Illumina’s third-quarter revenue reaches $1.129 billion, up 4.2% year over year
Key Facts
Illumina reported third-quarter revenue of $1.129 billion on October 29, 2026, up 4.2% from the same period a year earlier, according to the company’s official results statement. The company said results exceeded its guidance, with CEO Jacob Thaysen attributing the performance to “healthy clinical demand and strong NovaSeq X placements.” These factors put demand for genetic sequencing services and instrument sales at the center of management’s explanation for performance. But estimates published before the announcement pointed to revenue of $1.15 billion and year-over-year growth of 6.5% for the quarter ended in September. Reported revenue therefore came in below analysts’ estimate, despite management describing results as above its guidance.
The reported growth rate reflects overall revenue, while the company also reported other indicators that measure performance after excluding certain factors. Organic revenue growth in the rest of the world was 4.7% during the quarter, according to the company’s non-GAAP measure. This measure excludes the effects of tariff refunds, acquisitions, currency and Greater China. Product revenue was $946 million, compared with $183 million for services and other revenue. These figures show the contributions of the two businesses to total quarterly revenue, while reported growth is not limited to the organic measure.
Operating margins improved from the year-earlier period: the GAAP operating margin was 27.0%, compared with 21.0% in the third quarter of 2025. The non-GAAP margin was 28.8%, or 25.0% excluding tariff refunds. This comparison offers a different view from revenue growth, showing expansion in the underlying accounting margin from the year-earlier period, while the adjusted margin is lower when the effect of refunds is excluded. Pre-announcement estimates had forecast earnings per share of $1.36, alongside the revenue estimate. The results statement available here did not report an actual earnings-per-share figure for comparison with that estimate.
The third-quarter results followed stronger performance in the previous quarter, when Illumina recorded revenue of $1.16 billion in the second quarter of 2026, up 9.5% year over year. Operating margin in that quarter was 21.1% under GAAP and 22.5% under the non-GAAP measure. In its July guidance update, the company forecast total revenue of between $4.60 billion and $4.64 billion for fiscal 2026, up from a previous range of between $4.52 billion and $4.62 billion. It also raised its forecast for organic revenue growth in the rest of the world to more than 5%, from previous guidance of between 2% and 4%. The indicator’s 4.7% growth in the third quarter remains below the annual forecast the company announced in July.
In trading before the results announcement, Illumina shares closed at $288.79 on October 28, according to EL7 data. Investing.com estimates published on October 29 indicated that the shares were above analysts’ average price target of $248.90, with a neutral rating from 21 analysts. That price alone does not establish how investors responded to the results released the following day. In separate coverage of Viasat, its shares closed at $78.26 on October 28, according to EL7 data. Viasat said it would report results for the second quarter of its fiscal 2027 after the market closes on Thursday, November 5, 2026, the next financial reporting date included in the two companies’ data.