Illumina (ILMN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.16 billion, up 9.5% year-over-year (6.5% organic), driven by strong clinical demand, expanding NovaSeq X placements, and innovation in multi-omics and AI-enabled offerings.

• Non-GAAP diluted EPS was $1.31, up 10% year-over-year; GAAP diluted EPS was $1.35.

• Management strengthened the team and board to support scaling and innovation priorities.

• Net income for Q2 2026 was $207 million, down from $235 million in Q2 2025.

• Innovation focus included new workflows, multi-omics expansion, and the launch of StrataMap Spatial and Billion Cell Atlas.

Financial highlights

• Sequencing consumables revenue reached $775 million, up 5% year-over-year; clinical markets grew 15% ex-China, with U.S.-Canada above 20%.

• Sequencing instruments revenue was $125 million, up 31% year-over-year, driven by NovaSeq X and MiSeq i100 sales.

• Sequencing service and other revenue rose 14% to $154 million; microarrays and other revenue increased 21% reported, including SomaLogic.

• Non-GAAP gross margin was 68.2%; non-GAAP operating margin 22.5%; GAAP gross margin 66.4%; GAAP operating margin 21.1%.

• Free cash flow was $162 million; quarter-end cash and equivalents at $1.17 billion; total debt at $1.99 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $4.60–$4.64 billion, with rest of world organic growth expected to exceed 5%.

• Sequencing consumables expected to see mid-single-digit growth, with mid-teens in clinical and mid to high single-digit declines in research.

• Sequencing instruments to grow low single digits; operating margin guidance maintained at 23.4%-23.6%.

• Diluted EPS guidance raised to $5.30-$5.40; Q3 guidance: 4.5% organic growth, $1.14-$1.16 billion revenue, EPS $1.33-$1.38, and ~24% operating margin.

• New products expected to add 1-2 points of growth in 2027.