for example, in order processing, manufacturing, fulfillment, or financial reporting) and incremental costs, any of which could adversely affect our business, results of operations, or financial condition.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
On June 22, 2025, we entered into a Stock Purchase Agreement (the Purchase Agreement) with Standard BioTools to acquire SomaLogic and other specified assets for $350 million in cash, subject to customary adjustments. The Purchase Agreement further provides for, in connection with the revenues generated from certain products and services, (i) royalty streams and (ii) up to $75 million in potential milestone payments to Standard BioTools. We believe the acquisition will enhance our presence in the expanding proteomics market and advance our multiomics strategy. The transaction was completed on January 30, 2026. See note 13. Subsequent Events for further details.

Read it in 10-K 2026-02-12 at sec.gov ↗

Show the other 3
AddedMD&A
Beginning in April 2025, the U.S. government and several other countries enacted tariffs. Under the current tariff environment, the largest cost impact to us relates to importation from our manufacturing facility in Singapore. The remainder is a mix of importation of parts and sub-assemblies to our manufacturing operations in the United States and importation into China. We have and will continue to take several actions to fully mitigate the impact of these tariffs, and we partially mitigated the impact in 2025, through supply chain optimization, cost measures, and pricing actions. Based on the current tariff environment, our aim is to more fully mitigate the impact in 2026.

Read it in 10-K 2026-02-12 at sec.gov ↗

AddedMD&A
On June 22, 2025, we entered into a Stock Purchase Agreement (the Purchase Agreement) with Standard BioTools to acquire SomaLogic and other specified assets for $350 million in cash, subject to customary adjustments. The Purchase Agreement further provides for, in connection with the revenues generated from certain products and services, (i) royalty streams and (ii) up to $75 million in potential milestone payments to Standard BioTools. The transaction was completed on January 30, 2026. See note 13. Subsequent Events for further details.

Read it in 10-K 2026-02-12 at sec.gov ↗

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