3 Stocks to Watch Following Guidance Upgrades

The Q3 earnings cycle continues to roll along, with several healthcare companies delivering positive results and raising their outlooks as a result.

Among them, Illumina ILMN, Tempus AI TEM, and Novartis NVS have upgraded their FY26 guidance, reflecting continued momentum and improving expectations for the rest of the year.

Illumina Sees Strong Demand

Illumina, a leading provider of DNA sequencing and genomic analysis technologies, posted quarterly revenue of $1.13 billion, reflecting 4.2% YoY growth. Adjusted EPS, excluding tariff refunds, came in at $1.44, growing 7% from the same period last year.

Importantly, healthy clinical demand and strong NovaSeq X placements helped underpin the results, with management now expecting FY26 revenue of $4.64-$4.66 billion, up $30 million at the midpoint from its prior guidance. The company also raised its adjusted EPS outlook to $5.40-$5.45 from $5.30-$5.40 previously, reflecting continued confidence in the earnings picture.

Tempus AI Delivers Record Revenue

Tempus AI, which utilizes artificial intelligence and data to advance precision medicine, delivered another record quarter, with revenue climbing 23% YoY to $411.5 million.

Growth was particularly strong throughout its Data & Applications business, where sales climbed 33% YoY to $108.1 million. Oncology testing volumes also reflected notable strength, growing 32% from the same period last year.

Given the momentum, management raised its FY26 revenue guidance to $1.60-$1.605 billion, suggesting roughly 25% annual growth. Its adjusted EBITDA outlook remained unchanged at approximately $65 million.

Novartis Raises Profit Outlook

Novartis, a global pharmaceutical giant, also delivered a constructive quarterly release, with growth from its priority brands and newer treatments helping offset generic competition.

The company raised its FY26 core operating income outlook to flat-to-low-single-digit growth, improving from its prior expectation for a low-single-digit decline. Its full-year sales outlook remained unchanged, with management still expecting low-single-digit growth.

The improved profitability outlook is undoubtedly encouraging, particularly given the generic competition that has weighed on portions of its portfolio.

Bottom Line

The Q3 earnings cycle has delivered several positives for healthcare investors, with Illumina ILMN, Tempus AI TEM, and Novartis NVS all raising their FY26 guidance.

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This article originally published on Zacks Investment Research (zacks.com).

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