ILMN

It has been about a month since the last earnings report for CRISPR Therapeutics AG (CRSP). Shares have added about 7.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CRISPR Therapeutics due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for CRISPR Therapeutics AG before we dive into how investors and analysts have reacted as of late. CRISPR incurred a second-quarter 2026 loss of 94 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.10. The company had incurred a loss of $2.40 in the year-ago quarter. Total revenues were $10.2 million in the second quarter (comprising $10 million in collaboration revenue and the remainder from grant revenue), beating the Zacks Consensus Estimate of $7 million. In the year-ago period, CRISPR Therapeutics had recorded total revenues of $0.9 million, which comprised only grant revenues. Vertex recorded Casgevy sales of $76 million in the second quarter of 2026. Sales increased 78% sequentially and 151% year over year, reflecting continued commercial uptake. Research and development expenses were $67.2 million in the second quarter, down 3.9% year over year. The decline primarily reflected lower employee and facility-related expenses, partly offset by higher license fees. General and administrative expenses declined 6.9% to $17.6 million, mainly due to lower employee-related costs, including stock-based compensation. Collaboration expense, net, fell 10.8% to $40.3 million, due to an increase in CRISPR Therapeutics’ share of Casgevy revenues under the Vertex collaboration economics. Acquired in-process research and development expenses were $2.5 million compared with $96.3 million in the year-ago quarter. The prior-year amount reflected costs related to the company’s agreement with Sirius Therapeutics. Since the earnings release, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 10.46% due to these changes. At this time, CRISPR Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, CRISPR Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. CRISPR Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Illumina (ILMN), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Illumina reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $1.31 for the same period compares with $1.19 a year ago. For the current quarter, Illumina is expected to post earnings of $1.38 per share, indicating a change of +3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Illumina. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report Illumina, Inc. (ILMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BOSTON, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Standard BioTools Inc. (NASDAQ: LAB) (the “Company” or “Standard BioTools”) today announced financial results for the quarter ended June 30, 2026. Recent Highlights: Second quarter 2026 revenue of $20.1 million 1% improvement in operating loss and 84% improvement in adjusted EBITDA year-over-year Merger with Treeline Biosciences progressing toward stockholder vote and anticipated to close before year-end 2026 “We remain on track to close our merger with Treeline Biosciences in 2026, with our previously filed registration statement on Form S-4, our agreement to divest our Mass Cytometry business, and Illumina’s early buyout of contingent payments for $30 million from its acquisition of SomaLogic,” said Michael Egholm, PhD, President and Chief Executive Officer of Standard BioTools. “We continue to believe this merger is the best path forward to maximize shareholder value, providing exposure to a catalyst-rich, well-capitalized pipeline of potential new therapeutics with significant near and long term value creation opportunities, and we look forward to updating stockholders as we progress toward the vote and closing.” Dr. Egholm continued, “While the transaction process continues, our team remains focused on serving our customers. Our continued cost discipline drove an 84% year-over-year improvement in adjusted EBITDA for the second quarter.”Financial Results Table: Second Quarter 2026 Financial Results: Revenue was $20.1 million in the second quarter of 2026, down 7.6% year-over-year. Gross margins in the second quarter of 2026 were approximately 52.4%, versus 48.8% in the second quarter of 2025; and non-GAAP gross margins in the second quarter of 2026 were approximately 56.3%, versus 54.1% in the second quarter of 2025. Gross margins and non-GAAP gross margins were driven by productivity improvements and reduced warranty expense. Operating expenses in the second quarter of 2026 were $35.9 million, a decrease of $0.4 million, or down 1%, compared to the second quarter of 2025. Operating expenses included $14.7 million in transaction costs and $2.8 million in restructuring and related charges. Non-GAAP operating expenses, which exclude transaction costs, stock-based compensation, and restructuring charges, were $13.8 million in the second quarter of 2026, a decrease of $14.1 million, or down 50%, compared to the second quarter of 2025. The decrease in operating expenses was largely due to previously announced restructuring actions. Net loss for the second quarter of 2026 was $21.5 million from continuing operations, compared to a net loss of $17.7 million in the second quarter of 2025, representing a change of $3.8 million, or 21%. This was impacted by one-time transaction costs.   Adjusted EBITDA for the second quarter of 2026 was a loss of $2.5 million, versus an adjusted EBITDA loss of $16.1 million in the second quarter of 2025, an improvement of $13.6 million, or 84%. Full Year 2026 Revenue Outlook Standard BioTools is withdrawing its full year 2026 revenue outlook given the pending merger with Treeline Biosciences. Use of Non-GAAP Financial Information Standard BioTools has presented certain financial information in accordance with U.S. GAAP and on a non-GAAP basis. The non-GAAP financial measures included in this press release are non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, and adjusted EBITDA. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, as a measure of operating performance because the non-GAAP financial measures do not include the impact of items that management does not consider indicative of the Company’s core operating performance. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the Company’s core operating results. Management uses non-GAAP measures to compare the Company’s performance relative to forecasts and strategic plans and to benchmark the Company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the Company’s operating results as reported under U.S. GAAP. Standard BioTools encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP financial measures are presented in the accompanying tables of this release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding future financial and business performance; the anticipated timing and completion of the proposed merger with Treeline Biosciences, including with respect to the timing of the closing and the anticipated benefits and value creation opportunities of the proposed merger; the proposed sale of the Company’s Mass Cytometry business and the anticipated timing of the closing of that transaction; operational and strategic plans; deployment of capital; and market and growth opportunity and potential. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including, but not limited to, risks that the proposed merger with Treeline Biosciences may not be completed on the anticipated timeline or at all, including risks related to obtaining stockholder approval and satisfying other closing conditions; risks related to the proposed sale of the Mass Cytometry business, including risks that the transaction may not close on the anticipated timeline or at all; the potential that the expected benefits and opportunities of the proposed merger may not be realized or may take longer to realize than expected; possible integration, restructuring and transition-related disruption resulting from the proposed transactions, including through the loss of customers, suppliers, and employees and adverse impacts on the Company’s development activities and results of operation; management distraction and reduced operating performance during the pendency of the proposed transactions; risks that internal and external costs required for ongoing and planned activities may be higher than expected, which may cause the Company to use cash more quickly than it expects or change or curtail some of the Company’s plans, or both; risks that the Company’s expectations as to expenses, cash usage, and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our assumptions; changes in the Company’s business or external market conditions; existing and potential future NIH funding pressures; the effect from existing and potential future U.S. export controls and tariffs; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing of, the Company’s products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; continued or sustained budgetary, inflationary, or recessionary pressures; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; uncertainties relating to the Company’s research and development activities, and distribution plans and capabilities; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. For information regarding other related risks, see the “Risk Factors” section of the Company’s annual report on Form 10-K, for the year ended December 31, 2025, filed with the SEC on March 16, 2026, the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC, the Company’s registration statement on Form S-4, filed with the SEC on July 20, 2026 in connection with the proposed merger with Treeline Biosciences, and in the Company’s other filings with the SEC. These forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update these forward-looking statements except as may be required by law. About Standard BioTools Inc. Standard BioTools, Inc. (NASDAQ: LAB), is committed to setting the new standard in the life science tools industry through strategic consolidation, best-in-class operations and a world-class management team. The Company's established portfolio includes essential, standardized next-generation solutions designed to help biomedical researchers develop better therapeutics faster. For Research Use Only. Not for use in diagnostic procedures.Limited Use Label License and other terms may apply: standardbio.com/legal/terms-and-conditions/.Patent and License Information: standardbio.com/legal/notices.Trademarks: standardbio.com/legal/trademarks. Any other trademarks are the sole property of their respective owners. ©2026 Standard BioTools Inc. (f.k.a. Fluidigm Corporation). All rights reserved. Investor Contact:[email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET Head of Investor Relations - Conor McNamara Chief Executive Officer - Jacob Thaysen Chief Financial Officer - Ankur Dhingra Operator: Good day, ladies and gentlemen. Welcome to the second quarter 2026 Illumina earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to head of investor relations, Conor McNamara. Conor McNamara: Hello, everyone. Welcome to Illumina's second quarter 2026 earnings call. Today, we will review our financial results, released after market close, and provide prepared remarks before opening the line for questions and answers. Our earnings release is available in the investor relations section of illumina.com. Joining me today are Jacob Thaysen, Chief Executive Officer, and Ankur Dhingra, Chief Financial Officer. Jacob will begin with an update on Illumina's business, followed by Ankur's review of the financials. We will be discussing certain non-GAAP financial measures, and a reconciliation to GAAP can be found in today's release and in the supplementary data on our website. Unless otherwise stated, all growth rates are presented on a year-over-year reported basis. Organic growth adjusts for the impact of currency and acquisitions, and rest of world organic growth also excludes Greater China due to our inclusion on China's unreliable entity list. This call is being recorded. The replay will be available on our website. It is our intent that all forward-looking statements made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the SEC, including our most recent Forms 10-Q and 10-K. With that, I will now turn the call over to Jacob. Jacob Thaysen: Thank you, Conor. Good afternoon, everyone. We had a great first half of 2026, including another strong quarter in Q2. I couldn't be prouder of what the Illumina team delivered. Revenue grew at the fastest rate since I joined the company, driven by increasing demand for Illumina's technology as customers expand clinical applications. Our deep relationships with leading U.S. clinical customers and large installed base reinforce the durability of our position in these markets. Margins also came in above our guidance despite higher than expected costs. I want to thank our teams for their focus and commitment to our customers and shareholders. Our first half results puts us in a strong position as we look ahead. We are raising our 2026 guidance for revenue growth and profitability while remaining committed to executing against our long-range targets. Today, I'm going to focus on three areas: our performance in the quarter and the trends we are seeing across our end markets, how we are expanding the value of our platform through new workflows and multi-omics capabilities, and the progress we are making against our long-term strategy and financial targets. Let me start with how the quarter came together. Rest of world organic revenue grew 8.1%, above the high end of our guidance, and demand for NovaSeq X remained high more than three years after launch, with more than 95 placements in the quarter. Together with disciplined expense management, this translated into both margin and EPS above guidance. Clinical markets, which represent approximately 65% of sequencing consumables revenue, remained our primary growth driver. Rest of world clinical growth was broad-based across regions and applications, with particular strength in our U.S.-Canada region. Strong instrument placements over the past three quarters are expanding customer capacity and will support consumable growth for many quarters to come. Placements will vary from quarter to quarter, but demand remains elevated. In research and academic markets, results improved from Q1. Customers remain cautious as they navigate funding uncertainty. We saw some signs of improvements late in the quarter, but it's too early to call a recovery. These customers remain an important source of innovation and help drive clinical adoption over time. Our expanding multi-omics portfolio give customers more ways to analyze biology and broadens how we can support these markets over time. Let me turn next to innovation. Our strategy is to deliver the highest quality insights for the lowest end-to-end cost. The updates we made this quarter advance that goal by expanding what customers can do on NovaSeq X and increasing the value of the Illumina ecosystem. Within core sequencing, NovaSeq X remains central to our approach. Customers are investing in the platform not only for what it enables today, but because they see a clear path to use it for years to come. The roadmap we laid out earlier this year gives them confidence that the X will continue to support their workflows over time, helping sustain demand for the platform. We recently launched our whole genome MRD research workflow, a tool designed to help customers shorten asset development timelines and lower development costs. The solution runs on NovaSeq systems and is now in early access with select customers. Beyond core sequencing, we are expanding our multi-omics offerings, consistent with the strategy we laid out in 2024. This summer, we expanded our portfolio with the launch of the StrataMap Spatial, our sequencing-based spatial workflow. This launch broadens our capabilities in spatial biology and gives researchers another way to study tissue biology through the Illumina ecosystem. We are also seeing sustained proteomics momentum following the close of our SomaLogic acquisition. Our newly branded SomaScan and SomaSeq offerings are generating strong interest and helping customers connect proteomics and genomic insights. In BioInsight, we are expanding our data and insights offerings to help pharmaceutical customers advance AI-enabled drug discovery. BioInsight brings together sequencing, perturbation tools, compute power, and AI to build high-quality multi-omics data sets and interpretation tools. These capabilities can deepen understanding of disease pathways, infer causality, and enable more predictive biological models. One of the first key BioInsight initiatives is the Billion Cell Atlas, a genome-wide perturbation data set that deepens understanding of disease biology and generates data for AI models. We are producing this data at an unprecedented scale and with the quality and consistency needed to support biological discovery. With over 300 million cells delivered to date, biopharma interest continues to grow. We have started booking revenue from our Billion Cell Atlas, and we added three new partners subsequent to quarter end, bringing our total to six. While still early, these milestones are an encouraging sign of the opportunity ahead. Later this year, we look forward to sharing additional BioInsight updates as we expand how customers can use biological data to accelerate discovery. Turning to our improved 2026 outlook, we are increasing our full year revenue outlook to reflect both our Q2 outperformance and our expectations for the remainder of the year. The momentum we are seeing, especially from our clinical customers, gives us greater confidence as we enter the second half. We now expect full-year rest-of-the-world organic revenue growth greater than 5%. We expect the pace of growth in the second half to remain broadly consistent with the first half, although the mix will shift. Consumables revenue will continue to grow from a higher installed base, while instrument growth moderates against tougher comparison following several quarters of elevated NovaSeq X placements. The expanding NovaSeq X installed base will also add further consumables growth beyond 2026 and support our path towards high single-digit revenue growth in 2027. We are also raising our EPS outlook, reflecting Q2 outperformance, higher revenue expectations, and continued expense discipline. Ankur will provide the details in his remarks. Our updated guidance reinforces our progress toward the long-term financial targets we laid out in 2024, and we remain focused on achieving them. We operate in a healthy market with significant untapped opportunity. By continuing to deliver innovative technology that improves customer workflows and expands their capabilities, we expect to maintain our leadership as the market evolves. With three consecutive quarters of growth, we enter the second half from a stronger position. Our teams are energized by the response to our recently launched end-to-end workflows. That interest confirms that we are solving the right problems and reinforces our innovation priorities. We are also strengthening the team leading this work. We recently welcomed Michael Sullivan and Julie Coletti to our management team, adding deep commercial and legal experience as we scale the business. We are equally pleased to welcome David King and Dan Skowronski to our board. Their experience across healthcare, diagnostics, and R&D will be valuable as we advance our clinical and innovation priorities. I want to thank the entire Illumina team for their focus and commitment, and our customers for the trust they place in us. With that, I'll hand it over to Ankur to walk through the financial details before we move to Q&A. Ankur Dhingra: Thank you, Jacob, and good afternoon, everyone. I will walk through our second quarter financial results, provide additional color on revenue, expenses, earnings, the balance sheet, and capital deployment, then discuss our updated outlook. Before I get into the details of the financial performance, let me provide a high-level view of how the second quarter played out. For Q2, our revenue and earnings results came in ahead of our expectations and guidance. Revenue grew 8% on organic basis ex-China, margins were ahead, and EPS of $1.31 grew 10% year-over-year. We placed more than 95 Xes. Turning to the details. During the second quarter, Illumina's revenue of $1.16 billion was up 9.5% year-over-year, and 6.5% on an organic basis, with currency and acquired revenue together contributing approximately three percentage points to our reported growth rate. Rest of the world organic growth rate was 8.1%. Sequencing consumables revenue of $775 million was up 5% year-over-year on both a reported and organic rest of world basis. High throughput volume drove most of the revenue growth as the NovaSeq X install base continues to expand and pull through increased year-over-year. Sequencing consumables revenue in clinical markets grew 15% ex-China, with the U.S. Canada region continuing to grow above 20%. We saw slower growth in Europe, Middle East, and Latin America region, largely due to ongoing near-term dynamics in the region. First half growth was approximately 17%, a slight acceleration versus the second half of 2025, reflecting continued adoption of sequencing-based diagnostics and more sequencing-intensive applications. We are raising our growth outlook in clinical markets towards the high end of our prior guide and now expect mid-teens growth for the year. Sequencing consumables in research and applied markets declined 7% rest of the world, year-to-date trends have remained consistent with our outlook entering the year. Though we were encouraged by the trends in the quarter, including 9% revenue growth quarter-over-quarter, we believe it's still too early to predict the timing of an end market recovery, continue to expect mid to high single-digit declines for research and applied consumables in 2026. We made further progress in the quarter transitioning customers to the NovaSeq X. As of Q2, approximately 83% of volumes and 59% of revenue had transitioned to the platform. Despite continued transition dynamics, sequencing consumables posted strong growth. Approximately 78% of clinical volume is now on the X, we continue to expect clinical volumes will reach 80%-85% conversion by the end of 2026. On sequencing activity, total sequencing gigabase output on our connected high and mid-throughput instruments once again grew more than 30% year-over-year, with clinical growth well above that. Sequencing instruments revenue of $125 million was up 31% year-over-year in Q2 on both reported and rest of world organic basis, driven by increased sales of NovaSeq X and the MiSeq i100. We made significant progress with our supply investments in the quarter, allowing us to place over 95 NovaSeq X instruments in Q2, as demand remains strong for the platform, especially among some of our largest clinical customers, where we saw several multi-unit capacity expansion orders, including for start of new clinical trials. We also placed over 10 NovaSeq 6000 units as some customers plan to remain on that platform for years to come. Sequencing service and other revenue of $154 million was up 14% on both a reported and rest of world organic basis. As Jacob mentioned in his prepared remarks, we are gaining traction in our Billion Cell Atlas program, resulting in higher data revenue from biopharma customers. Microarrays and other revenue of $105 million was up 21% reported and included SomaLogic revenue, which continues to track towards the high end of our deal expectations. On rest of world organic basis, microarrays and other revenue declined 4%. Moving to the rest of the P&L. Non-GAAP gross margin of 68.2% came in slightly better than our expectations, especially given product mix from the relatively high sales of instruments in the quarter. We also absorbed higher freight and memory costs in this quarter. Non-GAAP operating expenses were $530 million and include SomaLogic expenses. In addition, we had approximately 60 basis points of deferred compensation this quarter, which is EPS neutral with offset in other income. Non-GAAP operating margin was 22.5% for the quarter, above our guidance, driven by higher volume, as team did excellent job in absorbing increased inflationary effects. Looking below the line, non-GAAP net interest and other expense was $8 million in the quarter. Our non-GAAP tax rate was 20.5%, and average diluted shares were approximately 153 million, reflecting continued share buybacks. Altogether, non-GAAP EPS of $1.31 per diluted share grew approximately 10% year-over-year and approximately 13% excluding the dilutive impact of acquisitions. Moving to cash flow, the balance sheet and capital allocation for the quarter. Cash flow provided by operations was $201 million for the quarter, which is below the usual trend due to timing of tax payments and higher inventory as we secured supply for critical components for next few quarters. Capital expenditures were $39 million. Free cash flow was $162 million. We repurchased 0.9 million shares of Illumina stock for approximately $122 million at an average price of $129.07 per share. At quarter end, we had approximately $1.8 billion remaining under current share repurchase authorizations. We intend to continue to repurchase shares opportunistically. We ended the quarter with approximately $1.17 billion in cash equivalents, and short-term investments, $1.99 billion in total debt, and a leverage ratio of approximately 1.6x gross debt to last 12 months EBITDA. Overall, we had a great second quarter and first half of 2026, allowing us to raise our full-year guidance and reinforce our confidence in the progress we are making towards our long-term targets. Turning to our full-year 2026 guidance. Starting with revenue, we're raising our rest of world organic growth guidance greater than 5%, up from our prior range of 2%-4%, raising our reported revenue guidance by $50 million at the midpoint to $4.60 billion-$4.64 billion. This reflects the Q2 beat and also our increased expectations for the second half of the year. We are also expecting to come in towards the high end of our previously stated guidance for sequencing consumables and instruments. For rest of world organic sequencing consumables growth, we now expect mid-single-digit growth, including mid-teens growth in clinical and mid to high single-digit declines in research. This reflects a modest revenue benefit from our outperformance in X placements over the last two quarters, though most of that benefit will come in 2027, as our clinical customers typically take at least six to nine months to reach normalized consumables pull-through levels. Sequencing instruments are now expected to grow low single digits rest of the world organically in 2026. Demand for NovaSeq X remains robust, and we expect unit placements to remain at elevated levels in the second half of the year, with some moderation in year-over-year growth rates. We are maintaining our operating margin guidance of 23.4%-23.6%. With our higher revenue expectations for the year, this equates to diluted EPS guidance of $5.30-$5.40, an increase of $0.12 at the midpoint versus our prior guide, and a year-over-year growth of 11% at the midpoint and 14% ex acquisitions. Moving to Q3 2026 guidance, we expect rest of world organic revenue growth of approximately 4.5% and reported revenue of $1.14 billion-$1.16 billion, non-GAAP EPS of $1.33-$1.38, and non-GAAP operating margin of approximately 24%. This equates to approximately 150 basis points of margin expansion sequentially, driven by higher consumable mix and the increased benefit of cost actions and improved efficiency. Our solid half one performance and rapidly growing clinical install base provide a strong setup for continued consumable growth for years to come. We're seeing an increase in X placements to meet increasing volume demand, which will help accelerate consumable revenue growth as recent placements come online. In addition, we are beginning to see revenue contributions from our Billion Cell Atlas and our growing customer interest in our multiomics portfolio, and we still believe new products will add one to two of growth next year. Taken together, we continue making progress towards our 2027 financial targets. In closing, I want to thank the Illumina team for their continued focus and disciplined execution throughout the quarter. We are off to a great start in 2026, and I'm extremely encouraged by the progress we've made in returning Illumina to long-term sustainable revenue and earnings growth. Thank you for joining our call today. I will now invite the operator to open the line for Q&A. Puneet Souda: NovaSeq X installs in the second half. Just given the backdrop of the clinical growth that you're seeing here, it appears there's really no clinical cliff. You're cruising through it. You're already above 5%, as you pointed out, for a guide for this year. Why should we not contemplate something higher than a high single-digit revenue growth for 2027 that you outlined before? Thank you. Jacob Thaysen: Well, Puneet, thank you very much for those comments, we are definitely also very pleased with the performance we had in the quarter. First and foremost, I truly believe, I'm very convinced that the growth and the momentum we see in the clinical market will continue for years to come. The elevated placement we have had in the first half of the year speaks to that. As you know, when we place instruments, eventually we'll start to see the consumables run on those instruments, that will drive continued growth. As we laid out, I think 18 months ago, we laid out a logic around 50-60 placements per quarter, we have clearly over the last few quarters here been running stronger than that. That really speaks to what is happening in the clinical space right now. While we do see some moderations back up and down from each quarter, we still believe that the elevation will continue into second half of the year. We feel good about that. There will of course, be a little bit ups and downs in that. Talking about the clinical cliff, I agree it's not a cliff, it's a wave, we are surfing it, as you were saying. We think there is a lot of momentum there. Yeah, I think there's a good opportunity for continue that momentum. Talking about 2027 right now, at this point, I'm still very committed to delivering on the high single-digit growth. We will continue to focus on building a very, very strong value proposition to our customers, then we'll see where it takes us. Tycho Peterson: Hey, thanks. Wondering if you could address a couple things, the sequential slowdown in clinical consumables. One of the debates we've been having with investors is as the customers transition to X, are you over-earning on consumables? Because at some point, the 6000s get decommissioned. How do you think about that potential headwind as customers running both in parallel eventually wears off? Jacob Thaysen: Yeah, Tycho, thank you for that. I would start by the latter one is that we continue to see that we have an expansion of volume on the X, and we continue to see quite a number of the 6000s being in action for running the current assets. In fact, we did see some customers actually purchasing a few 6000s this quarter to continue their operations. Of course, eventually, they'll move over to X, but we don't see that as a. It's a standard part of the business. We have seen that evolution also from fundamentally HiSeq. It's only a few quarters ago, we still had HiSeq running in our portfolio. I don't think that will be considered any true headwinds for us. From the clinical performance, the momentum continues to be high. As Ankur was mentioning, we continue to have strong confidence, and that's why we are raising our guide for the clinical consumable growth up to mid-teens, which is improvement from what we looked at in the beginning of the year. If you look into the details for the 20% growth we had last quarter down to 15% now, I mean, first of all, it's still very strong. We still continue to see U.S. running faster than 20%. That momentum is really strong. There's been some in and outs in, especially in the Middle East and Latin America. I think we all know the situation in Middle East, and that is impacting, at least short term, the growth rate. I wouldn't put more into it than that, but I think the headline here is that mid-teens growth is strong and is still beyond what we started the year with and is still very much driving high single-digit growth for us for next year towards that. Vijay Kumar: Hi, Jacob and Ankur. Thank you for taking my question and congrats on a nice sprint here. Just if I take a step back on the performance in the quarter, can you walk us through on phasing in the quarter? Were there any one-offs? Because when I look at your guidance for third quarter, right, 4.5% rest of the world, why is that stepping down from 8%? Why is 8% not sustainable? What are you assuming for AI-related revenues, or is that a theme that could be a bigger theme for the stock when you look at the medium term? Thank you. Jacob Thaysen: Yeah, Vijay. Again, thank you and we are very excited about the placements we're doing right now, which we also believe is elevated. This is not a one-off. We do see that many of our clinical customers are investing into the future. They're building out the installed base. They're getting ready for the volume that they can see in their funnel. We are seeing that right now. There's a little bit of a compare that in the first part of last year, the installed base or the placements of instruments were a little bit different than the second half. We started to see the momentum slowly starting in second half, and that's why you will see the compares in the instrument is a little bit different. We actually expect that the consumable will continue to be strong, and in fact, we do believe that momentum will continue to step up, and will be the main growth driver into next year. That is the main driver for that. If you look at AI, yeah, I mean, we are very excited about what we're doing with BioInsight. We have now delivered more than 300 million single cell to our customers in the Cell Atlas. We have added three more pharma partners, so we now have six pharma partners. In the end, what the customers are very excited about is that data can help really, first and foremost, create insight, direct insight to their drug discovery programs. On top of that, which is really where there can be power in this, is that it starts to be the foundation for strong AI models of quality that will start to be predictable in how you think about quality. This is something we're excited about. It's still early days. We are making money already from day one on this, both on top line and bottom line. I think there is a significant opportunity over the next period of time on that. Mike Ryskin: Hey, can you guys hear me? Jacob Thaysen: Yes. Ankur Dhingra: Yeah. Hey, Mike. Jacob Thaysen: Hey, Mike. Mike Ryskin: Wonderful. Thank you. I'll take it. All right. I'll just follow up on that 3Q, 4Q pacing through the rest of the year question. It is a little bit of a surprising step down for the third quarter. Even more importantly, 4Q's guided a little bit higher than we would've had. Is there anything unusual in terms of seasonality that you're anticipating? You can talk about any purchasing in the quarter. Obviously, you've had a lot of boxes placed. You talked about the backlog last quarter. If there was any stocking or anything like that. Also kind of tied to that, I know you've got an extra week in the fourth quarter. Just remind us what impact that's having on your revenue assumptions for 4Q. Also, on margins and EPS, just make sure we're modeling that correctly. Thanks. Jacob Thaysen: Thanks, Mike. Again, I want to start with the headline here is that the momentum we've had here in the first half, I think is going to speak to the opportunity ahead of us. As I was saying, our clinical customers are building out their install base now to really be ready for the growth that they're seeing. Instead of looking at a step down, I actually think that Q2 was very strong. Q3 always is a little bit lower than Q4, I think that's a normal phasing for us. I'm not too worried about that. I think this comes in as we expected. Overall, I see the underlying trend being strong. Ankur, let's get you on this. Ankur Dhingra: Thanks, Jacob. Mike, in terms of thinking about phasing Q3, Q4, think about it as usual seasonality, from Q3, where Q4 usually is our largest quarter for the year, expected to remain so. The second part, your question about the extra week. Yes, we have one extra week this year in Q4, which would largely be a consumables story. You would expect maybe half a point or so of revenue contribution that could come from that extra week in terms of run rate days. That's part of the thinking. Now, going back to a slowdown comment, overall, from our perspective, the business is holding very well. The consumables growth story is the one that's remained steady through the year. The variability is almost always around the instrument placements. We do expect elevated level of instrument placements to continue in the second half of the year. You know that elevated level started in the second half of the year last year. Dan Leonard: Thanks a bunch. Hi, Jacob. Hi, Ankur. A follow-up question on the clinical growth rate. Can you discuss the breadth of the growth you're seeing in clinical, just given that the U.S. grew greater than 20? I think you mentioned your largest clinical customers were especially strong when it came to instruments. I want to understand how narrow versus broad that strength is. Separately, can you talk about whether you've seen any shift in application mix from those customers over the past couple of quarters here? Thank you. Jacob Thaysen: Yeah. Thanks, Dan. Let me start by just positioning it again. Overall clinical, the opportunity in the clinical space, really shifting NGS into healthcare is still in front of us. I think there is a huge opportunity for really becoming standard of care in healthcare over the next period of time. I think overall, I'm very excited about that, and I think that will drive the momentum in that space for many quarters, for many years to come. The performance we have continues to be broadband. Obviously, there are some ins and outs in this, if you look at the regional level, as you mentioned, U.S. continues to be the main driver of the growth here, all the other regions, except China, is still growing very nicely. If you look from an application perspective, oncology continues to lead the pack here. If you look in oncology, we are seeing a shift towards now MRD starting to drive momentum. Still from a dollar perspective, the therapy selection is still the bigger one. MRD is coming and later we will see MSAT also start to be a real contributor to this growth. We don't really see that really in the numbers today. The rare diseases and screening, NIPT screening and so on is still growing very nicely, oncology is the lead of the pack at this point. Again, broad base, right now driven mostly out of, still with leading out of U.S. Subbu Nambi: Hey, guys. Can you guys hear me? Jacob Thaysen: Yes. Ankur Dhingra: Hey, Subbu. Subbu Nambi: Hey, guys. Great print. A couple of questions on memory cost. Prices are still rising and allocations continue to be strained. How are you thinking about the trajectory into second half, especially with the stronger full Q instrument placements and into 2027, particularly as you integrate more GPU-based compute for next-gen product? I have a follow-up. Jacob Thaysen: Subbu, overall, as you have seen over the last two years, the Illumina team have actually done quite a great job in compensating for the headwinds that we've seen in front of us, both on the top line, but definitely also on our cost structure. That's been plenty over the last few years. I think last year was a good example where we delivered even 200 basis point improvement, even in a relatively flat environment. The team really knows how to deal with these headwinds. Obviously, memory cost and freight costs have definitely been a headwind we didn't anticipate to the level we have seen. I'm really pleased with how the team has continued to operate and find ways that we can compensate for this additional cost. Those costs are real. We are, of course, also sharing some of that cost increase with our customers, we are also doing a lot of things to drive operational excellence to also compensate that way. I think we are moving on many multiples, I think that speaks to the power of the Illumina team, I'm really excited about how the team is leaning in to fix that. We feel good about that. We feel good we have a handle on that. Obviously, there are costs that we have a good line of sight to now that we need to deal with, we have proven that we can take care of that, we will continue to do so. I think you had a follow-up? Ankur Dhingra: Yes, Subbu, let me add just a couple of points. Thanks, Jacob. Subbu, the higher cost of memory is part of our Q2 results. You can take that as a starting point run rate. Bulk of that is already in our results for gross margin. As I mentioned in my prepared remarks, we did secure additional inventory and supply during the quarter for next several quarters to be able to address, or at least de-risk, any near-term movements in the memory prices here. The second part of your question around how does that extend into GPUs, et cetera, and new products. One of the unique strategic advantage we have from a cost structure perspective is that our instruments do not use the GPU architecture. Our instruments use a different architecture, which is significantly relatively less expensive, and cost efficient than the GPU architectures there. As I mentioned, we've been securing supply for next several quarters here. Subbu Nambi: Super helpful. Thank you so much for that, Ankur and Jacob. My follow-up, you had a couple of stronger than expected placement quarters. Like, come on, we are in the fourth year of instrument launch, and these are the instrument numbers. Something definitely to pause and think about. Was this at all a function of the market waiting for a more competitive information? Related, how much of this is a function of an improving funding environment? Thank you so much. Jacob Thaysen: Yeah, Subbu, I think it speaks to, again, the opportunity. I mean, the value proposition we have with our customers. They feel, with the conversation we have with them, they continue to see that Illumina is here to help them being successful. The innovations we continue to move on to our X platform, also proves that there is a lot of lead way in that platform. It is the platform to invest in. I think it speaks to how we continue to drive innovation, and of course, also that this is a very healthy market. I think that's a combination that is winning right now. Harrison: Hey, this is Harrison on for Mason. Thanks for taking the questions. Within this quarter's NovaSeq X placements, did the clinical/non-clinical split move at all versus recent quarters? Could you give us the latest on what you're hearing from research customers on order timing and budget releases this quarter? Has anything in the underlying order pattern shifted versus last quarter, even if the headline number doesn't move much? Jacob Thaysen: Yeah, I think overall, we continue, of course, to see the majority of placements going into the clinical space, and we expect that to continue. Even with an improved environment in the academic research, the opportunity in clinical will continue to be the strongest one, and thereby also we expect most placement there. That said, we did place also in the academic research space. There is definitely also opportunity in that space. Underlying, I mean, overall, if you want to give- Ankur Dhingra: Yeah, I can comment in general around the research space as well. In terms of mix of placements, it is still about 70/30, 70% being clinical, and the remainder still going into the research space. I would like to still remind you, we have a very international business and the research spans across the world, not just in the U.S. In terms of research market trends during the quarter, during the latter part of the quarter, we did see some increased activity overall in terms of funding releases in the U.S., and the increased activity in terms of requests, coding, et cetera. I would still say, as I said in our prepared remarks, we're not assuming any meaningful improvement in that market or revenue for us for the rest of the year. Directionally, during the latter part of the quarter, there was some improvement. Kyle Mikson: Hey, guys. Thanks for the questions. A nice quarter. This quarter, you guys talked about sort of multi-omics solutions. I think StrataMap was announced. These are all really promising. Got single-cell proteomics, et cetera. How do we track that going forward? How do we know the strategy is working? Will you break that out going forward, maybe next year? How are you accounting for all these products and the revenue contribution, I guess, in the fourth quarter, for example? Thanks. Jacob Thaysen: Yeah, Kyle. Overall, we are excited about our portfolio. As we mentioned also in our strategy updates, which we provide in 2024, which is playing out now, our strategy is working very well. As we are saying, look, at that point, and still, we are mostly focused. Of course, the biggest opportunity is to move our customers and convert our customers over to the X platform and really make sure that becomes the platform for the future. I think that has been proven now. I think we are seeing that momentum happening. The second leg in that strategy was to start to drive into multi-omics. We believe that the future belongs to multi-omics. Obviously, genomics and DNA sequencing will continue to be the backbone of any biological insights, you need multiple layers, both from different omics, from the genome all the way up to the proteome, also from different ways of looking at it, from bulk, single cell, also into spatial. Illumina want to provide that to our customers, not as only library preps or sequencing, but end-to-end workflows that support the challenges the customers are seeing for. Also combine that from a software perspective, you can truly get insights across the different modalities. I think that is the future. That's where the power and where we really unlock the understanding of biology. That's why we have really been doubling down on that. What we also said in 2024 was that we expected that the growth would be here in the latter part of the strategy period here coming into the part of 2026, 2027, that we would start to see that being a 1-2 points of additional growth and incremental growth. That is playing out as we expecting. We're very excited about the StrataMap. It just came out. We are seeing a significant more interest in it than we had planned for ourselves. I think it bodes well for that platform. That's not the only one out there. TruPath is having a lot of momentum out there. I think that's going to be a really strong platform for the future. We could keep going on the different platforms. I just want to stop there and saying there's a lot of excitement about multi-omics and what we're doing with our applications and serving our customers. Ankur Dhingra: Yeah. In terms of giving you color, Kyle, most of the multi-omics products like Single Cell or TruPath, et cetera, show up in our consumables revenue because they're part of the consumables work stream. Then the Billion Cell Atlas or any other related BioInsight revenue will show up in our services. We'll keep talking about it like we did this quarter about the contribution from revenue from our Billion Cell Atlas. Jack Meehan: Had a follow-up for Ankur just on the margin progression throughout the year. You did 22.4% in the quarter, going to 24% next quarter. It's a little bit of a decent step-up. I was wondering how much of this is related to mix versus maybe other factors and maybe related to that, any color you can share in terms of just revenue assumptions for consumables versus NGS instruments for the third quarter would be really helpful. Thank you. Ankur Dhingra: Yeah, sure, Jack. Great question overall. As we recall, even at the start of the year, we had this discussion about the step-up in margin during the year. Given the situation with tariffs and all the cost actions that we had put in place with that expectation that we would see higher set of results in the back half of the year. That thesis has been playing out. If you look at Q2, at 22.5% operating margin, I mentioned we had a little bit of a deferred comp, which is EPS neutral effect. Excluding that, we're about 23% operating margin in Q2. It's 100 basis point step-up from here into Q3. Some of it is coming from higher mix of consumables. We also have several cost actions within our gross margin mix that we anticipate to play out during the Q3 timeframe. Similarly, additional cost actions coming up in Q4 as well. We feel generally good about the pacing of actions. Most of them I'm anticipating would show up on the gross margin side of things. Jaden: Hi, this is Jaden on for Casey. Just one on the mid and low throughput instruments. Could you walk us through how low and mid throughput instruments performed in the quarter? Then within mid throughput specifically, are you seeing customers being constrained given the end market environment, and how should we think about that going forward for the rest of the year? Thank you. Jacob Thaysen: Let me start by addressing this by, again, positioning this that we have the broadest range of instruments in the industry where the X is really addressing the high throughput. Which is really, I would call it, production-like sequencing. While the low and mid throughput is more project-based sequencing to a large extent. Thereby, there's a different kind of drivers that will impact this. Of course, when you are in a high throughput, you see that you drive operations, then it's really driving revenue for these customers using that also. While if it is a project base, there might be a different math that goes into it. Thereby also the mid throughput particularly is more sensitive to the macro environment, which we've seen for quite a long time now. We feel really good about the mid throughput. We continue to see good placements in that space. I actually think midterm that we will see some momentum in that space also, with the investments we're doing into that space also. We feel really excited about that. If you look into the low throughput, we came out with the MiSeq i100 a little more than one year ago. That is a very exciting instrument, and we have a lot of placements of that. We continued the momentum we started last year. That is a market space that is working very well for us right now. It's also in a cost range where, again, you get into a place where most labs can afford the instruments and get to sequencing, and the value proposition is really strong for our customers. High-end and low throughput is very strong right now. Mid throughput is more muted because of the macro environment. Conor McNamara: Thank you for joining us today. A replay of this call will be available in the investor section of our website. This concludes our call, and we look forward to seeing you at upcoming events. Operator: This concludes today's call. We thank you for your participation. You may disconnect at this time, and have a great day. Before you buy stock in Illumina, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Illumina wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Illumina. The Motley Fool has a disclosure policy. Illumina (ILMN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Illumina stock has more than doubled over the past year, yet valuation checks are split, with a Discounted Cash Flow (DCF) estimate pointing to upside while market multiples lean rich at the current US$205.10 share price. Illumina has returned 116.7% over the past year, which puts extra focus on whether today’s price still offers a reasonable margin between market value and business fundamentals. Stronger demand for clinical sequencing can support expectations for future cash flows, while ongoing regulatory and legal issues may cap how much investors are willing to pay for that growth. The stock screens as a mixed picture on valuation, with a 4 out of 6 value score that neither clearly labels Illumina as cheap nor clearly expensive. The stock’s next move may depend on whether Illumina’s current price more closely reflects the DCF based intrinsic value, which suggests the shares are about 21.0% below that estimate, or the richer read implied by earnings multiples. Illumina delivered 116.7% returns over the last year. See how this stacks up to the rest of the Life Sciences industry. The Discounted Cash Flow (DCF) method estimates what Illumina is worth today based on projected future cash the business can generate. Illumina produced last twelve month free cash flow of about $878.2 million. The DCF model assumes this cash flow continues growing over time rather than shrinking, which supports a 2 Stage Free Cash Flow to Equity approach that blends a nearer term recovery phase with more moderate growth later on. On this basis, the model arrives at an estimated intrinsic value of about $259.71 per share, compared with the current $205.10 share price, which implies the stock trades at roughly a 21.0% discount to that estimate. Illumina’s raised full year 2026 revenue and earnings guidance after its recent Q2 2026 update helps explain why the discounted cash flow view supports a higher value than the market price today. Overall, the Discounted Cash Flow view suggests Illumina stock currently looks undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Illumina is undervalued by 21.0%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Illumina. P/E works well for Illumina because earnings are a key reference point for many investors in established healthcare and life sciences companies. Illumina currently trades on a P/E of about 37.6x, which is almost in line with the Life Sciences industry average of about 37.6x and below the peer group average of roughly 42.4x. On its own, that placement suggests the stock sits close to the middle of the pack in terms of how much investors are paying for each dollar of earnings compared with similar businesses. The valuation model that blends Illumina’s growth profile, margins, size and risk points to a fair P/E closer to 25.6x. That is well below the current multiple, which indicates investors are paying a premium over what this framework implies would be a more grounded earnings-based valuation. On this P/E measure, Illumina stock screens as overvalued relative to the level the fair multiple model suggests. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Illumina valuation puzzle leaves off by spelling out what would need to be true about Illumina's future growth, margins and earnings for the stock to be worth materially more or less than today’s price on the Community page. Each one sets out a fair value as a thesis about the business that can be tracked over time, rather than just a single snapshot. One of the top community narratives on Illumina: 19% overvalued Read one of the top narratives on Illumina Do you think there's more to the story for Illumina? Head over to our Community to see what others are saying! Illumina sits in a genuine valuation tug of war. The Discounted Cash Flow (DCF) view points to meaningful upside relative to the current share price, while the earnings multiple suggests the stock is overvalued against a more conservative fair P/E. That split largely comes down to how you weigh Illumina's future cash generation against what the market is already assuming on growth and sentiment. The key question from here is whether Illumina can deliver on cash flow and earnings in a way that justifies both the intrinsic value estimate and the premium. Recent legal and regulatory risks may still be holding that premium back. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ILMN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Illumina, Inc.? Here are five stocks we like better. Illumina exceeded expectations in Q2: Revenue rose 9.5% year over year to $1.16 billion, while non-GAAP EPS increased 10% to $1.31. The company raised its 2026 revenue outlook to $4.60 billion–$4.64 billion and EPS guidance to $5.30–$5.40. Clinical sequencing drove growth, with clinical consumables revenue up 15% excluding China and more than 95 NovaSeq X instruments placed. The expanding installed base is expected to support future consumables demand as customers reach normalized usage. Research markets remain pressured by funding uncertainty, with research and applied consumables expected to decline mid- to high-single digits this year. Illumina is advancing newer growth areas, including spatial biology, proteomics and its BioInsight initiative, which has added pharmaceutical partners. GRAIL: Biotech Stock Targeting $100B Cancer Market Illumina (NASDAQ:ILMN) raised its 2026 revenue and earnings outlook after reporting second-quarter results that exceeded its expectations, supported by clinical sequencing demand, elevated NovaSeq X placements and higher consumables volume. Second-quarter revenue totaled $1.16 billion, up 9.5% from a year earlier, Chief Financial Officer Ankur Dhingra said. Revenue grew 6.5% organically, while rest-of-world organic revenue growth, which excludes Greater China, was 8.1%. Non-GAAP diluted earnings per share rose 10% year over year to $1.31. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Strategic Buy Lights Up This Biotech Stock: Time to Invest? “Revenue grew at the fastest rate since I joined the company,” Chief Executive Officer Jacob Thaysen said, attributing the performance to increasing demand as customers expand clinical applications of Illumina’s technology. Clinical markets, which represent about 65% of Illumina’s sequencing consumables revenue, remained the company’s principal growth driver. Sequencing consumables revenue was $775 million, up 5% year over year, with high-throughput volume contributing most of the growth as the NovaSeq X installed base expanded. → Microsoft Just Flipped the AI Spending Narrative Overnight Palantir Was Left Out of the S&P 500; It Still Looks Like a Buy Sequencing consumables revenue in clinical markets increased 15% excluding China, including growth of more than 20% in the U.S. and Canada. Thaysen said oncology continues to lead clinical adoption, while minimal residual disease, or MRD, is beginning to contribute momentum. Therapy selection remains the larger clinical oncology application by dollars, he said. Illumina placed more than 95 NovaSeq X instruments during the quarter, as demand remained strong among clinical customers. Dhingra said the company saw several multi-unit capacity expansion orders, including orders associated with the start of new clinical trials. Illumina also placed more than 10 NovaSeq 6000 units, reflecting that some customers intend to continue using that platform for years. → Carrier Earnings Could Send the Stock to a New All-Time High Sequencing instruments revenue was $125 million, up 31% year over year, driven by sales of NovaSeq X and MiSeq i100 instruments. Approximately 83% of sequencing volumes and 59% of sequencing revenue had transitioned to NovaSeq X as of the second quarter. The company expects clinical volumes to reach 80% to 85% conversion to the platform by the end of 2026. Thaysen said the company expects the recently installed NovaSeq X base to support consumables demand over future quarters, although clinical customers typically require six to nine months to reach normalized consumables pull-through after placements. Research and applied sequencing consumables revenue declined 7% on a rest-of-world organic basis. Dhingra said the business saw encouraging trends during the quarter, including 9% sequential revenue growth, but the company does not expect a meaningful recovery in research-market revenue during the remainder of 2026. Management cited continued funding uncertainty among academic and research customers, though it noted increased activity later in the quarter, including more funding releases, requests and quotations in the U.S. Illumina continues to expect mid- to high-single-digit declines in research and applied consumables revenue this year. The mix of NovaSeq X placements remained approximately 70% clinical and 30% research, according to Dhingra. Thaysen said mid-throughput instruments remain more sensitive to the macroeconomic environment because they tend to serve project-based sequencing needs, while high-throughput and low-throughput systems have remained stronger. Illumina also highlighted progress in its multi-omics and data initiatives. During the quarter, the company launched StrataMap Spatial, a sequencing-based spatial biology workflow, and said its newly branded SomaScan and SomaSeq proteomics offerings were generating interest following the SomaLogic acquisition. Microarrays and other revenue rose 21% on a reported basis to $105 million, including SomaLogic revenue. On a rest-of-world organic basis, that category declined 4%. The company’s BioInsight initiative, which combines sequencing, perturbation tools, computing and artificial intelligence capabilities for biopharmaceutical customers, has begun generating revenue through its Billion Cell Atlas program. Illumina has delivered more than 300 million cells through the program and added three pharmaceutical partners after quarter-end, bringing its total to six. Thaysen said the program is still in its early stages but is already contributing to both revenue and profit. The company said it expects new products to add one to two percentage points of growth in 2027. Illumina raised its full-year outlook for rest-of-world organic revenue growth to greater than 5%, from a previous range of 2% to 4%. The company lifted its reported revenue outlook by $50 million at the midpoint to a range of $4.60 billion to $4.64 billion. Rest-of-world organic sequencing consumables growth is expected to be in the mid-single digits. Clinical consumables growth is expected to be in the mid-teens. Research consumables are expected to decline by the mid- to high-single digits. Sequencing instruments are expected to grow in the low single digits organically on a rest-of-world basis. Non-GAAP operating margin guidance was maintained at 23.4% to 23.6%. Non-GAAP diluted EPS guidance increased to $5.30 to $5.40, up $0.12 at the midpoint from the prior outlook. For the third quarter, Illumina forecast rest-of-world organic revenue growth of approximately 4.5%, reported revenue of $1.14 billion to $1.16 billion, non-GAAP EPS of $1.33 to $1.38 and a non-GAAP operating margin of about 24%. Dhingra said the expected sequential margin expansion reflects a greater mix of consumables revenue, cost actions and improved efficiency. The company reported a 68.2% non-GAAP gross margin and a 22.5% non-GAAP operating margin in the second quarter, despite higher freight and memory costs. Illumina said it secured inventory and supply for critical components for the coming quarters, helping reduce near-term exposure to memory-cost volatility. The company generated $201 million in operating cash flow and $162 million in free cash flow during the quarter. It repurchased approximately 0.9 million shares for $122 million and had about $1.8 billion remaining under its current repurchase authorizations. Illumina, Inc (NASDAQ: ILMN) is a global life sciences company that develops, manufactures and markets integrated systems for the analysis of genetic variation and function. Headquartered in San Diego, California and founded in 1998, Illumina offers a range of sequencing and array-based technologies used by academic researchers, clinical laboratories, pharmaceutical and biotechnology companies, consumer genomics firms and agricultural researchers to enable discovery, translational research and clinical applications. The company's product portfolio includes next-generation sequencing (NGS) platforms and associated consumables, microarrays for genotyping and methylation analysis, library preparation kits and targeted assays. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Illumina Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $1.16 billion in Q2 2026, up 9.5% year-over-year and 6.5% on an organic basis. Rest of World Organic Revenue Growth: 8.1% in Q2, above the high end of guidance. Sequencing Consumables Revenue: $775 million, up 5% year-over-year on both reported and organic Rest of World basis. Sequencing Instruments Revenue: $125 million, up 31% year-over-year on both reported and Rest of World organic basis. Sequencing Service and Other Revenue: $154 million, up 14% on both reported and Rest of World organic basis. Microarrays and Other Revenue: $105 million, up 21% reported, but declined 4% on Rest of World organic basis. Non-GAAP Gross Margin: 68.2% in Q2, slightly better than expectations. Non-GAAP Operating Expenses: $530 million, including SomaLogic expenses. Non-GAAP Operating Margin: 22.5% for the quarter, above guidance. Non-GAAP EPS: $1.31 per diluted share, up approximately 10% year-over-year. Cash Flow from Operations: $201 million for the quarter. Free Cash Flow: $162 million. Capital Expenditures: $39 million in Q2. Share Repurchases: 0.9 million shares repurchased for approximately $122 million at an average price of $129.7 per share. Cash and Investments: Approximately $1.17 billion at quarter end. Total Debt: $1.99 billion. NovaSeq X Placements: More than 95 instruments placed in Q2. NovaSeq 6000 Placements: Over 10 units placed in Q2. Clinical Sequencing Consumables Growth: 15% ex China in Q2, with US/Canada growing above 20%. Research and Applied Consumables Decline: 7% Rest of World in Q2. Full-Year 2026 Revenue Guidance: Raised to $4.60 billion to $4.64 billion. Full-Year 2026 EPS Guidance: Raised to $5.30 to $5.40. Q3 2026 Revenue Guidance: $1.14 billion to $1.16 billion. Q3 2026 EPS Guidance: $1.33 to $1.38. Warning! GuruFocus has detected 7 Warning Signs with ILMN. Is ILMN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew at the fastest rate since CEO Jacob Thaysen joined, with Rest of World organic growth of 8.1% in Q2, exceeding guidance. Clinical markets remain a primary growth driver, with Rest of World clinical consumables growing 15% ex China and US/Canada growing above 20%. NovaSeq X demand remains strong with over 95 placements in Q2, and the installed base expansion is expected to support consumables growth for years. The company raised its full-year 2026 guidance for Rest of World organic revenue growth to greater than 5% and EPS to $5.30-$5.40. New multiomics offerings, including StrataMap Spatial and SomaScan/SomaSeq, are gaining traction, and the Billion Cell Atlas has secured six biopharma partners, contributing to revenue. Non-GAAP gross margin of 68.2% and operating margin of 22.5% came in above guidance despite higher freight and memory costs. The company repurchased shares and maintains a strong balance sheet with $1.17 billion in cash and a leverage ratio of 1.6 times. Management expressed confidence in achieving high single-digit revenue growth in 2027, supported by the expanding NovaSeq X installed base and clinical momentum. Research and applied markets consumables declined 7% Rest of World, with customers cautious due to funding uncertainty, and the company expects mid- to high single-digit declines for the year. Sequencing consumables growth in clinical markets slowed sequentially from 20% to 15%, partly due to dynamics in the Middle East and Latin America. The company faces headwinds from rising memory and freight costs, which were higher than anticipated and absorbed in Q2 results. Q3 guidance implies a step-down in Rest of World organic revenue growth to approximately 4.5%, reflecting tougher instrument comparisons and seasonality. The transition to NovaSeq X is still ongoing, with only 59% of revenue on the platform, and the company expects clinical volume conversion to reach 80-85% by end of 2026, indicating continued transition dynamics. Instrument placements are expected to moderate in the second half of 2026, with growth rates slowing against tougher comparisons. The company noted that the mid-throughput instrument segment is more sensitive to the macro environment and has been muted. Cash flow from operations was below trend due to timing of tax payments and higher inventory levels as the company secured supply for critical components. Q: Why should we not contemplate something higher than a high single-digit revenue growth for 2027 that you outlined before, given the strong clinical growth and elevated NovaSeq X installs?A: Jacob Thaysen (CEO): We are very pleased with the performance and believe the momentum in the clinical market will continue for years to come. The elevated placements we have seen in the first half of the year, running stronger than our initial 50-60 placements per quarter logic, speak to the opportunity in the clinical space. While we expect some moderation quarter-to-quarter, we believe the elevated demand will continue into the second half. Regarding 2027, I remain committed to delivering on the high single-digit growth target, but we will continue to focus on building a strong value proposition for customers. Q: Can you address the sequential slowdown in clinical consumables and the debate about whether you are overearning on consumables as customers transition to the X, and if there is a potential headwind when 6Ks get decommissioned?A: Jacob Thaysen (CEO): We continue to see volume expansion on the X, and we still see a number of fixed cases running current assays. In fact, some customers purchased a few 6Ks this quarter to continue operations. We don't see this as a true headwind, as it is a standard part of business evolution, similar to the transition from HiSeqs. The clinical momentum remains high, which is why we raised our clinical consumable growth guide to mid-teens. The slowdown from 20% to 15% growth is still very strong, with the US running faster than 20%. The impact is largely due to ins and outs in the Middle East and Latin America, not a fundamental change in the trend. Q: Can you walk us through the phasing in the quarter and why the 8% Rest of World growth is not sustainable, stepping down to 4.5% in Q3? Also, what are you assuming for AI-related revenues?A: Jacob Thaysen (CEO): The elevated placements are not a one-off, as clinical customers are investing in their installed base for future volume. The comparison in the second half of last year is different, as instrument momentum started slowly then, which affects the comps. We expect consumables to continue to be strong and be the main growth driver into next year. Regarding AI, we are excited about BioInsight. We have delivered more than 300 million single cells to customers in the Cell Atlas and added three more pharma partners, bringing the total to six. Customers are excited about the data for drug discovery and as a foundation for AI models of biology. It is still early days, but we are making money from day one on both top and bottom line. Q: Is there anything unusual in terms of seasonality for Q3 and Q4, and what impact does the extra week in Q4 have on revenue and margins?A: Ankur Dhingra (CFO): Think of it as usual seasonality, where Q4 is usually our largest quarter. The extra week in Q4 should largely be a consumables story, contributing maybe 0.5 point of revenue contribution. The business is holding very well, with consumables growth steady through the year. The variability is almost always around instrument placements, and we expect elevated placements to continue in the second half, but that elevated level started in the second half of last year. Q: Can you discuss the breadth of the growth in clinical, given the US grew greater than 20%, and whether you have seen any shift in application mix?A: Jacob Thaysen (CEO): The opportunity in clinical, shifting NGS into healthcare, is still in front of us. The performance is broad-based. The US continues to be the main driver, but all other regions except China are growing nicely. From an application perspective, oncology continues to lead, with a shift towards MRD starting to drive momentum. From a dollar perspective, therapy selection is still bigger, but MRD is coming, and later, we will see screening start to contribute. Rare diseases and screening are growing nicely, but oncology is the lead. Q: How are you thinking about the trajectory of memory cost prices and allocations into the second half and 2027, especially with stronger Q4 instrument placements and GPU-based compute integration?A: Jacob Thaysen (CEO): The team has done a great job compensating for headwinds over the last three years. Memory and freight costs have been a headwind we didn't anticipate to the level seen. We are sharing some cost increases with customers and driving operational excellence to compensate. We have a good line of sight and have proven we can take care of it. Ankur Dhingra (CFO): The higher cost of memory is part of Q2 results, so you can take that as a starting point run rate. We secured additional inventory during the quarter to derisk near-term movements. A unique strategic advantage is that our instruments do not use GPU architecture, which is relatively less expensive and cost-efficient. Q: Was the stronger-than-expected placement quarter a function of the market waiting for more competitive information, and how much is a function of an improving funding environment?A: Jacob Thaysen (CEO): It speaks to the value proposition we have with customers. They see that Illumina is here to help them be successful. The innovations we continue to move onto the X platform prove there is a lot of lead way, making it a platform to invest in. It is a combination of continued innovation and a very healthy market that is winning right now. Q: Did the NovaSeq X placements to clinical/nonclinical split move at all, and what are you hearing from research customers on order timing and budget releases?A: Jacob Thaysen (CEO): The majority of placements continue to go into the clinical space, and we expect that to continue. We did place instruments in the academic research space as well. Ankur Dhingra (CFO): The mix of placements is still about 70/30, with 70% clinical. In terms of research market trends, we saw increased activity in funding releases in the US and increased requests for quoting during the latter part of the quarter. However, we are not assuming any meaningful improvement in that market for the rest of the year. Q: How do we track the success of the multiomics solutions like StrataMap, and how are you accounting for the revenue contribution?A: Jacob Thaysen (CEO): Our strategy is playing out well. The biggest opportunity is converting customers to the X platform, which For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET Head of Investor Relations - Conor McNamara Chief Executive Officer - Jacob Thaysen Chief Financial Officer - Ankur Dhingra Operator: Good day, ladies and gentlemen. Welcome to the second quarter 2026 Illumina earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to head of investor relations, Conor McNamara. Conor McNamara: Hello, everyone. Welcome to Illumina's second quarter 2026 earnings call. Today, we will review our financial results, released after market close, and provide prepared remarks before opening the line for questions and answers. Our earnings release is available in the investor relations section of illumina.com. Joining me today are Jacob Thaysen, Chief Executive Officer, and Ankur Dhingra, Chief Financial Officer. Jacob will begin with an update on Illumina's business, followed by Ankur's review of the financials. We will be discussing certain non-GAAP financial measures, and a reconciliation to GAAP can be found in today's release and in the supplementary data on our website. Unless otherwise stated, all growth rates are presented on a year-over-year reported basis. Organic growth adjusts for the impact of currency and acquisitions, and rest of world organic growth also excludes Greater China due to our inclusion on China's unreliable entity list. This call is being recorded. The replay will be available on our website. It is our intent that all forward-looking statements made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the SEC, including our most recent Forms 10-Q and 10-K. With that, I will now turn the call over to Jacob. Jacob Thaysen: Thank you, Conor. Good afternoon, everyone. We had a great first half of 2026, including another strong quarter in Q2. I couldn't be prouder of what the Illumina team delivered. Revenue grew at the fastest rate since I joined the company, driven by increasing demand for Illumina's technology as customers expand clinical applications. Our deep relationships with leading U.S. clinical customers and large installed base reinforce the durability of our position in these markets. Margins also came in above our guidance despite higher than expected costs. I want to thank our teams for their focus and commitment to our customers and shareholders. Our first half results puts us in a strong position as we look ahead. We are raising our 2026 guidance for revenue growth and profitability while remaining committed to executing against our long-range targets. Today, I'm going to focus on three areas: our performance in the quarter and the trends we are seeing across our end markets, how we are expanding the value of our platform through new workflows and multi-omics capabilities, and the progress we are making against our long-term strategy and financial targets. Let me start with how the quarter came together. Rest of world organic revenue grew 8.1%, above the high end of our guidance, and demand for NovaSeq X remained high more than three years after launch, with more than 95 placements in the quarter. Together with disciplined expense management, this translated into both margin and EPS above guidance. Clinical markets, which represent approximately 65% of sequencing consumables revenue, remained our primary growth driver. Rest of world clinical growth was broad-based across regions and applications, with particular strength in our U.S.-Canada region. Strong instrument placements over the past three quarters are expanding customer capacity and will support consumable growth for many quarters to come. Placements will vary from quarter to quarter, but demand remains elevated. In research and academic markets, results improved from Q1. Customers remain cautious as they navigate funding uncertainty. We saw some signs of improvements late in the quarter, but it's too early to call a recovery. These customers remain an important source of innovation and help drive clinical adoption over time. Our expanding multi-omics portfolio give customers more ways to analyze biology and broadens how we can support these markets over time. Let me turn next to innovation. Our strategy is to deliver the highest quality insights for the lowest end-to-end cost. The updates we made this quarter advance that goal by expanding what customers can do on NovaSeq X and increasing the value of the Illumina ecosystem. Within core sequencing, NovaSeq X remains central to our approach. Customers are investing in the platform not only for what it enables today, but because they see a clear path to use it for years to come. The roadmap we laid out earlier this year gives them confidence that the X will continue to support their workflows over time, helping sustain demand for the platform. We recently launched our whole genome MRD research workflow, a tool designed to help customers shorten asset development timelines and lower development costs. The solution runs on NovaSeq systems and is now in early access with select customers. Beyond core sequencing, we are expanding our multi-omics offerings, consistent with the strategy we laid out in 2024. This summer, we expanded our portfolio with the launch of the StrataMap Spatial, our sequencing-based spatial workflow. This launch broadens our capabilities in spatial biology and gives researchers another way to study tissue biology through the Illumina ecosystem. We are also seeing sustained proteomics momentum following the close of our SomaLogic acquisition. Our newly branded SomaScan and SomaSeq offerings are generating strong interest and helping customers connect proteomics and genomic insights. In BioInsight, we are expanding our data and insights offerings to help pharmaceutical customers advance AI-enabled drug discovery. BioInsight brings together sequencing, perturbation tools, compute power, and AI to build high-quality multi-omics data sets and interpretation tools. These capabilities can deepen understanding of disease pathways, infer causality, and enable more predictive biological models. One of the first key BioInsight initiatives is the Billion Cell Atlas, a genome-wide perturbation data set that deepens understanding of disease biology and generates data for AI models. We are producing this data at an unprecedented scale and with the quality and consistency needed to support biological discovery. With over 300 million cells delivered to date, biopharma interest continues to grow. We have started booking revenue from our Billion Cell Atlas, and we added three new partners subsequent to quarter end, bringing our total to six. While still early, these milestones are an encouraging sign of the opportunity ahead. Later this year, we look forward to sharing additional BioInsight updates as we expand how customers can use biological data to accelerate discovery. Turning to our improved 2026 outlook, we are increasing our full year revenue outlook to reflect both our Q2 outperformance and our expectations for the remainder of the year. The momentum we are seeing, especially from our clinical customers, gives us greater confidence as we enter the second half. We now expect full-year rest-of-the-world organic revenue growth greater than 5%. We expect the pace of growth in the second half to remain broadly consistent with the first half, although the mix will shift. Consumables revenue will continue to grow from a higher installed base, while instrument growth moderates against tougher comparison following several quarters of elevated NovaSeq X placements. The expanding NovaSeq X installed base will also add further consumables growth beyond 2026 and support our path towards high single-digit revenue growth in 2027. We are also raising our EPS outlook, reflecting Q2 outperformance, higher revenue expectations, and continued expense discipline. Ankur will provide the details in his remarks. Our updated guidance reinforces our progress toward the long-term financial targets we laid out in 2024, and we remain focused on achieving them. We operate in a healthy market with significant untapped opportunity. By continuing to deliver innovative technology that improves customer workflows and expands their capabilities, we expect to maintain our leadership as the market evolves. With three consecutive quarters of growth, we enter the second half from a stronger position. Our teams are energized by the response to our recently launched end-to-end workflows. That interest confirms that we are solving the right problems and reinforces our innovation priorities. We are also strengthening the team leading this work. We recently welcomed Michael Sullivan and Julie Coletti to our management team, adding deep commercial and legal experience as we scale the business. We are equally pleased to welcome David King and Dan Skowronski to our board. Their experience across healthcare, diagnostics, and R&D will be valuable as we advance our clinical and innovation priorities. I want to thank the entire Illumina team for their focus and commitment, and our customers for the trust they place in us. With that, I'll hand it over to Ankur to walk through the financial details before we move to Q&A. Ankur Dhingra: Thank you, Jacob, and good afternoon, everyone. I will walk through our second quarter financial results, provide additional color on revenue, expenses, earnings, the balance sheet, and capital deployment, then discuss our updated outlook. Before I get into the details of the financial performance, let me provide a high-level view of how the second quarter played out. For Q2, our revenue and earnings results came in ahead of our expectations and guidance. Revenue grew 8% on organic basis ex-China, margins were ahead, and EPS of $1.31 grew 10% year-over-year. We placed more than 95 Xes. Turning to the details. During the second quarter, Illumina's revenue of $1.16 billion was up 9.5% year-over-year, and 6.5% on an organic basis, with currency and acquired revenue together contributing approximately three percentage points to our reported growth rate. Rest of the world organic growth rate was 8.1%. Sequencing consumables revenue of $775 million was up 5% year-over-year on both a reported and organic rest of world basis. High throughput volume drove most of the revenue growth as the NovaSeq X install base continues to expand and pull through increased year-over-year. Sequencing consumables revenue in clinical markets grew 15% ex-China, with the U.S. Canada region continuing to grow above 20%. We saw slower growth in Europe, Middle East, and Latin America region, largely due to ongoing near-term dynamics in the region. First half growth was approximately 17%, a slight acceleration versus the second half of 2025, reflecting continued adoption of sequencing-based diagnostics and more sequencing-intensive applications. We are raising our growth outlook in clinical markets towards the high end of our prior guide and now expect mid-teens growth for the year. Sequencing consumables in research and applied markets declined 7% rest of the world, year-to-date trends have remained consistent with our outlook entering the year. Though we were encouraged by the trends in the quarter, including 9% revenue growth quarter-over-quarter, we believe it's still too early to predict the timing of an end market recovery, continue to expect mid to high single-digit declines for research and applied consumables in 2026. We made further progress in the quarter transitioning customers to the NovaSeq X. As of Q2, approximately 83% of volumes and 59% of revenue had transitioned to the platform. Despite continued transition dynamics, sequencing consumables posted strong growth. Approximately 78% of clinical volume is now on the X, we continue to expect clinical volumes will reach 80%-85% conversion by the end of 2026. On sequencing activity, total sequencing gigabase output on our connected high and mid-throughput instruments once again grew more than 30% year-over-year, with clinical growth well above that. Sequencing instruments revenue of $125 million was up 31% year-over-year in Q2 on both reported and rest of world organic basis, driven by increased sales of NovaSeq X and the MiSeq i100. We made significant progress with our supply investments in the quarter, allowing us to place over 95 NovaSeq X instruments in Q2, as demand remains strong for the platform, especially among some of our largest clinical customers, where we saw several multi-unit capacity expansion orders, including for start of new clinical trials. We also placed over 10 NovaSeq 6000 units as some customers plan to remain on that platform for years to come. Sequencing service and other revenue of $154 million was up 14% on both a reported and rest of world organic basis. As Jacob mentioned in his prepared remarks, we are gaining traction in our Billion Cell Atlas program, resulting in higher data revenue from biopharma customers. Microarrays and other revenue of $105 million was up 21% reported and included SomaLogic revenue, which continues to track towards the high end of our deal expectations. On rest of world organic basis, microarrays and other revenue declined 4%. Moving to the rest of the P&L. Non-GAAP gross margin of 68.2% came in slightly better than our expectations, especially given product mix from the relatively high sales of instruments in the quarter. We also absorbed higher freight and memory costs in this quarter. Non-GAAP operating expenses were $530 million and include SomaLogic expenses. In addition, we had approximately 60 basis points of deferred compensation this quarter, which is EPS neutral with offset in other income. Non-GAAP operating margin was 22.5% for the quarter, above our guidance, driven by higher volume, as team did excellent job in absorbing increased inflationary effects. Looking below the line, non-GAAP net interest and other expense was $8 million in the quarter. Our non-GAAP tax rate was 20.5%, and average diluted shares were approximately 153 million, reflecting continued share buybacks. Altogether, non-GAAP EPS of $1.31 per diluted share grew approximately 10% year-over-year and approximately 13% excluding the dilutive impact of acquisitions. Moving to cash flow, the balance sheet and capital allocation for the quarter. Cash flow provided by operations was $201 million for the quarter, which is below the usual trend due to timing of tax payments and higher inventory as we secured supply for critical components for next few quarters. Capital expenditures were $39 million. Free cash flow was $162 million. We repurchased 0.9 million shares of Illumina stock for approximately $122 million at an average price of $129.07 per share. At quarter end, we had approximately $1.8 billion remaining under current share repurchase authorizations. We intend to continue to repurchase shares opportunistically. We ended the quarter with approximately $1.17 billion in cash equivalents, and short-term investments, $1.99 billion in total debt, and a leverage ratio of approximately 1.6x gross debt to last 12 months EBITDA. Overall, we had a great second quarter and first half of 2026, allowing us to raise our full-year guidance and reinforce our confidence in the progress we are making towards our long-term targets. Turning to our full-year 2026 guidance. Starting with revenue, we're raising our rest of world organic growth guidance greater than 5%, up from our prior range of 2%-4%, raising our reported revenue guidance by $50 million at the midpoint to $4.60 billion-$4.64 billion. This reflects the Q2 beat and also our increased expectations for the second half of the year. We are also expecting to come in towards the high end of our previously stated guidance for sequencing consumables and instruments. For rest of world organic sequencing consumables growth, we now expect mid-single-digit growth, including mid-teens growth in clinical and mid to high single-digit declines in research. This reflects a modest revenue benefit from our outperformance in X placements over the last two quarters, though most of that benefit will come in 2027, as our clinical customers typically take at least six to nine months to reach normalized consumables pull-through levels. Sequencing instruments are now expected to grow low single digits rest of the world organically in 2026. Demand for NovaSeq X remains robust, and we expect unit placements to remain at elevated levels in the second half of the year, with some moderation in year-over-year growth rates. We are maintaining our operating margin guidance of 23.4%-23.6%. With our higher revenue expectations for the year, this equates to diluted EPS guidance of $5.30-$5.40, an increase of $0.12 at the midpoint versus our prior guide, and a year-over-year growth of 11% at the midpoint and 14% ex acquisitions. Moving to Q3 2026 guidance, we expect rest of world organic revenue growth of approximately 4.5% and reported revenue of $1.14 billion-$1.16 billion, non-GAAP EPS of $1.33-$1.38, and non-GAAP operating margin of approximately 24%. This equates to approximately 150 basis points of margin expansion sequentially, driven by higher consumable mix and the increased benefit of cost actions and improved efficiency. Our solid half one performance and rapidly growing clinical install base provide a strong setup for continued consumable growth for years to come. We're seeing an increase in X placements to meet increasing volume demand, which will help accelerate consumable revenue growth as recent placements come online. In addition, we are beginning to see revenue contributions from our Billion Cell Atlas and our growing customer interest in our multiomics portfolio, and we still believe new products will add one to two of growth next year. Taken together, we continue making progress towards our 2027 financial targets. In closing, I want to thank the Illumina team for their continued focus and disciplined execution throughout the quarter. We are off to a great start in 2026, and I'm extremely encouraged by the progress we've made in returning Illumina to long-term sustainable revenue and earnings growth. Thank you for joining our call today. I will now invite the operator to open the line for Q&A. Puneet Souda: NovaSeq X installs in the second half. Just given the backdrop of the clinical growth that you're seeing here, it appears there's really no clinical cliff. You're cruising through it. You're already above 5%, as you pointed out, for a guide for this year. Why should we not contemplate something higher than a high single-digit revenue growth for 2027 that you outlined before? Thank you. Jacob Thaysen: Well, Puneet, thank you very much for those comments, we are definitely also very pleased with the performance we had in the quarter. First and foremost, I truly believe, I'm very convinced that the growth and the momentum we see in the clinical market will continue for years to come. The elevated placement we have had in the first half of the year speaks to that. As you know, when we place instruments, eventually we'll start to see the consumables run on those instruments, that will drive continued growth. As we laid out, I think 18 months ago, we laid out a logic around 50-60 placements per quarter, we have clearly over the last few quarters here been running stronger than that. That really speaks to what is happening in the clinical space right now. While we do see some moderations back up and down from each quarter, we still believe that the elevation will continue into second half of the year. We feel good about that. There will of course, be a little bit ups and downs in that. Talking about the clinical cliff, I agree it's not a cliff, it's a wave, we are surfing it, as you were saying. We think there is a lot of momentum there. Yeah, I think there's a good opportunity for continue that momentum. Talking about 2027 right now, at this point, I'm still very committed to delivering on the high single-digit growth. We will continue to focus on building a very, very strong value proposition to our customers, then we'll see where it takes us. Tycho Peterson: Hey, thanks. Wondering if you could address a couple things, the sequential slowdown in clinical consumables. One of the debates we've been having with investors is as the customers transition to X, are you over-earning on consumables? Because at some point, the 6000s get decommissioned. How do you think about that potential headwind as customers running both in parallel eventually wears off? Jacob Thaysen: Yeah, Tycho, thank you for that. I would start by the latter one is that we continue to see that we have an expansion of volume on the X, and we continue to see quite a number of the 6000s being in action for running the current assets. In fact, we did see some customers actually purchasing a few 6000s this quarter to continue their operations. Of course, eventually, they'll move over to X, but we don't see that as a. It's a standard part of the business. We have seen that evolution also from fundamentally HiSeq. It's only a few quarters ago, we still had HiSeq running in our portfolio. I don't think that will be considered any true headwinds for us. From the clinical performance, the momentum continues to be high. As Ankur was mentioning, we continue to have strong confidence, and that's why we are raising our guide for the clinical consumable growth up to mid-teens, which is improvement from what we looked at in the beginning of the year. If you look into the details for the 20% growth we had last quarter down to 15% now, I mean, first of all, it's still very strong. We still continue to see U.S. running faster than 20%. That momentum is really strong. There's been some in and outs in, especially in the Middle East and Latin America. I think we all know the situation in Middle East, and that is impacting, at least short term, the growth rate. I wouldn't put more into it than that, but I think the headline here is that mid-teens growth is strong and is still beyond what we started the year with and is still very much driving high single-digit growth for us for next year towards that. Vijay Kumar: Hi, Jacob and Ankur. Thank you for taking my question and congrats on a nice sprint here. Just if I take a step back on the performance in the quarter, can you walk us through on phasing in the quarter? Were there any one-offs? Because when I look at your guidance for third quarter, right, 4.5% rest of the world, why is that stepping down from 8%? Why is 8% not sustainable? What are you assuming for AI-related revenues, or is that a theme that could be a bigger theme for the stock when you look at the medium term? Thank you. Jacob Thaysen: Yeah, Vijay. Again, thank you and we are very excited about the placements we're doing right now, which we also believe is elevated. This is not a one-off. We do see that many of our clinical customers are investing into the future. They're building out the installed base. They're getting ready for the volume that they can see in their funnel. We are seeing that right now. There's a little bit of a compare that in the first part of last year, the installed base or the placements of instruments were a little bit different than the second half. We started to see the momentum slowly starting in second half, and that's why you will see the compares in the instrument is a little bit different. We actually expect that the consumable will continue to be strong, and in fact, we do believe that momentum will continue to step up, and will be the main growth driver into next year. That is the main driver for that. If you look at AI, yeah, I mean, we are very excited about what we're doing with BioInsight. We have now delivered more than 300 million single cell to our customers in the Cell Atlas. We have added three more pharma partners, so we now have six pharma partners. In the end, what the customers are very excited about is that data can help really, first and foremost, create insight, direct insight to their drug discovery programs. On top of that, which is really where there can be power in this, is that it starts to be the foundation for strong AI models of quality that will start to be predictable in how you think about quality. This is something we're excited about. It's still early days. We are making money already from day one on this, both on top line and bottom line. I think there is a significant opportunity over the next period of time on that. Mike Ryskin: Hey, can you guys hear me? Jacob Thaysen: Yes. Ankur Dhingra: Yeah. Hey, Mike. Jacob Thaysen: Hey, Mike. Mike Ryskin: Wonderful. Thank you. I'll take it. All right. I'll just follow up on that 3Q, 4Q pacing through the rest of the year question. It is a little bit of a surprising step down for the third quarter. Even more importantly, 4Q's guided a little bit higher than we would've had. Is there anything unusual in terms of seasonality that you're anticipating? You can talk about any purchasing in the quarter. Obviously, you've had a lot of boxes placed. You talked about the backlog last quarter. If there was any stocking or anything like that. Also kind of tied to that, I know you've got an extra week in the fourth quarter. Just remind us what impact that's having on your revenue assumptions for 4Q. Also, on margins and EPS, just make sure we're modeling that correctly. Thanks. Jacob Thaysen: Thanks, Mike. Again, I want to start with the headline here is that the momentum we've had here in the first half, I think is going to speak to the opportunity ahead of us. As I was saying, our clinical customers are building out their install base now to really be ready for the growth that they're seeing. Instead of looking at a step down, I actually think that Q2 was very strong. Q3 always is a little bit lower than Q4, I think that's a normal phasing for us. I'm not too worried about that. I think this comes in as we expected. Overall, I see the underlying trend being strong. Ankur, let's get you on this. Ankur Dhingra: Thanks, Jacob. Mike, in terms of thinking about phasing Q3, Q4, think about it as usual seasonality, from Q3, where Q4 usually is our largest quarter for the year, expected to remain so. The second part, your question about the extra week. Yes, we have one extra week this year in Q4, which would largely be a consumables story. You would expect maybe half a point or so of revenue contribution that could come from that extra week in terms of run rate days. That's part of the thinking. Now, going back to a slowdown comment, overall, from our perspective, the business is holding very well. The consumables growth story is the one that's remained steady through the year. The variability is almost always around the instrument placements. We do expect elevated level of instrument placements to continue in the second half of the year. You know that elevated level started in the second half of the year last year. Dan Leonard: Thanks a bunch. Hi, Jacob. Hi, Ankur. A follow-up question on the clinical growth rate. Can you discuss the breadth of the growth you're seeing in clinical, just given that the U.S. grew greater than 20? I think you mentioned your largest clinical customers were especially strong when it came to instruments. I want to understand how narrow versus broad that strength is. Separately, can you talk about whether you've seen any shift in application mix from those customers over the past couple of quarters here? Thank you. Jacob Thaysen: Yeah. Thanks, Dan. Let me start by just positioning it again. Overall clinical, the opportunity in the clinical space, really shifting NGS into healthcare is still in front of us. I think there is a huge opportunity for really becoming standard of care in healthcare over the next period of time. I think overall, I'm very excited about that, and I think that will drive the momentum in that space for many quarters, for many years to come. The performance we have continues to be broadband. Obviously, there are some ins and outs in this, if you look at the regional level, as you mentioned, U.S. continues to be the main driver of the growth here, all the other regions, except China, is still growing very nicely. If you look from an application perspective, oncology continues to lead the pack here. If you look in oncology, we are seeing a shift towards now MRD starting to drive momentum. Still from a dollar perspective, the therapy selection is still the bigger one. MRD is coming and later we will see MSAT also start to be a real contributor to this growth. We don't really see that really in the numbers today. The rare diseases and screening, NIPT screening and so on is still growing very nicely, oncology is the lead of the pack at this point. Again, broad base, right now driven mostly out of, still with leading out of U.S. Subbu Nambi: Hey, guys. Can you guys hear me? Jacob Thaysen: Yes. Ankur Dhingra: Hey, Subbu. Subbu Nambi: Hey, guys. Great print. A couple of questions on memory cost. Prices are still rising and allocations continue to be strained. How are you thinking about the trajectory into second half, especially with the stronger full Q instrument placements and into 2027, particularly as you integrate more GPU-based compute for next-gen product? I have a follow-up. Jacob Thaysen: Subbu, overall, as you have seen over the last two years, the Illumina team have actually done quite a great job in compensating for the headwinds that we've seen in front of us, both on the top line, but definitely also on our cost structure. That's been plenty over the last few years. I think last year was a good example where we delivered even 200 basis point improvement, even in a relatively flat environment. The team really knows how to deal with these headwinds. Obviously, memory cost and freight costs have definitely been a headwind we didn't anticipate to the level we have seen. I'm really pleased with how the team has continued to operate and find ways that we can compensate for this additional cost. Those costs are real. We are, of course, also sharing some of that cost increase with our customers, we are also doing a lot of things to drive operational excellence to also compensate that way. I think we are moving on many multiples, I think that speaks to the power of the Illumina team, I'm really excited about how the team is leaning in to fix that. We feel good about that. We feel good we have a handle on that. Obviously, there are costs that we have a good line of sight to now that we need to deal with, we have proven that we can take care of that, we will continue to do so. I think you had a follow-up? Ankur Dhingra: Yes, Subbu, let me add just a couple of points. Thanks, Jacob. Subbu, the higher cost of memory is part of our Q2 results. You can take that as a starting point run rate. Bulk of that is already in our results for gross margin. As I mentioned in my prepared remarks, we did secure additional inventory and supply during the quarter for next several quarters to be able to address, or at least de-risk, any near-term movements in the memory prices here. The second part of your question around how does that extend into GPUs, et cetera, and new products. One of the unique strategic advantage we have from a cost structure perspective is that our instruments do not use the GPU architecture. Our instruments use a different architecture, which is significantly relatively less expensive, and cost efficient than the GPU architectures there. As I mentioned, we've been securing supply for next several quarters here. Subbu Nambi: Super helpful. Thank you so much for that, Ankur and Jacob. My follow-up, you had a couple of stronger than expected placement quarters. Like, come on, we are in the fourth year of instrument launch, and these are the instrument numbers. Something definitely to pause and think about. Was this at all a function of the market waiting for a more competitive information? Related, how much of this is a function of an improving funding environment? Thank you so much. Jacob Thaysen: Yeah, Subbu, I think it speaks to, again, the opportunity. I mean, the value proposition we have with our customers. They feel, with the conversation we have with them, they continue to see that Illumina is here to help them being successful. The innovations we continue to move on to our X platform, also proves that there is a lot of lead way in that platform. It is the platform to invest in. I think it speaks to how we continue to drive innovation, and of course, also that this is a very healthy market. I think that's a combination that is winning right now. Harrison: Hey, this is Harrison on for Mason. Thanks for taking the questions. Within this quarter's NovaSeq X placements, did the clinical/non-clinical split move at all versus recent quarters? Could you give us the latest on what you're hearing from research customers on order timing and budget releases this quarter? Has anything in the underlying order pattern shifted versus last quarter, even if the headline number doesn't move much? Jacob Thaysen: Yeah, I think overall, we continue, of course, to see the majority of placements going into the clinical space, and we expect that to continue. Even with an improved environment in the academic research, the opportunity in clinical will continue to be the strongest one, and thereby also we expect most placement there. That said, we did place also in the academic research space. There is definitely also opportunity in that space. Underlying, I mean, overall, if you want to give- Ankur Dhingra: Yeah, I can comment in general around the research space as well. In terms of mix of placements, it is still about 70/30, 70% being clinical, and the remainder still going into the research space. I would like to still remind you, we have a very international business and the research spans across the world, not just in the U.S. In terms of research market trends during the quarter, during the latter part of the quarter, we did see some increased activity overall in terms of funding releases in the U.S., and the increased activity in terms of requests, coding, et cetera. I would still say, as I said in our prepared remarks, we're not assuming any meaningful improvement in that market or revenue for us for the rest of the year. Directionally, during the latter part of the quarter, there was some improvement. Kyle Mikson: Hey, guys. Thanks for the questions. A nice quarter. This quarter, you guys talked about sort of multi-omics solutions. I think StrataMap was announced. These are all really promising. Got single-cell proteomics, et cetera. How do we track that going forward? How do we know the strategy is working? Will you break that out going forward, maybe next year? How are you accounting for all these products and the revenue contribution, I guess, in the fourth quarter, for example? Thanks. Jacob Thaysen: Yeah, Kyle. Overall, we are excited about our portfolio. As we mentioned also in our strategy updates, which we provide in 2024, which is playing out now, our strategy is working very well. As we are saying, look, at that point, and still, we are mostly focused. Of course, the biggest opportunity is to move our customers and convert our customers over to the X platform and really make sure that becomes the platform for the future. I think that has been proven now. I think we are seeing that momentum happening. The second leg in that strategy was to start to drive into multi-omics. We believe that the future belongs to multi-omics. Obviously, genomics and DNA sequencing will continue to be the backbone of any biological insights, you need multiple layers, both from different omics, from the genome all the way up to the proteome, also from different ways of looking at it, from bulk, single cell, also into spatial. Illumina want to provide that to our customers, not as only library preps or sequencing, but end-to-end workflows that support the challenges the customers are seeing for. Also combine that from a software perspective, you can truly get insights across the different modalities. I think that is the future. That's where the power and where we really unlock the understanding of biology. That's why we have really been doubling down on that. What we also said in 2024 was that we expected that the growth would be here in the latter part of the strategy period here coming into the part of 2026, 2027, that we would start to see that being a 1-2 points of additional growth and incremental growth. That is playing out as we expecting. We're very excited about the StrataMap. It just came out. We are seeing a significant more interest in it than we had planned for ourselves. I think it bodes well for that platform. That's not the only one out there. TruPath is having a lot of momentum out there. I think that's going to be a really strong platform for the future. We could keep going on the different platforms. I just want to stop there and saying there's a lot of excitement about multi-omics and what we're doing with our applications and serving our customers. Ankur Dhingra: Yeah. In terms of giving you color, Kyle, most of the multi-omics products like Single Cell or TruPath, et cetera, show up in our consumables revenue because they're part of the consumables work stream. Then the Billion Cell Atlas or any other related BioInsight revenue will show up in our services. We'll keep talking about it like we did this quarter about the contribution from revenue from our Billion Cell Atlas. Jack Meehan: Had a follow-up for Ankur just on the margin progression throughout the year. You did 22.4% in the quarter, going to 24% next quarter. It's a little bit of a decent step-up. I was wondering how much of this is related to mix versus maybe other factors and maybe related to that, any color you can share in terms of just revenue assumptions for consumables versus NGS instruments for the third quarter would be really helpful. Thank you. Ankur Dhingra: Yeah, sure, Jack. Great question overall. As we recall, even at the start of the year, we had this discussion about the step-up in margin during the year. Given the situation with tariffs and all the cost actions that we had put in place with that expectation that we would see higher set of results in the back half of the year. That thesis has been playing out. If you look at Q2, at 22.5% operating margin, I mentioned we had a little bit of a deferred comp, which is EPS neutral effect. Excluding that, we're about 23% operating margin in Q2. It's 100 basis point step-up from here into Q3. Some of it is coming from higher mix of consumables. We also have several cost actions within our gross margin mix that we anticipate to play out during the Q3 timeframe. Similarly, additional cost actions coming up in Q4 as well. We feel generally good about the pacing of actions. Most of them I'm anticipating would show up on the gross margin side of things. Jaden: Hi, this is Jaden on for Casey. Just one on the mid and low throughput instruments. Could you walk us through how low and mid throughput instruments performed in the quarter? Then within mid throughput specifically, are you seeing customers being constrained given the end market environment, and how should we think about that going forward for the rest of the year? Thank you. Jacob Thaysen: Let me start by addressing this by, again, positioning this that we have the broadest range of instruments in the industry where the X is really addressing the high throughput. Which is really, I would call it, production-like sequencing. While the low and mid throughput is more project-based sequencing to a large extent. Thereby, there's a different kind of drivers that will impact this. Of course, when you are in a high throughput, you see that you drive operations, then it's really driving revenue for these customers using that also. While if it is a project base, there might be a different math that goes into it. Thereby also the mid throughput particularly is more sensitive to the macro environment, which we've seen for quite a long time now. We feel really good about the mid throughput. We continue to see good placements in that space. I actually think midterm that we will see some momentum in that space also, with the investments we're doing into that space also. We feel really excited about that. If you look into the low throughput, we came out with the MiSeq i100 a little more than one year ago. That is a very exciting instrument, and we have a lot of placements of that. We continued the momentum we started last year. That is a market space that is working very well for us right now. It's also in a cost range where, again, you get into a place where most labs can afford the instruments and get to sequencing, and the value proposition is really strong for our customers. High-end and low throughput is very strong right now. Mid throughput is more muted because of the macro environment. Conor McNamara: Thank you for joining us today. A replay of this call will be available in the investor section of our website. This concludes our call, and we look forward to seeing you at upcoming events. Operator: This concludes today's call. We thank you for your participation. You may disconnect at this time, and have a great day. Before you buy stock in Illumina, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Illumina wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Illumina. The Motley Fool has a disclosure policy. Illumina (ILMN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Illumina (ILMN) reported $1.16 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 9.4%. EPS of $1.31 for the same period compares to $1.19 a year ago. The reported revenue represents a surprise of +3.36% over the Zacks Consensus Estimate of $1.12 billion. With the consensus EPS estimate being $1.23, the EPS surprise was +6.5%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Illumina performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue by Source- Total product revenue- Sequencing: $900 million versus the four-analyst average estimate of $881.98 million. The reported number represents a year-over-year change of +7.7%. Revenue- Product revenue- Total Consumable: $852 million versus $844.76 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change. Revenue- Service and other revenue: $177 million versus the three-analyst average estimate of $162.77 million. The reported number represents a year-over-year change of +20.4%. Revenue- Product revenue: $982 million compared to the $965.46 million average estimate based on three analysts. The reported number represents a change of +7.7% year over year. Revenue- Product revenue- Total Instruments: $130 million compared to the $120.7 million average estimate based on three analysts. The reported number represents a change of +28.7% year over year. Revenue- Consumables- Microarrays: $77 million versus the two-analyst average estimate of $79.2 million. The reported number represents a year-over-year change of +8.5%. Revenue- Instruments- Sequencing: $125 million versus $118.04 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +30.2% change. Revenue- Consumables- Sequencing: $775 million compared to the $763.94 million average estimate based on two analysts. The reported number represents a change of +4.7% year over year. Revenue- Instruments- Microarrays: $5 million versus $4.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change. Revenue by Source- Total product revenue- Microarray: $82 million versus $83.21 million estimated by two analysts on average. View all Key Company Metrics for Illumina here>>> Shares of Illumina have returned +5.9% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Illumina (ILMN) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.50%. A quarter ago, it was expected that this genetic testing tools company would post earnings of $1.05 per share when it actually produced earnings of $1.15, delivering a surprise of +9.52%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Illumina, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $1.16 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.36%. This compares to year-ago revenues of $1.06 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Illumina shares have added about 48.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Illumina has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Illumina was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.35 on $1.13 billion in revenues for the coming quarter and $5.22 on $4.56 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Ocugen (OCGN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This biotech knee implant developer is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ocugen's revenues are expected to be $1.4 million, up 2.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN) : Free Stock Analysis Report Ocugen, Inc. (OCGN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAN DIEGO, July 30, 2026 /PRNewswire/ -- Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced its financial results for the second quarter of fiscal year 2026. Second quarter 2026 results Revenue of $1.16 billion for Q2 2026, up 9.5% from Q2 2025 and up 8.1% excluding the impacts of currency, acquisitions, and China ("ROW1 organic revenue growth") GAAP operating margin of 21.1% and non-GAAP operating margin of 22.5% GAAP diluted EPS of $1.35 and non-GAAP diluted EPS of $1.31 "Illumina delivered strong results during the second quarter. Momentum continued to build through the first half of 2026, as our technology is enabling clinical customers to expand sequencing-intensive applications. Based on this performance, we are increasing our revenue and earnings guidance for the year," said Jacob Thaysen, Chief Executive Officer of Illumina. "Demand for NovaSeq X remains high as we expand our workflow and multiomics capabilities, broadening the value of Illumina's ecosystem." Fiscal year 2026 guidance For fiscal year 2026, we now expect: Total revenue of $4.60-$4.64 billion, versus prior guidance of $4.52-$4.62 billion ROW organic revenue growth greater than 5%, versus prior guidance of 2%-4% Non-GAAP operating margin of 23.4%-23.6%, unchanged from prior guidance Non-GAAP diluted EPS of $5.30-$5.40, versus prior guidance of $5.15-$5.30 Second quarter results Capital expenditures for free cash flow purposes were $39 million for Q2 2026. Cash flow provided by operations was $201 million, compared to $234 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $162 million for the quarter, compared to $204 million in the prior year period. Depreciation and amortization expense was $70 million for Q2 2026. At the close of the quarter, the company held $1.17 billion in cash, cash equivalents and short-term investments. Conference call information The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, July 30, 2026. Interested parties may access the live webcast via the Investor Info section of Illumina's website or directly through the following link - https://illumina-earnings-call-q2-2026.open-exchange.net/. To ensure timely connection, please join at least ten minutes before the scheduled start of the call. A replay of the conference call will be posted on Illumina's website after the event and will be available for at least 30 days following. Statement regarding use of non-GAAP financial measures The company reports non-GAAP results for diluted earnings per share, gross margin, operating margin, and free cash flow, among others, in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company's financial measures under GAAP include substantial charges such as amortization of acquired intangible assets, among others, that are listed in the reconciliations of GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance. Non-GAAP operating margin and diluted earnings per share are key components of the financial metrics utilized by the company's board of directors to measure, in part, management's performance and determine significant elements of management's compensation. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in this release. The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the impact of items such as acquisition-related costs, fair value adjustments to contingent consideration, gains and losses from strategic investments, asset impairments, restructuring activities, and the ultimate outcome of pending litigation, among others, without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results. Use of forward-looking statements This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of growth in the markets we serve, including the proteomics market; (ii) the volume, timing and mix of customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our revenue expectations; (iv) our ability to successfully integrate SomaLogic, Inc. and certain other assets we acquired from Standard BioTools Inc. (the SomaLogic Business) into our existing operations and the SomaLogic Business' technology and products into our portfolio; (v) our ability to successfully manage partner and customer relationships in the proteomics market; (vi) uncertainty regarding the impact of our inclusion on the "unreliable entities list" by regulatory authorities in China; (vii) uncertainty regarding tariffs imposed or threatened by the U.S. government and its trading partners, related court proceedings or administrative actions (including potential refund or relief programs), and other possible tariffs or trade protection measures and our efforts to mitigate the impact of such tariffs; (viii) our ability to manufacture robust instrumentation and consumables, including the SomaLogic Business' products; (ix) the success of products and services competitive with our own; (x) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (xi) the impact of recently launched or pre-announced products and services on existing products and services; (xii) our ability to modify our business strategies to accomplish our desired operational goals; (xiii) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (xiv) our ability to further develop and commercialize our instruments, consumables, and products; (xv) our ability to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xvi) the risk of additional litigation arising against us in connection with the GRAIL acquisition; (xvii) our ability to obtain approval by third-party payors to reimburse patients for our products; (xviii) our ability to obtain regulatory clearance for our products from government agencies; (xix) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xx) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xxi) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (xxii) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current quarter. About Illumina Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X, Facebook, LinkedIn, Instagram, TikTok, and YouTube. Investors:Conor [email protected] Media:Christine [email protected] View original content:https://www.prnewswire.com/news-releases/illumina-reports-financial-results-for-second-quarter-of-fiscal-year-2026-302839476.html