01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. reported third-quarter 2026 revenue of $1,129 milliona, up from $1,084 million in Q3 2025, and net income of $220 million, up from $150 million.
Income from operations rose to $305 millionb from $227 million. Results were helped by a net benefit of $42 million from IEEPA tariff refunds recognized in Q3 2026, comprising a $79 million reduction to cost of revenue offset by $37 million of revenue reduction for amounts to be credited to customers. Gross margin was 73.5% in Q3 2026 versus 67.6% in Q3 2025.
For the nine months ended September 27, 2026, revenue was $3,380 millionc and net income was $561 million, with diluted EPS of $3.65. The company completed the acquisition of SomaLogic and other specified assets from Standard BioTools on January 30, 2026, for a total purchase price of $460 million, including $382 million in cash. Term debt was reshaped during the period: $500 million of 2026 notes were repaid, and $300 million of 4.950% notes due 2029 were issued in August 2026 with net proceeds of $297 million.
Illumina also entered a $1 billiond five-year revolving credit facility in August 2026 and, after the quarter end, on October 8, 2026, established a $1 billion commercial paper program. Cash and cash equivalents were $1,289 million at September 27, 2026, and total term debt carrying amount was $1,789 million. The filing also details ongoing litigation, including shareholder derivative suits and securities class actions tied to the GRAIL acquisition.
A state securities class action was certified in May 2026, and trial is scheduled for March 20, 2028. The federal securities action was dismissed with leave to amend on September 30, 2026, and a Fourth Amended Complaint was filed on October 21, 2026. The company states it denies the allegations and intends to vigorously defend against them.
02—Key points
Key Highlights
- Q3 2026 revenue rose to $1,129 million from $1,084 million, and net income rose to $220 million from $150 million.
- Gross margin was 73.5% in Q3 2026 versus 67.6% in Q3 2025, including a net $42 million benefit from IEEPA tariff refunds.
- Income from operations was $305 million in Q3 2026 versus $227 million a year earlier; YTD 2026 operating margin was 22.5%.
- SomaLogic acquisition closed January 30, 2026 for a total purchase price of $460 million, expanding the proteomics business.
- Debt activity: $500 million 2026 notes repaid, $300 million 4.950% notes due 2029 issued, and a new $1 billion revolving credit facility entered in August 2026.
- A $1 billion commercial paper program was established on October 8, 2026, a subsequent event, with the revolver as a liquidity backstop.
- Share repurchases in YTD 2026 totaled $379 million, with $1.5 billion available under the 2026 Repurchase Program at quarter end.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Illumina kept $0.19.
- Revenue$1.13B100.0%
- Cost of revenue−$299.0M26.5%
- Gross profit$830.0M73.5%
- Operating costs−$525.0M46.5%
- Operating income$305.0M27.0%
- Interest, other & tax−$85.0M7.5%
- Net income$220.0M19.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.13B$1.08B | +4.2% |
| Cost of Revenue | $299.00M$351.00M | −14.8% |
| Gross Profit | $830.00M$733.00M | +13.2% |
| R&D Expenses | $244.00M$229.00M | +6.6% |
| SG&A Expenses | $281.00M$277.00M | +1.4% |
| Operating Expenses | $525.00M$506.00M | +3.8% |
| Operating Income | $305.00M$227.00M | +34.4% |
| Net Income | $220.00M$150.00M | +46.7% |
| EPS (Basic) | $1.46$0.98 | +49.0% |
| EPS (Diluted) | $1.43$0.98 | +45.9% |
| Shares Outstanding (Basic) | 151.00M153.00M | −1.3% |
| Shares Outstanding (Diluted) | 154.00M154.00M | 0.0% |
05—Questions
Frequently Asked Questions
How did Illumina's profitability change in the third quarter of 2026?
Net income rose to $220 million from $150 million, and diluted EPS was $1.43 versus $0.98. Income from operations increased to $305 million from $227 million. Gross margin improved to 73.5% from 67.6%, largely due to a net $42 million benefit from IEEPA tariff refunds in the quarter.
What is the impact of the tariff refunds on results?
The company recognized a $79 million reduction to cost of revenue for expected IEEPA tariff refunds and recorded a $37 million reduction to revenue for refunds expected to be credited to customers, for a net $42 million benefit in Q3 2026. As of September 27, 2026, it had received $32 million in refunds and recorded a $47 million receivable.
How is Illumina's debt position and liquidity changing?
Term debt carrying amount was $1,789 million at September 27, 2026, versus $1,989 million at year-end 2025, after repaying $500 million of 2026 notes and issuing $300 million of 2029 notes. The company has a new $1 billion revolving credit facility with no borrowings outstanding and established a $1 billion commercial paper program on October 8, 2026. Cash and cash equivalents were $1,289 million.
What legal matters are pending?
The filing describes shareholder derivative suits and securities class actions related to the GRAIL acquisition. The state securities class action was certified on May 15, 2026, with trial scheduled for March 20, 2028. The federal securities action was dismissed with leave to amend on September 30, 2026, and a Fourth Amended Complaint was filed on October 21, 2026. The company denies the allegations and intends to defend vigorously.
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