Illumina, Inc.

Illumina reported Q2 revenue of $1.16 billion, up 9.5% year over year, with organic growth of 6.5% and rest-of-world organic growth of 8.1%. Non-GAAP EPS was $1.31, up about 10% year over year. Non-GAAP gross margin was 68.2% and non-GAAP operating margin was 22.5%. Sequencing consumables revenue was $775 million, up 5%; sequencing instruments revenue was $125 million, up 31%; sequencing service and other revenue was $154 million, up 14%; and microarrays and other revenue was $105 million, up 21% reported. For the full year 2026, management raised reported revenue guidance to $4.60 billion-$4.64 billion, lifted rest-of-world organic growth guidance to greater than 5%, and increased EPS guidance to $5.30-$5.40. Q3 guidance calls for rest-of-world organic revenue growth of approximately 4.5%, 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%.

Jacob Thaysen said the company had a “great first half” and emphasized that Q2 revenue grew at the fastest rate since he joined, driven by rising demand for Illumina technology in clinical applications. He framed the core story as strong NovaSeq X adoption, expanding clinical installed base, and a broadened strategy across multi-omics and BioInsight, including spatial, proteomics, and AI-enabled drug discovery. His tone was confident but measured: he called the clinical market momentum a “wave” rather than a cliff, but said it is still early to call a recovery in research and academic demand.

Ankur Dhingra said Q2 results beat expectations across revenue, margins, and EPS, with revenue of $1.16 billion, gross margin of 68.2%, operating margin of 22.5%, and EPS of $1.31. He noted cash flow from operations of $201 million, capex of $39 million, and free cash flow of $162 million; the company repurchased 0.9 million shares for about $122 million and ended with about $1.17 billion in cash and equivalents and short-term investments, $1.99 billion in debt, and 1.6x gross leverage. On guidance, he raised full-year revenue and EPS, kept operating margin at 23.4%-23.6%, and guided Q3 margin to about 24% as cost actions and higher consumable mix continue to flow through.

Analysts pressed on whether NovaSeq X placements imply a stronger-than-expected 2027 revenue path, and management said it remains committed to high single-digit growth for 2027 while acknowledging continued momentum and elevated placements. Questions also focused on whether consumables are being “over-earned” during the transition from NovaSeq 6000 to X; management said 6000s are still running and even saw some additional 6000 purchases, so it does not view the transition as a near-term headwind. Other questions covered the Q3 step-down versus Q2, seasonality, and the extra week in Q4, with management saying the phasing is normal, Q4 is usually the largest quarter, and the extra week should add about half a point of revenue, mostly from consumables.