Illumina, Inc. ILMN is set to release third-quarter 2026 results on Oct. 29, after the closing bell.
The company posted adjusted earnings per share (EPS) of $1.31 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 6.5%. Illumina beat earnings in each of the trailing four quarters, the average surprise being 9.67%.
ILMN’s Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $1.14 billion, which suggests 5% growth from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pinned at $1.38 per share, which implies a 3% rise from the year-ago actuals. The estimate has remained constant in the past 60 days.
Here’s a brief overview of the company’s performance leading up to this announcement.
Factors Likely to Have Shaped ILMN’s Q3 Performance
Illumina currently has one reportable segment, Core Illumina, following the separation of GRAIL into an independent, publicly traded company in June 2024. The company is likely to have extended its solid first-half 2026 momentum into the third quarter, driven by growing demand for its technologies.
In the second quarter, Rest-of-World organic revenues exceeded the high end of management’s previous guidance. Demand for the NovaSeq X platform also remained strong, with more than 95 systems placed during the quarter, more than three years after its launch. These drivers, along with disciplined expense management, may have helped Illumina deliver stronger profitability and bottom-line performance in the third quarter.
Illumina, Inc. Price and EPS Surprise
Illumina, Inc. price-eps-surprise | Illumina, Inc. Quote
Continued demand from clinical markets may have remained a key growth driver. Clinical growth across Rest-of-World markets may have benefited from broad-based strength across regions and applications, particularly in the United States and Canada. Strong instrument placements in recent quarters are expanding customers’ sequencing capacity, which may have driven consumables growth in the to-be-reported quarter.
However, research and academic markets may have remained under pressure as customers continued to exercise caution amid funding uncertainty. Although some improvement was seen in the second quarter, management noted that it was too early to call a recovery.
The transition to NovaSeq X may have progressed further in the third quarter. By the end of the second quarter, approximately 83% of sequencing volumes and 59% of revenues had transitioned to the platform. Despite the ongoing shift, Illumina’s sequencing consumables business may have continued to perform well. Strong demand for NovaSeq X and MiSeq i100 is also expected to have supported Sequencing instruments revenues.
Within Sequencing service and other, the company is likely to have continued to gain traction in its Billion Cell Atlas program, resulting in higher data revenues from biopharma customers. In July, the Billion Cell Atlas alliance added three new member companies, including AI-native drug developer Formation Bio.
Illumina’s recent innovations may have supported revenue growth in the third quarter. The company launched a whole-genome MRD research workflow, a tool that runs on NovaSeq systems, designed to help customers shorten assay development timelines and lower development costs. Illumina broadened its capabilities in spatial biology with the StrataMap Spatial sequencing-based workflow. It is also seeing sustained proteomics momentum following the close of the SomaLogic acquisition. Illumina’s SomaScan and SomaSeq offerings are generating strong interest and helping customers connect proteomics and genomic insights.
What Our Quantitative Model Predicts for ILMN
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here, as you can see below:
Earnings ESP: Illumina has an Earnings ESP of +9.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Top MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies a jump of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company BDX, or BD, has an Earnings ESP of +3.28% and a Zacks Rank #2. The company will release its fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.
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Illumina, Inc. (ILMN): Free Stock Analysis Report
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IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).