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ILMN Stock Up on Q1 Earnings & Revenue Beat, Margins Expand, '26 View Up
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Key Takeaways
ILMN Q1 EPS of $1.15 beat estimates by 9.7% and rose 18.6% year over year.
Illumina revenues hit $1.09B, up 4.8%, with both segments posting growth.
ILMN raised 2026 guidance, projecting up to $4.62B revenues and up to $5.30 EPS.
Illumina Inc. (ILMN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.15, which topped the Zacks Consensus Estimate by 9.7%. The figure was up 18.6% on a year-over-year basis.
Including one-time items, the company’s GAAP EPS was 87 cents compared with 82 cents a year ago.
Illumina’s Revenues
First-quarter revenues amounted to $1.09 billion, up 4.8% year over year and up 3.5% on a constant-currency basis. The top line beat the Zacks Consensus Estimate by 1.1%.
Following the earnings announcement, Illumina shares edged up 5.3% yesterday.
Illumina’s Segmental Details
Illumina generates revenues from two segments – Product, and Services and other.
Product revenues totaled $917 million, up 4.2% year over year. Meanwhile, Services and other revenues amounted to $174 million, up 8.1% year over year.
ILMN’s Margins
The adjusted gross margin (including amortization of acquired intangible assets) was 66.1%, up 48 basis points (bps) year over year despite a 3.3% rise in the cost of revenues.
Research and development expenses decreased 4.8% year over year to $240 million. SG&A expenses totaled $272 million, up 1.9% from the year-ago level. Adjusted operating margin expanded 340 bps to 19.2%.
Illumina’s Financial Update
Illumina exited the first quarter of 2026 with cash and cash equivalents of $1.09 billion compared with $1.42 billion at the end of the fourth quarter of 2025.
Cumulative net cash provided by operating activities totaled $289 million compared with $240 million a year ago.
Illumina’s 2026 Guidance
The company expects total revenues to be in the range of $4.52-$4.62 billion (up from $4.50-$4.60 billion), suggesting growth of 4-6% on a reported basis. The Zacks Consensus Estimate for 2026 revenues is currently pinned at $4.53 billion.
Non-GAAP diluted EPS is projected to be in the range of $5.15-$5.30 (up from $5.05-$5.20) in 2026. The Zacks Consensus Estimate for full-year EPS is currently pegged at $5.12.
Illumina exited the first quarter of 2026 with better-than-expected results, wherein both earnings and revenues beat estimates. The company delivered a strong 2025 performance, marking a return to growth through disciplined execution.
All the business segments reported growth in the quarter. Given the strong first-quarter performance, Illumina raised its full-year 2026 guidance.
The expansion of both the margin looks encouraging.
ILMN’s Zacks Rank & Key Picks
Illumina currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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ILMN Stock Up on Q1 Earnings & Revenue Beat, Margins Expand, '26 View Up
Key Takeaways
Illumina Inc. (ILMN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.15, which topped the Zacks Consensus Estimate by 9.7%. The figure was up 18.6% on a year-over-year basis.
Including one-time items, the company’s GAAP EPS was 87 cents compared with 82 cents a year ago.
Illumina’s Revenues
First-quarter revenues amounted to $1.09 billion, up 4.8% year over year and up 3.5% on a constant-currency basis. The top line beat the Zacks Consensus Estimate by 1.1%.
Following the earnings announcement, Illumina shares edged up 5.3% yesterday.
Illumina’s Segmental Details
Illumina generates revenues from two segments – Product, and Services and other.
Product revenues totaled $917 million, up 4.2% year over year. Meanwhile, Services and other revenues amounted to $174 million, up 8.1% year over year.
ILMN’s Margins
The adjusted gross margin (including amortization of acquired intangible assets) was 66.1%, up 48 basis points (bps) year over year despite a 3.3% rise in the cost of revenues.
Research and development expenses decreased 4.8% year over year to $240 million. SG&A expenses totaled $272 million, up 1.9% from the year-ago level. Adjusted operating margin expanded 340 bps to 19.2%.
Illumina’s Financial Update
Illumina exited the first quarter of 2026 with cash and cash equivalents of $1.09 billion compared with $1.42 billion at the end of the fourth quarter of 2025.
Cumulative net cash provided by operating activities totaled $289 million compared with $240 million a year ago.
Illumina’s 2026 Guidance
The company expects total revenues to be in the range of $4.52-$4.62 billion (up from $4.50-$4.60 billion), suggesting growth of 4-6% on a reported basis. The Zacks Consensus Estimate for 2026 revenues is currently pinned at $4.53 billion.
Non-GAAP diluted EPS is projected to be in the range of $5.15-$5.30 (up from $5.05-$5.20) in 2026. The Zacks Consensus Estimate for full-year EPS is currently pegged at $5.12.
Illumina, Inc. Price, Consensus and EPS Surprise
Illumina, Inc. price-consensus-eps-surprise-chart | Illumina, Inc. Quote
Our Take on ILMN
Illumina exited the first quarter of 2026 with better-than-expected results, wherein both earnings and revenues beat estimates. The company delivered a strong 2025 performance, marking a return to growth through disciplined execution.
All the business segments reported growth in the quarter. Given the strong first-quarter performance, Illumina raised its full-year 2026 guidance.
The expansion of both the margin looks encouraging.
ILMN’s Zacks Rank & Key Picks
Illumina currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.