ILLUMINA, INC., 10-K filed on 2/12/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 28, 2025
Feb. 06, 2026
Jun. 29, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 28, 2025    
Current Fiscal Year End Date --12-28    
Document Transition Report false    
Entity File Number 001-35406    
Entity Registrant Name Illumina, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 33-0804655    
Entity Address, Address Line One 5200 Illumina Way    
Entity Address, City or Town San Diego    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92122    
City Area Code 858    
Local Phone Number 202-4500    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol ILMN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   152,900,000  
Entity Public Float     $ 9.2
Documents Incorporated by Reference
Portions of the registrant’s proxy statement for the 2026 annual meeting of stockholders are incorporated by reference into Items 10 through 14 of Part III of this Report.
   
Entity Central Index Key 0001110803    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
12 Months Ended
Dec. 28, 2025
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location San Diego, California
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Current assets:    
Cash and cash equivalents $ 1,418 $ 1,127
Short-term investments 215 93
Accounts receivable, net 854 735
Inventory, net 564 547
Prepaid expenses and other current assets 238 244
Total current assets 3,289 2,746
Property and equipment, net 759 815
Operating lease right-of-use assets 370 419
Goodwill 1,113 1,113
Intangible assets, net 210 295
Deferred tax assets, net 454 567
Other assets 449 348
Total assets 6,644 6,303
Current liabilities:    
Accounts payable 240 221
Accrued liabilities 846 827
Term debt, current portion 499 499
Total current liabilities 1,585 1,547
Operating lease liabilities 486 554
Term debt 1,490 1,490
Other long-term liabilities 360 339
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.01 par value, 10 million shares authorized; no shares issued and outstanding at December 28, 2025 and December 29, 2024 0 0
Common stock, $0.01 par value, 320 million shares authorized; 201 million shares issued and 153 million outstanding at December 28, 2025; 200 million shares issued and 159 million outstanding at December 29, 2024 2 2
Additional paid-in capital 7,822 7,525
Accumulated other comprehensive (loss) income (10) 22
Accumulated deficit (392) (1,242)
Treasury stock, at cost; 48 million shares and 41 million shares at December 28, 2025 and December 29, 2024, respectively (4,699) (3,934)
Total stockholders’ equity 2,723 2,373
Total liabilities and stockholders’ equity $ 6,644 $ 6,303
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 28, 2025
Dec. 29, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 320,000,000 320,000,000
Common stock, shares issued (in shares) 201,000,000 200,000,000
Common stock, shares outstanding (in shares) 153,000,000 159,000,000
Treasury stock, common shares (in shares) 48,000,000 41,000,000
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Revenue:      
Total revenue $ 4,343 $ 4,372 $ 4,504
Cost of revenue:      
Amortization of acquired intangible assets 66 127 191
Total cost of revenue 1,473 1,511 1,760
Gross profit 2,870 2,861 2,744
Operating expense:      
Research and development 967 1,169 1,354
Selling, general and administrative 1,086 1,092 1,612
Goodwill and intangible impairment 0 1,889 827
Legal contingency and settlement 10 (456) 20
Total operating expense 2,063 3,694 3,813
Income (loss) from operations 807 (833) (1,069)
Other income (expense):      
Interest income 40 46 58
Interest expense (101) (100) (77)
Other income (expense), net 340 (292) (29)
Total other income (expense), net 279 (346) (48)
Income (loss) before income taxes 1,086 (1,179) (1,117)
Provision for income taxes 236 44 44
Net income (loss) $ 850 $ (1,223) $ (1,161)
Earnings (loss) per share:      
Basic (in dollars per share) $ 5.47 $ (7.69) $ (7.34)
Diluted (in dollars per share) $ 5.45 $ (7.69) $ (7.34)
Shares used in computing earnings (loss) per share:      
Basic (in shares) 155 159 158
Diluted (in shares) 156 159 158
Product      
Revenue:      
Total revenue $ 3,709 $ 3,656 $ 3,787
Cost of revenue:      
Cost of revenue 1,107 1,017 1,177
Service      
Revenue:      
Total revenue 634 716 717
Cost of revenue:      
Cost of revenue $ 300 $ 367 $ 392
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 850 $ (1,223) $ (1,161)
Unrealized (loss) gain on cash flow hedges, net of deferred tax (32) 23 (4)
Total comprehensive income (loss) $ 818 $ (1,200) $ (1,165)
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings (Accumulated Deficit)
Treasury Stock
Beginning balance (in shares) at Jan. 01, 2023   198        
Beginning balance at Jan. 01, 2023 $ 6,599 $ 2 $ 9,207 $ 3 $ 1,142 $ (3,755)
Beginning balance (in shares) at Jan. 01, 2023           (40)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (1,161)       (1,161)  
Unrealized (loss) gain on cash flow hedges, net of deferred tax (4)     (4)    
Issuance of common stock, net of repurchases (in shares)   1        
Issuance of common stock, net of repurchases 27   64     $ (37)
Share-based compensation 275   275      
Reclassification of liability-classified awards 9   9   0  
Ending balance (in shares) at Dec. 31, 2023   199        
Ending balance at Dec. 31, 2023 5,745 $ 2 9,555 (1) (19) $ (3,792)
Ending balance (in shares) at Dec. 31, 2023           (40)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (1,223)       (1,223)  
Unrealized (loss) gain on cash flow hedges, net of deferred tax 23     23    
Issuance of common stock, net of repurchases (in shares)   1       (1)
Issuance of common stock, net of repurchases (91)   51     $ (142)
Share-based compensation 318   318      
Spin-Off of GRAIL $ (2,399)   (2,399)      
Ending balance (in shares) at Dec. 29, 2024 159 200        
Ending balance at Dec. 29, 2024 $ 2,373 $ 2 7,525 22 (1,242) $ (3,934)
Ending balance (in shares) at Dec. 29, 2024 (41)         (41)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) $ 850       850  
Unrealized (loss) gain on cash flow hedges, net of deferred tax (32)     (32)    
Issuance of common stock, net of repurchases (in shares)   1       (7)
Issuance of common stock, net of repurchases (743)   22     $ (765)
Share-based compensation $ 275   275      
Ending balance (in shares) at Dec. 28, 2025 153 201        
Ending balance at Dec. 28, 2025 $ 2,723 $ 2 $ 7,822 $ (10) $ (392) $ (4,699)
Ending balance (in shares) at Dec. 28, 2025 (48)         (48)
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income (loss) $ 850 $ (1,223) $ (1,161)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation expense 203 224 235
Amortization of intangible assets 67 130 197
Share-based compensation expense 275 370 380
Deferred income taxes 119 (112) (33)
Net (gains) losses on strategic investments (328) 312 40
Change in fair value of contingent consideration liabilities (18) (315) (24)
Goodwill and intangible impairment 23 1,889 827
Property and equipment and right-of-use asset impairment 4 46 100
Non-cash charitable contribution 19 0 0
Gain on Helix contingent value right 0 (15) (10)
Other 18 14 17
Changes in operating assets and liabilities:      
Accounts receivable (108) (25) (40)
Inventory (17) 19 (20)
Prepaid expenses and other current assets (8) (14) 11
Operating lease right-of-use assets and liabilities, net (34) (32) (16)
Other assets (21) (15) 5
Accounts payable 2 (4) (44)
Accrued liabilities 0 (440) 15
Other long-term liabilities 33 28 (1)
Net cash provided by operating activities 1,079 837 478
Cash flows from investing activities:      
Net purchases of property and equipment (148) (128) (195)
Net sales (purchases) of strategic investments 103 (52) (6)
Cash paid for acquisitions and intangible assets, net of cash acquired (10) (81) (30)
Cash received for Helix contingent value right 0 83 0
Net cash used in investing activities (55) (178) (231)
Cash flows from financing activities:      
Common stock repurchases (742) (116) 0
Taxes paid related to net share settlement of equity awards (40) (32) (40)
Proceeds from issuance of common stock 44 56 67
Payments on contingent consideration liabilities (1) (1) (1)
Proceeds from debt, net of issuance costs     (1)
Proceeds from debt, net of issuance costs 495 1,241  
Payments on debt obligations (500) (750) (1,235)
GRAIL cash deconsolidated as a result of spin-off 0 (968) 0
Net cash used in financing activities (744) (570) (1,210)
Effect of exchange rate changes on cash and cash equivalents 11 (10) 0
Net increase (decrease) in cash and cash equivalents 291 79 (963)
Cash and cash equivalents at beginning of year 1,127 1,048 2,011
Cash and cash equivalents at end of year 1,418 1,127 1,048
Supplemental cash flow information:      
Cash paid for interest 95 83 73
Cash paid for income taxes (see Note 10) 73 105 65
Cash paid for operating lease liabilities 114 132 123
Purchases of property and equipment included in accounts payable and accrued liabilities 22 4 12
GRAIL net assets, excluding cash and cash equivalents, deconsolidated as a result of spin-off $ 0 $ 1,770 $ 0
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Business Overview
We are a provider of sequencing- and array-based solutions, serving customers in the research, clinical and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. Our customers include leading genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies.
On June 24, 2024, we completed the separation (the Spin-Off) of GRAIL into a new public company through the distribution of 26,547,021 shares of GRAIL common stock to Illumina stockholders on a pro rata basis. The distribution reflected approximately 85.5% of the outstanding common stock of GRAIL as of 5:00 p.m. New York time on June 13, 2024, the record date for the distribution (the Record Date). We retained approximately 14.5% of the shares of GRAIL common stock immediately following the Spin-Off. The disposition of GRAIL did not meet the criteria to be reported as a discontinued operation and accordingly, GRAIL’s assets, liabilities, results of operations and cash flows have not been reclassified. Refer to note 8. GRAIL Spin-Off for additional details.
Basis of Presentation
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and include our accounts, our wholly-owned subsidiaries, and majority-owned or controlled companies. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Variable Interest Entities (VIEs)
We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE. As of December 28, 2025, there were no VIEs for which we were the primary beneficiary and for which we were required to consolidate.
Use of Estimates
The preparation of the consolidated financial statements requires that management make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosures of contingent assets and liabilities. Although imposed tariffs, reductions in the U.S. government’s funding of the NIH, our inclusion on the unreliable entities list by regulatory authorities in China, as well as macroeconomic factors such as inflation, exchange rate fluctuations, and concerns about an economic downturn present additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. Actual results could differ from those estimates.
Fiscal Year
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. References to 2025, 2024, and 2023 refer to fiscal years ended December 28, 2025, December 29, 2024, and December 31, 2023, respectively, which were all 52 weeks.
Functional Currency
The U.S. dollar is the functional currency of our international operations. We re-measure foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and record the net gains or losses resulting from re-measurement in other income (expense), net in the consolidated statements of operations.
Concentrations of Risk
Customers
We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our operating results. A portion of our customers consist of university and research institutions that management believes are, to some degree, directly or indirectly supported by the United States Government. A significant change in current research funding, particularly with respect to funding of the U.S. National Institutes of Health or targeted cancellations by the U.S. federal government of certain grants or contracts, could have an adverse impact on future revenues and results of operations.
International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. We are also subject to general geopolitical risks, such as political, social and economic instability, and changes in diplomatic and trade relations. The risks of international sales are mitigated in part by the extent to which sales are geographically distributed. Shipments to customers outside the United States comprised 48% of total revenue in each of 2025, 2024, and 2023. Customers outside the United States represented 53% of our gross trade accounts receivable balance as of December 28, 2025 and December 29, 2024.
We had no customers that provided more than 10% of total consolidated revenue in 2025, 2024, and 2023. We perform regular reviews of customer activity and associated credit risks and do not require collateral or enter into netting arrangements. Historically, we have not experienced significant credit losses from accounts receivable.
Financial Instruments
We are also subject to risks related to our financial instruments, including cash and cash equivalents, investments, and accounts receivable. Most of our cash and cash equivalents as of December 28, 2025 were deposited with U.S. financial institutions, either domestically or with their foreign branches. Our investment policy restricts the amount of credit exposure to any one issuer to 5% of the portfolio or 5% of the total issue size outstanding at the time of purchase and to any one industry sector, as defined by Clearwater Analytics (Industry Sector Report), to 30% of the portfolio at the time of purchase. There is no limit to the percentage of the portfolio that may be maintained in debt securities, U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. Historically, we have not experienced significant credit losses from financial instruments.
Suppliers
We require customized products and components that currently are available from a limited number of sources. We source certain key products and components included in our products from single vendors. Historically, we have not experienced significant issues sourcing materials to build our products.
Segments
We report segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. Our CODM allocates resources and assesses the performance of segments using information about their revenue and net income (loss). Our CODM does not evaluate our segments using asset information.
Accounting Pronouncements Adopted in 2025
In December 2023, the FASB issued ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures. The new standard includes enhanced income tax disclosures, specifically related to the rate reconciliation and income taxes paid for annual periods. The standard was effective for us beginning in fiscal year 2025. We adopted the standard on its effective date in fiscal year 2025 and applied the amendments retrospectively, as permitted, to all prior periods presented in the consolidated financial statements. See note 10. Income Taxes for additional details.
Accounting Pronouncements Adopted in 2024
In December 2023, the FASB issued ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. The new standard requires a company to disclose incremental segment information on an annual and interim basis, including significant segment expenses and measures of profit or loss that are regularly provided to the CODM. The standard does not change how an entity identifies its operating segments. The standard was effective for us beginning in fiscal year 2024 and interim periods within fiscal year 2025. We adopted the standard on its effective date in fiscal year 2024 and applied the amendments retrospectively to all prior periods presented in the consolidated financial statements. See note 12. Segment and Geographic Information for additional details.
Accounting Pronouncements Pending Adoption
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. The new standard requires a company to provide disaggregated disclosures, in the notes to the financial statements, of specified categories of expenses that are included in line items on the face of the income statement. The standard is effective for us beginning in fiscal year 2027 and interim periods within fiscal year 2028, with early adoption permitted. The new standard is expected to be applied prospectively, but retrospective application is permitted. We are currently evaluating the impact of ASU 2024-03 on the consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The new standard is intended to modernize the recognition and disclosure framework for capitalized internal-use software costs, removing the previous “development” stage model and introducing a more judgment-based approach. The standard is effective for us beginning in our first quarter of fiscal year 2028, with early adoption permitted, and can be applied using a prospective, retrospective, or modified transition approach. We are currently evaluating the impact of ASU 2025-06 on the consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging, Hedge Accounting Improvements. The new standard is intended to better align the hedge accounting model with risk management activities. The standard is effective for us beginning in our first quarter of fiscal year 2027, with early adoption permitted, and is applied on a prospective basis. We are currently evaluating the impact of ASU 2025-09 on the consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Accounting for Government Grants Received by Business Entities. The new standard provides guidance on the recognition, measurement, and presentation of government grants. The standard is effective for us beginning in our first quarter of fiscal year 2029, with early adoption permitted, and can be applied using a modified prospective, modified retrospective or full retrospective transition approach. We are currently evaluating the impact of ASU 2025-10 on the consolidated financial statements.
Revenue Recognition
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, development and licensing agreements, and, prior to the Spin-Off of GRAIL in 2024, cancer detection testing services related to the GRAIL business.
We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone selling price using average selling prices over a rolling 12-month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, we rely upon prices set by management, adjusted for applicable discounts.
Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and payment is typically due within 30 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. Revenue from genotyping and sequencing services, including cancer detection testing services related to the GRAIL business, is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from development and licensing agreements generally includes upfront and periodic licensing fees, contract research and development services, or payments for development and regulatory milestones. Revenue for these agreements is recognized when each distinct performance obligation is satisfied.
Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expense when incurred as the amortization period for such costs, if capitalized, would have been one year or less.
In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers.
Earnings (Loss) per Share
Basic earnings (loss) per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In loss periods, basic and diluted loss per share are identical since the effect of potentially dilutive common shares is antidilutive and therefore excluded. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method and proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares. Potentially dilutive common shares issuable upon conversion of convertible notes are determined using the if-converted method.
The weighted average shares used to calculate basic and diluted earnings (loss) per share were as follows:
 Years Ended
In millionsDecember 28,
2025
December 29,
2024
December 31,
2023
Weighted average shares outstanding
155 159 158 
Effect of potentially dilutive common shares from:
Equity awards1 — — 
Weighted average shares used in calculating diluted earnings (loss) per share
156 159 158 
Antidilutive shares:
Equity awards2 
Convertible senior notes — 
Potentially dilutive shares excluded due to antidilutive effect
2 
Fair Value Measurements
The fair value of assets and liabilities are based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize use of observable inputs and minimize use of unobservable inputs. We use a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value:
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments.
Cash Equivalents and Investments
Cash equivalents are comprised of short-term, highly-liquid investments with original maturities of 90 days or less.
We have strategic investments in privately-held companies (non-marketable equity securities) and publicly traded companies (marketable equity securities). Our marketable equity securities are measured at fair value. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Equity investments are classified as current, short-term investments, or noncurrent, recorded in other assets, based on the nature of the securities and their availability for use in current operations. Realized and unrealized gains and losses on our equity investments are recorded in other income (expense), net in the consolidated statements of operations. Our equity investments are assessed for impairment quarterly. Impairment losses, equal to the difference between the carrying value and the fair value of the investment, are recorded in other income (expense), net.
We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income (expense), net.
Accounts Receivable
Trade accounts receivable are recorded at the net invoice value and are not interest-bearing. Receivables are considered past due based on the contractual payment terms. We reserve a percentage of our trade receivable balance based on collection history and current economic trends that we expect will impact the level of credit losses over the life of our receivables. These reserves are re-evaluated on a regular basis and adjusted, as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve.
Inventory
Inventory is stated at the lower of cost or net realizable value, on a first-in, first-out basis. Inventory includes raw materials and finished goods that may be used in the research and development process, and such items are expensed as consumed or capitalized as property and equipment and depreciated. Inventory write-downs for slow-moving, excess, and obsolete inventories are estimated based on product life cycles, quality issues, historical experience, and usage forecasts.
Property and Equipment
Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, using the straight-line method. Depreciation of leasehold improvements is recorded over the shorter of the lease term or the estimated useful life of the related assets. Maintenance and repairs are expensed as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expense.
Costs incurred to develop internal-use software during the application development stage are recorded at cost as computer software. Costs incurred in the development of such internal-use software, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software application development, are capitalized. Costs incurred outside of the application development stage are expensed as incurred.
The estimated useful lives of the major classes of property and equipment are generally as follows:
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years
Leases
We have various non-cancellable operating lease agreements for office, lab, manufacturing, and distribution facilities. These leases have remaining lease terms of 1 year to 13 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms, ranging from 2 years to 20 years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms, as well as payments for common-area-maintenance and administrative services. We may receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. As of December 28, 2025, we do not have any financing leases.
Operating lease right-of-use assets and liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms, less any impairments recorded for right-of-use assets. We do not allocate lease payments to non-lease components; therefore, fixed payments for common-area-maintenance and administrative services are included in our operating lease right-of-use assets and liabilities. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in our operating lease liabilities and are recorded on a straight-line basis over the lease terms. We sublease certain real estate to third parties and this sublease income is also recorded on a straight-line basis.
Business Combinations
Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs that we incur to complete the business combination, such as legal and other professional fees, are expensed as they are incurred.
In connection with certain acquisitions, contingent consideration can be earned by the sellers upon completion of certain future performance milestones. In these cases, a liability is recorded on the acquisition date, as a component of accrued liabilities and/or other long-term liabilities, for an estimate of the acquisition-date fair value of the contingent consideration. These estimates require management judgment, including probabilities of achieving certain future milestones. Changes in the fair value of the contingent consideration subsequent to the acquisition date are recognized in selling, general and administrative expense in our consolidated statements of operations.
If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period (not to exceed a year from the date of acquisition), we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in the consolidated statements of operations.
Goodwill, Intangible Assets and Other Long-Lived Assets
Assets acquired, including intangible assets and capitalized in-process research and development (IPR&D), and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment.
Goodwill and IPR&D are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and IPR&D are considered to be impaired if the carrying value of the reporting unit or IPR&D asset exceeds its respective fair value.
We perform our goodwill impairment analysis at the reporting unit level, which aligns with our reporting structure and availability of discrete financial information. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than the carrying amounts, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair values of our reporting units are less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair values of the reporting units with the carrying values, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test.
The IPR&D impairment test is performed by comparing the fair value of the asset to its carrying amount. When testing indefinite-lived intangibles for impairment, we may assess qualitative factors to determine whether it is more likely than not that the asset is impaired. Alternatively, we may bypass this qualitative assessment and perform a quantitative impairment test. If the IPR&D asset is impaired, the carrying value of the IPR&D is written down to the revised fair value with the related impairment charge recognized in the period in which the impairment occurs.
Our identifiable intangible assets with a finite life are typically comprised of acquired developed technologies, licensed technologies, customer relationships, license agreements, and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives.
We perform regular reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss in an amount equal to the excess of the carrying value over the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
We review our operating lease right-of-use assets for impairment whenever events or changes in circumstances indicate the carrying value of the right-of-use asset may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We consider a triggering event to reassess a right-of-use asset’s asset group to have occurred if we exit a portion of or the full facility or enter into a sublease. Factors that may indicate potential impairment include a significant decrease in the market price of an underlying leased asset group. If we conclude the carrying value of affected assets will not be recovered, we estimate the fair value of the assets and record an impairment in an amount equal to the excess of the carrying value over the fair value.
Government Incentives
From time to time, we may qualify for or receive government incentives, under defined programs, from various governments, primarily to support our manufacturing and research and development activities. The incentives, which vary in size, have terms of up to five years and are subject to compliance with specified conditions. If conditions are not satisfied, the incentives are subject to reduction, recapture or termination. The government incentives are subject to confidentiality provisions, where applicable. Government incentives are recognized when there is reasonable assurance the conditions of the incentive will be met and the subsidies will be received. We record incentives related to the purchase or construction of assets as deferred income and recognize as a reduction to the related depreciation expense over the estimated useful life of the asset. We record incentives related to operating activities as a reduction of expense over the period necessary to match to the expenditure for which the incentive is intended to compensate. The effect of a change in estimate is recognized in the period in which it is concluded that it is no longer reasonably assured that (i) all of the incentive conditions will be met or (ii) a portion of the subsidies will be received.
We recorded benefits (reductions of expense) for operating-related incentives of $13 million and $4 million in research and development and selling, general and administrative expense, respectively, in 2025. Grant receivables totaled $21 million, as of December 28, 2025, of which the short-term portion of $8 million was recorded within prepaid expenses and other current assets and the remaining long-term portion was recorded in other assets. Amounts recognized in our consolidated financial statements in 2025 related to asset-based incentives and cash subsidies received were immaterial. Amounts recognized in 2024 and 2023 for government incentives were immaterial.
Derivative Financial Instruments
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 other current assets, other assets, accrued liabilities, or other long-term liabilities, as appropriate, on the consolidated balance sheets. The cash flows associated with such foreign exchange contracts, or derivative financial instruments, are classified as cash flows from operating activities in the 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 of these derivatives are recognized in other income (expense), net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities. As of December 28, 2025, 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 December 28, 2025 and December 29, 2024, the total notional amounts of outstanding forward contracts in place for these foreign currency purchases were $510 million and $477 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 recorded as a component of accumulated other comprehensive (loss) income and are reclassified to revenue in the same period the underlying hedged transactions are recorded. We regularly review the effectiveness of our cash flow 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 of our cash flow hedges, if any, are recognized in other income (expense), net. As of December 28, 2025, 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 December 28, 2025 and December 29, 2024, the total notional amounts of outstanding cash flow hedge contracts in place for these foreign currency purchases were $707 million and $621 million, respectively. We recognized a loss of $5 million in revenue in 2025 and recognized gains of $15 million and $18 million in revenue in 2024 and 2023, respectively. As of December 28, 2025, the fair value of foreign currency forward contracts recorded in total assets and total liabilities was $2 million and $17 million, respectively. As of December 29, 2024, the fair value of foreign currency forward contracts was $27 million, recorded in total assets. Estimated net losses reported in accumulated other comprehensive (loss) income expected to be recognized into earnings within the next 12 months are $15 million as of December 28, 2025.
Warranties
We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue.
Share-Based Compensation
Share-based compensation expense is incurred related to restricted stock, employee stock purchase plan (ESPP), stock options, and, prior to the GRAIL Spin-Off in 2024, cash-based equity incentive awards. Forfeitures are accounted for, as incurred, as a reversal of share-based compensation expense related to awards that will not vest.
Restricted stock units (RSU) and performance stock units (PSU) are both considered restricted stock. The determination of the amount of share-based compensation expense for our PSU requires the use of certain estimates and assumptions that affect the amount of share-based compensation expense recognized in our consolidated statements of operations. The fair value of restricted stock and performance stock units that do not include a market condition is determined by the closing market price of our common stock on the date of grant. PSU that do not include a market condition represent a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, we reassess the probability of the achievement of such corporate performance goals and any increase or decrease in share-based compensation expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of adjustment. The fair value of performance stock units that include a market condition is determined on the date of grant using a Monte Carlo simulation, which includes assumptions for expected volatility, risk-free interest rate and dividend yield. 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. Share-based compensation expense is recognized based on the fair value on a straight-line basis over the requisite service periods of the awards. Compensation expense for PSU that include a market condition is recognized over the requisite service period regardless of whether the market conditions are achieved.
The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchased under our ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The expected volatility is generally determined by weighing the historical and implied volatility of our common stock. The historical volatility is generally commensurate with the estimated expected term. The implied volatility is calculated from the implied market volatility of exchange-traded call options on our common stock. The expected term is generally based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that we have never declared or paid cash dividends on our common stock and do not anticipate paying such cash dividends. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards.
Cash-based equity incentive awards were classified as liability awards, as such awards were to be settled in cash. In connection with the Spin-Off of GRAIL, these awards were assumed by GRAIL. For purposes of valuation and performance measurement of the awards, GRAIL’s stand-alone value calculation, as estimated by GRAIL based on its analysis and on input from independent valuation advisors and analyses, was used. The fair value of the awards was recorded over the respective vesting periods of the awards, with recognition of a corresponding liability recorded in accrued liabilities in the consolidated balance sheets. The awards were remeasured to fair value at each reporting date until the awards were settled, with changes in fair value recognized in share-based compensation expense.
Shipping and Handling Expenses
Shipping and handling expenses are included in cost of product revenue.
Research and Development
Research and development expenses include personnel expenses, contractor fees, facilities-related costs, material costs, and license fees. Expenditures relating to research and development are expensed in the period incurred.
Advertising Costs
Advertising costs are expensed as incurred and were $37 million in 2025 and 2024 and $36 million in 2023.
Restructuring
We measure and accrue liabilities associated with employee separation costs, which primarily consist of severance pay and other separation costs such as outplacement services and benefits, at fair value as of the date the plan is approved and when such costs are reasonably estimable. The fair value measurement of restructuring related liabilities requires certain assumptions and estimates to be made, such as the retention period of certain employees. It is our policy to use the best estimates based on facts and circumstances available at the time of measurement, review the assumptions and estimates periodically, and adjust the liabilities when necessary.
Income Taxes
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date.
Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when we believe it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise, we consider all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies.
The impact of a tax position is recognized in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.
v3.25.4
REVENUE
12 Months Ended
Dec. 28, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE
2. 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, development and licensing agreements, and prior to the Spin-Off of GRAIL on June 24, 2024, cancer detection testing services related to the GRAIL business.
Revenue by Source
202520242023
In millionsSequencingMicroarrayTotalSequencingMicroarrayTotalSequencingMicroarrayTotal
Consumables$2,939 $288 $3,227 $2,858 $297 $3,155 $2,790 $293 $3,083 
Instruments465 17 482 484 17 501 685 19 704 
Total product revenue3,404 305 3,709 3,342 314 3,656 3,475 312 3,787 
Service and other revenue581 53 634 651 65 716 637 80 717 
Total revenue$3,985 $358 $4,343 $3,993 $379 $4,372 $4,112 $392 $4,504 
Revenue by Geographic Area
Based on region of destination (in millions)202520242023
Americas (1)
$2,406 $2,441 $2,521 
Europe1,264 1,185 1,140 
Greater China (2)
243 308 384 
Asia-Pacific, Middle East and Africa (3)
430 438 459 
Total revenue$4,343 $4,372 $4,504 
_____________
(1)Americas revenue included United States revenue of $2,243 million, $2,288 million, and $2,359 million in 2025, 2024, and 2023, respectively.
(2)Region includes revenue from China, Taiwan, and Hong Kong.
(3)Region includes revenue from Russia and Turkey.
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 December 28, 2025 and December 29, 2024, were $21 million and $16 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 December 28, 2025 and December 29, 2024, were $346 million and $327 million, respectively, of which the short-term portions of $270 million and $260 million, respectively, were recorded in accrued liabilities and the remaining long-term portions were recorded in other long-term liabilities. Revenue recorded in 2025 included $244 million of previously deferred revenue that was included in contract liabilities as of December 29, 2024.
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 approximately six months after the contract execution date. As of December 28, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $738 million, of which approximately 77% is expected to be converted to revenue in 2026, approximately 13% in the following twelve months, and the remainder thereafter.
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 28, 2025
Fair Value Disclosures [Abstract]  
INVESTMENTS AND FAIR VALUE MEASUREMENTS
3. INVESTMENTS AND FAIR VALUE MEASUREMENTS
Strategic Investments
Marketable Equity Securities
Our short-term investments consist of marketable equity securities, primarily our retained investment in GRAIL subsequent to the Spin-Off. As of December 28, 2025 and December 29, 2024, the fair value of our marketable equity securities totaled $215 million and $93 million, respectively.
Gains (losses) recognized in other income (expense), net on marketable equity securities were as follows:
In millions2025
2024 (1)
2023
Net gains (losses) recognized during the period
$315 $(310)$(2)
Less: Net gains (losses) recognized during the period on securities disposed of during the period
150 — (2)
Net unrealized gains (losses) recognized during the period on securities still held at the reporting date
$165 $(310)$— 
_____________
(1)Subsequent to the Spin-Off of GRAIL, we recognized a loss of $309 million in 2024 on our retained investment.
Non-Marketable Equity Securities
As of December 28, 2025 and December 29, 2024, non-marketable equity securities, without readily determinable fair values, included in other assets, were $58 million and $26 million, respectively.
Venture Funds
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 $235 million and $201 million as of December 28, 2025 and December 29, 2024, respectively. We recorded net gains of $22 million and $5 million in 2025 and 2024, respectively, and a net loss of $33 million in 2023, in other income (expense), net.
Our commitments to the Funds are as follows:
Dollars in millions
Capital commitments
Callable through date
Remaining callable as of December 28, 2025
Fund I
$100 April 2026$
Fund II
$150 July 2029$33 
Fund III
$60 December 2034$25 
Fair Value Measurements
The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
December 28, 2025December 29, 2024
In millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Money market funds (cash equivalents)$1,173 $ $ $1,173 $931 $— $— $931 
Marketable equity securities215   215 93 — — 93 
Other investments
  32 32 — — 17 17 
Deferred compensation plan assets 79  79 — 70 — 70 
Total assets measured at fair value$1,388 $79 $32 $1,499 $1,024 $70 $17 $1,111 
Liabilities:
Contingent consideration liabilities$ $ $54 $54 $— $— $73 $73 
Deferred compensation plan liabilities
 72  72 — 65 — 65 
Total liabilities measured at fair value$ $72 $54 $126 $— $65 $73 $138 
Marketable equity securities are measured at fair value based on quoted trade prices in active markets. We elected the fair value option for other investments, primarily convertible notes, which are included in other assets. Fair value is derived using a probability-weighted scenario approach with changes in fair value recognized in other income (expense), 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.
Contingent Consideration Liabilities
We reassess the fair value of contingent consideration related to acquisitions on a quarterly basis, with changes in the fair value subsequent to the acquisition date, recognized in selling, general and administrative expense.
Changes in the estimated fair value of our contingent consideration liabilities were as follows:
In millions
Balance as of January 1, 2023$412 
Change in estimated fair value(24)
Cash payments(1)
Balance as of December 31, 2023387 
Acquisition
Change in estimated fair value(315)
Cash payments(1)
Balance as of December 29, 202473 
Change in estimated fair value(18)
Cash payments(1)
Balance as of December 28, 2025$54 
The fair value of our contingent consideration liability related to GRAIL was $54 million and $71 million as of December 28, 2025 and December 29, 2024, respectively, of which $52 million and $70 million, respectively, was included in other long-term liabilities, with the remaining balances included in accrued liabilities. The contingent value rights issued as part of the acquisition 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 2024 through Q3 2025, Q4 2023 through Q3 2024, and Q4 2022 through Q3 2023 were $142 million, $117 million, and $85 million, respectively, driven primarily by sales of GRAIL’s Galleri test. Covered Revenue Payments for such periods were $1.3 million, $1.1 million, and $803,000, respectively, which were paid in 2025, 2024, and 2023, 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. Subsequent to the GRAIL Spin-Off, we no longer have access to GRAIL management’s forecasts. Therefore, we rely on information made public by GRAIL and information published in analyst reports to estimate forecasted revenues through August 2033. To estimate the liability as of December 28, 2025, we selected a revenue risk premium of 3%. Given 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.
The assumptions used in estimating the fair value of our contingent consideration liability related to GRAIL are inherently subject to uncertainty and we note that small changes in these assumptions could have a significant impact on the concluded value. For example, an increase or decrease of 20%, in each year, to the forecasted revenues would have resulted in an increase of $16 million and a decrease of $15 million, respectively, in the liability as of December 28, 2025. Additionally, an increase or decrease of 250 basis points to the selected revenue risk premium would have resulted in a decrease of $10 million and an increase of $12 million, respectively. We expect high levels of volatility in the GRAIL contingent consideration liability are possible in future periods.
Helix Contingent Value Right
In conjunction with the deconsolidation of Helix Holdings I, LLC (Helix) in April 2019, we received a contingent value right with a 7-year term that entitled us to consideration dependent upon the outcome of Helix’s future financing and/or liquidity events. We elected the fair value option to measure the contingent value right received from Helix. Changes in the estimated fair value are recognized in other income (expense), net. We estimated the fair value of the contingent value right using a Monte Carlo simulation. Estimates and assumptions used in the Monte Carlo simulation included probabilities related to the timing and outcome of future financing and/or liquidity events, assumptions regarding collectability and volatility, and an estimated equity value of Helix. These unobservable inputs represented a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. In July 2024, we received cash of $83 million to settle the contingent value right early.
Changes in the Helix contingent value right were as follows:
In millions
Balance as of January 1, 2023$58 
Change in estimated fair value10 
Balance as of December 31, 202368 
Change in estimated fair value15 
Cash received to settle
(83)
Balance as of December 29, 2024 and as of December 28, 2025
$— 
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS
12 Months Ended
Dec. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS
4. INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS
Intangible Assets
 December 28, 2025December 29, 2024
In millionsGross
Carrying
Amount
Accumulated
Amortization
Intangible Assets,
Net
Gross
Carrying
Amount
Accumulated
Amortization
Intangible Assets,
Net
Developed technologies$436 $(335)$101 $465 $(305)$160 
Licensed technologies234 (143)91 234 (114)120 
License agreements24 (14)10 19 (13)
Customer relationships16 (14)2 16 (14)
Database12 (6)6 12 (5)
Trade name2 (2) (2)— 
Total intangible assets, net$724 $(514)$210 $748 $(453)$295 
We regularly perform reviews to determine if an event has occurred that may indicate identifiable intangible assets are potentially impaired. During 2025, we performed a recoverability test when the planned use of a finite-lived intangible asset changed, resulting in an impairment charge of $23 million recorded in cost of product revenue. We concluded the carrying value of the intangible asset exceeded its estimated fair value, which was determined using a discounted cash flow model that included estimates and assumptions for projected future cash flows. The estimates and assumptions used in our assessment of fair value represent Level 3 measurements as they are supported by little or no market activity and reflect our own assumptions in measuring fair value.
As a result of the Fluent BioSciences acquisition in 2024, we recorded a developed technology asset of $42 million, with a useful life of 7 years, and a customer relationship asset of $2 million, with a useful life of 11 years. We finalized the allocation of the purchase price in 2025 with no material adjustments to provisional amounts.
The estimated future annual amortization of intangible assets is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
In millionsEstimated Annual Amortization
2026$55 
202753 
202850 
202921 
203014 
Thereafter17 
Total$210 
Goodwill
In millions
Balance as of December 31, 2023 (1)
$2,545 
Impairment(1,466)
Acquisition34 
Balance as of December 29, 2024 and as of December 28, 2025
$1,113 
_____________
(1)The balance as of December 31, 2023 includes accumulated impairment of $4,626 million related to the GRAIL reporting unit.
Goodwill is reviewed for impairment annually, during the second quarter, or more frequently if an event occurs indicating the potential for impairment. We performed our annual assessment in Q2 2025, noting no impairment.
2024 Impairment of Goodwill
In May 2024, we performed our annual goodwill impairment test for our two reporting units: Core Illumina and GRAIL. Prior to the Spin-Off of GRAIL in June 2024, our reporting units included Core Illumina and GRAIL. We performed a quantitative test for both reporting units. GRAIL’s carrying value exceeded its fair value, estimated as $580 million, and we recorded a goodwill impairment of $1,466 million. There was no impairment noted for Core Illumina.
To determine the fair value of GRAIL as of May 2024, we utilized enterprise value estimates of GRAIL, as estimated by investment bankers for purposes of determining pricing for the Spin-Off. Estimates and assumptions used to derive the investment bankers’ enterprise value estimates included estimated revenues for a two year period based on assumed growth rates and implied revenue multiples for comparable companies. These estimates and assumptions represent a Level 3 measurement as they are supported by little or no market activity and reflect our own assumptions in measuring fair value. An increase in estimated enterprise values for GRAIL of 100% would still have resulted in a full impairment of goodwill. In prior periods, we used a combination of both an income (discounted cash flow) and market approach to determine the fair value of GRAIL. The income approach utilized estimated cash flows for GRAIL based on a long-range plan, for a 15 year period, which contemplated FDA approval. Based on this approach, in Q3 2023, we estimated the fair value of GRAIL to be $3.6 billion and using this same approach in Q4 2023 suggested no further decrement in fair value. Initial analyst coverage of GRAIL from December 2023 into the spring of 2024 suggested that GRAIL could be valued between $3 billion and $4 billion. By May 2024, prior to the consummation of the GRAIL Spin-Off, additional information about GRAIL had become available in GRAIL’s amended Form 10 filings and a publicly available management presentation, which included updated disclosure about GRAIL’s business and anticipated near term financial trends. Prior to the consummation of the GRAIL Spin-Off, the amount of GRAIL’s Disposal Funding, $974 million, was also disclosed. Analyst and banker valuation estimates then began to estimate fair values between $400 million and $770 million, consistent with the impairment recorded in Q2 2024.
To determine the fair value of Core Illumina, we used a combination of both an income and market approach consistent with prior periods. The income approach utilized estimated discounted cash flows for the reporting unit, while the market approach utilized comparable company information. Estimates and assumptions used in the income approach included projected cash flows and a discount rate and 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 evaluated GRAIL’s IPR&D intangible asset for potential impairment, in May 2024, as part of our annual test. We also concluded that the when-issued trading activity for GRAIL’s common stock, in June 2024, represented a triggering event that required an additional impairment test be performed. The carrying value of the IPR&D asset exceeded its estimated fair value and we recorded an impairment of $420 million in Q2 2024. The fair value of GRAIL’s IPR&D was determined by the income approach, using a discounted cash flow model. Estimates and assumptions used in the income approach, which represent a Level 3 measurement, included projected cash flows and a discount rate of 46.5%. The discount rate was derived from reconciling GRAIL’s long-range plan, which contemplated FDA approval and estimated cash flows for a 15 year period, to observed market values of GRAIL based on when-issued trading activity. An increase of 300 basis points to the discount rate used in our analysis would have resulted in additional impairment of $20 million. There is substantial risk inherent in forecasting revenues and spend associated with research and development, including assumptions around the timing and level of resources and investment to be made, which were made more challenging in light of the Spin-Off and related Disposal Funding.
We performed a recoverability test for GRAIL’s definite-lived intangible assets, which included developed technology and trade name, noting no impairment. No impairment was noted for Core Illumina definite-lived intangible assets.
2023 Impairment of Goodwill
In Q3 2023, we concluded that the sustained decrease in the Company’s stock price and overall market capitalization during the quarter was a triggering event indicating the fair values of our reporting units might be less than their carrying amounts and that an interim impairment test was required. Based on our analysis, we concluded GRAIL’s carrying value exceeded its fair value and recorded a goodwill impairment of $712 million, primarily due to the decrease in the Company’s consolidated market capitalization and a higher discount rate selected for the fair value calculation of GRAIL. There was no impairment for Core Illumina, as its fair value exceeded its carrying value.
We performed our interim goodwill impairment test using a combination of both an income and a market approach to determine the fair value of each reporting unit. The income approach utilized the estimated discounted cash flows for each reporting unit, while the market approach utilized comparable company information. Estimates and assumptions used in the income approach included projected cash flows for both GRAIL and Core Illumina and a discount rate for each reporting unit. Discount rates were determined using a weighted average cost of capital for risk factors specific to each reporting unit and other market and industry data. For GRAIL, the selected discount rate was 24.0%. An increase of 50 to 100 basis points to the discount rate would have resulted in additional impairment of $200 million to $350 million. The estimates and assumptions used in our assessment represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. In order to further validate the reasonableness of the fair values concluded for our reporting units, a reconciliation to market capitalization was performed by estimating a reasonable implied control premium and other market factors.
In conjunction with our interim goodwill impairment test, we also evaluated GRAIL’s IPR&D intangible asset for potential impairment. We performed our impairment test by comparing the carrying value of the IPR&D intangible asset to its estimated fair value, which was determined by the income approach, using a discounted cash flow model. Estimates and assumptions used in the income approach, which represent a Level 3 measurement, included projected cash flows and a selected discount rate of 19.0%. Based on our analysis, the carrying value of GRAIL’s IPR&D intangible asset exceeded its estimated fair value and we recorded an impairment of $109 million in Q3 2023, primarily due to a decrease in projected cash flows and a higher discount rate selected for the fair value calculation of the IPR&D asset. We also performed a recoverability test for the definite-lived intangible assets assigned to GRAIL, which included developed technology and trade name, and to Core Illumina and noted no impairment.
In Q4 2023, we concluded, among other events, that our formal announcement to divest GRAIL represented a triggering event that required an additional interim impairment test be performed. As a result of our analysis, no impairment was recorded for Core Illumina or GRAIL. The fair value of GRAIL exceeded its carrying value by approximately $950 million and the selected discount rate used in the analysis was 23.0%. An increase of 100 basis points to the discount rate would still have resulted in no impairment for GRAIL. We also performed a recoverability test for the definite-lived intangible assets assigned to GRAIL and Core Illumina and noted no impairment.
v3.25.4
DEBT AND OTHER COMMITMENTS
12 Months Ended
Dec. 28, 2025
Debt Disclosure [Abstract]  
DEBT AND OTHER COMMITMENTS
5. DEBT AND OTHER COMMITMENTS
Summary of Term Debt Obligations
In millionsDecember 28,
2025
December 29,
2024
Principal amount of 2025 Term Notes outstanding
 500 
Principal amount of 2026 Term Notes outstanding500 500 
Principal amount of 2027 Term Notes outstanding500 500 
Principal amount of 2030 Term Notes outstanding
500 — 
Principal amount of 2031 Term Notes outstanding500 500 
Unamortized discounts and debt issuance costs(11)(11)
Net carrying amount of term debt
1,989 1,989 
Less: current portion499 499 
Term debt, non-current
$1,490 $1,490 
Fair value of term debt outstanding (Level 2)
$1,977 $1,940 
Interest expense recognized on our outstanding debt obligations, which included amortization of debt discounts and debt issuance costs, was $99 million in 2025 and 2024, respectively, and $74 million in 2023.
4.750% Term Notes due 2030 (2030 Term Notes)
On November 25, 2025, we issued $500 million aggregate principal amount of 2030 Term Notes. After deducting discounts and issuance costs, we received net proceeds of $495 million. The 2030 Notes, which mature on December 12, 2030, accrue interest at a rate of 4.750% per annum, payable semi-annually on June 12 and December 12 of each year, beginning on June 12, 2026. We may redeem for cash all or any portion of the 2030 Term Notes, at our option, at any time prior to maturity at make-whole premium redemption prices as defined in the form of the notes.
4.650% Term Notes due 2026 (2026 Term Notes)
On September 9, 2024, we issued $500 million aggregate principal amount of 2026 Term Notes. After deducting discounts and issuance costs, we received net proceeds of $497 million, which were used to repay a portion of the outstanding debt under the Delayed Draw Credit Agreement. The 2026 Term Notes, which mature on September 9, 2026, 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 2026 Term Notes, at our option, at any time prior to maturity at make-whole premium redemption prices as defined in the form of the notes.
5.800% Term Notes due 2025 (2025 Term Notes) and 5.750% Term Notes due 2027 (2027 Term Notes)
In December 2022, we issued $500 million aggregate principal amount of 2025 Term Notes and $500 million aggregate principal amount of 2027 Term Notes. The 2025 Term Notes matured and were repaid in cash on December 12, 2025. The 2027 Term Notes, which mature on December 13, 2027, accrue interest at a rate of 5.750% per annum, payable semi-annually on June 13 and December 13 of each year, beginning in June 2023. We may redeem for cash all or any portion of the 2027 Term Notes, at our option, at any time prior to maturity. Prior to November 13, 2027, the notes are redeemable at make-whole premium redemption prices as defined in the form of the notes. After November 13, 2027, the notes are redeemable at a redemption price equal to 100% of the principal to be redeemed, plus accrued and unpaid interest up to, but excluding, the redemption date.
2.550% Term Notes due 2031 (2031 Term Notes)
In March 2021, we issued $500 million aggregate principal amount of 2031 Term Notes. The notes, which mature on March 23, 2031, accrue interest at a rate of 2.550% per annum, payable semi-annually on March 23 and September 23 of each year. We may redeem for cash all or any portion of the 2031 Term Notes, at our option, at any time prior to maturity. Prior to December 23, 2030, the notes are redeemable at make-whole premium redemption prices as defined in the form of the notes. After December 23, 2030, the notes are redeemable at a redemption price equal to 100% of the principal to be redeemed, plus accrued and unpaid interest up to, but excluding, the redemption date.
Delayed Draw Term Loan due 2025
On June 17, 2024, we entered into a 364-day delayed draw credit agreement (the Delayed Draw Credit Agreement), which provided us with a senior unsecured term loan credit facility in an aggregate principal amount of up to $750 million (the Delayed Draw Credit Facility). On June 20, 2024, we borrowed $750 million on the credit facility in order to provide a portion of the Disposal Funding to GRAIL as part of the Spin-Off. The delayed draw term loan incurred interest at a rate of 6.7%. On September 9, 2024, we repaid the full principal outstanding on the Delayed Draw Credit Facility, as well as accrued interest, in an aggregate amount of $761 million and terminated the Delayed Draw Credit Agreement. We recognized a loss on debt extinguishment of $5 million in 2024, included in interest expense in the consolidated statements of operations, related to the write-off of unamortized debt issuance costs.
Revolving Credit Agreement
In January 2023, we entered into a credit agreement (the Revolving Credit Agreement), which provides us with a $750 million senior unsecured five-year revolving credit facility, including a $40 million sublimit for swingline borrowings and a $50 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 Revolving Credit Facility matures, and all amounts outstanding become due and payable in full, on January 4, 2028, subject to two 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 December 28, 2025, 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 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 ratio of total debt to 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 the consummation of any Qualified Acquisition (as defined in the Revolving Credit Agreement) and us providing 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 and our subsidiaries assets, 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.
Leases
As of December 28, 2025, the maturities of our operating lease liabilities were as follows:
In millions
2026$101
2027106
202887
202982
203080
Thereafter205
Total remaining lease payments
661
Less: imputed interest(97)
Total operating lease liabilities564
Less: current portion(78)
Long-term operating lease liabilities$486
Weighted-average remaining lease term7.4 years
Weighted-average discount rate4.4 %
The components of our lease costs were as follows:
In millions202520242023
Operating lease costs
$78 $93 $116 
Sublease income(12)(19)(20)
Variable lease costs (1)
20 25 27 
Total lease costs$86 $99 $123 
_____________
(1)Variable lease costs include non-fixed maintenance charges and property taxes.
Purchase Obligations
In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily for licensing and supply arrangements. For agreements with variable terms, we do not estimate any obligation beyond minimum quantities or pricing as of the reporting date. Licensing agreements under which we commit to minimum royalty payments, some of which are subject to adjustment, may be terminated prior to expiration of underlying intellectual property under certain circumstances. Total minimum payments for noncancelable purchase obligations as of December 28, 2025 were $184 million, more than half of which are due during 2026.
v3.25.4
STOCKHOLDERS' EQUITY
12 Months Ended
Dec. 28, 2025
Equity [Abstract]  
STOCKHOLDERS' EQUITY
6. STOCKHOLDERS' EQUITY
The 2015 Stock and Incentive Compensation Plan (the 2015 Stock Plan) and the New Hire Stock and Incentive Plan allow for the issuance of stock options, performance stock options, restricted stock units and awards and performance stock units. In Q2 2025, the Company’s stockholders approved an amendment and restatement of the Amended and Restated 2015 Stock Plan to, among other things, increase the maximum number of shares authorized for issuance by 7.9 million shares. In 2024, in connection with the GRAIL Spin-Off, all unvested RSU and PSU were equitably adjusted pursuant to the plan to preserve their intrinsic value and the number of shares reserved for issuance under the 2015 Stock Plan was increased by 160,000 shares. As of December 28, 2025, approximately 11.5 million shares remained available for future grants under the Second Amended and Restated 2015 Stock Plan. There is no set number of shares reserved for issuance under the New Hire Stock and Incentive Plan.
Restricted Stock
We issue restricted stock units (RSU) and performance stock units (PSU), both of which are considered restricted stock. We grant restricted stock pursuant to the Second Amended and Restated 2015 Stock Plan and satisfy such grants through the issuance of either new shares or shares from treasury stock. RSU are share awards that, upon vesting, will deliver to the holder shares of our common stock. RSU generally vest over a four-year period with equal vesting annually. We issue PSU for which the number of shares issuable at the end of a three-year performance period 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 measured over a three-fiscal year performance period (rTSR PSU). Depending on the actual performance over the measurement period, an rTSR PSU award recipient could receive up to 175% of the granted award. Beginning in 2025, we no longer issue PSU for which the number of shares issuable at the end of a three-year performance period is based on our performance relative to specified earnings per share targets (EPS PSU). Shares issuable under all RSU and PSU awards are subject to continued employment through the vesting period.
Restricted stock activity was as follows:
Restricted
Stock Units
(RSU)
Performance
Stock Units
(PSU) (1)
Weighted-Average Grant-
Date Fair Value per Share
Units in thousandsRSUPSU
Outstanding at January 1, 20231,611 74 $311.23 $446.74 
Awarded2,032 39 $195.94 $239.98 
Vested(987)— $268.08 $— 
Cancelled(458)(113)$253.52 $299.98 
Outstanding at December 31, 20232,198 — $236.32 $— 
Awarded2,788 729 $133.73 $164.38 
Unvested adjustment for GRAIL Spin-Off
107 12 $— $— 
Vested(771)— $249.70 $— 
Cancelled(443)(41)$195.11 $167.68 
Outstanding at December 29, 20243,879 700 $158.60 $164.87 
Awarded1,812 407 $86.70 $85.67 
Vested(1,307)(55)$180.78 $247.32 
Cancelled(646)(196)$142.26 $156.52 
Outstanding at December 28, 20253,738 856 $118.82 $123.77 
_____________
(1)For OM and EPS PSU, the number of units reflect the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflect 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.
Pre-tax intrinsic value and fair value of vested restricted stock was as follows:
In millions202520242023
Pre-tax intrinsic value of outstanding restricted stock:
RSU$504 $525 $306 
PSU$116 $95 $— 
Fair value of restricted stock vested:
RSU$146 $116 $122 
PSU$7 $— $— 
Stock Options
Stock option activity was as follows:
Units in thousandsOptionsWeighted-Average
Exercise Price
Performance Stock Options (1)
Weighted-Average
Exercise Price
Outstanding at January 1, 2023187 $319.72 17 $85.54 
Exercised(8)$71.09 (1)$16.69 
Cancelled
(144)$330.25 — $— 
Outstanding at December 31, 202335 $330.25 16 $87.74 
Cancelled(35)$330.25 (16)$87.74 
Outstanding at December 29, 2024 and December 28, 2025
— $— — $— 
_____________
(1)In connection with the GRAIL acquisition, we issued replacement performance stock options to GRAIL employees in 2021. The number of units reflected awards that had been granted and for which it was assumed to be probable that the underlying performance goals would be achieved. In connection with the GRAIL Spin-Off, all outstanding performance stock options were assumed by GRAIL in 2024.
Liability-Classified Awards
Prior to the GRAIL Spin-Off in 2024, we granted cash-based equity incentive awards to GRAIL employees, which were accounted for as liability-classified awards. In connection with the Spin-Off, these awards were assumed by GRAIL. For purposes of valuation and performance measurement of the awards, GRAIL’s stand-alone value calculation, as estimated by GRAIL based on its analysis and on input from independent valuation advisors and analyses, was used. The awards generally had terms of four years and vested in four equal installments on each anniversary of the grant date, subject to continued employment through the vesting period.
Cash-based equity incentive award activity was as follows:
In millions
Outstanding at January 1, 2023$293 
Granted116 
Vested and paid in cash
(77)
Cancelled(32)
Change in fair value(8)
Outstanding at December 31, 2023292 
Granted67 
Vested and paid in cash
(54)
Cancelled(13)
Change in fair value(9)
Derecognition for GRAIL Spin-Off (1)
(283)
Outstanding at December 29, 2024 and December 28, 2025
$— 
_____________
(1)The estimated liability immediately prior to the Spin-Off, recorded in accrued liabilities, was $53 million, which was disposed of as part of GRAIL’s net assets. See note 8. GRAIL Spin-Off for additional details.
We recognized share-based compensation expense for these cash-based equity incentive awards of $52 million in 2024, prior to the Spin-Off of GRAIL, and of $95 million in 2023.
Employee Stock Purchase Plan
The 2000 Employee Stock Purchase Plan, or ESPP, permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which 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. The initial offering period commenced in July 2000. During 2025, 2024, and 2023, approximately 0.6 million, 0.5 million, and 0.4 million shares, respectively, were issued under the ESPP. As of December 28, 2025, approximately 11.8 million shares remained available for issuance under the ESPP.
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP were as follows:
202520242023
Risk-free interest rate
3.82% - 4.94%
 4.35% - 5.54%
0.78% - 5.54%
Expected volatility
41% - 48%
 41% - 49%
41% - 51%
Expected term
0.5 - 1.0 year
 0.5 - 1.1 year
0.5 - 1.1 year
Expected dividends0%0%0%
Weighted-average grant-date fair value per share$25.94 $37.24 $49.87 
Share-Based Compensation
Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our consolidated statements of operations was as follows:
In millions202520242023
Cost of product revenue$20 $25 $29 
Cost of service and other revenue3 
Research and development107 146 155 
Selling, general and administrative145 194 189 
Share-based compensation expense, before taxes275 371 380 
Related income tax benefits(61)(83)(87)
Share-based compensation expense, net of taxes$214 $288 $293 
As of December 28, 2025, unrecognized compensation cost, related to restricted stock and ESPP shares issued to date, of $391 million was expected to be recognized over a weighted-average period of approximately 2.3 years.
Share Repurchases
In August 2024, our Board of Directors authorized a share repurchase program, which canceled and superseded all prior and available repurchase authorizations, to repurchase up to $1.5 billion of our outstanding common stock. The repurchases may be completed through open market purchases, pursuant to Rule 10b5-1 or Rule 10b-18, or through an accelerated share repurchase program. Authorizations to repurchase up to $643 million of our outstanding common stock remained available as of December 28, 2025. We did not repurchase any shares during 2023.
Share repurchase activity was as follows:
In millions, except shares in thousands
20252024
Number of shares repurchased
7,790 904 
Total cost of shares repurchased (1)
$748 $116 
_____________
(1)Total cost of shares repurchased includes the 1% excise tax imposed as part of the Inflation Reduction Act of 2022, which is calculated based on share repurchases, net of certain share issuances, and was immaterial for all periods presented.
Subsequent to December 28, 2025 and through February 11, 2026, we repurchased an additional approximate 264,000 shares of our common stock for approximately $32 million.
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS
12 Months Ended
Dec. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL BALANCE SHEET DETAILS
7. SUPPLEMENTAL BALANCE SHEET DETAILS
Accounts Receivable
In millionsDecember 28,
2025
December 29,
2024
Trade accounts receivable, gross$861 $744 
Allowance for credit losses(7)(9)
Total accounts receivable, net$854 $735 
Inventory
In millionsDecember 28,
2025
December 29,
2024
Raw materials$254 $225 
Work in process398 404 
Finished goods45 31 
Inventory, gross697 660 
Inventory reserve(133)(113)
Total inventory, net$564 $547 
Property and Equipment
In millionsDecember 28,
2025
December 29,
2024
Leasehold improvements$755 $772 
Machinery and equipment705 683 
Computer hardware and software493 478 
Furniture and fixtures43 53 
Buildings44 44 
Construction in progress82 39 
Total property and equipment, gross2,122 2,069 
Accumulated depreciation(1,363)(1,254)
Total property and equipment, net$759 $815 
Accrued Liabilities
In millionsDecember 28,
2025
December 29,
2024
Contract liabilities, current portion$270 $260 
Accrued compensation expenses (1)
249 252 
Accrued taxes payable107 101 
Operating lease liabilities, current portion78 79 
Other, including warranties (2)
142 135 
Total accrued liabilities$846 $827 
_____________
(1)Includes employee separation costs related to restructuring activities.
(2)See table below for changes in the reserve for product warranties.
Changes in the reserve for product warranties were as follows:
In millions
Balance as of January 1, 2023$18 
Additions charged to cost of product revenue42 
Repairs and replacements(39)
Balance as of December 31, 202321 
Additions charged to cost of product revenue42 
Repairs and replacements(45)
Balance as of December 29, 202418 
Additions charged to cost of product revenue28 
Repairs and replacements(29)
Balance as of December 28, 2025$17 
Restructuring
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 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.
A summary of the pre-tax restructuring charges is as follows:
In millions202520242023Cumulative charges recorded since inception
Employee separation costs$47 $12 $48 $107 
Asset impairment charges (1)
— 46 100 146 
Other costs— 
Total restructuring charges (2)
$47 $62 $152 $261 
_____________
(1)For 2024, relates to impairment of right-of-use assets and leasehold improvements for Foster City campus and other property in San Diego.
For 2023, primarily relates to impairment of right-of-use assets and leasehold improvements for our i3 and Foster City campuses.
(2)For 2025, $26 million was recorded in SG&A expense, $16 million in R&D expense, and remainder in cost of revenue.
For 2024, $59 million was recorded in SG&A expense, $2 million in R&D expense, and remainder in cost of revenue.
For 2023,$122 million was recorded in SG&A expense, $24 million in R&D expense, and remainder in cost of revenue.
Total restructuring charges for 2024 and 2023 primarily related to the Core Illumina segment.
In 2024, we recorded right-of-use asset impairments of $12 million and $19 million related to our campus in Foster City, California and another property in San Diego, California, respectively. In 2023, we recorded right-of-use asset impairments of $38 million and $21 million related to our i3 campus in San Diego and our campus in Foster City, respectively. The impairments were determined by comparing the fair values of the impacted right-of-use assets to the carrying values of the assets as of the impairment measurement date. The fair values of the right-of-use assets were estimated using the discounted future cash flows method, which includes estimates and assumptions for future sublease rental rates that reflect current sublease market conditions, as well as discount rates. The estimates and assumptions used in our assessments represent Level 3 measurements because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. In 2024, we recorded $14 million of leasehold improvement impairments related to our Foster City campus and, in 2023, we recorded $16 million and $22 million of leasehold improvement impairments related to our i3 and Foster City campuses, respectively. The right-of-use asset and leasehold improvement impairments were recognized in selling, general and administrative expense.
A summary of the restructuring liability is as follows:
In millions
Employee Separation Costs
Other CostsTotal
Amount recorded in accrued liabilities as of December 31, 2023
$17 $$18 
Expense recorded
12 16 
Cash payments(24)(2)(26)
Adjustments to accrual(3)(1)(4)
Amount recorded in accrued liabilities as of December 29, 2024
2 2 4 
Expense recorded
47  47 
Cash payments(42)(2)(44)
Adjustments to accrual   
Amount recorded in accrued liabilities as of December 28, 2025
$7 $ $7 

Indemnification Liability
In connection with the acquisition of GRAIL, 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. Prior to the Spin-Off of GRAIL in 2024, it was not probable that the performance conditions associated with the award would be achieved and, therefore, no share-based compensation expense was recognized in the consolidated statements of operations. In connection with the Spin-Off, this award was assumed by GRAIL. For a period of 2.5 years following the Spin-Off, 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 December 28, 2025 and December 29, 2024, we recognized a non-contingent liability of $1 million related to this indemnification.
v3.25.4
GRAIL SPIN-OFF
12 Months Ended
Dec. 28, 2025
Discontinued Operations and Disposal Groups [Abstract]  
GRAIL SPIN-OFF
8. GRAIL SPIN-OFF
On June 24, 2024, we completed the Spin-Off of GRAIL into a separate, independent publicly traded company through the distribution of 26,547,021 shares of GRAIL common stock to Illumina stockholders on a pro rata basis. The GRAIL common stock distributed in the Spin-Off consisted of approximately 85.5% of the outstanding common stock of GRAIL as of the Record Date. The Spin-Off was structured as a tax-free spin-off and Illumina stockholders received one share of GRAIL common stock for every six shares of Illumina common stock held on the Record Date. We retained approximately 14.5% of the shares of GRAIL common stock immediately following the Spin-Off. The disposition of GRAIL did not meet the criteria to be reported as a discontinued operation and accordingly, GRAIL’s assets, liabilities, results of operations and cash flows have not been reclassified.
As part of the Spin-Off, we contributed to GRAIL an amount, in cash, to cover 2.5 years of GRAIL’s operations (the Disposal Funding), which was determined to be $974 million, less the cash and cash equivalents held by GRAIL.
The carrying amounts of GRAIL’s assets and liabilities included as part of the disposal group were as follows:
In millions
Cash and cash equivalents
$968 
Accounts receivable, net
13 
Inventory, net
22 
Prepaid expenses and other current assets
27 
Property and equipment, net
80 
Operating lease right-of-use assets
74 
Intangible assets, net (1)
2,201 
Other assets14 
Accounts payable(12)
Accrued liabilities (118)
Operating lease liabilities(62)
Other long term-liabilities(469)
GRAIL net assets
$2,738 
Amount of GRAIL net assets recorded to short-term investments
$397 
Amount of GRAIL net assets recorded to additional paid-in capital
$2,341 
Additional adjustments recorded to additional paid-in capital as a result of the GRAIL Spin-Off:
Non-contingent indemnification liability (see Note 7)
Tax adjustment for difference between the book and tax values of our retained investment in GRAIL
57 
Total recorded to additional paid-in capital as a result of the GRAIL Spin-Off
$2,399 
_____________
(1)Includes IPR&D with a carrying value of $140 million after impairment. Refer to note 4. Intangible Assets, Goodwill and Acquisitions.
See note 12. Segment and Geographic Information for GRAIL’s results of operations, prior to the Spin-Off, included in our consolidated statements of operations for the periods presented within.
In planning for and executing the Spin-Off, we incurred $53 million and $17 million in separation-related transaction costs in 2024 and 2023, respectively, recognized in selling, general, and administrative expense. The costs primarily related to financial advisory, legal, regulatory and other professional services fees directly related to the Spin-Off.
In connection with the Spin-Off, Illumina and GRAIL entered into various agreements to effect the Spin-Off and provide a framework for GRAIL’s relationship with Illumina after the Spin-Off, including a separation and distribution agreement, an employee matters agreement, a tax matters agreement, an amended supply and commercialization agreement and a stockholder’s and registration rights agreement (the Agreements). The Agreements determine the treatment of the assets, employees, liabilities and obligations (including certain tax-related assets and liabilities) of Illumina attributable to periods prior to, at and after GRAIL’s separation and also govern certain relationships between Illumina and GRAIL after the Spin-Off.
As a result of the European Commission withdrawing its previously imposed fine, we recognized a net gain of $481 million in 2024. We recognized a gain of $489 million in operating expense, resulting from the reversal of the accrued fine and related accrued interest, offset by a loss of $8 million, recognized in other income (expense), net, for the reversal of associated foreign currency fluctuations. The fine accrued interest at a rate of 5.5% per annum while it was outstanding. The guarantees we provided in October 2023 to satisfy the obligation in lieu of cash payment while we appealed the European Commission’s jurisdictional and fine decisions were no longer outstanding as of 2024.
v3.25.4
LEGAL PROCEEDINGS
12 Months Ended
Dec. 28, 2025
Commitments and Contingencies Disclosure [Abstract]  
LEGAL PROCEEDINGS
9. LEGAL PROCEEDINGS
We are involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, we assess, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the consolidated financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures in consideration of many factors, which include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. We may change our estimates if our assessment of the various factors changes and the amount of ultimate loss may differ from our estimates, resulting in a material effect on our business, financial condition, results of operations, and/or cash flows.

Shareholder Derivative Complaints
On October 17, 2023, a stockholder derivative and class action complaint captioned Icahn Partners LP, et al. v. deSouza, et al., purportedly brought on behalf of Illumina and public holders of Illumina’s common stock, was filed in the Delaware Court of Chancery against certain current and former directors (including our former Chief Executive Officer). We are named as a nominal defendant in the complaint. The lawsuit alleges the named directors breached their fiduciary duties by knowingly causing Illumina to unlawfully close the GRAIL acquisition, concealing material facts related to the GRAIL acquisition and making inadequate disclosures. Before the filing of the complaint, the purported stockholders did not make a demand that our Board of Directors pursue the claims asserted therein. The complaint seeks damages, costs and expenses, including attorney fees, the certification and consolidation of a putative class, the issuance of amended disclosures, the removal of conflicted directors and declaratory and other equitable relief. On November 1, 2023, the defendants filed a motion to dismiss the complaint.
On February 26, 2024, a stockholder derivative complaint captioned City of Omaha Police and Firefighters Retirement System v. deSouza, et al., purportedly brought on behalf of Illumina, was filed in the Delaware Court of Chancery against certain current and former directors. On April 16, 2024, a stockholder derivative complaint captioned City of Roseville General Employees Retirement System, et al. 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. On March 26, 2024, the defendants filed a motion to dismiss the complaint in the lawsuit filed by City of Omaha Police and Firefighters Retirement System. On May 16, 2024, the defendants filed a motion to dismiss the complaint in the lawsuit filed by City of Roseville General Employees Retirement System, et al.
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 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.
On March 27, 2025, 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. Delaware shareholder derivative actions filed a stipulation to consolidate those actions. On April 11, 2025, the parties to the Icahn Partners LP, et al. v. deSouza, et al. action informed the court that they had agreed to a settlement in principle of that action involving a release of claims and no payment by any party. On April 17, 2025, the court held a teleconference on the consolidated action, during which it directed the parties to (i) refile the consolidation stipulation once the Icahn Partners LP, et al. v. deSouza, et al. settlement was finalized and (ii) proceed with the briefing on the motion to dismiss the operative complaint in the consolidated action, which is the complaint filed in The Pavers and Road Builders Benefit Funds v. deSouza, et al.
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, which has not yet been granted. 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 October 3, 2025, the Director Defendants filed their opening brief in support of defendants’ motion to dismiss the amended complaint filed in the consolidated Pavers action. Illumina filed a joinder to the opening brief. Plaintiffs filed their answering brief on November 20, 2025, and the Director Defendants filed their reply brief on December 19, 2025. Illumina filed a joinder to the reply brief. Any hearing on the motion to dismiss will be held February 13, 2026.
In light of the fact that these lawsuits are in an early stage, we cannot predict the ultimate outcome of the suits. We deny the allegations in the complaints and intend to vigorously defend the litigations.
On May 1, 2024, stockholder Michael Warner sent a litigation demand to our Board of Directors requesting that a civil action for monetary damages be brought by the Board of Directors on behalf of Illumina against officers and directors involved with the GRAIL acquisition. On July 30, 2024, the Board unanimously determined that it was in the best interest of the Company and its shareholders to defer a final decision on the demand given, among other things, the pending stockholder lawsuits described herein and the similarity of issues raised in the demand and those lawsuits. By letter dated October 13, 2025, Mr. Warner requested that the Board reconsider his demand in light of developments in the various shareholder cases related to the acquisition of GRAIL. On February 4, 2026, the Board unanimously determined that it was in the best interest of the Company and its shareholders continuing to defer a final decision on the demand. Our Board will monitor the stockholder lawsuits and revisit the demand as warranted as the lawsuits progress.
On August 21, 2024, an additional stockholder, Jane Davidson, sent a litigation demand to our Board of Directors requesting that a civil action for breaches of fiduciary duty, indemnification, contribution and other appropriate claims be brought by the Board of Directors on behalf of Illumina against officers and directors involved with the GRAIL acquisition. On October 29, 2024, the Board unanimously determined that it was in the best interest of the Company and its shareholders to defer a final decision on the demand given, among other things, the pending stockholder lawsuits described herein and the similarity of issues raised in the demand and those lawsuits. Our Board will monitor the stockholder lawsuits and revisit the demand as warranted as the lawsuits progress.
Securities Class Actions
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 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 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. On February 4, 2026, the Plaintiffs filed their opposition to the motion to dismiss. The Company’s reply is due March 6, 2026. No hearing date has been set.
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, and defendants filed their reply briefs on May 30, 2025. 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 seeking interlocutory appellate review of the court’s order overruling Illumina’s demurrer. On October 31, 2025, the Court of Appeals denied the writ.
In light of the fact that the lawsuits are in an early stage, we cannot predict the ultimate outcome of the suits. We deny the allegations in the complaints and intend to vigorously defend the litigation.
v3.25.4
INCOME TAXES
12 Months Ended
Dec. 28, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
10. INCOME TAXES
Income (loss) before income taxes summarized by region was as follows:
In millions202520242023
United States$331 $(1,834)$(1,735)
Foreign755 655 618 
Total income (loss) before income taxes
$1,086 $(1,179)$(1,117)
The provision for income taxes consisted of the following:
In millions202520242023
Current:   
Federal$ $$(5)
State13 18 
Foreign104 137 77 
Total current provision117 161 78 
Deferred:
Federal106 (59)(13)
State19 (56)(26)
Foreign(6)(2)
Total deferred benefit119 (117)(34)
Total tax provision$236 $44 $44 
During the year ended December 28, 2025, we adopted ASU 2023-09 to enhance the income tax disclosures regarding income taxes paid and the rate reconciliation disclosure. The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income (loss) before income taxes as follows:
202520242023
Dollars in millions$%$%$%
US federal statutory tax rate$228 21.0 %$(248)21.0 %$(235)21.0 %
State and local income taxes, net of federal income tax effect (1)
22 2.0 %(36)3.1 %(32)2.9 %
Foreign tax effects
Singapore
Statutory rate difference between Singapore and US(54)(5.0)%(110)9.3 %(103)9.2 %
Change in valuation allowance(74)(6.8)%(3)0.3 %31 (2.8)%
Nondeductible R&D expense2 0.2 %15 (1.3)%(0.2)%
Other10 0.9 %12 (1.0)%(0.2)%
United Kingdom
Pillar 2 (Global Minimum Tax) top-up tax10 0.9 %54 (4.6)%— — %
Other15 1.4 %(0.3)%(2)0.2 %
Other foreign jurisdictions16 1.5 %20 (1.7)%(0.7)%
Effect of changes in tax laws or rates enacted in current period  %— — %— — %
Effect of cross-border tax laws
Global intangible low-taxed income (GILTI)12 1.1 %121 (10.3)%153 (13.7)%
Subpart F income(15)(1.4)%23 (2.0)%20 (1.8)%
Foreign-derived intangible income (FDII)(5)(0.5)%(4)0.3 %(0.4)%
Tax Credits
Research tax credits(16)(1.5)%(21)1.8 %(27)2.4 %
Change in valuation allowances44 4.1 %14 (1.2)%(2)0.2 %
Nontaxable or nondeductible items
Stock compensation17 1.6 %16 (1.4)%31 (2.8)%
Goodwill impairment  %308 (26.1)%149 (13.3)%
Accrual of European Commission fine  %(99)8.4 %(0.3)%
Impact of acquisition related items(3)(0.3)%(46)3.9 %(0.7)%
Other6 0.6 %(0.3)%— — %
Changes in unrecognized tax benefits22 2.0 %19 (1.6)%32 (2.9)%
Other adjustments(1)(0.1)%(0.1)%— — %
Total tax provision, effective tax rate$236 21.7 %$44 (3.8)%$44 (3.9)%
_____________
(1)State taxes in California, Massachusetts, Illinois and Maryland made up the majority (greater than 50%) of the tax effect in this category for 2025. California and Massachusetts made up the majority (greater than 50%) of the tax effect in this category for 2024 and 2023.
We have elected to account for the global intangible low-taxed income (GILTI) as a period cost in our consolidated financial statements.

The impact of acquisition related items includes the income tax expense impact of transaction costs, acquisition related compensation, and changes to the contingent value rights associated with the GRAIL acquisition.

Significant components of deferred tax assets and liabilities were as follows:
In millionsDecember 28,
2025
December 29,
2024
Deferred tax assets:  
Net operating losses$125 $189 
Tax credits290 252 
Other accruals and reserves32 40 
Stock compensation31 34 
Capitalized U.S. R&D expenses134 181 
Other amortization36 42 
Operating lease liabilities97 112 
Property and equipment22 17 
Investments 23 
Other68 63 
Total gross deferred tax assets835 953 
Valuation allowance on deferred tax assets(250)(278)
Total deferred tax assets
585 675 
Deferred tax liabilities:  
Purchased intangible amortization(23)(35)
Operating lease right-of-use assets(50)(57)
Investments(39)— 
Other(23)(25)
Total deferred tax liabilities(135)(117)
Deferred tax assets, net$450 $558 

A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis and includes a review of all available positive and negative evidence, including operating results and forecasted ranges of future taxable income. Based on the available evidence as of December 28, 2025, we were not able to conclude it is more likely than not certain deferred tax assets will be realized. Therefore, a valuation allowance of $250 million was recorded against certain U.S. and foreign deferred tax assets.     

As of December 28, 2025, we had net operating loss carryforwards for federal and state tax purposes of $59 million and $1,829 million, respectively, which will begin to expire in 2036 and 2026, respectively, unless utilized prior. We also had federal and state tax credit carryforwards of $173 million and $250 million, which will begin to expire in 2031 and 2027, respectively, unless utilized prior.

Pursuant to Section 382 and 383 of the Internal Revenue Code, utilization of net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of December 28, 2025 are net of any previous limitations due to Section 382 and 383.
Our manufacturing operations in Singapore operate under various tax holidays and incentives, which will begin to expire in 2035. These tax holidays and incentives resulted in a $37 million, $33 million, and $75 million decrease to the provision for income taxes in 2025, 2024, and 2023, respectively. These tax holidays and incentives resulted in an increase in diluted earnings per share of $0.24 in 2025, and a decrease in diluted loss per share of $0.20 and $0.47 in 2024 and 2023, respectively.

As of December 28, 2025, we asserted that $1,729 million of foreign earnings would not be indefinitely reinvested, and accordingly, recorded a deferred tax liability of $23 million.

The following table summarizes the gross amount of our uncertain tax positions:
In millionsDecember 28,
2025
December 29,
2024
December 31,
2023
Balance at beginning of year$232 $210 $153 
Increases related to prior year tax positions14 27 
Decreases related to prior year tax positions (2)(2)
Increases related to current year tax positions11 23 42 
Decreases related to lapse of statute of limitations(4)(1)(10)
Balance at end of year$253 $232 $210 

Included in the balance of uncertain tax positions as of December 28, 2025 and December 29, 2024, was $216 million and $202 million, respectively, of net unrecognized tax benefits that, if recognized, would reduce the effective income tax rate in future periods.

Any interest and penalties related to uncertain tax positions are reflected in the provision for income taxes. We recognized expense of $9 million, $6 million, and $2 million in 2025, 2024, and 2023, respectively, related to potential interest and penalties on uncertain tax positions. We recorded a liability for potential interest and penalties of $23 million and $13 million as of December 28, 2025 and December 29, 2024, respectively.

Tax years 1997 to 2024 remain subject to future examination by the major tax jurisdictions in which we are subject to tax. The Internal Revenue Service recently began an examination of the U.S. Corporation Income Tax Returns for tax years 2021 through 2024. Given the uncertainty of potential adjustments from examination as well as the potential expiration of the statute of limitations, it is reasonably possible that the balance of unrecognized tax benefits could change significantly over the next 12 months. Due to the number of years remaining that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

The following table summarizes income taxes paid (net of refunds):

In millions202520242023
Federal$22 $31 $(2)
State7 — 
Foreign44 74 63 
Total$73 $105 $65 
The following table summarizes components of income tax paid (net of refunds received) exceeding 5% of the annual total by jurisdiction:

In millions202520242023
Federal$22 $31 *
California$5 **
Maryland**$
Brazil*$10 *
China$10 *$14 
Germany$4 *$
Israel**$
Netherlands$5 **
United Kingdom$6 $31 $17 
_____________
*Income tax paid (net of refunds received) did not exceed 5% of the annual total by jurisdiction.
v3.25.4
EMPLOYEE BENEFIT PLANS
12 Months Ended
Dec. 28, 2025
Postemployment Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
11. EMPLOYEE BENEFIT PLANS
Retirement Plan
We have a 401(k) savings plan covering substantially all of our employees in the United States, as well as other defined contribution plans covering certain non-U.S. employees. During 2025, 2024, and 2023, we made matching contributions of $48 million, $45 million, and $46 million, respectively, related to our defined contribution plans.

Deferred Compensation Plan
The Illumina, Inc. Deferred Compensation Plan (the Plan) allows senior level employees to contribute up to 60% of their base salary and 100% of their variable cash compensation, and members of the board of directors to contribute up to 100% of their director fees and equity awards. Under the Plan, we credit the participants’ contributions with earnings that reflect the performance of certain independent investment funds. On a discretionary basis, we may also make employer contributions to participant accounts in any amount determined by us. The vesting schedules of employer contributions are at the sole discretion of the Compensation Committee. However, all employer contributions shall become 100% vested upon the occurrence of the participant’s disability, death or retirement or a change in control of Illumina. The benefits under this plan are unsecured. Participants are generally eligible to receive payment of their vested benefit at the end of their elected deferral period or after termination of their employment for any reason or at a later date to comply with the restrictions of Section 409A.
We established a rabbi trust for the benefit of the participants under the Plan and have included the assets of the trust in other assets in the consolidated balance sheets. As of December 28, 2025 and December 29, 2024, the assets of the trust were $79 million and $70 million, respectively, and our liabilities, included in accrued liabilities, were $72 million and $65 million, respectively. Changes in the value of the assets held by the trust are recorded in other income (expense), net, and changes in the value of the deferred compensation liabilities are recorded in operating expense.
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION
12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION
12. SEGMENT AND GEOGRAPHIC INFORMATION
Reportable Segment Information
As of December 28, 2025, we have one reportable segment, Core Illumina. Prior to the Spin-Off of GRAIL, on June 24, 2024, our reportable segments included both Core Illumina and GRAIL. See note 8. GRAIL Spin-Off for details. We continue to disclose certain historical information for GRAIL prior to the Spin-Off. 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.
Core Illumina: Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. Core Illumina sells products and provides services to GRAIL, and vice versa, in accordance with contractual agreements between the entities.
GRAIL: GRAIL is a healthcare company focused on early detection of multiple cancers. Prior to the Spin-Off of GRAIL into a separate, independent public company, GRAIL was required to be held and operated separately and independently from Illumina pursuant to the transitional measures ordered by the European Commission.
Our CODM allocates resources and evaluates business performance based on revenues and net income (loss). Net income (loss) 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. The accounting policies for segments are the same as those described in the summary of significant accounting policies.
The following tables present selected financial information with respect to segments for the periods presented:
In millions202520242023
Core Illumina:
Revenue (1)
$4,343 $4,332 $4,438 
Less:
Cost of revenue1,473 1,424 1,582 
Research and development967 988 1,030 
Selling and marketing618 638 648 
General and administrative468 262 600 
Goodwill and intangible impairment
 
Legal contingency and settlement
10 (456)20 
Core Illumina income from operations807 1,473 552 
GRAIL:
Revenue
 55 93 
Total operating expenses (2)
 2,360 1,714 
Consolidated other income (expense), net279 (346)(48)
Consolidated provision for income taxes
236 44 44 
Intersegment eliminations
 (1)— 
Consolidated net income (loss)
$850 $(1,223)$(1,161)
_____________
(1)Core Illumina revenue for 2024 and 2023 included intercompany revenue of $15 million and $26 million, respectively.
(2)GRAIL operating expenses are inclusive of cost of revenue, research and development, selling and marketing, general and administrative, and goodwill and intangible impairment for the comparative periods prior to the Spin-Off on June 24, 2024.
 In millions202520242023
Depreciation and amortization:
Core Illumina$270 $280 $273 
GRAIL 74 159 
Consolidated depreciation and amortization$270 $354 $432 
Capital expenditures:
Core Illumina$148 $137 $183 
GRAIL 13 
Eliminations — (1)
Consolidated capital expenditures$148 $142 $195 
Geographic Data
Long-lived assets, consisting of property and equipment and operating lease right-of-use assets, were as follows:
In millionsDecember 28,
2025
December 29,
2024
United States$660 $750 
Singapore281 279 
United Kingdom119 124 
Other countries69 81 
Total long-lived assets, net
$1,129 $1,234 
Refer to note 2. Revenue for revenue by geographic area.
v3.25.4
SUBSEQUENT EVENTS
12 Months Ended
Dec. 28, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
13. SUBSEQUENT EVENTS
On January 30, 2026, we acquired SomaLogic and other specified assets from Standard BioTools for a $350 million upfront cash payment, subject to customary adjustments. The Stock Purchase Agreement, which we entered into on June 22, 2025, further provides for, in connection with the revenues generated from certain products and services, (i) royalty streams and (ii) up to $75 million in potential milestone payments to Standard BioTools.

We also acquired an intellectual property portfolio on January 30, 2026 for a $50 million upfront cash payment.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 28, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Everett Cunningham [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On November 11, 2025, Everett Cunningham, our Chief Commercial Officer, entered in a new arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). On February 9, 2026, Mr. Cunningham terminated this new arrangement in connection with his departure from the Company on January 16, 2026. The arrangement provided for the sale of up to 8,118 shares and would have terminated by its terms on November 11, 2026.
Name Everett Cunningham
Title Chief Commercial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 11, 2025
Rule 10b5-1 Arrangement Terminated true
Termination Date February 9, 2026
Expiration Date November 11, 2026
Arrangement Duration 365 days
Aggregate Available 8,118
Patricia Leckman [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On November 12, 2025, Patricia Leckman, our Chief People Officer, entered in a new arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The arrangement terminates on November 12, 2026 and provides for the sale of up to 2,370 shares.
Name Patricia Leckman
Title Chief People Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 12, 2025
Expiration Date November 12, 2026
Arrangement Duration 365 days
Aggregate Available 2,370
Scott Davies [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On November 21, 2025, Scott Davies, our Chief Legal Officer, entered in a new arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The arrangement terminates on December 28, 2026 and provides for the sale of up to 4,251 shares.
Name Scott Davies
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 21, 2025
Expiration Date December 28, 2026
Arrangement Duration 402 days
Aggregate Available 4,251
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 28, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 28, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We recognize the importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of our data. Our cybersecurity risk management strategy is integrated into our established enterprise risk management program, which includes defined risk, assessment, mitigation, and reporting processes. Our information security team has deployed multiple technical and operational processes to aid in our ability to continuously identify and respond to cybersecurity threats and incidents. Our cybersecurity incident management process includes impact assessment, containment, mitigation and recovery strategies.
In addition to our continuous monitoring of our information systems, we utilize third parties to provide external threat intelligence and evaluation of incident notifications in order to identify potential threats or incidents that could impact us. We also evaluate our cybersecurity program against the National Institute of Standards and Technology’s Cybersecurity Framework. For all suspected cybersecurity incidents, the information security team conducts a preliminary assessment to determine the potential severity and impact extent of the incident and, where appropriate, a materiality assessment is made. Upon a confirmed cybersecurity incident, the information security team initiates an incident response process with goals to contain, respond, recover, protect and minimize any impacts caused by the incident. The response process includes deployment of a variety of short term and long-term technical and procedural actions as appropriate. Further, we have established a third party risk management program to monitor suppliers who have access to our information.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our cybersecurity risk management strategy is integrated into our established enterprise risk management program, which includes defined risk, assessment, mitigation, and reporting processes.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Audit Committee, a committee of our Board of Directors, is responsible for governing management’s review and assessment of our cybersecurity and other information technology risks, controls, and procedures, including management’s incident resolution process and any specific cybersecurity issues that could affect the adequacy of our internal controls. Our Chief Information Officer provides regular updates to the Audit Committee and to the Board of Directors, including a review of any security risk events and improvements in our security controls.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Audit Committee, a committee of our Board of Directors, is responsible for governing management’s review and assessment of our cybersecurity and other information technology risks, controls, and procedures, including management’s incident resolution process and any specific cybersecurity issues that could affect the adequacy of our internal controls.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Chief Information Officer provides regular updates to the Audit Committee and to the Board of Directors, including a review of any security risk events and improvements in our security controls.
Cybersecurity Risk Role of Management [Text Block]
Our information security team, under the Chief Information Officer, is led by our Chief Information Security Officer (CISO) and is responsible for assessing and managing risks from cybersecurity threats. Our CISO has over 20 years of information security experience, including as a leader of information security programs at other large enterprises, and is supported by a team of professionals focused on information security. Our information security team regularly meets to review our cybersecurity posture, the broader cybersecurity landscape and any identified cybersecurity incidents. Our information security team has procedures in place for investigating suspected cybersecurity incidents, as well as monitoring cybersecurity risks and ongoing mitigation strategies, the status of prevention, detection, and mitigation controls and any planned future control enhancements.
We believe that risks from prior cybersecurity threats to information systems owned and used by us, including as a result of any previous cybersecurity incidents, have not materially affected our business to date. We can provide no assurance that there will not be incidents in the future or that they will not materially affect us, including our business strategy, results of operations, or financial condition. We maintain a cybersecurity insurance policy which may mitigate certain financial impacts of a cybersecurity incident. Please refer to “Risks Relating to Information Technology Security and Continuity” within the Risk Factors within the Business & Market Information Section of this report.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our information security team, under the Chief Information Officer, is led by our Chief Information Security Officer (CISO) and is responsible for assessing and managing risks from cybersecurity threats.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has over 20 years of information security experience, including as a leader of information security programs at other large enterprises, and is supported by a team of professionals focused on information security.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Audit Committee, a committee of our Board of Directors, is responsible for governing management’s review and assessment of our cybersecurity and other information technology risks, controls, and procedures, including management’s incident resolution process and any specific cybersecurity issues that could affect the adequacy of our internal controls. Our Chief Information Officer provides regular updates to the Audit Committee and to the Board of Directors, including a review of any security risk events and improvements in our security controls.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and include our accounts, our wholly-owned subsidiaries, and majority-owned or controlled companies. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Variable Interest Entities (VIEs)
Variable Interest Entities (VIEs)
We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We continuously perform this assessment, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of a VIE. As of December 28, 2025, there were no VIEs for which we were the primary beneficiary and for which we were required to consolidate.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements requires that management make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosures of contingent assets and liabilities. Although imposed tariffs, reductions in the U.S. government’s funding of the NIH, our inclusion on the unreliable entities list by regulatory authorities in China, as well as macroeconomic factors such as inflation, exchange rate fluctuations, and concerns about an economic downturn present additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. Actual results could differ from those estimates.
Fiscal Year
Fiscal Year
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. References to 2025, 2024, and 2023 refer to fiscal years ended December 28, 2025, December 29, 2024, and December 31, 2023, respectively, which were all 52 weeks.
Functional Currency
Functional Currency
The U.S. dollar is the functional currency of our international operations. We re-measure foreign subsidiaries’ monetary assets and liabilities to the U.S. dollar and record the net gains or losses resulting from re-measurement in other income (expense), net in the consolidated statements of operations.
Concentrations of Risk
Concentrations of Risk
Customers
We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products or services with new capabilities, and other factors could negatively impact our operating results. A portion of our customers consist of university and research institutions that management believes are, to some degree, directly or indirectly supported by the United States Government. A significant change in current research funding, particularly with respect to funding of the U.S. National Institutes of Health or targeted cancellations by the U.S. federal government of certain grants or contracts, could have an adverse impact on future revenues and results of operations.
International sales entail a variety of risks, including currency exchange fluctuations, longer payment cycles, and greater difficulty in accounts receivable collection. We are also subject to general geopolitical risks, such as political, social and economic instability, and changes in diplomatic and trade relations. The risks of international sales are mitigated in part by the extent to which sales are geographically distributed. Shipments to customers outside the United States comprised 48% of total revenue in each of 2025, 2024, and 2023. Customers outside the United States represented 53% of our gross trade accounts receivable balance as of December 28, 2025 and December 29, 2024.
We had no customers that provided more than 10% of total consolidated revenue in 2025, 2024, and 2023. We perform regular reviews of customer activity and associated credit risks and do not require collateral or enter into netting arrangements. Historically, we have not experienced significant credit losses from accounts receivable.
Financial Instruments
We are also subject to risks related to our financial instruments, including cash and cash equivalents, investments, and accounts receivable. Most of our cash and cash equivalents as of December 28, 2025 were deposited with U.S. financial institutions, either domestically or with their foreign branches. Our investment policy restricts the amount of credit exposure to any one issuer to 5% of the portfolio or 5% of the total issue size outstanding at the time of purchase and to any one industry sector, as defined by Clearwater Analytics (Industry Sector Report), to 30% of the portfolio at the time of purchase. There is no limit to the percentage of the portfolio that may be maintained in debt securities, U.S. government-sponsored entities, U.S. Treasury securities, and money market funds. Historically, we have not experienced significant credit losses from financial instruments.
Suppliers
We require customized products and components that currently are available from a limited number of sources. We source certain key products and components included in our products from single vendors. Historically, we have not experienced significant issues sourcing materials to build our products.
Segments
Segments
We report segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (CODM) for making decisions and assessing performance as the source of our reportable segments. Our CODM allocates resources and assesses the performance of segments using information about their revenue and net income (loss). Our CODM does not evaluate our segments using asset information.
Accounting Pronouncements Adopted and Accounting Pronouncements Pending Adoption
Accounting Pronouncements Adopted in 2025
In December 2023, the FASB issued ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures. The new standard includes enhanced income tax disclosures, specifically related to the rate reconciliation and income taxes paid for annual periods. The standard was effective for us beginning in fiscal year 2025. We adopted the standard on its effective date in fiscal year 2025 and applied the amendments retrospectively, as permitted, to all prior periods presented in the consolidated financial statements. See note 10. Income Taxes for additional details.
Accounting Pronouncements Adopted in 2024
In December 2023, the FASB issued ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. The new standard requires a company to disclose incremental segment information on an annual and interim basis, including significant segment expenses and measures of profit or loss that are regularly provided to the CODM. The standard does not change how an entity identifies its operating segments. The standard was effective for us beginning in fiscal year 2024 and interim periods within fiscal year 2025. We adopted the standard on its effective date in fiscal year 2024 and applied the amendments retrospectively to all prior periods presented in the consolidated financial statements. See note 12. Segment and Geographic Information for additional details.
Accounting Pronouncements Pending Adoption
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. The new standard requires a company to provide disaggregated disclosures, in the notes to the financial statements, of specified categories of expenses that are included in line items on the face of the income statement. The standard is effective for us beginning in fiscal year 2027 and interim periods within fiscal year 2028, with early adoption permitted. The new standard is expected to be applied prospectively, but retrospective application is permitted. We are currently evaluating the impact of ASU 2024-03 on the consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The new standard is intended to modernize the recognition and disclosure framework for capitalized internal-use software costs, removing the previous “development” stage model and introducing a more judgment-based approach. The standard is effective for us beginning in our first quarter of fiscal year 2028, with early adoption permitted, and can be applied using a prospective, retrospective, or modified transition approach. We are currently evaluating the impact of ASU 2025-06 on the consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging, Hedge Accounting Improvements. The new standard is intended to better align the hedge accounting model with risk management activities. The standard is effective for us beginning in our first quarter of fiscal year 2027, with early adoption permitted, and is applied on a prospective basis. We are currently evaluating the impact of ASU 2025-09 on the consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Accounting for Government Grants Received by Business Entities. The new standard provides guidance on the recognition, measurement, and presentation of government grants. The standard is effective for us beginning in our first quarter of fiscal year 2029, with early adoption permitted, and can be applied using a modified prospective, modified retrospective or full retrospective transition approach. We are currently evaluating the impact of ASU 2025-10 on the consolidated financial statements.
Revenue Recognition and Shipping and Handling Expenses
Revenue Recognition
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, development and licensing agreements, and, prior to the Spin-Off of GRAIL in 2024, cancer detection testing services related to the GRAIL business.
We recognize revenue when control of our products and services is transferred to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. Revenue recognition for contracts with multiple deliverables is based on the separate satisfaction of each distinct performance obligation within the contract. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. We consider a performance obligation satisfied once we have transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The contract price is allocated to each performance obligation in proportion to its standalone selling price. We determine our best estimate of standalone selling price using average selling prices over a rolling 12-month period coupled with an assessment of current market conditions. If the product or service has no history of sales or if the sales volume is not sufficient, we rely upon prices set by management, adjusted for applicable discounts.
Revenue from product sales is recognized generally upon delivery to the end customer, which is when control of the product is deemed to be transferred. Invoicing typically occurs upon shipment and payment is typically due within 30 days from invoice. In instances where right of payment or transfer of title is contingent upon the customer’s acceptance of the product, revenue is deferred until all acceptance criteria have been met. Revenue from genotyping and sequencing services, including cancer detection testing services related to the GRAIL business, is recognized when earned, which is generally at the time the genotyping or sequencing analysis data is made available to the customer. Revenue from instrument service contracts is recognized as the services are rendered, typically evenly over the contract term. Revenue from development and licensing agreements generally includes upfront and periodic licensing fees, contract research and development services, or payments for development and regulatory milestones. Revenue for these agreements is recognized when each distinct performance obligation is satisfied.
Revenue is recorded net of discounts, distributor commissions, and sales taxes collected on behalf of governmental authorities. Employee sales commissions are recorded as selling, general and administrative expense when incurred as the amortization period for such costs, if capitalized, would have been one year or less.
In certain markets, products and services are sold to customers through distributors. In most sales through distributors, the product is delivered directly to customers by us. The terms of sales transactions through distributors are consistent with the terms of direct sales to customers.
Shipping and Handling Expenses
Shipping and handling expenses are included in cost of product revenue.
Earnings (Loss) per Share
Earnings (Loss) per Share
Basic earnings (loss) per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In loss periods, basic and diluted loss per share are identical since the effect of potentially dilutive common shares is antidilutive and therefore excluded. Potentially dilutive common shares from equity awards are determined using the average share price for each period under the treasury stock method and proceeds from exercise of equity awards and the average amount of unrecognized compensation expense for equity awards are assumed to be used to repurchase shares. Potentially dilutive common shares issuable upon conversion of convertible notes are determined using the if-converted method.
Fair Value Measurements
Fair Value Measurements
The fair value of assets and liabilities are based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize use of observable inputs and minimize use of unobservable inputs. We use a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value:
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The carrying amounts of financial instruments such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments.
Cash Equivalents
Cash Equivalents and Investments
Cash equivalents are comprised of short-term, highly-liquid investments with original maturities of 90 days or less.
Equity Securities and Investments
We have strategic investments in privately-held companies (non-marketable equity securities) and publicly traded companies (marketable equity securities). Our marketable equity securities are measured at fair value. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Equity investments are classified as current, short-term investments, or noncurrent, recorded in other assets, based on the nature of the securities and their availability for use in current operations. Realized and unrealized gains and losses on our equity investments are recorded in other income (expense), net in the consolidated statements of operations. Our equity investments are assessed for impairment quarterly. Impairment losses, equal to the difference between the carrying value and the fair value of the investment, are recorded in other income (expense), net.
We use the equity method to account for investments through which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded in other assets, and our share of net income or loss is recognized on a one quarter lag in other income (expense), net.
Accounts Receivable
Accounts Receivable
Trade accounts receivable are recorded at the net invoice value and are not interest-bearing. Receivables are considered past due based on the contractual payment terms. We reserve a percentage of our trade receivable balance based on collection history and current economic trends that we expect will impact the level of credit losses over the life of our receivables. These reserves are re-evaluated on a regular basis and adjusted, as needed. Once a receivable is deemed to be uncollectible, such balance is charged against the reserve.
Inventory
Inventory
Inventory is stated at the lower of cost or net realizable value, on a first-in, first-out basis. Inventory includes raw materials and finished goods that may be used in the research and development process, and such items are expensed as consumed or capitalized as property and equipment and depreciated. Inventory write-downs for slow-moving, excess, and obsolete inventories are estimated based on product life cycles, quality issues, historical experience, and usage forecasts.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, using the straight-line method. Depreciation of leasehold improvements is recorded over the shorter of the lease term or the estimated useful life of the related assets. Maintenance and repairs are expensed as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expense.
Costs incurred to develop internal-use software during the application development stage are recorded at cost as computer software. Costs incurred in the development of such internal-use software, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software application development, are capitalized. Costs incurred outside of the application development stage are expensed as incurred.
Leases
Leases
We have various non-cancellable operating lease agreements for office, lab, manufacturing, and distribution facilities. These leases have remaining lease terms of 1 year to 13 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms, ranging from 2 years to 20 years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms, as well as payments for common-area-maintenance and administrative services. We may receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. As of December 28, 2025, we do not have any financing leases.
Operating lease right-of-use assets and liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms, less any impairments recorded for right-of-use assets. We do not allocate lease payments to non-lease components; therefore, fixed payments for common-area-maintenance and administrative services are included in our operating lease right-of-use assets and liabilities. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in our operating lease liabilities and are recorded on a straight-line basis over the lease terms. We sublease certain real estate to third parties and this sublease income is also recorded on a straight-line basis.
Business Combinations
Business Combinations
Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs that we incur to complete the business combination, such as legal and other professional fees, are expensed as they are incurred.
In connection with certain acquisitions, contingent consideration can be earned by the sellers upon completion of certain future performance milestones. In these cases, a liability is recorded on the acquisition date, as a component of accrued liabilities and/or other long-term liabilities, for an estimate of the acquisition-date fair value of the contingent consideration. These estimates require management judgment, including probabilities of achieving certain future milestones. Changes in the fair value of the contingent consideration subsequent to the acquisition date are recognized in selling, general and administrative expense in our consolidated statements of operations.
If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period (not to exceed a year from the date of acquisition), we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in the consolidated statements of operations.
Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill, Intangible Assets and Other Long-Lived Assets
Assets acquired, including intangible assets and capitalized in-process research and development (IPR&D), and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment.
Goodwill and IPR&D are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and IPR&D are considered to be impaired if the carrying value of the reporting unit or IPR&D asset exceeds its respective fair value.
We perform our goodwill impairment analysis at the reporting unit level, which aligns with our reporting structure and availability of discrete financial information. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than the carrying amounts, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair values of our reporting units are less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair values of the reporting units with the carrying values, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test.
The IPR&D impairment test is performed by comparing the fair value of the asset to its carrying amount. When testing indefinite-lived intangibles for impairment, we may assess qualitative factors to determine whether it is more likely than not that the asset is impaired. Alternatively, we may bypass this qualitative assessment and perform a quantitative impairment test. If the IPR&D asset is impaired, the carrying value of the IPR&D is written down to the revised fair value with the related impairment charge recognized in the period in which the impairment occurs.
Our identifiable intangible assets with a finite life are typically comprised of acquired developed technologies, licensed technologies, customer relationships, license agreements, and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives.
We perform regular reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss in an amount equal to the excess of the carrying value over the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
We review our operating lease right-of-use assets for impairment whenever events or changes in circumstances indicate the carrying value of the right-of-use asset may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We consider a triggering event to reassess a right-of-use asset’s asset group to have occurred if we exit a portion of or the full facility or enter into a sublease. Factors that may indicate potential impairment include a significant decrease in the market price of an underlying leased asset group. If we conclude the carrying value of affected assets will not be recovered, we estimate the fair value of the assets and record an impairment in an amount equal to the excess of the carrying value over the fair value.
Government Incentives
Government Incentives
From time to time, we may qualify for or receive government incentives, under defined programs, from various governments, primarily to support our manufacturing and research and development activities. The incentives, which vary in size, have terms of up to five years and are subject to compliance with specified conditions. If conditions are not satisfied, the incentives are subject to reduction, recapture or termination. The government incentives are subject to confidentiality provisions, where applicable. Government incentives are recognized when there is reasonable assurance the conditions of the incentive will be met and the subsidies will be received. We record incentives related to the purchase or construction of assets as deferred income and recognize as a reduction to the related depreciation expense over the estimated useful life of the asset. We record incentives related to operating activities as a reduction of expense over the period necessary to match to the expenditure for which the incentive is intended to compensate. The effect of a change in estimate is recognized in the period in which it is concluded that it is no longer reasonably assured that (i) all of the incentive conditions will be met or (ii) a portion of the subsidies will be received.
We recorded benefits (reductions of expense) for operating-related incentives of $13 million and $4 million in research and development and selling, general and administrative expense, respectively, in 2025. Grant receivables totaled $21 million, as of December 28, 2025, of which the short-term portion of $8 million was recorded within prepaid expenses and other current assets and the remaining long-term portion was recorded in other assets. Amounts recognized in our consolidated financial statements in 2025 related to asset-based incentives and cash subsidies received were immaterial. Amounts recognized in 2024 and 2023 for government incentives were immaterial.
Derivative Financial Instruments
Derivative Financial Instruments
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 other current assets, other assets, accrued liabilities, or other long-term liabilities, as appropriate, on the consolidated balance sheets. The cash flows associated with such foreign exchange contracts, or derivative financial instruments, are classified as cash flows from operating activities in the 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 of these derivatives are recognized in other income (expense), net, along with the re-measurement gain or loss on the foreign currency denominated assets or liabilities. As of December 28, 2025, 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.
Warranties
Warranties
We generally provide a one-year warranty on instruments. Additionally, we provide a warranty on consumables through the expiration date, which generally ranges from six to twelve months after the manufacture date. At the time revenue is recognized, an accrual is established for estimated warranty expenses based on historical experience as well as anticipated product performance. We periodically review the warranty reserve for adequacy and adjust the warranty accrual, if necessary, based on actual experience and estimated costs to be incurred. Warranty expense is recorded as a component of cost of product revenue.
Share-Based Compensation
Share-Based Compensation
Share-based compensation expense is incurred related to restricted stock, employee stock purchase plan (ESPP), stock options, and, prior to the GRAIL Spin-Off in 2024, cash-based equity incentive awards. Forfeitures are accounted for, as incurred, as a reversal of share-based compensation expense related to awards that will not vest.
Restricted stock units (RSU) and performance stock units (PSU) are both considered restricted stock. The determination of the amount of share-based compensation expense for our PSU requires the use of certain estimates and assumptions that affect the amount of share-based compensation expense recognized in our consolidated statements of operations. The fair value of restricted stock and performance stock units that do not include a market condition is determined by the closing market price of our common stock on the date of grant. PSU that do not include a market condition represent a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, we reassess the probability of the achievement of such corporate performance goals and any increase or decrease in share-based compensation expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of adjustment. The fair value of performance stock units that include a market condition is determined on the date of grant using a Monte Carlo simulation, which includes assumptions for expected volatility, risk-free interest rate and dividend yield. 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. Share-based compensation expense is recognized based on the fair value on a straight-line basis over the requisite service periods of the awards. Compensation expense for PSU that include a market condition is recognized over the requisite service period regardless of whether the market conditions are achieved.
The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchased under our ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. The expected volatility is generally determined by weighing the historical and implied volatility of our common stock. The historical volatility is generally commensurate with the estimated expected term. The implied volatility is calculated from the implied market volatility of exchange-traded call options on our common stock. The expected term is generally based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that we have never declared or paid cash dividends on our common stock and do not anticipate paying such cash dividends. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards.
Cash-based equity incentive awards were classified as liability awards, as such awards were to be settled in cash. In connection with the Spin-Off of GRAIL, these awards were assumed by GRAIL. For purposes of valuation and performance measurement of the awards, GRAIL’s stand-alone value calculation, as estimated by GRAIL based on its analysis and on input from independent valuation advisors and analyses, was used. The fair value of the awards was recorded over the respective vesting periods of the awards, with recognition of a corresponding liability recorded in accrued liabilities in the consolidated balance sheets. The awards were remeasured to fair value at each reporting date until the awards were settled, with changes in fair value recognized in share-based compensation expense.
Research and Development
Research and Development
Research and development expenses include personnel expenses, contractor fees, facilities-related costs, material costs, and license fees. Expenditures relating to research and development are expensed in the period incurred.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred
Restructuring
Restructuring
We measure and accrue liabilities associated with employee separation costs, which primarily consist of severance pay and other separation costs such as outplacement services and benefits, at fair value as of the date the plan is approved and when such costs are reasonably estimable. The fair value measurement of restructuring related liabilities requires certain assumptions and estimates to be made, such as the retention period of certain employees. It is our policy to use the best estimates based on facts and circumstances available at the time of measurement, review the assumptions and estimates periodically, and adjust the liabilities when necessary.
Income Taxes
Income Taxes
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date.
Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when we believe it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise, we consider all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies.
The impact of a tax position is recognized in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Schedule of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings Per Share, Earnings Per Share
The weighted average shares used to calculate basic and diluted earnings (loss) per share were as follows:
 Years Ended
In millionsDecember 28,
2025
December 29,
2024
December 31,
2023
Weighted average shares outstanding
155 159 158 
Effect of potentially dilutive common shares from:
Equity awards1 — — 
Weighted average shares used in calculating diluted earnings (loss) per share
156 159 158 
Antidilutive shares:
Equity awards2 
Convertible senior notes — 
Potentially dilutive shares excluded due to antidilutive effect
2 
Schedule of Estimated Useful Lives of Major Classes of Property and Equipment
The estimated useful lives of the major classes of property and equipment are generally as follows:
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years
Property and Equipment
In millionsDecember 28,
2025
December 29,
2024
Leasehold improvements$755 $772 
Machinery and equipment705 683 
Computer hardware and software493 478 
Furniture and fixtures43 53 
Buildings44 44 
Construction in progress82 39 
Total property and equipment, gross2,122 2,069 
Accumulated depreciation(1,363)(1,254)
Total property and equipment, net$759 $815 
v3.25.4
REVENUE (Tables)
12 Months Ended
Dec. 28, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of 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, development and licensing agreements, and prior to the Spin-Off of GRAIL on June 24, 2024, cancer detection testing services related to the GRAIL business.
Revenue by Source
202520242023
In millionsSequencingMicroarrayTotalSequencingMicroarrayTotalSequencingMicroarrayTotal
Consumables$2,939 $288 $3,227 $2,858 $297 $3,155 $2,790 $293 $3,083 
Instruments465 17 482 484 17 501 685 19 704 
Total product revenue3,404 305 3,709 3,342 314 3,656 3,475 312 3,787 
Service and other revenue581 53 634 651 65 716 637 80 717 
Total revenue$3,985 $358 $4,343 $3,993 $379 $4,372 $4,112 $392 $4,504 
Revenue by Geographic Area
Based on region of destination (in millions)202520242023
Americas (1)
$2,406 $2,441 $2,521 
Europe1,264 1,185 1,140 
Greater China (2)
243 308 384 
Asia-Pacific, Middle East and Africa (3)
430 438 459 
Total revenue$4,343 $4,372 $4,504 
_____________
(1)Americas revenue included United States revenue of $2,243 million, $2,288 million, and $2,359 million in 2025, 2024, and 2023, respectively.
(2)Region includes revenue from China, Taiwan, and Hong Kong.
(3)Region includes revenue from Russia and Turkey.
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 28, 2025
Fair Value Disclosures [Abstract]  
Schedule of Marketable Securities
Gains (losses) recognized in other income (expense), net on marketable equity securities were as follows:
In millions2025
2024 (1)
2023
Net gains (losses) recognized during the period
$315 $(310)$(2)
Less: Net gains (losses) recognized during the period on securities disposed of during the period
150 — (2)
Net unrealized gains (losses) recognized during the period on securities still held at the reporting date
$165 $(310)$— 
_____________
(1)Subsequent to the Spin-Off of GRAIL, we recognized a loss of $309 million in 2024 on our retained investment.
Schedule of Other Commitments
Our commitments to the Funds are as follows:
Dollars in millions
Capital commitments
Callable through date
Remaining callable as of December 28, 2025
Fund I
$100 April 2026$
Fund II
$150 July 2029$33 
Fund III
$60 December 2034$25 
Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
December 28, 2025December 29, 2024
In millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Money market funds (cash equivalents)$1,173 $ $ $1,173 $931 $— $— $931 
Marketable equity securities215   215 93 — — 93 
Other investments
  32 32 — — 17 17 
Deferred compensation plan assets 79  79 — 70 — 70 
Total assets measured at fair value$1,388 $79 $32 $1,499 $1,024 $70 $17 $1,111 
Liabilities:
Contingent consideration liabilities$ $ $54 $54 $— $— $73 $73 
Deferred compensation plan liabilities
 72  72 — 65 — 65 
Total liabilities measured at fair value$ $72 $54 $126 $— $65 $73 $138 
Schedule of Changes in Estimated Fair Value of Acquisition Related Contingent Consideration Liabilities
Changes in the estimated fair value of our contingent consideration liabilities were as follows:
In millions
Balance as of January 1, 2023$412 
Change in estimated fair value(24)
Cash payments(1)
Balance as of December 31, 2023387 
Acquisition
Change in estimated fair value(315)
Cash payments(1)
Balance as of December 29, 202473 
Change in estimated fair value(18)
Cash payments(1)
Balance as of December 28, 2025$54 
Changes in the Helix contingent value right were as follows:
In millions
Balance as of January 1, 2023$58 
Change in estimated fair value10 
Balance as of December 31, 202368 
Change in estimated fair value15 
Cash received to settle
(83)
Balance as of December 29, 2024 and as of December 28, 2025
$— 
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS (Tables)
12 Months Ended
Dec. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-lived Intangible Assets Intangible Assets
 December 28, 2025December 29, 2024
In millionsGross
Carrying
Amount
Accumulated
Amortization
Intangible Assets,
Net
Gross
Carrying
Amount
Accumulated
Amortization
Intangible Assets,
Net
Developed technologies$436 $(335)$101 $465 $(305)$160 
Licensed technologies234 (143)91 234 (114)120 
License agreements24 (14)10 19 (13)
Customer relationships16 (14)2 16 (14)
Database12 (6)6 12 (5)
Trade name2 (2) (2)— 
Total intangible assets, net$724 $(514)$210 $748 $(453)$295 
Schedule of Estimated Annual Amortization of Finite-lived Intangible Assets
The estimated future annual amortization of intangible assets is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
In millionsEstimated Annual Amortization
2026$55 
202753 
202850 
202921 
203014 
Thereafter17 
Total$210 
Schedule of Goodwill
Goodwill
In millions
Balance as of December 31, 2023 (1)
$2,545 
Impairment(1,466)
Acquisition34 
Balance as of December 29, 2024 and as of December 28, 2025
$1,113 
_____________
(1)The balance as of December 31, 2023 includes accumulated impairment of $4,626 million related to the GRAIL reporting unit.
v3.25.4
DEBT AND OTHER COMMITMENTS (Tables)
12 Months Ended
Dec. 28, 2025
Debt Disclosure [Abstract]  
Schedule of Debt Obligations Summary of Term Debt Obligations
In millionsDecember 28,
2025
December 29,
2024
Principal amount of 2025 Term Notes outstanding
 500 
Principal amount of 2026 Term Notes outstanding500 500 
Principal amount of 2027 Term Notes outstanding500 500 
Principal amount of 2030 Term Notes outstanding
500 — 
Principal amount of 2031 Term Notes outstanding500 500 
Unamortized discounts and debt issuance costs(11)(11)
Net carrying amount of term debt
1,989 1,989 
Less: current portion499 499 
Term debt, non-current
$1,490 $1,490 
Fair value of term debt outstanding (Level 2)
$1,977 $1,940 
Schedule of Leases
As of December 28, 2025, the maturities of our operating lease liabilities were as follows:
In millions
2026$101
2027106
202887
202982
203080
Thereafter205
Total remaining lease payments
661
Less: imputed interest(97)
Total operating lease liabilities564
Less: current portion(78)
Long-term operating lease liabilities$486
Weighted-average remaining lease term7.4 years
Weighted-average discount rate4.4 %
Schedule of Components of Lease Costs
The components of our lease costs were as follows:
In millions202520242023
Operating lease costs
$78 $93 $116 
Sublease income(12)(19)(20)
Variable lease costs (1)
20 25 27 
Total lease costs$86 $99 $123 
_____________
(1)Variable lease costs include non-fixed maintenance charges and property taxes.
v3.25.4
STOCKHOLDERS' EQUITY (Tables)
12 Months Ended
Dec. 28, 2025
Equity [Abstract]  
Schedule of Restricted Stock Activity and Related Information, Restricted Stock
Restricted stock activity was as follows:
Restricted
Stock Units
(RSU)
Performance
Stock Units
(PSU) (1)
Weighted-Average Grant-
Date Fair Value per Share
Units in thousandsRSUPSU
Outstanding at January 1, 20231,611 74 $311.23 $446.74 
Awarded2,032 39 $195.94 $239.98 
Vested(987)— $268.08 $— 
Cancelled(458)(113)$253.52 $299.98 
Outstanding at December 31, 20232,198 — $236.32 $— 
Awarded2,788 729 $133.73 $164.38 
Unvested adjustment for GRAIL Spin-Off
107 12 $— $— 
Vested(771)— $249.70 $— 
Cancelled(443)(41)$195.11 $167.68 
Outstanding at December 29, 20243,879 700 $158.60 $164.87 
Awarded1,812 407 $86.70 $85.67 
Vested(1,307)(55)$180.78 $247.32 
Cancelled(646)(196)$142.26 $156.52 
Outstanding at December 28, 20253,738 856 $118.82 $123.77 
_____________
(1)For OM and EPS PSU, the number of units reflect the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflect 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.
Schedule of Restricted Stock Activity and Related Information, Performance Units
Restricted stock activity was as follows:
Restricted
Stock Units
(RSU)
Performance
Stock Units
(PSU) (1)
Weighted-Average Grant-
Date Fair Value per Share
Units in thousandsRSUPSU
Outstanding at January 1, 20231,611 74 $311.23 $446.74 
Awarded2,032 39 $195.94 $239.98 
Vested(987)— $268.08 $— 
Cancelled(458)(113)$253.52 $299.98 
Outstanding at December 31, 20232,198 — $236.32 $— 
Awarded2,788 729 $133.73 $164.38 
Unvested adjustment for GRAIL Spin-Off
107 12 $— $— 
Vested(771)— $249.70 $— 
Cancelled(443)(41)$195.11 $167.68 
Outstanding at December 29, 20243,879 700 $158.60 $164.87 
Awarded1,812 407 $86.70 $85.67 
Vested(1,307)(55)$180.78 $247.32 
Cancelled(646)(196)$142.26 $156.52 
Outstanding at December 28, 20253,738 856 $118.82 $123.77 
_____________
(1)For OM and EPS PSU, the number of units reflect the estimated number of shares to be issued at the end of the performance period. For rTSR PSU, the number of units reflect 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.
Schedule of Pre-tax Intrinsic Values of Vested Restricted Stock
Pre-tax intrinsic value and fair value of vested restricted stock was as follows:
In millions202520242023
Pre-tax intrinsic value of outstanding restricted stock:
RSU$504 $525 $306 
PSU$116 $95 $— 
Fair value of restricted stock vested:
RSU$146 $116 $122 
PSU$7 $— $— 
Schedule of Total Fair Value of Vested Restricted Stock
Pre-tax intrinsic value and fair value of vested restricted stock was as follows:
In millions202520242023
Pre-tax intrinsic value of outstanding restricted stock:
RSU$504 $525 $306 
PSU$116 $95 $— 
Fair value of restricted stock vested:
RSU$146 $116 $122 
PSU$7 $— $— 
Schedule of Stock Option Activity Under all Stock Option Plans
Stock option activity was as follows:
Units in thousandsOptionsWeighted-Average
Exercise Price
Performance Stock Options (1)
Weighted-Average
Exercise Price
Outstanding at January 1, 2023187 $319.72 17 $85.54 
Exercised(8)$71.09 (1)$16.69 
Cancelled
(144)$330.25 — $— 
Outstanding at December 31, 202335 $330.25 16 $87.74 
Cancelled(35)$330.25 (16)$87.74 
Outstanding at December 29, 2024 and December 28, 2025
— $— — $— 
_____________
(1)In connection with the GRAIL acquisition, we issued replacement performance stock options to GRAIL employees in 2021. The number of units reflected awards that had been granted and for which it was assumed to be probable that the underlying performance goals would be achieved. In connection with the GRAIL Spin-Off, all outstanding performance stock options were assumed by GRAIL in 2024.
Schedule of Cash-Based Equity Incentive Award Activity
Cash-based equity incentive award activity was as follows:
In millions
Outstanding at January 1, 2023$293 
Granted116 
Vested and paid in cash
(77)
Cancelled(32)
Change in fair value(8)
Outstanding at December 31, 2023292 
Granted67 
Vested and paid in cash
(54)
Cancelled(13)
Change in fair value(9)
Derecognition for GRAIL Spin-Off (1)
(283)
Outstanding at December 29, 2024 and December 28, 2025
$— 
_____________
(1)The estimated liability immediately prior to the Spin-Off, recorded in accrued liabilities, was $53 million, which was disposed of as part of GRAIL’s net assets. See note 8. GRAIL Spin-Off for additional details.
Schedule of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share for stock purchased under the ESPP were as follows:
202520242023
Risk-free interest rate
3.82% - 4.94%
 4.35% - 5.54%
0.78% - 5.54%
Expected volatility
41% - 48%
 41% - 49%
41% - 51%
Expected term
0.5 - 1.0 year
 0.5 - 1.1 year
0.5 - 1.1 year
Expected dividends0%0%0%
Weighted-average grant-date fair value per share$25.94 $37.24 $49.87 
Schedule of Share-Based Compensation Expense for all Stock Awards
Share-based compensation expense, which includes expense for both equity and liability-classified awards, reported in our consolidated statements of operations was as follows:
In millions202520242023
Cost of product revenue$20 $25 $29 
Cost of service and other revenue3 
Research and development107 146 155 
Selling, general and administrative145 194 189 
Share-based compensation expense, before taxes275 371 380 
Related income tax benefits(61)(83)(87)
Share-based compensation expense, net of taxes$214 $288 $293 
Schedule of Share Repurchase Activity
Share repurchase activity was as follows:
In millions, except shares in thousands
20252024
Number of shares repurchased
7,790 904 
Total cost of shares repurchased (1)
$748 $116 
_____________
(1)Total cost of shares repurchased includes the 1% excise tax imposed as part of the Inflation Reduction Act of 2022, which is calculated based on share repurchases, net of certain share issuances, and was immaterial for all periods presented.
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS (Tables)
12 Months Ended
Dec. 28, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable Accounts Receivable
In millionsDecember 28,
2025
December 29,
2024
Trade accounts receivable, gross$861 $744 
Allowance for credit losses(7)(9)
Total accounts receivable, net$854 $735 
Schedule of Inventory
Inventory
In millionsDecember 28,
2025
December 29,
2024
Raw materials$254 $225 
Work in process398 404 
Finished goods45 31 
Inventory, gross697 660 
Inventory reserve(133)(113)
Total inventory, net$564 $547 
Schedule of Property and Equipment
The estimated useful lives of the major classes of property and equipment are generally as follows:
Buildings and leasehold improvements
4 to 20 years
Machinery and equipment
3 to 5 years
Computer hardware and software
3 to 9 years
Furniture and fixtures
7 years
Property and Equipment
In millionsDecember 28,
2025
December 29,
2024
Leasehold improvements$755 $772 
Machinery and equipment705 683 
Computer hardware and software493 478 
Furniture and fixtures43 53 
Buildings44 44 
Construction in progress82 39 
Total property and equipment, gross2,122 2,069 
Accumulated depreciation(1,363)(1,254)
Total property and equipment, net$759 $815 
Schedule of Accrued Liabilities
Accrued Liabilities
In millionsDecember 28,
2025
December 29,
2024
Contract liabilities, current portion$270 $260 
Accrued compensation expenses (1)
249 252 
Accrued taxes payable107 101 
Operating lease liabilities, current portion78 79 
Other, including warranties (2)
142 135 
Total accrued liabilities$846 $827 
_____________
(1)Includes employee separation costs related to restructuring activities.
(2)See table below for changes in the reserve for product warranties.
Schedule of Changes in Reserve for Product Warranties
Changes in the reserve for product warranties were as follows:
In millions
Balance as of January 1, 2023$18 
Additions charged to cost of product revenue42 
Repairs and replacements(39)
Balance as of December 31, 202321 
Additions charged to cost of product revenue42 
Repairs and replacements(45)
Balance as of December 29, 202418 
Additions charged to cost of product revenue28 
Repairs and replacements(29)
Balance as of December 28, 2025$17 
Schedule of Restructuring and Related Costs
A summary of the pre-tax restructuring charges is as follows:
In millions202520242023Cumulative charges recorded since inception
Employee separation costs$47 $12 $48 $107 
Asset impairment charges (1)
— 46 100 146 
Other costs— 
Total restructuring charges (2)
$47 $62 $152 $261 
_____________
(1)For 2024, relates to impairment of right-of-use assets and leasehold improvements for Foster City campus and other property in San Diego.
For 2023, primarily relates to impairment of right-of-use assets and leasehold improvements for our i3 and Foster City campuses.
(2)For 2025, $26 million was recorded in SG&A expense, $16 million in R&D expense, and remainder in cost of revenue.
For 2024, $59 million was recorded in SG&A expense, $2 million in R&D expense, and remainder in cost of revenue.
For 2023,$122 million was recorded in SG&A expense, $24 million in R&D expense, and remainder in cost of revenue.
Total restructuring charges for 2024 and 2023 primarily related to the Core Illumina segment.
A summary of the restructuring liability is as follows:
In millions
Employee Separation Costs
Other CostsTotal
Amount recorded in accrued liabilities as of December 31, 2023
$17 $$18 
Expense recorded
12 16 
Cash payments(24)(2)(26)
Adjustments to accrual(3)(1)(4)
Amount recorded in accrued liabilities as of December 29, 2024
2 2 4 
Expense recorded
47  47 
Cash payments(42)(2)(44)
Adjustments to accrual   
Amount recorded in accrued liabilities as of December 28, 2025
$7 $ $7 
v3.25.4
GRAIL SPIN-OFF (Tables)
12 Months Ended
Dec. 28, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Assets and Liabilities Included as Part of the Disposal Group
The carrying amounts of GRAIL’s assets and liabilities included as part of the disposal group were as follows:
In millions
Cash and cash equivalents
$968 
Accounts receivable, net
13 
Inventory, net
22 
Prepaid expenses and other current assets
27 
Property and equipment, net
80 
Operating lease right-of-use assets
74 
Intangible assets, net (1)
2,201 
Other assets14 
Accounts payable(12)
Accrued liabilities (118)
Operating lease liabilities(62)
Other long term-liabilities(469)
GRAIL net assets
$2,738 
Amount of GRAIL net assets recorded to short-term investments
$397 
Amount of GRAIL net assets recorded to additional paid-in capital
$2,341 
Additional adjustments recorded to additional paid-in capital as a result of the GRAIL Spin-Off:
Non-contingent indemnification liability (see Note 7)
Tax adjustment for difference between the book and tax values of our retained investment in GRAIL
57 
Total recorded to additional paid-in capital as a result of the GRAIL Spin-Off
$2,399 
_____________
(1)Includes IPR&D with a carrying value of $140 million after impairment. Refer to note 4. Intangible Assets, Goodwill and Acquisitions.
v3.25.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 28, 2025
Income Tax Disclosure [Abstract]  
Schedule of (Loss) Income before Income Taxes by Region
Income (loss) before income taxes summarized by region was as follows:
In millions202520242023
United States$331 $(1,834)$(1,735)
Foreign755 655 618 
Total income (loss) before income taxes
$1,086 $(1,179)$(1,117)
Schedule of Provision for Income Taxes
The provision for income taxes consisted of the following:
In millions202520242023
Current:   
Federal$ $$(5)
State13 18 
Foreign104 137 77 
Total current provision117 161 78 
Deferred:
Federal106 (59)(13)
State19 (56)(26)
Foreign(6)(2)
Total deferred benefit119 (117)(34)
Total tax provision$236 $44 $44 
Schedule of Reconciliation of Provision for (Loss) Income Taxes to Amount Computed by Applying the Federal Statutory Rate The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income (loss) before income taxes as follows:
202520242023
Dollars in millions$%$%$%
US federal statutory tax rate$228 21.0 %$(248)21.0 %$(235)21.0 %
State and local income taxes, net of federal income tax effect (1)
22 2.0 %(36)3.1 %(32)2.9 %
Foreign tax effects
Singapore
Statutory rate difference between Singapore and US(54)(5.0)%(110)9.3 %(103)9.2 %
Change in valuation allowance(74)(6.8)%(3)0.3 %31 (2.8)%
Nondeductible R&D expense2 0.2 %15 (1.3)%(0.2)%
Other10 0.9 %12 (1.0)%(0.2)%
United Kingdom
Pillar 2 (Global Minimum Tax) top-up tax10 0.9 %54 (4.6)%— — %
Other15 1.4 %(0.3)%(2)0.2 %
Other foreign jurisdictions16 1.5 %20 (1.7)%(0.7)%
Effect of changes in tax laws or rates enacted in current period  %— — %— — %
Effect of cross-border tax laws
Global intangible low-taxed income (GILTI)12 1.1 %121 (10.3)%153 (13.7)%
Subpart F income(15)(1.4)%23 (2.0)%20 (1.8)%
Foreign-derived intangible income (FDII)(5)(0.5)%(4)0.3 %(0.4)%
Tax Credits
Research tax credits(16)(1.5)%(21)1.8 %(27)2.4 %
Change in valuation allowances44 4.1 %14 (1.2)%(2)0.2 %
Nontaxable or nondeductible items
Stock compensation17 1.6 %16 (1.4)%31 (2.8)%
Goodwill impairment  %308 (26.1)%149 (13.3)%
Accrual of European Commission fine  %(99)8.4 %(0.3)%
Impact of acquisition related items(3)(0.3)%(46)3.9 %(0.7)%
Other6 0.6 %(0.3)%— — %
Changes in unrecognized tax benefits22 2.0 %19 (1.6)%32 (2.9)%
Other adjustments(1)(0.1)%(0.1)%— — %
Total tax provision, effective tax rate$236 21.7 %$44 (3.8)%$44 (3.9)%
_____________
(1)State taxes in California, Massachusetts, Illinois and Maryland made up the majority (greater than 50%) of the tax effect in this category for 2025. California and Massachusetts made up the majority (greater than 50%) of the tax effect in this category for 2024 and 2023.
Schedule of Significant Components of Deferred Tax Assets and Liabilities
Significant components of deferred tax assets and liabilities were as follows:
In millionsDecember 28,
2025
December 29,
2024
Deferred tax assets:  
Net operating losses$125 $189 
Tax credits290 252 
Other accruals and reserves32 40 
Stock compensation31 34 
Capitalized U.S. R&D expenses134 181 
Other amortization36 42 
Operating lease liabilities97 112 
Property and equipment22 17 
Investments 23 
Other68 63 
Total gross deferred tax assets835 953 
Valuation allowance on deferred tax assets(250)(278)
Total deferred tax assets
585 675 
Deferred tax liabilities:  
Purchased intangible amortization(23)(35)
Operating lease right-of-use assets(50)(57)
Investments(39)— 
Other(23)(25)
Total deferred tax liabilities(135)(117)
Deferred tax assets, net$450 $558 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table summarizes the gross amount of our uncertain tax positions:
In millionsDecember 28,
2025
December 29,
2024
December 31,
2023
Balance at beginning of year$232 $210 $153 
Increases related to prior year tax positions14 27 
Decreases related to prior year tax positions (2)(2)
Increases related to current year tax positions11 23 42 
Decreases related to lapse of statute of limitations(4)(1)(10)
Balance at end of year$253 $232 $210 
Schedule of Income Taxes Paid
The following table summarizes income taxes paid (net of refunds):

In millions202520242023
Federal$22 $31 $(2)
State7 — 
Foreign44 74 63 
Total$73 $105 $65 
The following table summarizes components of income tax paid (net of refunds received) exceeding 5% of the annual total by jurisdiction:

In millions202520242023
Federal$22 $31 *
California$5 **
Maryland**$
Brazil*$10 *
China$10 *$14 
Germany$4 *$
Israel**$
Netherlands$5 **
United Kingdom$6 $31 $17 
_____________
*Income tax paid (net of refunds received) did not exceed 5% of the annual total by jurisdiction.
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION (Tables)
12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Schedule of Operating Performance and Assets by Segment
The following tables present selected financial information with respect to segments for the periods presented:
In millions202520242023
Core Illumina:
Revenue (1)
$4,343 $4,332 $4,438 
Less:
Cost of revenue1,473 1,424 1,582 
Research and development967 988 1,030 
Selling and marketing618 638 648 
General and administrative468 262 600 
Goodwill and intangible impairment
 
Legal contingency and settlement
10 (456)20 
Core Illumina income from operations807 1,473 552 
GRAIL:
Revenue
 55 93 
Total operating expenses (2)
 2,360 1,714 
Consolidated other income (expense), net279 (346)(48)
Consolidated provision for income taxes
236 44 44 
Intersegment eliminations
 (1)— 
Consolidated net income (loss)
$850 $(1,223)$(1,161)
_____________
(1)Core Illumina revenue for 2024 and 2023 included intercompany revenue of $15 million and $26 million, respectively.
(2)GRAIL operating expenses are inclusive of cost of revenue, research and development, selling and marketing, general and administrative, and goodwill and intangible impairment for the comparative periods prior to the Spin-Off on June 24, 2024.
 In millions202520242023
Depreciation and amortization:
Core Illumina$270 $280 $273 
GRAIL 74 159 
Consolidated depreciation and amortization$270 $354 $432 
Capital expenditures:
Core Illumina$148 $137 $183 
GRAIL 13 
Eliminations — (1)
Consolidated capital expenditures$148 $142 $195 
Schedule of Net Long-lived Assets Consisting of Property and Equipment by Region
Long-lived assets, consisting of property and equipment and operating lease right-of-use assets, were as follows:
In millionsDecember 28,
2025
December 29,
2024
United States$660 $750 
Singapore281 279 
United Kingdom119 124 
Other countries69 81 
Total long-lived assets, net
$1,129 $1,234 
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Business Overview (Details) - Spinoff - GRAIL
Jun. 24, 2024
shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Number of shares issued in transaction 26,547,021
Percent of interest disposed 85.50%
Discontinued operation, investment retained after disposal, ownership interest after disposal 14.50%
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Concentrations of Risk (Details)
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Credit Concentration Risk | Investment Portfolio      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 5.00%    
Credit Concentration Risk | Issue Size      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 5.00%    
Industry Credit Concentration Risk | Investment Portfolio      
Concentration Risk [Line Items]      
Maximum investment portfolio credit exposure 30.00%    
United States | Customer Concentration Risk | Revenue Benchmark      
Concentration Risk [Line Items]      
Concentration percent 48.00% 48.00% 48.00%
Outside the United States | Geographic Concentration Risk | Accounts Receivable      
Concentration Risk [Line Items]      
Concentration percent 53.00% 53.00%  
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Revenue Recognition (Details)
12 Months Ended
Dec. 28, 2025
Product  
Revenue from External Customer [Line Items]  
Payment period from invoice 30 days
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Calculation of Weighted Average Shares used to Calculate Basic and Diluted Earnings (Loss) Per Share (Details) - shares
shares in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Weighted average shares outstanding (in shares) 155 159 158
Equity awards (in shares) 1 0 0
Weighted average shares used in calculating diluted earnings (loss) per share (in shares) 156 159 158
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive shares excluded due to antidilutive effect 2 4 4
Equity awards      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive shares excluded due to antidilutive effect 2 4 3
Convertible senior notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially dilutive shares excluded due to antidilutive effect 0 0 1
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Major Classes of Property and Equipment (Details)
Dec. 28, 2025
Buildings and leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 4 years
Buildings and leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 20 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Computer hardware and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Computer hardware and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 9 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Leases (Details)
Dec. 28, 2025
Minimum  
Property, Plant and Equipment [Line Items]  
Lessee, operating lease, remaining lease term 1 year
Lessee, operating lease, renewal term 2 years
Maximum  
Property, Plant and Equipment [Line Items]  
Lessee, operating lease, remaining lease term 13 years
Lessee, operating lease, renewal term 20 years
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Government Incentives (Details)
$ in Millions
12 Months Ended
Dec. 28, 2025
USD ($)
Government Incentives and Grants  
Grants receivable $ 21
Grant receivables, current 8
Research and development  
Government Incentives and Grants  
Government grants 13
Selling, general and administrative  
Government Incentives and Grants  
Government grants $ 4
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Derivative Financial Instruments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative term 24 months    
Other comprehensive income (loss) hedge $ (5) $ 15 $ 18
Gain to be reclassified into earnings within the next 12 months (15)    
Foreign Exchange Forward      
Derivative Instruments, Gain (Loss) [Line Items]      
Foreign currency forward contracts assets 2 27  
Foreign currency forward contracts liabilities 17    
Foreign Exchange Forward | Not Designated as Hedging Instrument      
Derivative Instruments, Gain (Loss) [Line Items]      
Notional amount of outstanding forward contracts 510 477  
Foreign Exchange Forward | Designated as Hedging Instrument      
Derivative Instruments, Gain (Loss) [Line Items]      
Notional amount of outstanding forward contracts $ 707 $ 621  
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Warranties (Details)
12 Months Ended
Dec. 28, 2025
Instruments  
Product Warranty Liability [Line Items]  
Warranty period 1 year
Consumables | Minimum  
Product Warranty Liability [Line Items]  
Warranty period 6 months
Consumables | Maximum  
Product Warranty Liability [Line Items]  
Warranty period 12 months
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Share-Based Compensation (Details)
12 Months Ended
Dec. 28, 2025
Accounting Policies [Abstract]  
Expected dividend yield 0.00%
v3.25.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative - Advertising Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Advertising costs $ 37 $ 37 $ 36
v3.25.4
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Revenue from External Customer [Line Items]      
Revenue $ 4,343 $ 4,372 $ 4,504
Americas      
Revenue from External Customer [Line Items]      
Revenue 2,406 2,441 2,521
Europe      
Revenue from External Customer [Line Items]      
Revenue 1,264 1,185 1,140
China      
Revenue from External Customer [Line Items]      
Revenue 243 308 384
Asia-Pacific, Middle East and Africa      
Revenue from External Customer [Line Items]      
Revenue 430 438 459
United States      
Revenue from External Customer [Line Items]      
Revenue 2,243 2,288 2,359
Total product revenue      
Revenue from External Customer [Line Items]      
Revenue 3,709 3,656 3,787
Consumables      
Revenue from External Customer [Line Items]      
Revenue 3,227 3,155 3,083
Instruments      
Revenue from External Customer [Line Items]      
Revenue 482 501 704
Service and other revenue      
Revenue from External Customer [Line Items]      
Revenue 634 716 717
Sequencing      
Revenue from External Customer [Line Items]      
Revenue 3,985 3,993 4,112
Sequencing | Total product revenue      
Revenue from External Customer [Line Items]      
Revenue 3,404 3,342 3,475
Sequencing | Consumables      
Revenue from External Customer [Line Items]      
Revenue 2,939 2,858 2,790
Sequencing | Instruments      
Revenue from External Customer [Line Items]      
Revenue 465 484 685
Sequencing | Service and other revenue      
Revenue from External Customer [Line Items]      
Revenue 581 651 637
Microarray      
Revenue from External Customer [Line Items]      
Revenue 358 379 392
Microarray | Total product revenue      
Revenue from External Customer [Line Items]      
Revenue 305 314 312
Microarray | Consumables      
Revenue from External Customer [Line Items]      
Revenue 288 297 293
Microarray | Instruments      
Revenue from External Customer [Line Items]      
Revenue 17 17 19
Microarray | Service and other revenue      
Revenue from External Customer [Line Items]      
Revenue $ 53 $ 65 $ 80
v3.25.4
REVENUE - Narrative - Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Revenue from Contract with Customer [Abstract]    
Contract asset $ 21 $ 16
Contract liability 346 327
Contract liabilities, current portion 270 $ 260
Revenue recognized, previously deferred $ 244  
v3.25.4
REVENUE - Narrative - Remaining Performance Obligation (Details)
$ in Millions
12 Months Ended
Dec. 28, 2025
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 738
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 738
Maximum  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Product or service delivery period 6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Percent of remaining performance obligation 77.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Percent of remaining performance obligation 13.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details)
$ in Thousands
1 Months Ended 12 Months Ended
Apr. 30, 2019
Dec. 28, 2025
USD ($)
day
fund
Sep. 28, 2025
USD ($)
Dec. 29, 2024
USD ($)
Sep. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 01, 2023
USD ($)
Schedule of Investments [Line Items]              
Short-term Investments   $ 215,000   $ 93,000      
Strategic equity investments, without readily determinable fair values   58,000   26,000      
Contingent consideration liabilities   $ 54,000   73,000      
GRAIL              
Schedule of Investments [Line Items]              
Contingent value right, terms   12 years          
Covered revenues of GRAIL, contingent consideration liability     $ 142,000   $ 117,000   $ 85,000
Payment for contingent consideration   $ 1,300   1,100   $ 803  
GRAIL | Payment Rights Of One Billion Each Twelve Years              
Schedule of Investments [Line Items]              
Contingent payment rights, first percentage   2.50%          
Business acquisition, contingent value rights, revenue threshold   $ 1,000,000          
GRAIL | Payment Rights Of Above One Billion Each Twelve Years              
Schedule of Investments [Line Items]              
Business acquisition, contingent value rights, revenue threshold   $ 1,000,000          
Contingent payment rights, second percentage   9.00%          
Helix Contingent Consideration              
Schedule of Investments [Line Items]              
Cash received to settle       (83,000)      
Helix Holdings I, LLC              
Schedule of Investments [Line Items]              
Contingent value right, terms 7 years            
Venture Capital Investment Fund (the Fund)              
Schedule of Investments [Line Items]              
Number of venture capital investment funds | fund   3          
Equity method investments   $ 235,000   201,000      
Unrealized gain (loss) on equity method investments   $ 22,000   5,000   $ (33,000)  
GRAIL | Revenue Risk Premium              
Schedule of Investments [Line Items]              
Revenue risk premium   0.03          
GRAIL | Measurement Input, Calculation Trailing Period              
Schedule of Investments [Line Items]              
Revenue risk premium | day   60          
Spinoff | GRAIL              
Schedule of Investments [Line Items]              
Contingent consideration liabilities   $ 54,000   71,000      
Contingent consideration, noncurrent   52,000   $ 70,000      
Increase in 20% of revenue, increase in liability   16,000          
Decrease in 20% of revenue, decrease in liability   (15,000)          
Effect of change of additional 250 basis points, decrease in liability   (10,000)          
Effect of change of additional 250 basis points, increase in liability   $ 12,000          
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Marketable Equity Securities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Marketable Securities [Line Items]      
Net gains (losses) recognized during the period $ 315 $ (310) $ (2)
Less: Net gains (losses) recognized during the period on securities disposed of during the period 150 0 (2)
Net unrealized gains (losses) recognized during the period on securities still held at the reporting date $ 165 (310) $ 0
Spinoff | GRAIL      
Marketable Securities [Line Items]      
Discontinued operation, gain (loss) on disposal of discontinued operation, net of tax   $ (309)  
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income Flag   Other Nonoperating Income (Expense)  
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Other Commitments (Details)
$ in Millions
Dec. 28, 2025
USD ($)
Fund I  
Schedule of Investments [Line Items]  
Capital commitments $ 100
Remaining callable 3
Fund II  
Schedule of Investments [Line Items]  
Capital commitments 150
Remaining callable 33
Fund III  
Schedule of Investments [Line Items]  
Capital commitments 60
Remaining callable $ 25
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Hierarchy for Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Assets:    
Money market funds (cash equivalents) $ 1,173 $ 931
Marketable equity securities 215 93
Other investments 32 17
Deferred compensation plan assets 79 70
Total assets measured at fair value 1,499 1,111
Liabilities:    
Contingent consideration liabilities 54 73
Deferred compensation plan liabilities 72 65
Total liabilities measured at fair value 126 138
Level 1    
Assets:    
Money market funds (cash equivalents) 1,173 931
Marketable equity securities 215 93
Other investments 0 0
Deferred compensation plan assets 0 0
Total assets measured at fair value 1,388 1,024
Liabilities:    
Contingent consideration liabilities 0 0
Deferred compensation plan liabilities 0 0
Total liabilities measured at fair value 0 0
Level 2    
Assets:    
Money market funds (cash equivalents) 0 0
Marketable equity securities 0 0
Other investments 0 0
Deferred compensation plan assets 79 70
Total assets measured at fair value 79 70
Liabilities:    
Contingent consideration liabilities 0 0
Deferred compensation plan liabilities 72 65
Total liabilities measured at fair value 72 65
Level 3    
Assets:    
Money market funds (cash equivalents) 0 0
Marketable equity securities 0 0
Other investments 32 17
Deferred compensation plan assets 0 0
Total assets measured at fair value 32 17
Liabilities:    
Contingent consideration liabilities 54 73
Deferred compensation plan liabilities 0 0
Total liabilities measured at fair value $ 54 $ 73
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Changes in Estimated Fair Value of Acquisition (Details) - Business Combination, Contingent Consideration, Liability - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning Balance $ 73 $ 387 $ 412
Change in estimated fair value (18) (315) (24)
Acquisition   2  
Cash payments (1) (1) (1)
Ending Balance $ 54 $ 73 $ 387
v3.25.4
INVESTMENTS AND FAIR VALUE MEASUREMENTS- Contingent Consideration Liabilities (Details) - Helix Contingent Consideration - USD ($)
$ in Millions
12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning Balance $ 68 $ 58
Change in estimated fair value 15 10
Cash received to settle $ (83)  
Ending Balance   $ 68
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS - Schedule of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization $ (514) $ (453)
Total 210  
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Gross Carrying Amount 724 748
Accumulated Amortization (514) (453)
Intangible Assets, Net 210 295
Developed technologies    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 436 465
Accumulated Amortization (335) (305)
Total 101 160
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization (335) (305)
Licensed technologies    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 234 234
Accumulated Amortization (143) (114)
Total 91 120
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization (143) (114)
License agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 24 19
Accumulated Amortization (14) (13)
Total 10 6
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization (14) (13)
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 16 16
Accumulated Amortization (14) (14)
Total 2 2
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization (14) (14)
Database    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 12 12
Accumulated Amortization (6) (5)
Total 6 7
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization (6) (5)
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2 2
Accumulated Amortization (2) (2)
Total 0 0
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Accumulated Amortization $ (2) $ (2)
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS - Narrative (Details)
$ in Millions
1 Months Ended 3 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
May 31, 2024
USD ($)
reporting_unit
Jun. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 01, 2023
USD ($)
Dec. 28, 2025
USD ($)
Dec. 29, 2024
USD ($)
Goodwill [Line Items]              
Goodwill fair value recorded impairment           $ 23  
Number of reporting units | reporting_unit   2          
Goodwill and intangible impairment             $ 1,466
Goodwill impairment measurement input   2          
Goodwill       $ 2,545   1,113 1,113
Sensitivity analysis of intangible assets impairment additional charges impact of 300 basis points           $ 20  
Spinoff | GRAIL Inc              
Goodwill [Line Items]              
Amount of continuing cash flows after disposal   $ 974          
Minimum | Spinoff | GRAIL Inc              
Goodwill [Line Items]              
GRAIL net assets $ 400   $ 400        
Maximum | Spinoff | GRAIL Inc              
Goodwill [Line Items]              
GRAIL net assets 770   770        
Measurement Input, Expected Term              
Goodwill [Line Items]              
Intangible assets impairment measurement input           15  
GRAIL              
Goodwill [Line Items]              
Goodwill amount that exceeds carrying value   580          
Goodwill and intangible impairment $ 1,466       $ 712    
Goodwill, impairment loss, statement of income or comprehensive income flag Other Assets, Noncurrent            
Goodwill         $ 3,600    
Fair value of discount rate (as a percent)         24.00%    
GRAIL | Minimum              
Goodwill [Line Items]              
Goodwill       3,000      
Goodwill impairment increase in discounted cash flow model discount rate         50    
Goodwill potential impairment loss         $ 200    
GRAIL | Maximum              
Goodwill [Line Items]              
Goodwill   $ 4,000          
Goodwill impairment increase in discounted cash flow model discount rate         100    
Goodwill potential impairment loss         $ 350    
GRAIL | Measurement Input Cash Flow Period Member | Valuation Technique, Discounted Cash Flow              
Goodwill [Line Items]              
Goodwill impairment measurement input   15          
GRAIL | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow              
Goodwill [Line Items]              
Intangible assets impairment measurement input   0.465          
In-process research and development (IPR&D)              
Goodwill [Line Items]              
Goodwill fair value recorded impairment         $ 109    
Fair value of discount rate (as a percent)         19.00%    
In-process research and development (IPR&D) | GRAIL              
Goodwill [Line Items]              
Goodwill fair value recorded impairment     $ 420        
Impairment, intangible asset, indefinite-lived (excluding goodwill), statement of income or comprehensive income flag     Other Assets, Noncurrent        
GRAIL Inc              
Goodwill [Line Items]              
Goodwill potential impairment loss       0      
Fair value in excess of carrying amount (more than)       $ 950      
Business combination impairment test percentage       23.00%      
Developed Technology Rights | Fluent Bio Sciences              
Goodwill [Line Items]              
Finite-lived intangible assets acquired             $ 42
Useful life (in years)             7 years
Customer relationships | Fluent Bio Sciences              
Goodwill [Line Items]              
Finite-lived intangible assets acquired             $ 2
Useful life (in years)             11 years
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS - Schedule of Estimated Annual Amortization of Intangible Assets (Details)
$ in Millions
Dec. 28, 2025
USD ($)
Estimated Annual Amortization  
2026 $ 55
2027 53
2028 50
2029 21
2030 14
Thereafter 17
Total $ 210
v3.25.4
INTANGIBLE ASSETS, GOODWILL AND ACQUISITIONS - Schedule of Changes in Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Balance at beginning of period $ 2,545  
Impairment (1,466)  
Acquisition 34  
Balance at end of period $ 1,113  
GRAIL Inc    
Goodwill [Roll Forward]    
Accumulated impairment loss   $ 4,626
v3.25.4
DEBT AND OTHER COMMITMENTS - Schedule of Debt Obligations (Details) - Term Notes - USD ($)
Dec. 28, 2025
Nov. 25, 2025
Dec. 29, 2024
Sep. 09, 2024
Dec. 31, 2022
Mar. 31, 2021
Debt Instrument [Line Items]            
Unamortized discounts and debt issuance costs $ (11,000,000)   $ (11,000,000)      
Net carrying amount of term debt 1,989,000,000   1,989,000,000      
Less: current portion 499,000,000   499,000,000      
Term debt, non-current 1,490,000,000   1,490,000,000      
Level 2            
Debt Instrument [Line Items]            
Fair value of term debt outstanding (Level 2) 1,977,000,000   1,940,000,000      
2025 Term Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 0   500,000,000   $ 500,000,000  
2026 Term Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 500,000,000   500,000,000 $ 500,000,000    
2027 Term Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 500,000,000   500,000,000   $ 500,000,000  
2030 Term Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding 500,000,000 $ 500,000,000 0      
2031 Term Notes            
Debt Instrument [Line Items]            
Principal amount of notes outstanding $ 500,000,000   $ 500,000,000     $ 500,000,000
v3.25.4
DEBT AND OTHER COMMITMENTS - Narrative (Details)
1 Months Ended 12 Months Ended
Nov. 25, 2025
USD ($)
Sep. 09, 2024
USD ($)
Jun. 17, 2024
USD ($)
Jan. 31, 2023
USD ($)
consecutive_fiscal_quarter
one_year_extension
Mar. 31, 2021
USD ($)
Dec. 28, 2025
USD ($)
Dec. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 20, 2024
USD ($)
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]                    
Purchase obligation           $ 184,000,000        
Term Notes                    
Debt Instrument [Line Items]                    
Interest expense recognized           $ 99,000,000 $ 99,000,000 $ 74,000,000    
Redemption price         100.00% 100.00%        
Term Notes | 2030 Term Notes                    
Debt Instrument [Line Items]                    
Stated rate 4.75%                  
Principal amount of notes outstanding $ 500,000,000         $ 500,000,000 0      
Proceeds from the issuance $ 495,000,000                  
Term Notes | 2026 Term Notes                    
Debt Instrument [Line Items]                    
Stated rate   4.65%       4.65%        
Principal amount of notes outstanding   $ 500,000,000       $ 500,000,000 500,000,000      
Proceeds from the issuance   497,000,000                
Term Notes | 2025 Term Notes                    
Debt Instrument [Line Items]                    
Stated rate                   5.80%
Principal amount of notes outstanding           0 500,000,000     $ 500,000,000
Term Notes | 2027 Term Notes                    
Debt Instrument [Line Items]                    
Stated rate                   5.75%
Principal amount of notes outstanding           500,000,000 500,000,000     $ 500,000,000
Term Notes | 2031 Term Notes                    
Debt Instrument [Line Items]                    
Stated rate         2.55%          
Principal amount of notes outstanding         $ 500,000,000 $ 500,000,000 500,000,000      
Term Notes | Delayed Draw Credit Facility Due 2025                    
Debt Instrument [Line Items]                    
Stated rate     6.70%              
Principal amount of notes outstanding     $ 750,000,000           $ 750,000,000  
Debt instrument term     364 days              
Repayments of long-term debt   $ 761,000,000                
Repayments of long-term debt             $ 5,000,000      
Line of Credit | Revolving Credit Agreement | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity       $ 750,000,000            
Line of Credit | Revolving Credit Agreement | Swingline Borrowings                    
Debt Instrument [Line Items]                    
Debt instrument term       5 years            
Maximum borrowing capacity       $ 40,000,000            
Debt instrument, number of one year extensions | one_year_extension       2            
Debt instrument, extension term       1 year            
Line of Credit | Credit Agreement | Letter of Credit                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity       $ 50,000,000            
Unsecured Debt | Revolving Credit Agreement                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate       0.10%            
Debt instrument, face amount, optional increase in additional borrowings       $ 250,000,000            
Number of consecutive fiscal quarters, minimum debt to EBITDA ratio | consecutive_fiscal_quarter       4            
Debt instrument, covenant, minimum debt to EBITDA ratio       3.50            
Debt instrument, covenant, minimum debt to EBITDA ratio upon consummation of acquisition       4.00            
Number of consecutive fiscal quarters, minimum debt to EBITDA ratio upon consummation of acquisition | consecutive_fiscal_quarter       3            
v3.25.4
DEBT AND OTHER COMMITMENTS - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Debt Disclosure [Abstract]    
2026 $ 101  
2027 106  
2028 87  
2029 82  
2030 80  
Thereafter 205  
Total remaining lease payments 661  
Less: imputed interest (97)  
Total operating lease liabilities 564  
Less: current portion $ (78) $ (79)
Operating Lease, Liability, Current, Statement of Financial Position Flag Accrued Liabilities, Current Accrued Liabilities, Current
Long-term operating lease liabilities $ 486 $ 554
Weighted-average remaining lease term 7 years 4 months 24 days  
Weighted-average discount rate 4.40%  
v3.25.4
DEBT AND OTHER COMMITMENTS - Schedule of Lease Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]      
Operating lease costs $ 78 $ 93 $ 116
Sublease income (12) (19) (20)
Variable lease costs 20 25 27
Total lease costs $ 86 $ 99 $ 123
v3.25.4
STOCKHOLDERS' EQUITY - Narrative (Details) - 2015 Stock Plan - shares
shares in Thousands
3 Months Ended 12 Months Ended
Jun. 29, 2025
Dec. 28, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares authorized (in shares) 7,900  
Number of shares available for grant   160
Shares available for issuance (in shares)   11,500
v3.25.4
STOCKHOLDERS' EQUITY - Narrative - Restricted Stock (Details)
12 Months Ended
Dec. 28, 2025
RSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share based compensation vesting performance period 4 years
PSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share based compensation vesting performance period 3 years
Market Based Performance Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based compensation arrangement by share-based payment award, maximum award payout 175.00%
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Restricted Stock Activity and Related Information (Details) - $ / shares
shares in Thousands
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
RSU      
Stock Units      
Outstanding at period start (in shares) 3,879,000 2,198,000 1,611,000
Awarded (in shares) 1,812,000 2,788,000 2,032,000
Unvested adjustment (in shares)   107,000  
Vested (in shares) (1,307,000) (771,000) (987,000)
Cancelled (in shares) (646,000) (443,000) (458,000)
Outstanding at period end (in shares) 3,738,000 3,879,000 2,198,000
Weighted-Average Grant- Date Fair Value per Share      
Outstanding at period start (in dollars per share) $ 158.60 $ 236.32 $ 311.23
Awarded (in dollars per share) 86.70 133.73 195.94
Unvested adjustment (in dollars per share)   0  
Vested (in dollars per share) 180.78 249.70 268.08
Cancelled (in dollars per share) 142.26 195.11 253.52
Outstanding at period end (in dollars per share) $ 118.82 $ 158.60 $ 236.32
PSU      
Stock Units      
Outstanding at period start (in shares) 700 0 74
Awarded (in shares) 407 729 39
Unvested adjustment (in shares)   12  
Vested (in shares) (55) 0 0
Cancelled (in shares) (196) (41) (113)
Outstanding at period end (in shares) 856 700 0
Weighted-Average Grant- Date Fair Value per Share      
Outstanding at period start (in dollars per share) $ 164.87 $ 0 $ 446.74
Awarded (in dollars per share) 85.67 164.38 239.98
Unvested adjustment (in dollars per share)   0  
Vested (in dollars per share) 247.32 0 0
Cancelled (in dollars per share) 156.52 167.68 299.98
Outstanding at period end (in dollars per share) $ 123.77 $ 164.87 $ 0
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Pre-tax Intrinsic Values and Total Fair Value of Vested Restricted Stock (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
RSU      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax intrinsic value of outstanding restricted stock: $ 504 $ 525 $ 306
Fair value of restricted stock vested: 146 116 122
PSU      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax intrinsic value of outstanding restricted stock: 116 95 $ 0
Fair value of restricted stock vested: $ 7 $ 0  
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Stock Option Activity Under all Stock Option Plans (Details) - $ / shares
shares in Thousands
12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Options    
Options and Performance Stock Options    
Outstanding at period start (in shares) 35 187
Exercised (in shares)   (8)
Cancelled (in shares) (35) (144)
Outstanding at period end (in shares)   35
Weighted-Average Exercise Price    
Outstanding at period start (in dollars per share) $ 330.25 $ 319.72
Exercised (in dollars per share)   71.09
Cancelled (in dollars per share) $ 330.25 330.25
Outstanding at period end (in dollars per share)   $ 330.25
Performance Stock Options    
Options and Performance Stock Options    
Outstanding at period start (in shares) 16 17
Exercised (in shares)   (1)
Cancelled (in shares) (16) 0
Outstanding at period end (in shares)   16
Weighted-Average Exercise Price    
Outstanding at period start (in dollars per share) $ 87.74 $ 85.54
Exercised (in dollars per share)   16.69
Cancelled (in dollars per share) $ 87.74 0
Outstanding at period end (in dollars per share)   $ 87.74
v3.25.4
STOCKHOLDERS' EQUITY - Narrative - Liability-Classified Awards (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense $ 275 $ 371 $ 380
Liability-Based Awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration period   4 years  
Share based compensation vesting performance period   4 years  
Share-based compensation expense   $ 52 $ 95
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Cash-Based Equity Incentive Award Activity (Details) - Liability-Based Awards - USD ($)
$ in Millions
12 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Jun. 24, 2024
Share-Based Compensation Arrangement By Share-Based Payment Award, Liability-Classified Awards [Roll Forward]      
Beginning balance $ 292 $ 293  
Granted 67 116  
Vested and paid in cash (54) (77)  
Cancelled (13) (32)  
Change in fair value (9) (8)  
Derecognition for GRAIL Spin-Off $ (283)    
Ending balance   $ 292  
Accrued liability-classified awards     $ 53
v3.25.4
STOCKHOLDERS' EQUITY - Narrative - Employee Stock Purchase Plan (Details) - Employee Stock - ESPP - shares
shares in Thousands
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Specified percentage of the fair market value of the common stock on the first or last day of the offering period whichever is lower at which stock is purchased 85.00%    
Shares issued in period (in shares) 600 500 400
Shares available for issuance (in shares) 11,800    
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Assumptions used to Estimate the Weighted-Average Fair Value Per Share for Stock Purchase under the Employee Stock Purchase Plan (Details) - $ / shares
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividends 0.00%    
Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate, minimum 3.82% 4.35% 0.78%
Risk-free interest rate, maximum 4.94% 5.54% 5.54%
Expected volatility, minimum 41.00% 41.00% 41.00%
Expected volatility, maximum 48.00% 49.00% 51.00%
Expected dividends 0.00% 0.00% 0.00%
Weighted-average grant-date fair value per share (in dollars per share) $ 25.94 $ 37.24 $ 49.87
Employee Stock | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 6 months 6 months 6 months
Employee Stock | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 1 year 1 year 1 month 6 days 1 year 1 month 6 days
v3.25.4
STOCKHOLDERS' EQUITY - Schedule of Share-Based Compensation Expense for all Stock Awards (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes $ 275 $ 371 $ 380
Related income tax benefits (61) (83) (87)
Share-based compensation expense, net of taxes 214 288 293
Cost of product revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 20 25 29
Cost of service and other revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 3 6 7
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes 107 146 155
Selling, general and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense, before taxes $ 145 $ 194 $ 189
v3.25.4
STOCKHOLDERS' EQUITY - Narrative - Share-Based Compensation (Details)
$ in Millions
12 Months Ended
Dec. 28, 2025
USD ($)
Equity [Abstract]  
Unrecognized compensation cost $ 391
Weighted-average period of unrecognized compensation cost 2 years 3 months 18 days
v3.25.4
STOCKHOLDERS' EQUITY - Narrative - Share Repurchases (Details) - USD ($)
1 Months Ended 12 Months Ended
Feb. 11, 2026
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Aug. 31, 2024
Class of Stock [Line Items]          
Repurchase of common shares (in shares)   7,790,000 904,000    
Total cost of shares repurchased   $ 748,000,000 $ 116,000,000    
Common Stock          
Class of Stock [Line Items]          
Stock repurchase program authorized amount         $ 1,500,000,000
Dollar amount remaining in authorized stock repurchase program   $ 643,000,000      
Repurchase of common shares (in shares)       0  
Common Stock | Subsequent Event          
Class of Stock [Line Items]          
Repurchase of common shares (in shares) 264,000        
Total cost of shares repurchased $ 32,000,000        
v3.25.4
STOCKHOLDERS’ EQUITY - Schedule of Share Repurchase Activity (Details) - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Equity [Abstract]    
Number of shares repurchased (in shares) 7,790 904
Total cost of shares repurchased $ 748 $ 116
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Schedule of Accounts Receivable (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Trade accounts receivable, gross $ 861 $ 744
Allowance for credit losses (7) (9)
Total accounts receivable, net $ 854 $ 735
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Schedule of Inventory (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 254 $ 225
Work in process 398 404
Finished goods 45 31
Inventory, gross 697 660
Inventory reserve (133) (113)
Total inventory, net $ 564 $ 547
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 2,122 $ 2,069
Accumulated depreciation (1,363) (1,254)
Total property and equipment, net 759 815
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 755 772
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 705 683
Computer hardware and software    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 493 478
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 43 53
Buildings    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 44 44
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 82 $ 39
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Contract liabilities, current portion $ 270 $ 260
Accrued compensation expenses 249 252
Accrued taxes payable $ 107 $ 101
Operating Lease, Liability, Current, Statement of Financial Position Flag Total accrued liabilities Total accrued liabilities
Operating lease liabilities, current portion $ 78 $ 79
Other, including warranties 142 135
Total accrued liabilities $ 846 $ 827
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Schedule of Changes in Reserve for Product Warranties (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]      
Balance as of beginning of period $ 18 $ 21 $ 18
Additions charged to cost of product revenue 28 42 42
Repairs and replacements (29) (45) (39)
Balance as of end of period $ 17 $ 18 $ 21
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Pre-Tax Restructuring Charge (Details) - USD ($)
$ in Millions
12 Months Ended 36 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Dec. 28, 2025
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges $ 47 $ 62 $ 152 $ 261
Selling, general and administrative        
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges 26 59 122  
Research and development        
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges 16 2 24  
Employee separation costs        
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges 47 12 48 107
Asset impairment charges        
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges 0 46 100 146
Other Costs        
Restructuring Cost and Reserve [Line Items]        
Total restructuring charges $ 0 $ 4 $ 4 $ 8
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jun. 24, 2024
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Spinoff | GRAIL        
Restructuring Cost and Reserve [Line Items]        
Period of continuing involvement after disposal 2 years 6 months 2 years 6 months    
Non-contingent indemnification liability (see Note 7) $ 1 $ 1 $ 1  
Liability-Based Awards        
Restructuring Cost and Reserve [Line Items]        
Aggregated potential value     78  
Foster City, California        
Restructuring Cost and Reserve [Line Items]        
Right-of-use asset impairment     12 $ 38
San Diego, California        
Restructuring Cost and Reserve [Line Items]        
Right-of-use asset impairment     19 21
Leasehold improvements        
Restructuring Cost and Reserve [Line Items]        
Right-of-use asset impairment     $ 14  
Leasehold improvements | I3        
Restructuring Cost and Reserve [Line Items]        
Right-of-use asset impairment       16
Leasehold improvements | Foster City Campuses        
Restructuring Cost and Reserve [Line Items]        
Right-of-use asset impairment       $ 22
v3.25.4
SUPPLEMENTAL BALANCE SHEET DETAILS - Pre-Tax Charges and Total Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Restructuring Reserve [Roll Forward]    
Beginning balance $ 4 $ 18
Expense recorded $ 47 16
Restructuring Charges, Statement of Income or Comprehensive Income Flag Other Nonoperating Income (Expense)  
Cash payments $ (44) (26)
Adjustments to accrual 0 (4)
Ending balance 7 4
Employee Separation Costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 2 17
Expense recorded 47 12
Cash payments (42) (24)
Adjustments to accrual 0 (3)
Ending balance 7 2
Other Costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 2 1
Expense recorded 0 4
Cash payments (2) (2)
Adjustments to accrual 0 (1)
Ending balance $ 0 $ 2
v3.25.4
GRAIL SPIN-OFF - Narrative (Details)
$ in Millions
12 Months Ended
Jun. 24, 2024
USD ($)
shares
Dec. 28, 2025
USD ($)
Dec. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 01, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Legal contingency and settlement   $ (10) $ 456 $ (20)  
GRAIL          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Legal contingency and settlement     481    
Litigation settlement, gain     489    
Litigation settlement, loss     8    
Long-term debt, fine percentage rate         0.055
Spinoff | GRAIL          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Number of shares issued in transaction | shares 26,547,021        
Percent of interest disposed 85.50%        
Number of parent shares converted into one share of spin-off (in shares) | shares 6        
Discontinued operation, investment retained after disposal, ownership interest after disposal 14.50%        
Period of continuing involvement after disposal 2 years 6 months 2 years 6 months      
Amount of continuing cash flows after disposal $ 974        
Separation-related transaction costs     $ 53 $ 17  
v3.25.4
GRAIL SPIN-OFF - Assets and Liabilities Included as Part of the Disposal Group (Details) - GRAIL - Spinoff - USD ($)
$ in Millions
Jun. 24, 2024
Dec. 28, 2025
Dec. 29, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Cash and cash equivalents $ 968    
Accounts receivable, net 13    
Inventory, net 22    
Prepaid expenses and other current assets 27    
Property and equipment, net 80    
Operating lease right-of-use assets 74    
Intangible assets, net 2,201    
Other assets 14    
Accounts payable (12)    
Accrued liabilities (118)    
Operating lease liabilities (62)    
Other long term-liabilities (469)    
GRAIL net assets 2,738    
Additional adjustments recorded to additional paid-in capital as a result of the GRAIL Spin-Off:      
Non-contingent indemnification liability (see Note 7) 1 $ 1 $ 1
Tax adjustment for difference between the book and tax values of our retained investment in GRAIL 57    
Total recorded to additional paid-in capital as a result of the GRAIL Spin-Off 2,399    
In-process research and development (IPR&D)      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Intangible assets, net 140    
Short-Term Investments      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
GRAIL net assets 397    
Additional Paid-In Capital      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
GRAIL net assets $ 2,341    
v3.25.4
LEGAL PROCEEDINGS (Details)
Nov. 11, 2023
lawsuit
Feb. 02, 2024
lawsuit
Jan. 09, 2024
movant
Loss Contingencies [Line Items]      
Commitments and contingencies, number of additional securities class actions   2  
Securities Class Action      
Loss Contingencies [Line Items]      
Loss contingency, new claims filed, number 3    
Commitments and contingencies, number of movants filed motions consolidate actions | movant     4
v3.25.4
INCOME TAXES - Schedule of (Loss) Income before Income Taxes by Region (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 331 $ (1,834) $ (1,735)
Foreign 755 655 618
Income (loss) before income taxes $ 1,086 $ (1,179) $ (1,117)
v3.25.4
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Current:      
Federal $ 0 $ 6 $ (5)
State 13 18 6
Foreign 104 137 77
Total current provision 117 161 78
Deferred:      
Federal 106 (59) (13)
State 19 (56) (26)
Foreign (6) (2) 5
Total deferred benefit 119 (117) (34)
Total tax provision, effective tax rate $ 236 $ 44 $ 44
v3.25.4
INCOME TAXES - Schedule of Reconciliation of Provision for (Loss) Income Taxes to Amount Computed by Applying the Federal Statutory Rate (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
US federal statutory tax rate $ 228 $ (248) $ (235)
State and local income taxes, net of federal income tax effect 22 (36) (32)
Effect of changes in tax laws or rates enacted in current period 0 0 0
Effect of cross-border tax laws      
Global intangible low-taxed income (GILTI) 12 121 153
Subpart F income (15) 23 20
Foreign-derived intangible income (FDII) (5) (4) 5
Tax Credits      
Research tax credits (16) (21) (27)
Nontaxable or nondeductible items      
Stock compensation 17 16 31
Goodwill impairment 0 308 149
Accrual of European Commission fine 0 (99) 3
Impact of acquisition related items (3) (46) 8
Other 6 4 0
Changes in unrecognized tax benefits 22 19 32
Total tax provision, effective tax rate $ 236 $ 44 $ 44
Effective Income Tax Rate Reconciliation, Percent      
US federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect 2.00% 3.10% 2.90%
Effect of changes in tax laws or rates enacted in current period 0.00% 0.00% 0.00%
Effect of cross-border tax laws      
Global intangible low-taxed income (GILTI) 1.10% (10.30%) (13.70%)
Subpart F income (1.40%) (2.00%) (1.80%)
Foreign-derived intangible income (FDII) (0.50%) 0.30% (0.40%)
Tax Credits      
Research tax credits (1.50%) 1.80% 2.40%
Nontaxable or nondeductible items      
Stock compensation 1.60% (1.40%) (2.80%)
Goodwill impairment 0.00% (26.10%) (13.30%)
Accrual of European Commission fine 0.00% 8.40% (0.30%)
Impact of acquisition related items (0.30%) 3.90% (0.70%)
Other 0.60% (0.30%) 0.00%
Changes in unrecognized tax benefits 2.00% (1.60%) (2.90%)
Total tax provision, effective tax rate 21.70% (3.80%) (3.90%)
United States      
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
Change in valuation allowance $ 44 $ 14 $ (2)
Other $ (1) $ 1 $ 0
Effective Income Tax Rate Reconciliation, Percent      
Change in valuation allowance 4.10% (1.20%) 0.20%
Other (0.10%) (0.10%) 0.00%
Singapore      
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
Foreign tax effects $ (54) $ (110) $ (103)
Change in valuation allowance (74) (3) 31
Nondeductible R&D expense 2 15 2
Other $ 10 $ 12 $ 3
Effective Income Tax Rate Reconciliation, Percent      
Foreign tax effects (5.00%) 9.30% 9.20%
Change in valuation allowance (6.80%) 0.30% (2.80%)
Nondeductible R&D expense 0.20% (1.30%) (0.20%)
Other 0.90% (1.00%) (0.20%)
United Kingdom      
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
Other $ 15 $ 4 $ (2)
Pillar 2 (Global Minimum Tax) top-up tax $ 10 $ 54 $ 0
Effective Income Tax Rate Reconciliation, Percent      
Other 1.40% (0.30%) 0.20%
Pillar 2 (Global Minimum Tax) top-up tax 0.90% (4.60%) 0.00%
Other foreign jurisdictions      
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount      
Other $ 16 $ 20 $ 8
Effective Income Tax Rate Reconciliation, Percent      
Other 1.50% (1.70%) (0.70%)
v3.25.4
INCOME TAXES - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Deferred tax assets:    
Net operating losses $ 125 $ 189
Tax credits 290 252
Other accruals and reserves 32 40
Stock compensation 31 34
Capitalized U.S. R&D expenses 134 181
Other amortization 36 42
Operating lease liabilities 97 112
Property and equipment 22 17
Investments 0 23
Other 68 63
Total gross deferred tax assets 835 953
Valuation allowance on deferred tax assets (250) (278)
Total deferred tax assets 585 675
Deferred tax liabilities:    
Purchased intangible amortization (23) (35)
Operating lease right-of-use assets (50) (57)
Investments (39) 0
Other (23) (25)
Total deferred tax liabilities (135) (117)
Deferred tax assets, net $ 450 $ 558
v3.25.4
INCOME TAXES - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Tax Credit Carryforward [Line Items]      
Valuation allowance on deferred tax assets $ 250 $ 278  
Uncertain tax positions that would reduce annual effective tax rate, if recognized 216 202  
Potential interest penalties (income) on uncertain tax positions 9 6 $ 2
Liability recorded for potential interest and penalties 23 13  
Tax Year 2017      
Tax Credit Carryforward [Line Items]      
Undistributed earnings of foreign subsidiaries 1,729    
Deferred tax liability for undistributed foreign earnings 23    
Federal      
Tax Credit Carryforward [Line Items]      
Tax credit carryforwards 173    
Federal | IRS      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 59    
State      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 1,829    
Tax credit carryforwards 250    
Foreign | Singapore      
Tax Credit Carryforward [Line Items]      
Decrease to the provision for income taxes $ 37 $ 33 $ 75
Increase (decrease) to net income (loss) per diluted share (in dollars per share) $ 0.24 $ 0.20 $ 0.47
v3.25.4
INCOME TAXES - Schedule of the Gross Amount of Uncertain Tax Positions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance at beginning of year $ 232 $ 210 $ 153
Increases related to prior year tax positions 14 2 27
Decreases related to prior year tax positions 0 (2) (2)
Increases related to current year tax positions 11 23 42
Decreases related to lapse of statute of limitations (4) (1) (10)
Balance at end of year $ 253 $ 232 $ 210
v3.25.4
INCOME TAXES - Schedule of Income Taxes Paid Net of Refund (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation      
Federal $ 22 $ 31 $ (2)
State 7 0 4
Foreign 44 74 63
Total 73 105 65
California      
Effective Income Tax Rate Reconciliation      
State 5    
Maryland      
Effective Income Tax Rate Reconciliation      
State     3
Brazil      
Effective Income Tax Rate Reconciliation      
Foreign   10  
China      
Effective Income Tax Rate Reconciliation      
Foreign 10   14
Germany      
Effective Income Tax Rate Reconciliation      
Foreign 4   6
Israel      
Effective Income Tax Rate Reconciliation      
Foreign     7
Netherlands      
Effective Income Tax Rate Reconciliation      
Foreign 5    
United Kingdom      
Effective Income Tax Rate Reconciliation      
Foreign $ 6 $ 31 $ 17
v3.25.4
EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Matching contributions $ 48 $ 45 $ 46
Employer contribution vesting percent upon the occurrence of participant's disability, death or retirement or change in control of the Company 100.00%    
Deferred compensation plan assets $ 79 70  
Deferred compensation liability $ 72 $ 65  
Senior Level Employee      
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Percent of base salary available for contribution to the deferred compensation plan 60.00%    
Percent of all other forms of compensation available for contribution to the deferred compensation plan 100.00%    
Director      
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]      
Percent of all other forms of compensation available for contribution to the deferred compensation plan 100.00%    
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details)
12 Months Ended
Dec. 28, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segment 1
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Operating Performance and Assets by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenue $ 4,343 $ 4,372 $ 4,504
Total operating expenses 2,063 3,694 3,813
Cost of revenue 1,473 1,511 1,760
Research and development 967 1,169 1,354
Goodwill and intangible impairment 0 1,889 827
Legal contingency and settlement 10 (456) 20
Consolidated other income (expense), net (279) 346 48
Consolidated provision for income taxes 236 44 44
Net income (loss) 850 (1,223) (1,161)
Operating Segments | Core Illumina      
Segment Reporting Information [Line Items]      
Revenue 4,343 4,332 4,438
Cost of revenue 1,473 1,424 1,582
Research and development 967 988 1,030
Selling and marketing 618 638 648
General and administrative 468 262 600
Goodwill and intangible impairment 0 3 6
Legal contingency and settlement 10 (456) 20
Net income (loss) 807 1,473 552
Operating Segments | GRAIL      
Segment Reporting Information [Line Items]      
Revenue 0 55 93
Total operating expenses 0 2,360 1,714
Consolidated other income (expense), net 279 (346) (48)
Consolidated provision for income taxes 236 44 44
Eliminations      
Segment Reporting Information [Line Items]      
Net income (loss) $ 0 (1) 0
Eliminations | Core Illumina      
Segment Reporting Information [Line Items]      
Cost of revenue   $ 15 $ 26
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 28, 2025
Dec. 29, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Consolidated depreciation and amortization $ 270 $ 354 $ 432
Consolidated capital expenditures 148 142 195
Operating Segments | Core Illumina      
Segment Reporting Information [Line Items]      
Consolidated depreciation and amortization 270 280 273
Consolidated capital expenditures 148 137 183
Operating Segments | GRAIL      
Segment Reporting Information [Line Items]      
Consolidated depreciation and amortization 0 74 159
Consolidated capital expenditures 0 5 13
Eliminations      
Segment Reporting Information [Line Items]      
Consolidated capital expenditures $ 0 $ 0 $ (1)
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Net Long-lived Assets Consisting of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 28, 2025
Dec. 29, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net $ 1,129 $ 1,234
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 660 750
Singapore    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 281 279
United Kingdom    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net 119 124
Other countries    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets, net $ 69 $ 81
v3.25.4
SUBSEQUENT EVENTS (Details) - USD ($)
$ in Millions
Jan. 30, 2026
Dec. 28, 2025
Dec. 29, 2024
Subsequent Event [Line Items]      
Contingent consideration liabilities   $ 54 $ 73
Subsequent Event | Intellectual Property      
Subsequent Event [Line Items]      
Payments to acquire intangible assets $ 50    
SomaLogic | Subsequent Event      
Subsequent Event [Line Items]      
Payments to acquire businesses, gross 350    
Contingent consideration liabilities $ 75