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 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.

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 began reporting 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 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 September 27, 2026 and December 28, 2025, were $319 million and $346 million, respectively, of which the short-term portions of $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 Q3 2026 and YTD 2026 included $47 million and $216 million, respectively, 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 satisfied within approximatelysix months after the contract execution date and primarily consist of instruments, consumables, and instrument service contracts. As of September 27, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was $933 million, of which approximately 76% is expected to be converted to revenue in the next twelve months, approximately 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 September 27, 2026, the aggregate amount of the transaction price allocated to these remaining performance obligations was approximately $33 million.