ILMN · Illumina, Inc.

Illumina's Q1 2026 results showed revenue growth to $1.09 billion, a 4.8% increase from $1.041 billion in Q1 2025, driven by product revenue of $917 million (up from $880 million) and service revenue of $174 million (up from $161 million). ROW organic revenue growth was 3.5%, reflecting strength in the Illumina ecosystem, particularly increasing demand for NovaSeq X as clinical customers expand applications, per CEO Jacob Thaysen. GAAP gross margin improved to 66.1% from 65.6%, and non-GAAP to 68.2% from 67.4%, with operating margins expanding to 19.2% GAAP (from 15.8%) and 21.9% non-GAAP (from 20.4%). GAAP net income rose to $134 million from $131 million, supporting diluted EPS of $0.87 versus $0.82. Non-GAAP adjustments primarily included $24 million acquisition-related costs, $6 million transformational initiatives, and $0.24 strategic investment loss per share. Strong cash generation included $289 million operating cash flow (versus $240 million prior year) and $251 million free cash flow after $38 million capex. Balance sheet remains solid with $1.16 billion in cash and equivalents plus short-term investments, against $1.99 billion total debt. Management raised FY2026 guidance, increasing revenue midpoint by $20 million to $4.52-$4.62 billion (4-6% reported growth, 2-4% ROW organic), non-GAAP operating margin to 23.4-23.6%, and EPS to $5.15-$5.30, signaling confidence. Concurrently, the Board authorized a new $1.5 billion repurchase program on April 28, 2026, supplementing $314 million remaining from the August 2024 authorization, underscoring commitment to shareholder returns amid robust performance.