ILLUMINA, INC.

3. REVENUE

Our revenue is generated from the sale of products and services. Product revenue consists of sales of instruments and consumables used in genetic analysis. Service and other revenue consists of revenue generated from genotyping and sequencing services, instrument service contracts, and development and licensing agreements.

Revenue by Source

Revenue by Geographic Area

(1)We implemented a new global commercial structure in Q1 2026 to improve operating efficiencies and better align with local markets. Beginning in Q1 2026, we will report regional results for: United States and Canada (USCAN), Europe, Middle East, Africa and Latin America (EMEALA), Greater China, and Asia-Pacific (APAC). Prior period amounts were reclassified to conform to this new presentation.

(2)Region includes revenue from China, Taiwan, and Hong Kong.

Contract Assets and Liabilities

Contract assets, which consist of revenue recognized and performance obligations satisfied or partially satisfied in advance of customer billing, as of March 29, 2026 and December 28, 2025 were $23 million and $21 million, respectively, all of which were short-term and recorded in prepaid expenses and other current assets.

Contract liabilities, which consist of deferred revenue and customer deposits, as of March 29, 2026 and December 28, 2025, were $344 million and $346 million, respectively, of which the short-term portions of $269 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 Q1 2026 included $98 million of previously deferred revenue that was included in contract liabilities as of December 28, 2025.

Remaining Performance Obligations

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 approximatelysix months after the contract execution date and primarily consist of instruments, consumables, and instrument service contracts. As of March 29, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was $1.1 billion, of which approximately 85% is expected to be converted to revenue in the next twelve months, approximately 9% 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 March 29, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was approximately $38 million.