Illumina, Inc.

Good day, ladies and gentlemen. Welcome to the third quarter 2026 Illumina earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the call over to Head of Investor Relations, Conor McNamara.

Hello, everyone, and welcome to Illumina's third quarter 2026 earnings call. Today, we will review our financial results released after the market closed and provide prepared remarks before opening the line for Q&A. Our earnings release is available in the investor relations section of Illumina.com. Joining me today are Jacob Thaysen, Chief Executive Officer, and Ankur Dhingra, Chief Financial Officer. Jacob will begin with an update on Illumina's business, followed by Ankur's review of our financials. As you may have seen in our press release, we recognized certain tariff refunds in the third quarter, which had a positive impact on gap and non-gap operating income, margins, and EPS, and a negative impact on revenue. These refunds were not contemplated into our previous guidance, and all financial measures discussed today will be on an adjusted non-gap basis, excluding the impact of tariff refunds. Reconciliations to non-gap and gap can be found in today's release and in the supplementary data on our website. Thank you for joining us. Thank you, Conor, and good afternoon everyone. We had a great third quarter.

with strong clinical sequencing demand and elevated NovoCX placements, driving revenue, margin, and EPS above our guidance range. Our strategy is working and I'm proud of what our team delivered for our customers and shareholders. Our continued disciplined execution and business momentum allow us to raise our fiscal year guidance and we remain on track to achieve our long range financial targets. Before I go into details on our results, I want to highlight a few ways our innovation is helping customers answer new questions about biology. Early in 2026, we introduced the Billion Cell Atlas to address one of the biggest bottlenecks in applying AI to biology, the lack of functional datasets. AI models need large amount of data to learn from. And in biology, those models only work if the data is accurate, standardized, and reproducible. But these datasets don't exist at scale. There is no internet of biology. Our Billion Cell Atlas was designed to help address these limitations. Now, over halfway complete, the Atlas is advancing toward an unprecedented AI-ready perturbation data set that helps biopharma partners connect genetic signals to cellular mechanisms, strengthening target validation, improve disease understanding, and enable accelerated drug discovery. By working directly with Biopharma, we are integrating their input to ensure the proprietary dataset is relevant and built to maximize value for both our partners and Illumina. GSK is the latest biopharmaceutical company to join the BillionCell Atlas Consortium to accelerate drug discovery, and we are seeing growing interest from other companies seeking access to the completed Atlas. We've learned a lot from our partners about how to build these datasets for AI, and we see multiple opportunities to address additional bottlenecks across drug discovery and development. We see this as a large long-term opportunity and look forward to sharing more about our strategy in the coming quarters. Earlier this month at ASSG, we brought together our assays, sequencing platforms, and software to show how customers can benefit using the Illumina Insight ecosystem. The most compelling examples came from customers themselves, who showed how combining genomics, transcriptomics, methylation, and proteomics is helping them see biology they could not see before with work spanning bulk, single-cell, and spatial approaches. What is resonating with customers is that we are looking at their work from start to finish, making it easier to obtain all the components they need to drive high-quality insights while bringing down the total cost of the workflow. On the analysis side, we launched the BioInsight platform, which brings our analysis application, AI models, and curated biological data together in one place, reducing the need for customers to assemble and manage separate software tools. Through the platform, customers can also access Splice AI 2, Thank you. Our view is that the next era of life sciences innovation will be powered not only by sequencing, but also by the software, AI and differentiated data that unlock the power of the genome. Through BioInsight, Illumina is building the base for AI biology, enabling more powerful foundational models and virtual cell models with the potential to improve our ability to understand and predict biology. As we move nearer to predicting biology, we see a path to using those insights to move healthcare toward a more proactive future, identifying risks sooner, preventing disease where possible, and intervening earlier. Now let me expand on our financial results, starting with our performance in the quarter. Cost and demand for the NovoCX platform remains at very high levels. In the quarter, we placed over 80 instruments. This equates to approximately 360 X placements over the last four quarters, more than in our first year of launch. This demand is being fueled by broader adoption of sequencing-based diagnostics and more sequencing-intense assays. As these instruments go live, they will support additional consumables revenue for years to come. End market growth rates for rest of world sequencing consumables were similar in Q3 and Q2, with clinical growth of 14% and research and applied declines of 6%. We continue to expect mid-teens clinical growth and mid-to-high single-digit declines in research and applied sequencing consumables for rest of world for 2026. Let me now turn to our outlook for the rest of the year. We are raising our full-year revenue outlook to reflect Q3 outperformance and a stronger Q4, driven by an increase in sequencing consumable revenue on a larger NovoCX installed base. We are also raising our full-year margin and EPS outlooks and now expect operating margins of approximately 25% in the second half of 2026, Up about 400 basis points versus 2024. I'm extremely proud of how our teams have managed investments through a challenging environment. With each quarter that passes, it becomes more clear our strategy is working. We are achieving what we set out to do in 2024 and capitalizing on emerging opportunities to drive growth for the years to come. I want to thank our teams for the hard work and commitment to Illumina and our customers for the trust they place in us. I look forward to sharing our 2027 guidance during the fourth quarter earnings call. And with that, I'll turn it over to Ankur to walk through our results and updated outlook.