Illumina (ILMN) Q3 2026 earnings summary

Executive summary

• Strong clinical sequencing demand and more than 80 NovaSeq X placements supported Q3 results above guidance; FY26 revenue and EPS guidance increased.

• Revenue was $1.129B under GAAP and $1.166B excluding tariff-refund effects; rest-of-world organic growth was 4.7%.

Financial highlights

• Sequencing consumables revenue was $792M, up 6% YoY and 5% on a rest-of-world organic basis; service and other revenue was $158M, up 8% organically.

• GAAP net income was $220M versus $150M; GAAP diluted EPS was $1.43 versus $0.98. Non-GAAP diluted EPS excluding tariff refunds was $1.44, up 7% YoY.

• Q3 operating cash flow was $419M and free cash flow was $378M.

Outlook and guidance

• FY26 revenue guidance, excluding tariff refunds, increased to $4.64B–$4.66B; rest-of-world organic growth is expected above 5%.

• FY26 non-GAAP diluted EPS guidance increased to $5.40–$5.45; non-GAAP operating margin guidance is 23.6%.

• Q4 revenue guidance is $1.22B–$1.24B, EPS is $1.51–$1.56 and non-GAAP operating margin is 25%.

• FY26 rest-of-world organic sequencing consumables growth is expected in the mid-single digits, with low-double-digit instrument growth; clinical consumables growth is expected in the mid-teens.

• Management reaffirmed high-single-digit consumables growth as the 2027 target; new products and BioInsight are expected to add 1–2 points of growth.