Illumina Reports Financial Results for Third Quarter of Fiscal Year 2026
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”) today announced its financial results for the third quarter of fiscal year 2026.
• 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.”
• 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.
(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.
1 R OW = rest-of-world, excluding Greater China region due to our inclusion on China’s Unreliable Entities List 1 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.
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.
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. 2
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.
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. # # #
September 27, December 28, 2026 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 293 238 assets Total current assets 3,035 3,289 Property and equipment, net 731 759 Operating lease right-of-use 356 370 assets 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’ $ 6,812 $ 6,644 equity
(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
(unaudited) TABLE 3: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:
8 (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.
• 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)
• 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)
(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. 9
Full text with the tables
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”) 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
Do…
in
mi… No…
ex… Ex…
per Ta…
sh… Q3 Q3 No… Q3 Q3 Re… Q3
am… GA… 20… 20… (a) 20… 20… (b) 20…
──────────────────────────────────────────────────────────────────────────────
R… $ 1,… $ 1,… $ 1,… $ 1,… $ 1,…
G… 73… % 67… % 75… % 69… % 69… %
m…
O… $ 305 $ 227 $ 325 $ 265 $ 292
p…
O… 27… % 21… % 28… % 24… % 25… %
m…
D… $ 1.… $ 0.… $ 1.… $ 1.… $ 1.…
E…
(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.
1 R OW = rest-of-world, excluding Greater China region due to our inclusion on
China’s Unreliable Entities List
1
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.
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.
2
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.
# # #
3
Illumina, Inc.
Condensed Consolidated Balance Sheets
(In millions)
September 27, December 28,
2026 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 293 238
assets
Total current assets 3,035 3,289
Property and equipment, net 731 759
Operating lease right-of-use 356 370
assets
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’ $ 6,812 $ 6,644
equity
4
Illumina, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(unaudited)
Three Septem… Septem… Nine Septem… Septemb…
Months 27, 28, Months 27, 28,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reven…
Produ… $ 946 $ 927 $ 2,845 $ 2,719
reven…
Servi…
and 183 157 535 465
other
reven…
Total 1,129 1,084 3,380 3,184
reven…
Cost
of
reven…
Cost
of 199 267 763 795
produ…
reven…
Cost
of
servi… 82 68 243 228
and
other
reven…
Amort…
of
acqui… 18 16 53 50
intan…
assets
Total
cost 299 351 1,059 1,073
of
reven…
Gross 830 733 2,321 2,111
profit
Opera…
expen…
Resea…
and 244 229 736 728
devel…
Selli…
gener… 281 277 826 777
and
admin…
Total
opera… 525 506 1,562 1,505
expen…
Income
from 305 227 759 606
opera…
Other
(expe… -41 -7 -78 103
incom…
net
Income
before 264 220 681 709
income
taxes
Provi…
for 44 70 120 193
income
taxes
Net $ 220 $ 150 $ 561 $ 516
income
Earni…
per
share:
Basic $ 1.46 $ 0.98 $ 3.70 $ 3.30
Dilut… $ 1.43 $ 0.98 $ 3.65 $ 3.29
Shares
used
in
compu…
earni…
per
share:
Basic 151 153 152 156
Dilut… 154 154 154 157
5
Illumina, Inc.
Condensed Statements of Cash Flows
(In millions)
(unaudited)
Three Septem… Septem… Nine Septem… Septemb…
Months 27, 28, Months 27, 28,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
provi… $ 419 $ 284 $ 909 $ 758
by
opera…
activ…
Net
cash
provi…
by 50 -51 -438 -163
(used
in)
inves…
activ…
Net
cash
used -223 -115 -602 -681
in
finan…
activ…
Effect
of
excha…
rate
chang… 3 -2 2 9
on
cash
and
cash
equiv…
Net
incre…
(decr…
in 249 116 -129 -77
cash
and
cash
equiv…
Cash
and
cash
equiv… 1,040 934 1,418 1,127
begin…
of
period
Cash
and
cash $ 1,289 $ 1,050 $ 1,289 $ 1,050
equiv…
end of
period
Calcu…
of
free
cash
flow:
Net
cash
provi… $ 419 $ 284 $ 909 $ 758
by
opera…
activ…
Purch…
of
prope… -41 -31 -118 -93
and
equip…
Free
cash $ 378 $ 253 $ 791 $ 665
flow
(a)
(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:
September September
Three Months 27, Nine Months 27,
Ended 2026 Ended 2026
──────────────────────────────────────────────────────────────────────────────
Revenue 4.2 % 6.2 %
growth
Impact of
tariff 3.4 % 1.1 %
refunds
Revenue
growth,
excluding
tariff 7.6 % 7.3 %
refunds
(non-GAAP)
(a)
Impact of -2.4 % -2.1 %
acquisitio…
Impact of
currency -0.4 % -1.0 %
exchange
rates
Organic
revenue
growth 4.8 % 4.2 %
(non-GAAP)
(a)
Impact of -0.1 % 1.2 %
China
ROW organic
revenue
growth 4.7 % 5.4 %
(non-GAAP)
(a)
TABLE 2: RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:
Three Septem… Septem… Nine Septem… Septemb…
Months 27, 28, Months 27, 28,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
dilut…
earni… $ 1.43 $ 0.98 $ 3.65 $ 3.29
per
share
Acqui…
costs 0.10 0.17 0.33 0.28
(d)
Trans…
initi… 0.03 0.08 0.10 0.33
(e)
Strat…
inves…
loss 0.19 -0.04 0.27 -0.90
(gain…
net
(f)
Intan… — — — 0.15
impai…
Other — — — 0.03
(g)
Provi…
for
income -0.13 0.15 -0.27 0.31
taxes
(h)
Non-G…
dilut…
earni… 1.62 1.34 4.08 3.49
per
share
(b)
Tariff
refun… -0.18 — -0.18 —
(i)
Non-G…
dilut…
earni…
per
share, $ 1.44 $ 1.34 $ 3.90 $ 3.49
exclu…
tariff
refun…
(b)
7
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:
(… T… S… S… N… S… S…
in M… 2… 2… M… 2… 2…
m… E… 2… 2… E… 2… 2…
──────────────────────────────────────────────────────────────────────────────
…
… $ 8… 7… % $ 7… 6… % $ 2… 6… % $ 2… … %
…
…
…
… 20 1… % 16 1… % 64 1… % 50 … %
…
…
… — — % 1 0… % — — % 3 … %
…
… — — % — — % — — % 23 … %
…
…
… 8… 7… % 7… 6… % 2… 7… % 2… … %
…
…
…
… -… -… % — — % -… -… % — — %
…
…
…
…
… $ 8… 6… % $ 7… 6… % $ 2… 6… % $ 2… … %
…
…
…
…
… $ 3… 2… % $ 2… 2… % $ 7… 2… % $ 6… … %
…
…
… 15 1… % 26 2… % 50 1… % 44 … %
…
…
… 5 0… % 12 1… % 15 0… % 51 … %
…
… — — % — — % — — % 23 … %
…
… — — % — — % — — % 5 … %
…
…
… 3… 2… % 2… 2… % 8… 2… % 7… … %
…
…
…
… -… -… % — — % -… -… % — — %
…
…
…
…
… $ 2… 2… % $ 2… 2… % $ 7… 2… % $ 7… … %
…
…
…
8
(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.
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