Illumina reports $1.13 billion revenue for Q3 2026

Cover page 5 changes

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For the Quarterly Period Ended June 28, September 27, 2026

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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As of July 24, October 23, 2026, there were 151.0 151.2 million shares of the registrant's common stock outstanding.

FOR THE FISCAL QUARTER ENDED JUNE 28, SEPTEMBER 27, 2026

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Exhibits 6 changes

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• our estimate of the cost and revenue impact on Illumina of the tariffs announced by the U.S. government and other countries beginning in April 2025, including any potential additional refunds of such tariffs from the U.S. government and any amounts to be remitted to customers in connection with such refunds; and

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• uncertainty regarding, or potential changes in, diplomatic and trade relationships, for example, as a result of changes in the U.S. government administration; policies;

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• changes in the regulatory landscape and our ability to obtain regulatory clearance for our products from government agencies;

• uncertainty regarding the impact of tariffs imposed by the U.S. government and its trading partners in response, related court proceedings or administrative actions (including potential additional refund or relief programs), other possible tariffs or trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers, as well as the impact of Illumina's efforts to mitigate the effect of such tariffs and any amounts that may be remitted to customers in connection with refunds of such tariffs;

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• the risk of additional litigation or other liabilities arising against us in connection with previous acquisitions, including the GRAIL acquisition;

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• other factors detailed in our filings with the Securities and Exchange Commission (SEC), including the risks, uncertainties, and assumptions described in "Risk Factors" within the Business & Market Information section of our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, the Other Key Information section of our Quarterly Report on Form 10-Q for the period ended March 29, 2026, and on Form 10-Q for the period ended June 28, 2026, the "Risk Factors" section below, or in information disclosed in public conference calls, the date and time of which are released beforehand.

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Financial statements 123 changes

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Inventory, net 629 564

Cash and cash equivalents $ 1,040 1,289 $ 1,418

Short-term investments 128 48 215

Accounts receivable, net 764 738 854

Inventory, net 667 564

Prepaid expenses and other current assets 273 293 238

Total current assets 2,834 3,035 3,289

Property and equipment, net 745 731 759

Operating lease right-of-use assets 362 356 370

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Other assets 576 449

Intangible assets, net 410 391 210

Deferred tax assets, net 439 454 454

Other assets 561 449

Total assets $ 6,650 6,812 $ 6,644

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Accounts payable $ 230 $ 240

Accrued liabilities 848 846

Accounts payable $ 241 $ 240

Accrued liabilities 915 846

Term debt, current portion 500 — 499

Total current liabilities 1,578 1,156 1,585

Operating lease liabilities 454 439 486

Term debt 1,491 1,789 1,490

Other long-term liabilities 289 283 360

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Additional paid-in capital 7,933 8,031 7,822

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Accumulated deficit ( 51 ) ( 392 )

Retained earnings (accumulated deficit) 169 ( 392 )

Treasury stock, at cost ( 5,054 5,065 ) ( 4,699 )

Total stockholders' equity 2,838 3,145 2,723

Total liabilities and stockholders' equity $ 6,650 6,812 $ 6,644

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Product revenue $ 982 $ 912 $ 1,899 $ 1,793

Service and other revenue 177 147 352 307

Total revenue 1,159 1,059 2,251 2,100

Cost of product revenue 291 276 565 529

Total cost of revenue 389 364 760 722

Gross profit 770 695 1,491 1,378

Research and development 252 247 492 499

Selling, general and administrative 273 234 545 501

Total operating expense 525 481 1,037 1,000

Income from operations 245 214 454 378

Three Months Ended Six Nine Months Ended

Product revenue $ 946 $ 927 $ 2,845 $ 2,719

Service and other revenue 183 157 535 465

Total revenue 1,129 1,084 3,380 3,184

Cost of product revenue 199 267 763 795

Cost of service and other revenue 80 71 160 160 82 68 243 228

Amortization of acquired intangible assets 18 17 35 33 16 53 50

Total cost of revenue 299 351 1,059 1,073

Gross profit 830 733 2,321 2,111

Research and development 244 229 736 728

Selling, general and administrative 281 277 826 777

Total operating expense 525 506 1,562 1,505

Income from operations 305 227 759 606

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Interest income 8 10 19 21

Other income (expense), net 31 107 ( 9 ) 139

Total other income (expense), net 15 92 ( 37 ) 110

Income before income taxes 260 306 417 488

Provision for income taxes 53 71 77 122

Net income $ 207 $ 235 $ 340 $ 366

Basic $ 1.37 $ 1.49 $ 2.24 $ 2.32

Diluted $ 1.35 $ 1.49 $ 2.22 $ 2.31

Interest income 12 9 31 30

Interest expense ( 24 ) ( 25 ) ( 47 71 ) ( 50 75 )

Other (expense) income, net ( 29 ) 9 ( 38 ) 148

Total other (expense) income, net ( 41 ) ( 7 ) ( 78 ) 103

Income before income taxes 264 220 681 709

Provision for income taxes 44 70 120 193

Net income $ 220 $ 150 $ 561 $ 516

Basic $ 1.46 $ 0.98 $ 3.70 $ 3.30

Diluted $ 1.43 $ 0.98 $ 3.65 $ 3.29

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Basic 151 157 152 158

Diluted 153 157 154 158

Basic 151 153 152 156

Diluted 154 154 154 157

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Net income $ 207 $ 235 $ 340 $ 366

Total comprehensive income $ 214 $ 206 $ 358 $ 323

Three Months Ended Six Nine Months Ended

Net income $ 220 $ 150 $ 561 $ 516

Unrealized gain (loss) on cash flow hedges, net of deferred tax 7 — 29 ) 9 18 ( 43 34 )

Total comprehensive income $ 220 $ 159 $ 579 $ 482

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Treasury Stock Stockholders'

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and 43 more changes in the filing

Note 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES 13 changes

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The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the fiscal year ended December 28, 2025, from which the prior year balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expense, and related disclosure of contingent assets and liabilities. Although tariffs, reductions in the U.S. government's funding of the NIH, our inclusion on the unreliable entities list by regulatory authorities in China, armed conflicts, including recent conflict in the Middle East and Iran, and macroeconomic factors, such as inflation, exchange rate fluctuations, supply-chain disruptions, and concerns about an economic downturn continue to create additional uncertainty, we continue to use the best information available to form inform our critical accounting estimates. Actual results could differ from those estimates.

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Our fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31, with quarters of 13 or 14 weeks ending the Sunday closest to March 31, June 30, September 30, and December 31. The three-month periods ended June 28, Q3 2026 and June 29, Q3 2025 are referred refer to as Q2 the three-month periods ended September 27, 2026 and Q2 September 28, 2025, respectively, which were 13 weeks. The corresponding six-month periods are referred to as YTD 2026 and YTD 2025 respectively, refer to the respective corresponding nine-month periods, which were 26 39 weeks.

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During YTD 2026, there were no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, except for a new policy related to long-term inventory stemming from certain new manufacturing processes that last more than one year and were acquired as part of the SomaLogic acquisition. See note 7. Supplemental Balance Sheet and Statement of Operations Details . following new accounting policies:

We recognize inventory associated with certain new manufacturing processes that last more than one year and were acquired as part of the SomaLogic acquisition as long-term inventory, included in other assets in the condensed consolidated balance sheets. See note 7. Supplemental Balance Sheet and Statement of Operations Details .

IEEPA Tariff Refunds

In February 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. In March 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (CBP) to process refunds of IEEPA tariffs. We evaluate recoveries of IEEPA tariffs in accordance with applicable loss recovery guidance and recognize recoveries when the refund is probable. During Q3 2026 and YTD 2026, we recognized a benefit of $ 79 million as a reduction to cost of revenue for expected refunds. As of September 27, 2026, we had received $ 32 million in IEEPA tariff refunds and recorded a receivable of $ 47 million within prepaid expenses and other current assets. We expect to refund a portion of the tariff refunds received to customers. As of September 27, 2026, we recorded a liability of $ 37 million in accrued liabilities for estimated refunds to be credited to customers and recognized a corresponding reduction to revenue in both Q3 2026 and YTD 2026. Interest associated with tariff refunds is recognized in interest income when received or realizable and was immaterial for both Q3 2026 and YTD 2026.

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In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

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Equity awards 2 — 2 —

Equity awards 3 1 2 1

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Antidilutive shares:

Equity awards — 5 — 3

Potentially dilutive shares excluded from calculation due to antidilutive effect — 5 — 3

Antidilutive shares related to equity awards excluded from calculation of diluted earnings per share — 2 — 3

Note 2: ACQUISITIONS, INTANGIBLE ASSETS AND GOODWILL 18 changes

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Standard BioTools is was eligible to receive up to $ 75 million in milestone payments, comprised of up to $ 25 million based on 2025 performance and up to $ 50 million based on 2026 performance, due upon the achievement of specified targets for net revenue generated from SOMAmer-based assay services and related products (the Milestone Contingent Consideration). In Q2 2026, we paid $ 25 million for the milestone payment earned for the 2025 performance period. In addition, Standard BioTools is was entitled to receive a 2 % royalty on net revenues generated from sales of SOMAmer-based next-generation sequencing (NGS) library preparation kits, to be paid quarterly for 10 years from the acquisition date and continuing through January 2036 (the Royalty Contingent Consideration). The aggregate acquisition date fair value of these contingent consideration arrangements was $ 81 million.

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On July 27, 2026, we paid $ 30 million to buyout the remaining contingent consideration obligations that were outstanding as of June 28, 2026. See note 4. Investments and Fair Value Measurements for additional details.

In Q2 2026, we paid $ 25 million for the milestone payment earned for the 2025 performance period. Additionally, in Q3 2026, we paid $ 30 million to buy out early both the 2026 Milestone Contingent Consideration and Royalty Contingent Consideration obligations. See note 4. Investments and Fair Value Measurements for additional details.

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Transaction costs associated with the acquisition, consisting primarily of legal, regulatory and financial advisory fees, were approximately $ 9 6 million and $ 6 8 million in YTD 2026 and YTD 2025, respectively. These costs were expensed as incurred as selling, general and administrative expense.

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Revenue $ 1,159 $ 1,076 $ 2,258 $ 2,136

Net income $ 192 $ 241 $ 333 $ 318

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

Revenue $ 1,129 $ 1,108 $ 3,387 $ 3,244

Net income $ 218 $ 140 $ 551 $ 457

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June 28, September 27, 2026 December 28, 2025

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Licensed technologies 234 ( 157 ) 77 234 ( 143 ) 91

Customer relationships 28 ( 15 ) 13 16 ( 14 ) 2

License agreements 25 ( 15 ) 10 24 ( 14 ) 10

Licensed technologies 187 ( 117 ) 70 234 ( 143 ) 91

Customer relationships 26 ( 14 ) 12 16 ( 14 ) 2

License agreements 26 ( 15 ) 11 24 ( 14 ) 10

Total intangible assets, net $ 961 911 $ ( 551 520 ) $ 410 391 $ 724 $ ( 514 ) $ 210

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Balance as of June 28, September 27, 2026 $ 1,284

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Note 3: REVENUE 32 changes

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Revenue for Q3 2026 and YTD 2026 includes a reduction of $ 37 million for tariff-related customer refunds, of which $ 35 million is included in sequencing revenue with the remainder in microarray revenue. Within sequencing revenue, $ 28 million is in consumables, $ 4 million in instruments, and the remainder in service and other revenue.

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Consumables $ 775 $ 77 $ 852 $ 740 $ 71 $ 811

Instruments 125 5 130 96 5 101

Total product revenue 900 82 982 836 76 912

Service and other revenue 154 23 177 136 11 147

Total revenue $ 1,054 $ 105 $ 1,159 $ 972 $ 87 $ 1,059

Consumables $ 764 $ 77 $ 841 $ 747 $ 69 $ 816

Instruments 102 3 105 107 4 111

Total product revenue 866 80 946 854 73 927

Service and other revenue 155 28 183 147 10 157

Total revenue $ 1,021 $ 108 $ 1,129 $ 1,001 $ 83 $ 1,084

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Consumables $ 1,500 $ 149 $ 1,649 $ 1,437 $ 143 $ 1,580

Instruments 243 7 250 204 9 213

Total product revenue 1,743 156 1,899 1,641 152 1,793

Service and other revenue 306 46 352 277 30 307

Total revenue $ 2,049 $ 202 $ 2,251 $ 1,918 $ 182 $ 2,100

Consumables $ 2,265 $ 225 $ 2,490 $ 2,183 $ 212 $ 2,395

Instruments 345 10 355 311 13 324

Total product revenue 2,610 235 2,845 2,494 225 2,719

Service and other revenue 461 74 535 425 40 465

Total revenue $ 3,071 $ 309 $ 3,380 $ 2,919 $ 265 $ 3,184

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Based on region of destination (in millions) Q2 Q3 2026 Q2 Q3 2025 (1)

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United States and Canada $ 653 $ 569 $ 1,243 $ 1,125

United States and Canada $ 637 $ 596 $ 1,880 $ 1,720

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Asia-Pacific 82 72 175 154

Total revenue $ 1,159 $ 1,059 $ 2,251 $ 2,100

Asia-Pacific 86 82 261 236

Total revenue $ 1,129 $ 1,084 $ 3,380 $ 3,184

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Contract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, as of June 28, September 27, 2026 and December 28, 2025 were $ 20 million and $ 21 million, respectively, all of which were short-term and recorded in prepaid expenses and other current assets.

Contract liabilities, consisting of deferred revenue and customer deposits, as of June 28, September 27, 2026 and December 28, 2025, were $ 333 319 million and $ 346 million, respectively, of which the short-term portions of $ 261 250 million and $ 270 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in Q2 Q3 2026 and YTD 2026 included $ 71 47 million and $ 169 216 million, respectively, of previously deferred revenue that was included in contract liabilities as of December 28, 2025.

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We regularly enter into contracts with multiple performance obligations. These contracts are believed to be firm as of the balance sheet date; however, we may allow customers to make product substitutions as we launch new products. The timing of shipments depends on several factors, including agreed upon shipping schedules, which may span multiple quarters. Most performance obligations are generally satisfied within approximately six months after the contract execution date and primarily consist of instruments, consumables, and instrument service contracts. As of June 28, September 27, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was $ 1.0 billion, 933 million, of which approximately 83 76 % is expected to be converted to revenue in the next twelve months , approximately 11 14 % in the following twelve months , and the remainder thereafter.

We also enter into various development and licensing contracts. These contracts are believed to be firm as of the balance sheet date; however, these arrangements do allow for early termination with prorated fees. These contracts generally have delivery periods spanning several years. As of June 28, September 27, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was approximately $ 43 33 million.

Note 4: INVESTMENTS AND FAIR VALUE MEASUREMENTS 23 changes

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Our marketable equity securities consist primarily of our retained investment in GRAIL subsequent to our divestiture in 2024. As of June 28, September 27, 2026 and December 28, 2025, the fair value of our marketable equity securities, included in short-term investments, totaled $ 88 2 million and $ 215 million, respectively. The decrease in our marketable equity securities relates to the sale of our investment in GRAIL that we retained subsequent to our divestiture in 2024.

Gains (losses) recognized in other income (expense) income, net on marketable equity securities were as follows:

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

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Less: Net gains (losses) recognized during the period on securities sold during the period

Net unrealized gains (losses) recognized during the period on securities still held at the reporting date $ 22 — $ 97 7 $ ( 35 2 ) $ 128 135

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As of June 28, September 27, 2026 and December 28, 2025, non-marketable equity securities, without readily determinable fair values, included in other assets, were $ 59 54 million and $ 58 million, respectively.

We invest in three venture capital investment funds (the Funds), which are accounted for as equity-method investments. The aggregate carrying amount of the Funds, included in other assets, was $ 273 243 million and $ 235 million as of June 28, September 27, 2026 and December 28, 2025, respectively, with associated gains and losses recognized in other income (expense) income, net. We recognized net gains losses of $ 7 31 million and $ 14 17 million in Q2 Q3 2026 and YTD 2026, respectively, and net gains of $ 6 2 million and $ 8 10 million in Q2 Q3 2025 and YTD 2025, respectively.

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Remaining callable as of June 28, September 27, 2026

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$ 60 December 2034 $ 12 11

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June 28, September 27, 2026 December 28, 2025

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Money market funds (cash equivalents) $ 747 969 $ — $ — $ 747 969 $ 1,173 $ — $ — $ 1,173

Marketable equity securities 88 2 — — 88 2 215 — — 215

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Total assets measured at fair value $ 835 971 $ 124 $ 34 33 $ 993 1,128 $ 1,388 $ 79 $ 32 $ 1,499

Contingent consideration liabilities $ — $ — $ 77 36 $ 77 36 $ — $ — $ 54 $ 54

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Total liabilities measured at fair value $ — $ 70 69 $ 77 36 $ 147 105 $ — $ 72 $ 54 $ 126

Marketable equity securities are measured at fair value based on quoted trade prices in active markets. Other investments primarily consist of time deposits, which are included in short-term investments and classified as Level 2 measurements, and convertible notes, instruments, which are included in either short-term investments or other assets and are classified as Level 3 measurements. Due to their short-term contractual maturity, the carrying value of our time deposits, measured at amortized cost, approximates fair value. We elected the fair value option for our convertible notes. instruments. Fair value is derived using a probability-weighted scenario approach with changes in fair value recognized in other income (expense) income, net. Deferred compensation plan assets consist primarily of investments in life insurance contracts carried at cash surrender value, which reflects the net asset value of the underlying publicly traded mutual funds. We corroborate the fair value of our holdings, comparing valuations obtained from our investment service provider to valuations reported by our asset custodians, validating pricing sources and models, and reviewing key model inputs.

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Balance as of June 28, 2026 $ 77

Change in estimated fair value ( 32 43 )

Balance as of September 27, 2026 $ 36

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In Q2 2026, we paid $ 25 million for the milestone payment earned for the 2025 performance period. As of June 28, 2026, our remaining SomaLogic contingent consideration liabilities, included in accrued liabilities, had an aggregate fair value of $ 37 million. See note 2. Acquisitions, Intangible Assets and Goodwill for details of the arrangements. During Q2 2026, we engaged in discussions to early buyout the 2026 Milestone and Royalty Contingent Consideration obligations. Accordingly, we used a probability-weighted scenario approach to estimate the fair value of the liabilities as of June 28, 2026. Under this approach, we assigned separate probabilities to the estimated buyout outcome and to the value derived under the original contractual terms. To estimate the fair value under the original contractual terms, a Monte Carlo simulation was used for the 2026 Milestone Contingent Consideration and a discounted cash flow analysis was used for the Royalty Contingent Consideration. Estimates and assumptions used in the Monte Carlo simulation and the discounted cash flow analysis included forecasted revenues, a revenue risk premium, an operational leverage ratio and a counterparty credit spread. An estimate for revenue volatility was also used in the Monte Carlo simulation. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. On July 27, 2026, we paid $ 30 million to buyout the remaining obligations that were outstanding as of June 28, 2026.

In Q2 2026, we paid $ 25 million for the milestone payment earned for the 2025 performance period. In Q3 2026, we paid $ 30 million to buy out early both the 2026 Milestone and Royalty Contingent Consideration obligations. See note 2. Acquisitions, Intangible Assets and Goodwill for details of these arrangements. Prior to the buyout, we remeasured the contingent consideration to fair value using the contractual buyout amount. No obligations remained outstanding under the Milestone or Royalty Contingent Consideration arrangements as of September 27, 2026.

The fair value of our GRAIL contingent consideration liability was $ 40 36 million and $ 54 million as of June 28, September 27, 2026 and December 28, 2025, respectively, of which $ 39 34 million and $ 52 million, respectively, was included in other long-term liabilities, with the remaining balance included in accrued liabilities. The CVRs entitle the holders to receive future quarterly cash payments (Covered Revenue Payments) representing a pro rata portion of certain GRAIL-related revenues (Covered Revenues) each year for a 12 -year period through August 2033. As defined in the Contingent Value Rights Agreement , this reflects a 2.5 % payment right to the first $ 1 billion of revenue each year for 12 years. Revenue above $ 1 billion each year will be subject to a 9 % contingent payment right during this same period. Covered Revenues for the periods Q4 2025 through Q1 Q2 2026 and Q4 2024 through Q1 Q2 2025 were $ 84 129 million and $ 70 106 million, respectively, driven primarily by sales of GRAIL's Galleri test. Covered Revenue Payments for the respective periods were $ 794,000 1,215 thousand and $ 660,000 , 994 thousand, paid in YTD 2026 and YTD 2025, respectively.

We use a Monte Carlo simulation to estimate the fair value of our GRAIL contingent consideration. Estimates and assumptions used in the Monte Carlo simulation include forecasted revenues for GRAIL, a revenue risk premium, a revenue volatility estimate, an operational leverage ratio and a counterparty credit spread. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. We rely on information made public by GRAIL and information as published in analyst reports to estimate forecasted revenues through August 2033. To estimate the liability as of June 28, September 27, 2026, we selected a revenue risk premium of 3 2 %. Given the volatility in GRAIL's market capitalization, the revenue risk premium is derived from reconciling forecasted revenues for GRAIL to GRAIL's market capitalization, primarily using a 60 -day trailing average and consideration of a Capital Asset Pricing Model and comparable company betas.

Note 5: DEBT 16 changes

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In millions June 28,

In millions September 27,

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Principal amount of 2029 Term Notes outstanding 300 —

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Unamortized discounts and debt issuance costs ( 9 11 ) ( 11 )

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Less: current portion 500 — 499

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Interest expense, which included amortization of debt discounts and issuance costs, was $ 23 24 million and $ 46 70 million in Q2 Q3 2026 and YTD 2026, respectively, and $ 24 million and $ 49 73 million in Q2 Q3 2025 and YTD 2025, respectively.

4.950 % Term Notes due 2029 (2029 Term Notes)

In August 2026, we issued $ 300 million aggregate principal amount of 2029 Term Notes. After deducting discounts and issuance costs, we received net proceeds of $ 297 million. The notes, which mature on September 19, 2029, accrue interest at a rate of 4.950 % per annum, payable semi-annually on March 19 and September 19 of each year, beginning on March 19, 2027. We may redeem for cash all or any portion of the notes, at our option, at any time prior to maturity at make-whole premium redemption prices defined in the form of the notes.

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4.650 % Term Notes due 2026 (2026 Term Notes)

In September 2024, we issued $ 500 million aggregate principal amount of 2026 Term Notes, which mature on September 9, 2026 and accrue interest at a rate of 4.650 % per annum, payable semi-annually on March 9 and September 9 of each year, beginning on March 9, 2025. We may redeem for cash all or any portion of the notes, at our option, at any time prior to maturity at make-whole premium redemption prices defined in the form of the notes.

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4.650 % Term Notes due 2026 (2026 Term Notes)

In September 2024, we issued $ 500 million aggregate principal amount of 2026 Term Notes, which matured and were repaid in cash on September 9, 2026. While outstanding, the notes accrued interest at a rate of 4.650 % per annum, payable semi-annually on March 9 and September 9 of each year, beginning on March 9, 2025.

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In January 2023, On August 13, 2026, we entered into a new credit agreement (the Revolving Credit Agreement), which provides us with a $ 750 million 1 billion senior unsecured five-year revolving credit facility, including a $ 40 50 million sublimit for swingline borrowings and a $ 50 75 million sublimit for letters of credit (the Revolving Credit Facility). Proceeds of the loans under the Revolving Credit Facility may be used to finance working capital needs and for general corporate purposes. The credit agreement dated January 4, 2023 and the commitments thereunder were terminated as of August 13, 2026.

The Revolving Credit Facility matures, and all amounts outstanding become due and payable in full, on January 4, 2028, August 13, 2031, subject to two three one-year extensions at our option, the consent of the extending lenders and certain other conditions. We may prepay amounts borrowed and terminate commitments under the Revolving Credit Facility at any time without premium or penalty. As of June 28, September 27, 2026, there were no borrowings or letters of credit outstanding under the credit facility, and we were in compliance with all financial and operating covenants.

Loans under the Revolving Credit Facility will have a variable interest rate based on either the term secured overnight financing rate (SOFR) or the alternate base rate, plus an applicable rate that varies with our debt rating. and, in The case of loans bearing interest based on term SOFR, a credit spread adjustment equal to 0.10 % per annum. The Revolving Credit Agreement includes an option for us to elect to increase commitments under the credit facility or enter into one or more tranches of term loans in the aggregate principal amount of up to $ 250 500 million, subject to consent of the lenders providing the additional commitments or loans and certain other conditions.

The Revolving Credit Agreement contains financial and operating covenants. Pursuant to the Revolving Credit Agreement, we are required to maintain a total net leverage ratio, of calculated as total debt, less unrestricted and unencumbered cash and cash equivalents (not to exceed $ 1 billion), divided by adjusted annual earnings before interest, taxes, depreciation and amortization (EBITDA), calculated based on the four consecutive fiscal quarters ending with the most recent fiscal quarter, of not greater than 3.50 to 1.00 as of the end of each fiscal quarter. Upon consummation of any Qualified Acquisition, as defined in the Revolving Credit Agreement, and delivery of notice to the Administrative Agent, the ratio increases to 4.00 to 1.00 for the fiscal quarter in which the acquisition is consummated and the three consecutive fiscal quarters thereafter. The operating covenants include, among other things, limitations on (i) the incurrence of indebtedness by our subsidiaries, (ii) liens on our assets and those of our subsidiaries, and (iii) certain fundamental changes and the disposition of assets by us and our subsidiaries. The Credit Agreement contains other customary covenants, representations and warranties, and events of default.

Note 6: STOCKHOLDERS' EQUITY 27 changes

As of June 28, September 27, 2026, approximately 9.9 10.0 million shares remained available for future grants under the Second Amended and Restated 2015 Stock and Incentive Compensation Plan.

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Awarded 1,310 876 $ 128.82 $ 161.80

Vested ( 971 ) — $ 116.58 $ —

Cancelled ( 232 ) ( 149 ) $ 119.41 $ 124.92

Outstanding at June 28, 2026 3,845 1,583 $ 122.76 $ 144.70

Awarded 1,347 1,335 $ 130.92 $ 156.82

Vested ( 1,005 ) — $ 117.71 $ —

Cancelled ( 326 ) ( 199 ) $ 119.72 $ 128.16

Outstanding at September 27, 2026 3,754 1,992 $ 123.38 $ 145.47 (1) We issue PSU for which the number of shares issuable is based on our performance relative to specified operating margin targets (OM PSU) and PSU with a market condition that vest based on the Company's relative total shareholder return as compared to a peer group of companies (rTSR PSU). In fiscal year 2026, we resumed issuing PSU for which the number of shares issuable is based on our performance relative to specified earnings per share targets (EPS PSU). For OM and EPS PSU, the number of units reflects the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflects the estimated number of shares to be issued based on performance as of the current reporting period. Awarded units are presented net of performance adjustments.

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The price at which common stock is purchased under the ESPP is equal to 85 % of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower. During YTD 2026, approximately 0.3 0.5 million shares were issued under the plan. As of June 28, September 27, 2026, approximately 11.5 11.3 million shares remained available for issuance under the ESPP.

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Risk-free interest rate 3.54 % - 4.06 4.18 %

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Weighted-average grant-date fair value per share $ 35.49 36.94

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Cost of product revenue $ 5 $ 6 $ 9 $ 11

Research and development 26 28 51 58

Selling, general and administrative 41 34 72 72

Related income tax benefits ( 16 ) ( 15 ) ( 29 ) ( 31 )

Share-based compensation expense reported in our condensed consolidated statements of operations was as follows:

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

Cost of product revenue $ 4 $ 5 $ 13 $ 16

Cost of service and other revenue — 1 1 1 2 2

Research and development 25 26 75 84

Selling, general and administrative 45 38 117 110

Share-based compensation expense, before taxes 72 69 133 142 75 70 207 212

Related income tax benefits ( 17 ) ( 15 ) ( 46 ) ( 46 )

1 unchanged paragraph

As of June 28, September 27, 2026, unrecognized compensation cost, related to restricted stock and ESPP shares issued to date, of $ 494 442 million is expected to be recognized over a weighted-average period of approximately 2.3 2.0 years.

1 unchanged paragraph

Repurchases under both programs may be completed through open market purchases, pursuant to Rule 10b5-1 or Rule 10b-18, or through an accelerated share repurchase program. No shares were repurchased under the 2026 Program in YTD 2026. As of June 28, September 27, 2026, authorizations to repurchase up to $ 279 270 million and up to $ 1.5 billion of our outstanding common stock remained available under the 2024 and 2026 Repurchase Programs, respectively.

1 unchanged paragraph

In millions, except shares in thousands Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

3 unchanged paragraphs

Note 7: SUPPLEMENTAL BALANCE SHEET AND STATEMENT OF OPERATIONS DETAILS 44 changes

In millions June 28,

In millions June 28,

Raw materials $ 295 $ 254

Finished goods 57 45

Inventory, gross 778 697

Inventory reserve ( 123 ) ( 133 )

In millions September 27,

Trade accounts receivable, gross $ 773 746 $ 861

Allowance for credit losses ( 9 8 ) ( 7 )

Total accounts receivable, net $ 764 738 $ 854

In millions September 27,

Raw materials $ 319 $ 254

Work in process 426 434 398

Finished goods 58 45

Inventory, gross 811 697

Inventory reserve ( 119 ) ( 133 )

Total inventory, net $ 655 692 $ 564

1 unchanged paragraph

In millions June 28,

Inventory with certain manufacturing processes that last more than one year is classified as long-term. inventory. As of June 28, September 27, 2026, long-term inventory primarily consists of work in process that was acquired from SomaLogic.

In millions September 27,

Contract liabilities, current portion $ 261 250 $ 270

1 unchanged paragraph

Contingent consideration liabilities, current portion 38 2

Accrued taxes payable 101 129 107

Operating lease liabilities, current portion 82 85 78

1 unchanged paragraph

Total accrued liabilities $ 848 915 $ 846

2 unchanged paragraphs

Repairs and replacements ( 5 ) ( 7 ) ( 11 ) ( 16 )

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

Balance at beginning of period $ 16 $ 17 $ 16 $ 17 $ 18

Additions charged to cost of product revenue 6 6 11 14 4 3 15 17

Repairs and replacements ( 7 ) ( 5 ) ( 18 ) ( 21 )

Balance at end of period $ 17 14 $ 16 14 $ 17 14 $ 16 14

1 unchanged paragraph

In 2023, we implemented a cost reduction initiative that included workforce reductions, consolidation of certain facilities, and other actions to reduce expenses as part of a plan to realign operating expenses while maintaining focus on our innovation roadmap and sustainable long-term growth. In Q1 2025, we implemented an incremental cost reduction initiative that included optimizing stock-based share-based compensation and non-labor spending, as well as workforce reductions, to help mitigate the expected impact of a reduction in revenue and operating income from our Greater China business and the uncertainty in the U.S. government's funding of the National Institutes of Health.

No pre-tax restructuring charges were recognized in Q2 Q3 2026 or YTD 2026. In Q2 Q3 2025 and YTD 2025, total pre-tax restructuring charges were $ 8 2 million and $ 39 41 million, respectively, related to employee separation costs. In Q2 Q3 2025, $ 4 1 million was attributed to research and development and $ 3 1 million to selling, general and administrative expense. with remainder recorded In cost of revenue. In YTD 2025, $ 22 23 million was allocated to selling, general and administrative expense and $ 14 15 million to research and development, with remainder recorded in cost of revenue.

2 unchanged paragraphs

We recognized benefits (reductions of expense) in our condensed consolidated statements of operations as follows:

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

1 unchanged paragraph

Total benefits recognized $ 22 $ 4 $ 28 $ 6

Research and development 5 2 10 3 5 15 8

Selling, general and administrative 17 2 17 8 — 25 3

Total benefits recognized $ 13 $ 5 $ 41 $ 11

As of June 28, September 27, 2026 and December 28, 2025, grant receivables totaled $ 45 56 million and $ 21 million, respectively, of which $ 18 15 million and $ 8 million, respectively, was included in prepaid expenses and other current assets, with the remaining balance included in other assets.

1 unchanged paragraph

We are exposed to foreign exchange rate risks in the normal course of business and use derivative financial instruments to partially offset this exposure. We do not use derivative financial instruments for speculative or trading purposes. Foreign exchange contracts are carried at fair value in prepaid expenses and other current assets, other assets, accrued liabilities, or other long-term liabilities, as appropriate, on the condensed consolidated balance sheets. The cash flows associated with such foreign exchange contracts are classified as cash flows from operating activities in the condensed consolidated statements of cash flows, which is the same category as the hedged transaction.

We use foreign exchange forward contracts to manage foreign currency risks related to monetary assets and liabilities denominated in currencies other than the U.S. dollar. These derivative financial instruments have terms of one month or less and are not designated as hedging instruments. Changes in fair value are recognized in other income (expense) income, net, along with the remeasurement gain or loss on the foreign currency denominated assets or liabilities. As of June 28, September 27, 2026, we had foreign exchange forward contracts in place to hedge exposures in the euro, Japanese yen, Australian dollar, Canadian dollar, Singapore dollar, Chinese Yuan Renminbi, and British pound. As of June 28, September 27, 2026 and December 28, 2025, the total notional amounts of outstanding forward contracts in place for these foreign currency purchases were $ 415 424 million and $ 510 million, respectively.

We use foreign currency forward contracts to hedge portions of our foreign currency exposure associated with forecasted revenue transactions. These derivative financial instruments have terms up to 24 months and are designated as cash flow hedges. Changes in fair value are recognized as a component of accumulated other comprehensive income (loss) and are reclassified to revenue in the same period the underlying hedged transactions are recorded. We regularly review the effectiveness of our hedges and consider them to be ineffective if it becomes probable that the forecasted transactions will not occur in the identified period. Changes in fair value of the ineffective portions, if any, are recognized in other income (expense) income, net. As of June 28, September 27, 2026, we had foreign currency forward contracts in place to hedge exposures associated with forecasted revenue transactions denominated in the euro, Japanese yen, Australian dollar, Canadian dollar, and Chinese Yuan Renminbi. As of June 28, September 27, 2026 and December 28, 2025, the total notional amounts of outstanding cash flow hedge contracts in place for these foreign currency purchases were $ 723 787 million and $ 707 million, respectively. We recognized losses of $ 2 1 million and $ 6 7 million in revenue in Q2 Q3 2026 and YTD 2026, respectively. We recognized a loss losses of $ 2 6 million and a gain of $ 5 1 million in revenue in Q2 Q3 2025 and YTD 2025, respectively. As of June 28, September 27, 2026, the fair value of foreign currency forward contracts recognized in total assets and total liabilities was $ 14 13 million and $ 5 3 million, respectively. As of December 28, 2025, the fair value of foreign currency forward contracts recognized in total assets and total liabilities was $ 2 million and $ 17 million, respectively. As of June 28, September 27, 2026, a net gain of $ 6 7 million is expected to be reclassified from accumulated other comprehensive income (loss) in the next 12 months.

1 unchanged paragraph

In connection with the GRAIL acquisition, we assumed a performance-based award for which vesting was based on GRAIL's future revenues and had an aggregate potential value of up to $ 78 million. This award was assumed by GRAIL in connection with our divestiture in 2024. For a period of 2.5 years following the divestiture (through December 2026), we are obligated to indemnify GRAIL for cash payments that become earned and payable related to this award. The indemnification is accounted for in accordance with ASC 460. As of both June 28, September 27, 2026 and December 28, 2025, we recognized a non-contingent liability of $ 1 million related to this indemnification.

Note 8: LEGAL PROCEEDINGS 5 changes

4 unchanged paragraphs

On December 23, 2024, a stockholder derivative complaint captioned The Pavers and Road Builders Benefit Funds v. deSouza, et al. , purportedly brought on behalf of Illumina, was filed in the Delaware Court of Chancery against certain current and former directors and officers. Like the complaints described above, the lawsuits allege lawsuit alleges the named directors and officers breached their fiduciary duties by knowingly causing Illumina to unlawfully close the GRAIL acquisition. Before the filing of the complaint, the purported stockholder did not make a demand that our Board of Directors pursue the claim asserted therein. The complaint seeks damages against the individual defendants and other equitable relief. On January 21, 2025, the defendants filed a motion to dismiss the complaint in the lawsuit filed by The Pavers and Road Builders Benefit Funds.

1 unchanged paragraph

On June 2, 2025, (i) Alex Aravanis filed his opening brief in support of his motion to dismiss, (ii) Francis deSouza, John W. Thompson, Frances Arnold, Caroline Dorsa, Robert Epstein, Scott Gottlieb, Gary Guthart, Philip Schiller and Susan Siegel (Director Defendants) filed their opening brief in support of their motion to dismiss and (iii) Illumina filed a joinder to the Director Defendants' motion. On July 17, 2025, the court granted a stipulation filed by the parties giving plaintiffs until August 8, 2025, to file an amended complaint. On August 8, 2025, plaintiffs filed an amended complaint and a stipulation to dismiss without prejudice all claims against Alex Aravanis, and the court granted the stipulation the same day. In a settlement agreement dated August 21, 2025, the parties in Icahn Partners LP, et al. v. deSouza, et al. agreed that the matter would be dismissed with a full release of claims and no payment by any party. On September 19, 2025, the parties in Icahn Partners LP, et al. v. deSouza, et al. filed a stipulation and proposed order of dismissal in that case. On November 3, 2025, the court held a teleconference with the parties in the Icahn Partners LP, et al. v. deSouza, et al., City of Omaha Police and Firefighters Retirement System v. deSouza, et al., City of Roseville General Employees Retirement System, et al. v. deSouza, et al. and The Pavers and Road Builders Benefit Funds v. deSouza, et al. actions and asked them to submit supplemental authority in support of dismissal of the Icahn Partners LP, et al. v. deSouza, et al. action. The parties filed a notice of supplemental authority in support of dismissal on December 2, 2025. On February 20, 2026, the court ordered that notice of the proposed settlement be given to stockholders before dismissal. On April 22, 2026, the parties filed a proposed scheduling order and notice for a hearing on the dismissal. On April 28, 2026, the court denied the proposed scheduling order on procedural grounds and directed the parties to submit a revised proposed order conforming to Court of Chancery Rules 23(f)(3)(D)(iv) and 23.1(d)(3)(D)(iii) by providing a summary of the claims, issues, defenses, and relief sought in the Icahn action. On June 18, 2026, the parties filed a revised proposed scheduling order, notice and stipulation and proposed order of dismissal. On July 31, 2026, the court entered a scheduling order and set a settlement hearing for November 2, 2026.

5 unchanged paragraphs

Federal Securities Class Actions. On November 11, 2023, the first of three securities class action complaints was filed against Illumina and certain of its current and former executive officers in the United States District Court for the Southern District of California. The first-filed case is captioned Kangas v. Illumina, Inc. et al ., the second-filed case is captioned Roy v. Illumina, Inc. et al., and the third-filed case is captioned Louisiana Sheriffs' Pension & Relief Fund v. Illumina, Inc. et al. (collectively, the Actions). The complaints generally allege, among other things, that defendants made materially false and misleading statements and omitted material facts relating to Illumina's acquisition of GRAIL. The complaints seek unspecified damages, interest, fees, and costs. On January 9, 2024, four movants filed motions to consolidate the Actions and to appoint a lead plaintiff (Lead Plaintiff Motions). On April 11, 2024, the court issued an order consolidating the Actions into a single action (captioned in re Illumina, Inc. Securities Litigation No. 23-cv-2082-LL-MMP), and appointed Universal-Investment-Gesellschaft mbH, UI BVK Kapitalverwaltungsgesellschaft mbH, and ACATIS Investment Kapitalverwaltungsgesellschaft mbH as lead plaintiffs (the Lead Plaintiffs). On June 21, 2024, the Lead Plaintiffs filed their consolidated amended complaint. The complaint alleges that Illumina and GRAIL and certain of their current and former directors and officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5 in connection with Illumina's acquisition of GRAIL. On September 13, 2024, the Lead Plaintiffs filed a second amended consolidated complaint. On November 12, 2024, the Company and other defendants filed a motion to dismiss the second amended consolidated complaint. On December 20, 2024, the Lead Plaintiffs filed their opposition to the motion to dismiss. The defendants' final reply brief was filed On February 3, 2025. On September 26, 2025, the court granted the defendants' motion to dismiss for failure to state a claim, but granted gave plaintiffs leave to file an amended complaint. by October 27, 2025. On October 27, 2025, the plaintiffs filed a Third Amended Complaint. On December 11, 2025, the Company filed a motion to dismiss the Third Amended Complaint, and plaintiffs filed their opposition on February 4, 2026. On September 30, 2026, the Plaintiffs filed their opposition to court granted the defendants' motion to dismiss the Company filed its reply Third Amended Complaint, but gave plaintiffs leave to amend. On March 6, October 21, 2026, No hearing date has been set. the plaintiffs filed a Fourth Amended Complaint. The defendants' response to the Fourth Amended Complaint is due December 4, 2026.

State Securities Class Actions . On February 2, 2024, the first of two additional securities class actions was filed against Illumina, certain of its officers and directors, and several other individuals and entities in the Superior Court of the State of California, County of San Mateo, captioned Loren Scott Mar v. Illumina, et al. and Scott Zerzanek v. Illumina, Inc. et al . Both complaints generally allege, among other things, that defendants made materially false and misleading statements and omitted material facts in the November 2020 and February 2021 registration statements and prospectus relating to Illumina's acquisition of GRAIL. The complaints seek unspecified damages, interest, fees, and costs. On March 29, 2024, the parties to the actions filed a Joint Stipulation to Consolidate the actions and to appoint co-lead counsel for plaintiffs, which the court granted on April 5, 2024. On August 12, 2024, the plaintiffs filed their consolidated complaint. On February 28, 2025, the defendants filed demurrers seeking dismissal of the litigation. On April 30, 2025, plaintiffs filed their oppositions to the demurrers. On September 3, 2025, the court overruled Illumina's demurrer. On September 16, 2025, Illumina filed its answer to the consolidated complaint denying the allegations. On October 28, 2025, the Company filed a writ with the California Court of Appeals Appeal seeking interlocutory appellate review of the court's order overruling Illumina's demurrer. On October 31, 2025, the Court of Appeals denied the writ. On January 26, 2026, the plaintiffs filed a motion for class certification, and the Company opposed. On May 15, 2026, the Court granted the motion to certify the class. On July 28, 2026, the Company filed a writ with the California Court of Appeals Appeal seeking interlocutory appellate review of the court's order granting class certification. On September 3, 2026, the court denied the writ.

On March 27, 2026, the Company filed a motion for judgment on the pleadings. On June 26, 2026, the court denied the motion. On June 18, 2026, the Company filed a motion for leave to amend its answer to include additional affirmative defenses, A hearing on which the motion Company subsequently withdrew. Trial is scheduled for October 30, 2026. to begin March 20, 2028.

1 unchanged paragraph

Note 9: INCOME TAXES 2 changes

1 unchanged paragraph

Our effective tax rates for Q2 Q3 2026 and YTD 2026 were 20.5 16.4 % and 18.4 17.6 %, respectively, compared to 23.4 31.8 % and 25.1 27.2 % in Q2 Q3 2025 and YTD 2025, respectively. The variance from the U.S. federal statutory tax rate of 21% in YTD 2026 was primarily due to prior year tax return adjustments. The tax rate in Q2 Q3 2026 and YTD 2026 was favorably impacted by the mix of earnings in jurisdictions with lower statutory tax rates than the U.S. federal statutory tax rate, such as in Singapore.

As of both June 28, September 27, 2026 and December 28, 2025, prepaid income taxes, included within prepaid expenses and other current assets on the condensed consolidated balance sheets, were $ 57 million and $ 81 million, respectively.

Note 10: SEGMENT INFORMATION 25 changes

As of June 28, September 27, 2026, we have one reportable segment. Segment information is consistent with how our Chief Operating Decision Maker (CODM), who is our Chief Executive Officer, reviews financial information, makes operating decisions, allocates resources, and assesses performance. We also consider the way budgets and forecasts are prepared and reviewed and the basis on which executive compensation is determined. Our CODM allocates resources and evaluates business performance based on consolidated revenue and net income. Net income is used in the annual budgeting and monthly forecasting processes and to monitor and assess budgeted/forecasted versus actual results. Our CODM does not evaluate segments using asset information.

1 unchanged paragraph

Revenue $ 1,159 $ 1,059 $ 2,251 $ 2,100

Cost of revenue 389 364 760 722

Research and development 252 247 492 499

Selling and marketing 164 146 322 311

General and administrative 109 88 223 190

Income from operations 245 214 454 378

Other income (expense), net

Provision for income taxes 53 71 77 122

MANAGEMENT'S DISCUSSION & ANALYSIS

Our Management's Discussion and Analysis (MD&A) is designed to help readers understand our results of operations, financial condition, and cash flow. It is provided in addition to the accompanying condensed consolidated financial statements and notes. This MD&A is organized as follows:

• Management's Overview and Outlook . High-level discussion of our operating results and significant known trends that affect our business.

• Results of Operations . Discussion of our revenues and expenses.

• Liquidity and Capital Resources. Discussion of key aspects of our condensed consolidated statements of cash flows, changes in our financial position, and our financial commitments.

• Critical Accounting Policies and Estimates . Discussion of significant changes since our most recent Annual Report on Form 10-K that we believe are important to understanding the assumptions and judgments underlying our condensed consolidated financial statements.

• Recent Accounting Pronouncements . Summary of recent accounting pronouncements applicable to our condensed consolidated financial statements.

In millions Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

Revenue $ 1,129 $ 1,084 $ 3,380 $ 3,184

Cost of revenue 299 351 1,059 1,073

Research and development 244 229 736 728

Selling and marketing 159 148 482 458

General and administrative 122 129 344 319

Income from operations 305 227 759 606

Other (expense) income, net

Provision for income taxes 44 70 120 193

Market risk 122 changes

Our discussion of our results of operations, financial condition, and cash flows for Q2 Q3 2025 and YTD 2025 can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" within our filing of Form 10-Q for the fiscal quarter ended June 29, September 28, 2025.

6 unchanged paragraphs

In 2024, we outlined key strategic goals focused on a return to revenue growth and improved margin performance by the end of 2027. We continued to make progress toward these goals in YTD 2026. Revenue increased 7% 6% to $2,251 $3,380 million and operating margin increased to 20.2% 22.5% in YTD 2026 as compared to 18.0% 19.0% in YTD 2025.

1 unchanged paragraph

In April 2025, the U.S. government and several other countries enacted tariffs. Under the current environment, the largest cost impact to us relates to importation from our manufacturing facility in Singapore. The remainder is a mix of importation of parts and sub-assemblies to our manufacturing operations in the U.S. and importation into China. In February 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. In March 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (CBP) to process refunds of IEEPA-related tariffs, and CBP has been implementing that process in phases. We have incurred significant costs under IEEPA-related tariffs since their implementation. While we intend to seek refunds, and have begun that process, the timing and amount of recoveries remain uncertain and will depend on the scope and timing of future phases, any further court or administrative developments, and completion of applicable administrative steps. We expect to recognize any recoveries, which to date have been immaterial, in our consolidated financial statements when realized (generally upon receipt). We have taken and will continue to take action to mitigate the impact of tariffs. We have partially mitigated the effects of tariffs through supply-chain optimization, cost measures, and pricing actions, and aim to continue such efforts in the future.

We recognize recoveries of IEEPA tariffs when the refund is probable in accordance with loss recovery guidance. During YTD 2026, we recognized a benefit of $79 million as a reduction to cost of revenue for expected tariff recoveries. As of September 27, 2026, we had received $32 million in IEEPA tariff refunds and recorded a receivable of $47 million in prepaid expenses and other current assets. We expect to refund a portion of the tariff refunds received to customers. As of September 27, 2026, we recorded a liability of $37 million in accrued liabilities for estimated refunds to be credited to customers and recognized a corresponding reduction to revenue in YTD 2026.

1 unchanged paragraph

• Revenue increased 7% 6% in YTD 2026 to $2,251 $3,380 million compared to $2,100 $3,184 million in YTD 2025 primarily due to increases in consumables and instruments revenue related to demand for our NovaSeq X instrument. Service and other revenue increased primarily due to revenue attributable to SomaLogic. which we acquired In January Q3 2026, we recognized a reduction to revenue of $37 million for IEEPA tariff refunds we expect to refund to customers.

• Gross margin was 66.2% 68.7% in YTD 2026 compared to 65.6% 66.3% in YTD 2025. The increase in gross margin was driven primarily by due to a net benefit of $42 million recognized in Q3 2026 for IEEPA tariff refunds and the related refunds to customers and a $23 million intangible asset impairment recognized in Q2 2025. Excluding this impact, these impacts, gross margin decreased primarily due to higher tariff costs, an increased sales mix shift toward lower-margin instruments as compared to higher-margin consumables, the addition of products, including lower-margin SomaLogic revenue, and higher memory chip and freight costs, partially offset by decreases for field service and warranty costs. Gross margin depends on many factors, including: market conditions that may impact our pricing; sales mix changes among consumables, instruments, services, and strategic partnership revenue; product mix changes between established products and new products; excess and obsolete inventories; royalties; our cost structure for manufacturing operations relative to volume; freight costs; tariffs; and product support obligations.

• Income from operations was $454 $759 million in YTD 2026 compared to $378 $606 million in YTD 2025. The increase was due to an increase in gross profit of $113 $210 million, offset by an increase in operating expense of $37 $57 million. The increase in operating expense was primarily due to increases in legal expenses, costs related to our ERP upgrade, and employee-related compensation costs, and legal expenses, partially offset by a decrease in restructuring charges of $36 $38 million, and an increase in benefits recognized from government incentives incentive benefits of $21 $29 million and a higher net gain recognized on contingent consideration liabilities.

• Our effective tax rate was 18.4% 17.6% in YTD 2026 compared to 25.1% 27.2% in YTD 2025. The variance from the U.S. federal statutory tax rate of 21% was primarily due to prior year tax return adjustments. The tax rate in YTD 2026 was favorably impacted by the mix of earnings in jurisdictions with lower statutory tax rates than the U.S. federal statutory tax rate, such as in Singapore.

• We ended Q2 Q3 2026 with cash, cash equivalents, and short-term investments totaling $1,168 $1,337 million, of which approximately $435 $474 million was held by our foreign subsidiaries.

2 unchanged paragraphs

Product revenue 84.7 % 86.1 % 84.4 % 85.4 %

Service and other revenue 15.3 13.9 15.6 14.6

Q2 Q3 2026 Q2 Q3 2025 YTD 2026 YTD 2025

Product revenue 83.8 % 85.5 % 84.2 % 85.4 %

Service and other revenue 16.2 14.5 15.8 14.6

1 unchanged paragraph

Cost of product revenue 25.1 26.1 25.1 25.2

Total cost of revenue 33.6 34.4 33.8 34.4

Gross profit 66.4 65.6 66.2 65.6

Research and development 21.7 23.3 21.8 23.8

Selling, general and administrative 23.6 22.1 24.2 23.8

Total operating expense 45.3 45.4 46.0 47.6

Income from operations 21.1 20.2 20.2 18.0

Cost of product revenue 17.6 24.6 22.6 25.0

Cost of service and other revenue 6.9 6.7 7.3 6.3 7.1 7.6 7.2

Amortization of acquired intangible assets 1.6 1.6 1.6 1.5 1.6 1.5

Total cost of revenue 26.5 32.4 31.3 33.7

Gross profit 73.5 67.6 68.7 66.3

Research and development 21.6 21.1 21.8 22.9

Selling, general and administrative 24.9 25.5 24.4 24.4

Total operating expense 46.5 46.6 46.2 47.3

Income from operations 27.0 21.0 22.5 19.0

1 unchanged paragraph

Other income (expense), net 2.7 10.2 (0.3) 6.6

Total other income (expense), net 1.3 8.7 (1.6) 5.2

Income before income taxes 22.4 28.9 18.6 23.2

Provision for income taxes 4.6 6.7 3.4 5.8

Net income 17.8 % 22.2 % 15.2 % 17.4 %

Interest income 0.7 0.9 1.1 0.8 1.0 0.9 0.9

Interest expense (2.1) (2.4) (2.3) (2.1) (2.4)

Other (expense) income, net

Total other (expense) income, net

Income before income taxes 23.4 20.4 20.2 22.2

Provision for income taxes 3.9 6.5 3.6 6.1

Net income 19.5 % 13.9 % 16.6 % 16.1 %

1 unchanged paragraph

Consumables $ 852 $ 811 $ 41 5 % $ 1,649 $ 1,580 $ 69 4 %

Instruments 130 101 29 29 250 213 37 17

Total product revenue 982 912 70 8 1,899 1,793 106 6

Service and other revenue 177 147 30 20 352 307 45 15

Total revenue $ 1,159 $ 1,059 $ 100 9 % $ 2,251 $ 2,100 $ 151 7 %

Consumables revenue increased in Q2 2026 and YTD 2026 primarily due to greater demand for high-throughput consumables, supported by continued growth of the NovaSeq X installed base, partially offset by a decrease in mid-throughput consumables. Instruments revenue increased in Q2 2026 and YTD 2026 primarily driven by higher NovaSeq X and MiSeq i100 shipments. Service and other revenue increased in Q2 2026 and YTD 2026 primarily due to revenue attributable to SomaLogic, which we acquired in January 2026, and increases in revenue from our development and licensing agreements and informatics solutions. Total revenue in Q2 2026 and YTD 2026 was impacted, across all products and services, by a decrease in revenue from our Greater China region of $7 million and $27 million, respectively, primarily due to our inclusion on the unreliable entities list.

Gross profit $ 770 $ 695 $ 75 11 % $ 1,491 $ 1,378 $ 113 8 %

Gross margin 66.4 % 65.6 % 66.2 % 65.6 %

Research and development $ 252 $ 247 $ 5 2 % $ 492 $ 499 $ (7) (1) %

Selling, general and administrative 273 234 39 17 545 501 44 9

Total operating expense $ 525 $ 481 $ 44 9 % $ 1,037 $ 1,000 $ 37 4 %

R&D expense increased in Q2 2026 primarily due to increases in lab supply and employee-related compensation costs, partially offset by a decrease in restructuring charges of $4 million and an increase in government incentive benefits of $3 million. R&D expense decreased in YTD 2026 primarily due to a decrease in restructuring charges of $14 million and an increase in government incentives of $7 million, partially offset by increases in lab supply costs.

Dollars in millions Q2 Q3 2026 Q2 Q3 2025 Change % Change YTD 2026 YTD 2025 Change % Change

Consumables $ 841 $ 816 $ 25 3 % $ 2,490 $ 2,395 $ 95 4 %

Instruments 105 111 (6) (5) 355 324 31 10

Total product revenue 946 927 19 2 2,845 2,719 126 5

Service and other revenue 183 157 26 17 535 465 70 15

Total revenue $ 1,129 $ 1,084 $ 45 4 % $ 3,380 $ 3,184 $ 196 6 %

We recognized a reduction to total revenue of $37 million in Q3 2026 and YTD 2026 for IEEPA tariff refunds we expect to credit to customers, which had an impact across all products and services. Total revenue in YTD 2026 was also impacted, across all products and services, by a decrease in revenue from our Greater China region of $20 million primarily due to our inclusion on the unreliable entities list.

Consumables revenue increased in Q3 2026 and YTD 2026 primarily due to greater demand for high-throughput consumables, supported by continued growth of the NovaSeq X installed base, partially offset by a $30 million reduction for tariff refunds to be credited to customers and a decrease in mid-throughput consumables.

Instruments revenue decreased in Q3 2026 primarily due to a $4 million reduction for tariff refunds to be credited to customers. Excluding this impact, instruments revenue remained relatively flat in Q3 2026. Instruments revenue increased in YTD 2026 primarily driven by higher NovaSeq X and MiSeq i100 shipments, partially offset by a decrease in mid-throughput instruments and the impact of customer tariff refunds.

Service and other revenue increased in Q3 2026 and YTD 2026 primarily due to revenue attributable to SomaLogic, which we acquired in January 2026, and increases in revenue from our informatics solutions, genotyping services, and extended maintenance service contracts, partially offset by a $3 million reduction for customer tariff refunds.

Dollars in millions Q2 Q3 2026 Q2 Q3 2025 Change % Change YTD 2026 YTD 2025 Change % Change

Gross profit $ 830 $ 733 $ 97 13 % $ 2,321 $ 2,111 $ 210 10 %

Gross margin 73.5 % 67.6 % 68.7 % 66.3 %

Gross margin increased in Q3 2026 primarily due to a net benefit of $42 million related to IEEPA tariff refunds (consisting of a $79 million reduction to cost of revenue for expected recoveries, offset by $37 million to be refunded to customers). Excluding this net benefit, gross margin in Q3 2026 was relatively flat.

Gross margin increased in Q2 2026 and YTD 2026 primarily due to the net benefit of $42 million related to tariff refunds recognized in Q3 2026 and a $23 million intangible asset impairment recognized in Q2 2025. Excluding this impact, these impacts, gross margin decreased in Q2 2026 and YTD 2026 The decrease in Q2 2026 is primarily due to an increased sales mix shift toward lower-margin instruments as compared to higher-margin consumables, rising memory costs, products and higher freight costs resulting from the Middle East conflict. and the contribution of lower-margin SomaLogic revenue, partially offset by lower tariff costs as a result of ongoing operational initiatives. The decrease in YTD 2026 is primarily due to higher tariff costs, an increased sales mix toward instruments as compared to consumables, rising memory and higher freight costs, and the addition of SomaLogic revenue, partially offset by decreases in field service and warranty costs.

Dollars in millions Q2 Q3 2026 Q2 Q3 2025 Change % Change YTD 2026 YTD 2025 Change % Change

Research and development $ 244 $ 229 $ 15 7 % $ 736 $ 728 $ 8 1 %

Selling, general and administrative 281 277 4 1 826 777 49 6

Total operating expense $ 525 $ 506 $ 19 4 % $ 1,562 $ 1,505 $ 57 4 %

SG&A R&D expense increased in Q2 Q3 2026 and YTD 2026 primarily due to:

1 unchanged paragraph

- decrease in restructuring charges of $15 million in YTD 2026 for employee separation costs

- increase in government incentive benefits of $7 million in YTD 2026

SG&A expense increased in Q3 2026 and YTD 2026 primarily due to:

+ increase in employee-related compensation costs

1 unchanged paragraph

+ increase in costs associated with the upgrade of our global enterprise resource planning (ERP) system

- decrease in restructuring charges of $3 million and $22 million, respectively, for employee severance costs

1 unchanged paragraph

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and 42 more changes in the filing

Controls and procedures 2 changes

2 unchanged paragraphs

As part of this implementation effort, we may make changes to our processes and procedures which, in turn, could materially affect our internal controls control over financial reporting. We will monitor, evaluate, and report the impact of such changes, if any, on our internal controls control over financial reporting in the periods in which they occur.

During the second third quarter of 2026, we continued to monitor and evaluate the design and operating effectiveness of key controls. There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that materially affected or are reasonably likely to materially affect internal control over financial reporting.

1 unchanged paragraph

Risk factors 10 changes

Our business is subject to various risks, including those described in "Risk Factors" within the Business & Market Information section of our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, and the "Other Key Information" section of our Quarterly Report on Form 10-Q for the period ended March 29, 2026, and on Form 10-Q for the period ended June 28, 2026, which we strongly encourage you to review.

2 unchanged paragraphs

In August 2024, our Board of Directors authorized the 2024 Repurchase Program, which canceled and superseded all prior and available repurchase authorizations, to repurchase up to $1.5 billion of our outstanding common stock. In April 2026, our Board of Directors authorized the 2026 Repurchase Program to repurchase up to $1.5 billion of our outstanding common stock. The 2026 Repurchase Program is in addition to the $1.5 billion previously authorized under the 2024 Repurchase Program. Repurchases under both programs may be completed through open market purchases, pursuant to Rule 10b5-1 or Rule 10b-18, or through an accelerated share repurchase program. We did not repurchase any Shares under the 2026 Repurchase Program. Shares repurchased in open market transactions pursuant to the 2024 Repurchase Program during Q2 programs in Q3 2026 were as detailed below. follows.

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March 30, 2026 - April 26, 2026 551 $ 125.06 551 $ 331,414

April 27, 2026 - May 24, 2026 359 $ 133.77 359 $ 1,783,430

May 25, 2026 - June 28, 2026 32 $ 145.22 32 $ 1,778,704

Total 942 $ 129.07 942 $ 1,778,704

June 29, 2026 - July 26, 2026 — $ — — $ 1,778,704

July 27, 2026 - August 23, 2026 47 $ 191.11 47 $ 1,769,705

August 24, 2026 - September 27, 2026 — $ — — $ 1,769,705

Total 47 $ 191.11 47 $ 1,769,705

1 unchanged paragraph

Unregistered sales of stock 6 changes

None during the quarterly period ended June 28, September 27, 2026.

1 unchanged paragraph

During the quarterly period ended June 28, September 27, 2026, the following directors or officers adopted, modified, or terminated 10b5-1 plans:

• On May 19, August 25, 2026 , Jakob Wedel Kevin Pegels , our Chief Strategy and Corporate Development Officer of Global Operations , entered into a new arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The arrangement terminates on May 31, 2028 September 1, 2027 and provides for the sale of up to 24,553 3,900 shares.

• On September 1, 2026 , Patricia Leckman , our Chief People Officer , entered into a new arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The arrangement terminates on September 1, 2027 and provides for the sale of up to 5,116 shares.

• On August 14, 2026 , Scott Davies , our former Chief Legal Officer , terminated a trading arrangement he had previously adopted with respect to the sale of securities of the Company's common stock (a "Rule 10b5-1 Trading Arrangement") in connection with his departure from the Company. Mr. Davies' Rule 10b5-1 Trading Arrangement was adopted on November 21, 2025, had a termination date of December 28, 2026, and provided for the sale of up to 4,251 shares of common stock pursuant to the terms of the plan.

Other than as disclosed above, during the quarterly period ended June 28, September 27, 2026, none of the Company's directors or officers adopted, modified, or terminated any " "Rule 10b5-1 trading arrangement" " or any " non-Rule 10b5-1 trading arrangement ," in each case as such term is defined in Item 408 of Regulation S-K.