Illumina, Inc 10-Q for FY2026 Q3

Illumina, Inc. (ILMN)

10-Q 2026-10-30 For: 2026-09-27

Added on October 30, 2026

About this 10-Q

Illumina, Inc filed this 10-Q on October 30, 2026, covering the quarter ended September 27, 2026 (FY2026 Q3).

Illumina reported Q3 2026 revenue of $1,129 million and net income of $220 million, versus $1,084 million and $150 million in Q3 2025. Nine-month operating cash flow was $909 million; its SomaLogic acquisition had a purchase price of $460 million. AI summary

Headline figures

Quarter ended September 27, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.13B; up 4.2% from $1.08B a year earlier
Net income: $220M; up 46.7% from net income of $150M a year earlier
Diluted EPS: $1.43; up 45.9% from $0.98 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						33-0804655
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	ILMN	The Nasdaq Stock Market LLC


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			PAGE
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Operations			6
Condensed Consolidated Statements of Comprehensive Income			7
Condensed Consolidated Statement s of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
1. Organization and Significant Accounting Policies			11
2. Acquisitions, Intangible Assets and Goodwill			13
3. Revenue			16
4. Investments and Fair Value Measurements			18
5. Debt			21
6. Stockholders’ Equity			22
7. Supplemental Balance Sheet and Statement of Operations Details			24
8. Legal Proceedings			27
9. Income Taxes			30
10. Segment Information			30
11. Subsequent Event			30

MANAGEMENT’S DISCUSSION & ANALYSIS
Management’s Overview and Outlook			31
Results of Operations			34
Liquidity and Capital Resources			37
Critical Accounting Policies and Estimates			39
Recent Accounting Pronouncements			39
Quantitative and Qualitative Disclosures About Market Risk			40

OTHER KEY INFORMATION
Controls and Procedures			40
Legal Proceedings			40
Risk Factors			40
Share Repurchases and Sales			41
Adoptions, Modifications or Terminations of Trading Plans			41

Exhibits			42
Form 10-Q Cross-Reference Index			44


	September 27, 2026		December 28, 2025
	(Unaudited)
ASSETS
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 assets	293		238
Total current assets	3,035		3,289
Property and equipment, net	731		759
Operating lease right-of-use assets	356		370
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:

Common stock	2		2
Additional paid-in capital	8,031		7,822
Accumulated other comprehensive income (loss)	8		(10)
Retained earnings (accumulated deficit)	169		(392)
Treasury stock, at cost	(5,065)		(4,699)
Total stockholders’ equity	3,145		2,723
Total liabilities and stockholders’ equity	$	6,812	$	6,644


	Three Months Ended				Nine Months Ended
	September 27, 2026		September 28, 2025		September 27, 2026		September 28, 2025
Revenue:
Product revenue	$	946	$	927	$	2,845	$	2,719
Service and other revenue	183		157		535		465
Total revenue	1,129		1,084		3,380		3,184
Cost of revenue:
Cost of product revenue	199		267		763		795
Cost of service and other revenue	82		68		243		228
Amortization of acquired intangible assets	18		16		53		50
Total cost of revenue	299		351		1,059		1,073
Gross profit	830		733		2,321		2,111
Operating expense:
Research and development	244		229		736		728
Selling, general and administrative	281		277		826		777


Total operating expense	525		506		1,562		1,505
Income from operations	305		227		759		606
Other income (expense):
Interest income	12		9		31		30
Interest expense	(24)		(25)		(71)		(75)
Other (expense) income, net	(29)		9		(38)		148
Total other (expense) income, net	(41)		(7)		(78)		103
Income before income taxes	264		220		681		709
Provision for income taxes	44		70		120		193
Net income	$	220	$	150	$	561	$	516
Earnings per share:
Basic	$	1.46	$	0.98	$	3.70	$	3.30
Diluted	$	1.43	$	0.98	$	3.65	$	3.29
Shares used in computing earnings per share:
Basic	151		153		152		156
Diluted	154		154		154		157


☑			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


				Additional		Accumulated Other							Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Treasury Stock			Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Shares	Amount		Equity
Balance as of December 29, 2024	200	$	2	$	7,525	$	22	$	(1,242)	(41)	$	(3,934)	$	2,373
Net income	—	—		—		—		131		—	—		131
Unrealized loss on cash flow hedges, net of deferred tax	—	—		—		(14)		—		—	—		(14)
Issuance of common stock, net of repurchases	1	—		10		—		—		(1)	(205)		(195)
Share-based compensation	—	—		73		—		—		—	—		73
Balance as of March 30, 2025	201	2		7,608		8		(1,111)		(42)	(4,139)		2,368
Net income	—	—		—		—		235		—	—		235
Unrealized loss on cash flow hedges, net of deferred tax	—	—		—		(29)		—		—	—		(29)
Issuance of common stock, net of repurchases	—	—		(1)		—		—		(5)	(384)		(385)
Share-based compensation	—	—		69		—		—		—	—		69
Balance as of June 29, 2025	201	2		7,676		(21)		(876)		(47)	(4,523)		2,258
Net income	—	—		—		—		150		—	—		150
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		9		—		—	—		9
Issuance of common stock, net of repurchases	—	—		16		—		—		(1)	(122)		(106)
Share-based compensation	—	—		70		—		—		—	—		70
Balance as of September 28, 2025	201	2		7,762		(12)		(726)		(48)	(4,645)		2,381
Net income	—	—		—		—		334		—	—		334
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		2		—		—	—		2
Issuance of common stock, net of repurchases	—	—		(3)		—		—		—	(54)		(57)
Share-based compensation	—	—		63		—		—		—	—		63
Balance as of December 28, 2025	201	$	2	$	7,822	$	(10)	$	(392)	(48)	$	(4,699)	$	2,723



				Additional		Accumulated Other		Retained Earnings					Total
	Common Stock			Paid-In		Comprehensive		(Accumulated		Treasury Stock			Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit)		Shares	Amount		Equity
Balance as of December 28, 2025	201	$	2	$	7,822	$	(10)	$	(392)	(48)	$	(4,699)	$	2,723
Net income	—	—		—		—		134		—	—		134
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		11		—		—	—		11
Issuance of common stock, net of repurchases	—	—		(20)		—		—		(1)	(232)		(252)
Share-based compensation	—	—		60		—		—		—	—		60
Balance as of March 29, 2026	201	2		7,862		1		(258)		(49)	(4,931)		2,676
Net income	—	—		—		—		207		—	—		207
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		7		—		—	—		7
Issuance of common stock, net of repurchases	—	—		(1)		—		—		(1)	(123)		(124)
Share-based compensation	—	—		72		—		—		—	—		72
Balance as of June 28, 2026	201	2		7,933		8		(51)		(50)	(5,054)		2,838
Net income	—	—		—		—		220		—	—		220

Issuance of common stock, net of repurchases	1	—		23		—		—		—	(11)		12
Share-based compensation	—	—		75		—		—		—	—		75
Balance as of September 27, 2026	202	$	2	$	8,031	$	8	$	169	(50)	$	(5,065)	$	3,145


In millions	Q3 2026	Q3 2025	YTD 2026	YTD 2025
Weighted average shares outstanding	151	153	152	156
Effect of potentially dilutive common shares from:
Equity awards	3	1	2	1
Weighted average shares used in calculating diluted earnings per share	154	154	154	157



Antidilutive shares related to equity awards excluded from calculation of diluted earnings per share	—	2	—	3


In millions
Cash	$	382
Fair value of contingent consideration	81
Settlement of preexisting relationship	(3)
Total purchase price	$	460


In millions	As Initially Reported		Measurement Period Adjustments		As Adjusted
Cash and cash equivalents	$	19	$	—	$	19
Accounts receivable	13		—		13
Inventory (1)	57		—		57
Property and equipment	19		—		19
Operating lease right-of-use assets	14		—		14
Other current and noncurrent assets	3		6		9
Intangible assets	186		—		186
Goodwill	171		—		171
Operating lease liabilities, noncurrent	(12)		—		(12)
Other current and noncurrent liabilities	(10)		(6)		(16)
Total net assets acquired	$	460	$	—	$	460


In millions, except years	Fair Value		Estimated Useful Life
Developed technology	$	158	9
Trade name	16		7
Customer relationships	12		8
Total intangible assets	$	186


	September 27, 2026				December 28, 2025
In millions	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Developed technologies and patents	$	644	$	(365)	$	279	$	436	$	(335)	$	101
Licensed technologies	187		(117)		70		234		(143)		91
Customer relationships	26		(14)		12		16		(14)		2
License agreements	26		(15)		11		24		(14)		10
Trade names	16		(2)		14		2		(2)		—
Database	12		(7)		5		12		(6)		6


Total intangible assets, net	$	911	$	(520)	$	391	$	724	$	(514)	$	210


In millions	Estimated Annual Amortization
2026 (remainder of year)	$	20
2027	78
2028	76
2029	46
2030	40
Thereafter	131
Total	$	391


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


2. ACQUISITIONS, INTANGIBLE ASSETS AND GOODWILL


3. REVENUE


	Q3 2026						Q3 2025
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	764	$	77	$	841	$	747	$	69	$	816
Instruments	102		3		105		107		4		111
Total product revenue	866		80		946		854		73		927
Service and other revenue	155		28		183		147		10		157
Total revenue	$	1,021	$	108	$	1,129	$	1,001	$	83	$	1,084

	YTD 2026						YTD 2025
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	2,265	$	225	$	2,490	$	2,183	$	212	$	2,395
Instruments	345		10		355		311		13		324
Total product revenue	2,610		235		2,845		2,494		225		2,719
Service and other revenue	461		74		535		425		40		465
Total revenue	$	3,071	$	309	$	3,380	$	2,919	$	265	$	3,184


Based on region of destination (in millions)	Q3 2026		Q3 2025 (1)		YTD 2026		YTD 2025 (1)
United States and Canada	$	637	$	596	$	1,880	$	1,720
Europe, Middle East, Africa and Latin America	347		354		1,072		1,041
Greater China (2)	59		52		167		187
Asia-Pacific	86		82		261		236
Total revenue	$	1,129	$	1,084	$	3,380	$	3,184


Dollars in millions	Capital commitments		Callable through date	Remaining callable as of September 27, 2026
Fund I	$	100	December 2027	$	3
Fund II	$	150	July 2029	$	20
Fund III	$	60	December 2034	$	11


In millions
Balance as of December 28, 2025	$	54
Acquisition of SomaLogic	81
Change in estimated fair value	(43)
Cash payments	(56)
Balance as of September 27, 2026	$	36


	Restricted Stock Units (RSU)	Performance Stock Units (PSU) (1)	Weighted-Average Grant Date Fair Value per Share
Units in thousands			RSU		PSU
Outstanding at December 28, 2025	3,738	856	$	118.82	$	123.77
Awarded	1,347	1,335	$	130.92	$	156.82
Vested	(1,005)	—	$	117.71	$	—
Cancelled	(326)	(199)	$	119.72	$	128.16
Outstanding at September 27, 2026	3,754	1,992	$	123.38	$	145.47


Risk-free interest rate	3.54% - 4.18%
Expected volatility	43% - 48%
Expected term	0.5 - 1.0 year
Expected dividends	0%
Weighted-average grant-date fair value per share	$	36.94


In millions, except shares in thousands	Q3 2026		Q3 2025		YTD 2026		YTD 2025
Number of shares repurchased	47		1,236		2,994		7,453
Total cost of shares repurchased (1)	$	9	$	121	$	375	$	706


+			increase in employee-related compensation costs
-			decrease in restructuring charges of $15 million in YTD 2026 for employee separation costs

-			increase in government incentive benefits of $7 million in YTD 2026


+			increase in employee-related compensation costs
+			increase in legal expenses related primarily to various IP litigation matters
-			decrease in restructuring charges of $23 million in YTD 2026 for employee separation costs
-			increase in government incentive benefits of $8 million and $22 million, respectively
-			higher net gain recognized on contingent consideration liabilities


In thousands, except price per share	Total Number of Shares Purchased	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs






June 29, 2026 - July 26, 2026	—	$	—	—	$	1,778,704
July 27, 2026 - August 23, 2026	47	$	191.11	47	$	1,769,705
August 24, 2026 - September 27, 2026	—	$	—	—	$	1,769,705
Total	47	$	191.11	47	$	1,769,705


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements			5
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Operations			6
Condensed Consolidated Statements of Comprehensive Income			7
Condensed Consolidated Statements of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			31
Item 3. Quantitative and Qualitative Disclosures About Market Risk			40
Item 4. Controls and Procedures			40

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			40
Item 1A. Risk Factors			40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41
Item 3. Defaults Upon Senior Securities			None
Item 4. Mine Safety Disclosures			Not Applicable
Item 5. Other Information			41
Item 6. Exhibits			42
Signatures			45


		ILLUMINA, INC. (registrant)

Date:	October 30, 2026
		By:	/s/ ANKUR DHINGRA
		Name:	Ankur Dhingra
		Title:	Chief Financial Officer


STANDARD BIOTOOLS INC.
By:
			/s/ Michael Egholm
			Name: Michael Egholm
			Title: President and Chief Executive Officer


ILLUMINA, INC.
By:
			/s/ Jacob Thaysen
			Name: Jacob Thaysen
			Title: Chief Executive Officer


1	I have reviewed this Quarterly Report on Form 10-Q of Illumina, Inc.;

2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			By:						/s/ JACOB THAYSEN
			Name:						Jacob Thaysen
			Title:						Chief Executive Officer