Illumina, Inc 10-Q for FY2026 Q1

Illumina, Inc. (ILMN)

10-Q 2026-05-04 For: 2026-03-29

Added on May 04, 2026

About this 10-Q

Illumina, Inc filed this 10-Q on May 4, 2026, covering the quarter ended March 29, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 29, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.09B; up 4.8% from $1.04B a year earlier
Net income: $134M; up 2.3% from net income of $131M a year earlier
Diluted EPS: $0.87; up 6.1% from $0.82 a year earlier

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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			15
4. Investments and Fair Value Measurements			17
5. Debt			19
6. Stockholders’ Equity			21
7. Supplemental Balance Sheet Details			22
8. Legal Proceedings			25
9. Income Taxes			27
10. Segment Information			28


MANAGEMENT’S DISCUSSION & ANALYSIS
Management’s Overview and Outlook			29
Results of Operations			31
Liquidity and Capital Resources			33
Critical Accounting Policies and Estimates			35
Recent Accounting Pronouncements			35
Quantitative and Qualitative Disclosures About Market Risk			36

OTHER KEY INFORMATION
Controls and Procedures			36
Legal Proceedings			36
Risk Factors			36
Share Repurchases and Sales			37
Adoptions, Modifications or Terminations of Trading Plans			37

Exhibits			38
Form 10-Q Cross-Reference Index			39


	March 29, 2026		December 28, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,089	$	1,418
Short-term investments	66		215
Accounts receivable, net	738		854
Inventory, net	611		564
Prepaid expenses and other current assets	234		238
Total current assets	2,738		3,289
Property and equipment, net	755		759
Operating lease right-of-use assets	371		370
Goodwill	1,284		1,113
Intangible assets, net	430		210
Deferred tax assets, net	458		454
Other assets	523		449
Total assets	$	6,559	$	6,644

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	218	$	240
Accrued liabilities	849		846
Term debt, current portion	499		499
Total current liabilities	1,566		1,585
Operating lease liabilities	475		486
Term debt	1,490		1,490
Other long-term liabilities	352		360
Stockholders’ equity:

Common stock	2		2
Additional paid-in capital	7,862		7,822
Accumulated other comprehensive income (loss)	1		(10)
Accumulated deficit	(258)		(392)
Treasury stock, at cost	(4,931)		(4,699)
Total stockholders’ equity	2,676		2,723
Total liabilities and stockholders’ equity	$	6,559	$	6,644


	Three Months Ended
	March 29, 2026		March 30, 2025
Revenue:
Product revenue	$	917	$	880
Service and other revenue	174		161
Total revenue	1,091		1,041
Cost of revenue:
Cost of product revenue	273		253
Cost of service and other revenue	80		88
Amortization of acquired intangible assets	17		17
Total cost of revenue	370		358
Gross profit	721		683
Operating expense:
Research and development	240		252
Selling, general and administrative	272		267


Total operating expense	512		519
Income from operations	209		164
Other income (expense):
Interest income	11		11
Interest expense	(24)		(25)
Other (expense) income, net	(39)		32
Total other (expense) income, net	(52)		18
Income before income taxes	157		182
Provision for income taxes	23		51
Net income	$	134	$	131
Earnings per share:
Basic	$	0.88	$	0.83
Diluted	$	0.87	$	0.82
Shares used in computing earnings per share:
Basic	153		159
Diluted	154		159


☑			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


In millions	Q1 2026	Q1 2025
Weighted average shares outstanding	153	159
Effect of potentially dilutive common shares from:
Equity awards	1	—
Weighted average shares used in calculating diluted earnings per share	154	159

Antidilutive shares:
Equity awards	—	1
Potentially dilutive shares excluded from calculation due to antidilutive effect	—	1


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


In millions
Cash and cash equivalents	$	19
Accounts receivable	13
Inventory (1)	57
Property and equipment	19
Operating lease right-of-use assets	14
Other current and noncurrent assets	3
Intangible assets	186
Goodwill	171
Operating lease liabilities, noncurrent	(12)
Other current and noncurrent liabilities	(10)
Total net assets acquired	$	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


	March 29, 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	$	(344)	$	300	$	436	$	(335)	$	101
Licensed technologies	234		(150)		84		234		(143)		91
Customer relationships	28		(15)		13		16		(14)		2
License agreements	25		(14)		11		24		(14)		10
Trade names	18		(2)		16		2		(2)		—
Database	12		(6)		6		12		(6)		6


Total intangible assets, net	$	961	$	(531)	$	430	$	724	$	(514)	$	210


In millions	Estimated Annual Amortization
2026 (remainder of year)	$	59
2027	78
2028	76
2029	46
2030	40
Thereafter	131
Total	$	430


Based on region of destination (in millions)	Q1 2026		Q1 2025 (1)
United States and Canada	$	590	$	555
Europe, Middle East, Africa and Latin America	356		332
Greater China (2)	52		72
Asia-Pacific	93		82
Total revenue	$	1,091	$	1,041


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


2. ACQUISITIONS, INTANGIBLE ASSETS AND GOODWILL


3. REVENUE


	Q1 2026						Q1 2025
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	726	$	71	$	797	$	696	$	72	$	768
Instruments	118		2		120		109		3		112
Total product revenue	844		73		917		805		75		880
Service and other revenue	151		23		174		142		19		161
Total revenue	$	995	$	96	$	1,091	$	947	$	94	$	1,041


Dollars in millions	Capital commitments		Callable through date	Remaining callable as of March 29, 2026
Fund I	$	100	December 2027	$	3
Fund II	$	150	July 2029	$	25
Fund III	$	60	December 2034	$	21


In millions
Balance as of December 28, 2025	$	54
Acquisition of SomaLogic	81
Change in estimated fair value	(16)

Balance as of March 29, 2026	$	119


	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	1,277	589	$	128.40	$	148.34
Vested	(892)	—	$	114.97	$	—
Cancelled	(139)	(116)	$	117.50	$	120.56
Outstanding at March 29, 2026	3,984	1,329	$	122.80	$	134.93


Risk-free interest rate	3.54% - 4.06%
Expected volatility	43% - 48%
Expected term	0.5 - 1.0 year
Expected dividends	0%
Weighted-average grant-date fair value per share	$	35.49


In millions, except shares in thousands	Q1 2026		Q1 2025
Number of shares repurchased	2,005		1,728
Total cost of shares repurchased (1)	$	243	$	201


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 Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
December 29, 2025 - January 25, 2026	20	$	134.40	20	$	639,897
January 26, 2026 - February 22, 2026	564	$	117.14	564	$	573,863
February 23, 2026 - March 29, 2026	1,421	$	122.12	1,421	$	400,314






Total	2,005	$	120.85	2,005	$	400,314


			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 Statement 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			29
Item 3. Quantitative and Qualitative Disclosures About Market Risk			36
Item 4. Controls and Procedures			36

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			36
Item 1A. Risk Factors			36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37
Item 3. Defaults Upon Senior Securities			None
Item 4. Mine Safety Disclosures			Not Applicable
Item 5. Other Information			37
Item 6. Exhibits			38
Signatures			40


		ILLUMINA, INC. (registrant)

Date:	May 1, 2026
		By:	/s/ ANKUR DHINGRA
		Name:	Ankur Dhingra
		Title:	Chief Financial 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