Analyst Conference Summary

conference date: April 30, 2026 @ 1:30 PM Pacific Time
for quarter ending: March 31, 2026 (first quarter, Q1 2026)

Forward-looking statements

Overview: Modest growth rate, raised 2026 guidance slightly.

Basic data (GAAP):

Revenue was $1.09 billion, down 6% sequentially from $1.16 billion and up 5% from $1.04 billion in the year-earlier quarter.

Net income was $134 million, down 60% sequentially from $334 million, and up 2% from $131 million year-earlier.

Diluted EPS was $0.87, down 60% sequentially from $2.16, and up 6% from $0.82 year-earlier.

Guidance:

Increase full year 2026 to: revenue between $4.52 and $4.62 billion. Non-GAAP diluted EPS $5.15 to $5.20. For Q2 2026 revenue $1.12 to $1.14 billion, non-GAAP EPS $1.20 to $1.25

Conference Highlights:

Jacob Thaysen, CEO, said "Illumina delivered a strong start to 2026, reflecting strength of the Illumina ecosystem and progress against our strategy. Demand for NovaSeq X is increasing as we help our clinical customers expand into new application areas. With our strong first quarter performance, we are raising our full-year revenue and EPS guidance." In Q2 authorized $1.5 billion in share repurchases. The backlog at quarter end was solid.

Sales in China were just $52 million.

Expects a return to growth in research and academic markets as funding returns.

In January 2026 the acquisition of SomaLogic was completed. Paid $350 million in cash with up to $75 million in possible near-term milestones.

In Q4 2025 introduced the Billion Cell Atlas, the first data product of the BioInsight business, to support AI-enabled drug discovery.

China lifted the export ban on Illumina sequencers in Q4, but approvals are still required for instrument purchases.

Product revenue was $917 million, services $174 million. $114 million of the product revenue was for instruments, $726 was for consumables.

Illumina shipped >80 NovaSeq X instruments in Q1 2026. [NovaSeq X is the most powerful and expensive of its sequencers.] Supply constrained at end of quarter. New high-volume applications are being built for NovaSeq X. 76% of clinical volume is now on the X.

Non-GAAP numbers: net income $na million, up % sequentially from $208 million, and up % from $na million year-earlier. Diluted EPS was $1.15, down 15% sequentially from $1.35, and up 19% from $0.97 year-earlier.

Cash, equivalents and investment balance was $1.15 billion, down sequentialy from $1.36 billion. $1.49 billion term debt. Cash flow from operations was $289 million. Free cash flow was $251 million. Capital expenditures were $38 million. Cash used to repurchase stock was $242 million.

GAAP cost of revenue was $370 million, leaving gross profit of $721 million. Operating expenses were $512 million, consisting of: $240 million for research and development; $272 million for selling, general, and administration. Leaving income from operations of $209 million. Other expense was $52 million. Income tax $23 million.

Q&A selective summary:

Guidance, why organic not raised? When replacing instruments, they will start increasing consumables about 6 months later. Not raising guidance more, but are expecting to reach high end of guidance range.

Impact of consumable pricing from shift to X? Placements show customers want innovation. Clinical placements are more incremental than conversions, leading to top line growth. Research is more replacements, and most have already converted to X. Price assumptions and costs are baked into the current guidance.

We see no substantial change in the competitive environment right now.

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