Illumina (ILMN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.09 billion, up 4.8% year-over-year, driven by strong clinical market performance and robust NovaSeq X demand, with rest-of-world organic growth at 3.5%.

• Non-GAAP operating margin improved to 21.9%, up 150 basis points year-over-year; GAAP operating margin was 19.2%.

• Non-GAAP diluted EPS was $1.15, up 19% year-over-year; GAAP diluted EPS was $0.87.

• Continued innovation and product launches, including TruPath and spatial transcriptomics, are expanding platform value and customer adoption.

• Successful integration of SomaLogic acquisition, completed in January 2026, enhancing the proteomics portfolio.

Financial highlights

• Sequencing consumables revenue grew 4% year-over-year; clinical sequencing consumables up 20% ex-China for the second consecutive quarter.

• Sequencing instruments revenue rose 9% reported; over 80 NovaSeq X instruments placed, exceeding expectations.

• Gross margin improved to 68.2% non-GAAP and 66.1% GAAP, up from 67.4% and 65.6% respectively year-over-year.

• Free cash flow was $251 million, with cash, cash equivalents, and short-term investments totaling $1.16 billion at quarter-end.

• Operating profit rose to $239 million non-GAAP and $209 million GAAP.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $4.52–$4.62 billion, representing 4–6% year-over-year growth.

• Non-GAAP operating margin guidance increased to 23.4–23.6%.

• Non-GAAP EPS guidance raised to $5.15–$5.30.

• Q2 2026 guidance: revenue of $1.12–$1.14 billion, non-GAAP EPS of $1.20–$1.25, and operating margin of ~22%.

• Management expects ongoing macroeconomic headwinds, including tariffs, inflation, and geopolitical instability, to continue impacting results in 2026.