Illumina Raises Full-Year Revenue and Earnings Outlook

The Tip Desk · October 29, 2026 · 2 min read

Third-quarter revenue was $1.13 billion, up 4.2%, as the company lifted fiscal 2026 sales to as much as $4.66 billion and non-GAAP EPS to $5.45.

Illumina, Inc. (ILMN), the DNA-sequencing and array-technology company, reported third-quarter 2026 revenue of $1.13 billion, up 4.2% from a year earlier, and said healthy clinical demand and NovaSeq X placements put results above its guidance.

Chief Executive Officer Jacob Thaysen said the company is raising full-year revenue and earnings guidance on continued momentum.

Reported sales were $1.13 billion, after $1.16 billion in the second quarter, when revenue had risen 9.5% from the year-ago period. Excluding tariff refunds, revenue was $1.17 billion. After also stripping currency, acquisitions and Greater China, rest-of-world organic revenue growth was 4.7%.

GAAP diluted earnings were $1.43 a share. Non-GAAP diluted earnings, excluding tariff refunds, were $1.44 a share, versus $1.34 a year earlier. GAAP operating margin was 27.0%. Non-GAAP operating margin, excluding tariff refunds, was 25.0%.

The company recognized International Emergency Economic Powers Act tariff refunds in the quarter, consisting primarily of a $79 million benefit recorded as a reduction to cost of revenue and a $37 million reduction to revenue for refunds it expects to credit to customers. Those refunds lifted GAAP gross margin to 73.5%. Non-GAAP gross margin excluding tariff refunds was 69.4%. GAAP operating profit was $305 million. Non-GAAP operating profit excluding tariff refunds was $292 million.

Product revenue was $946 million and service and other revenue was $183 million. GAAP net income was $220 million. Research and development expense was $244 million and selling, general and administrative expense was $281 million.

Cash flow provided by operations was $419 million, compared with $284 million in the year-ago quarter. Free cash flow was $378 million, versus $253 million. Capital expenditures for free-cash-flow purposes were $41 million. At quarter-end the company held $1.34 billion in cash, cash equivalents and short-term investments.

For fiscal 2026, excluding tariff refunds, Illumina now expects total revenue of $4.64 billion to $4.66 billion, versus prior guidance of $4.60 billion to $4.64 billion. Non-GAAP diluted EPS guidance is $5.40 to $5.45, versus $5.30 to $5.40. Non-GAAP operating margin guidance is 23.6%, versus a prior range of 23.4% to 23.6%. Organic revenue growth guidance remains greater than 4% and rest-of-world organic growth greater than 5%.

Those organic-growth ranges were unchanged from the outlook issued after the second quarter, when the company had already lifted full-year revenue to $4.60 billion to $4.64 billion and non-GAAP EPS to $5.30 to $5.40. After the first quarter it had raised revenue guidance to $4.52 billion to $4.62 billion.

Thaysen said the company is laying the foundation for AI to transform understanding of human biology and improve patient outcomes.