The Lexus IS conquered the luxury car segment in 1999. It was introduced as the BMW 3 Series Hunter and did a commendable job – most notably, at a significant discount. Like the 3 Series, the Lexus IS has evolved many times since then. Gone are the suede seats or an optional manual transmission. For 2026, Lexus is introducing several changes to the IS that it hopes will keep it competitive in the segment – battling cars like the Audi A5, Mercedes C-Class and, of course, the BMW 3 Series. Here’s how the 3 Series and Lexus IS 2026 perform.
Exterior design


Lexus is changing significantly for the car’s return in 2026. While the spindle grille remains, it is slightly more conservative and now features a two-piece look, combining horizontal grille slats where the headlights meet them with the spindle look below. Narrower headlights and some new paint and rim options further modernize the car. Although perhaps not so much that you could immediately identify it as a “new” Lexus model. On the back, Lexus now spells out the brand instead, replacing the “L” emblem.
One of the best things about the existing Lexus IS is the aggressively stylized side profile. Thankfully, it remains mostly intact year-over-year. This is one of the biggest differentiators of the Lexus IS and also scores some important design points. From the outside, we’re inclined to say that the IS – at least in the aggressive F Sport trim – is the better-looking car. Interestingly, Leuxs is only offering the car in F Sport livery for 2026. However, the BMW 3 Series is not particularly unattractive. We still think it looks better from both the front and the back. Light strips will not age well.
Interior design


Inside, Lexus is taking a more screen-centric approach, but there are other changes to talk about. First up is the brand’s “Forged Bamboo” trim that surrounds the start/stop button bezel and upper console area. The new material also offers new upholstery options. Disappointingly, the analog clock that used to sit between the vents appears to no longer be available for 2026. Maybe that’s an option. There’s nothing going on inside that we haven’t seen before. While the black and red upholstery shown in the press photos is neat, the 3 Series and Lexus appear to be about the same in general layout. The last IS I was in felt pretty good quality wise too. So we’re inclined to call this a draw, although the 3 Series’ cabin is undoubtedly more ‘modern’. More on that later.
Performance


With the update, Lexus trims the fat. The 2026 Lexus IS is only available as an IS 350. There was previously a V8-powered IS 500 and a less powerful IS 300, but they are no longer available – for now. We assume that little will change compared to the current car’s 311 hp naturally aspirated V6 engine. This puts the car right in the middle of the BMW 3 Series. Both the IS and 3 Series are also available with all-wheel drive. Either way, we hardly expect the 2026 Lexus IS to be a real challenge when it comes to driving engagement. Especially compared to the excellent M340i model and its 386 hp B58 engine.
technology


The Lexus IS gets a larger screen for 2026. However, the new 12.3-inch screen and 12.3-inch digital instrument cluster are still slightly less dominant in the interior than in the 3 Series. Lexus is touting a “next-generation multimedia system” and also claims improved driver assistance systems. We’re sure the Lexus won’t be too different from the 3 Series. However, we admit that the new IS’s screen integration is significantly smoother than that of the BMW.
Toyota’s minor changes to the Lexus IS add up. Ultimately, the car’s sporty design and updated technology – the latter of which has always been a sticking point for the brand – could attract some former 3 Series buyers or newcomers to the segment. However, we can’t help but feel that ISIS’s charm is aging; It is no longer the clear “value choice” it once was. Recent reports put the 2026 Lexus IS starting price at around $46,795. Meanwhile, the 2026 BMW 3 Series starts just a stone’s throw away, at $48,675 after destination charges. The brand may leave the door open for a model with a lower entry point in the future. Either way, the new IS reminds us of one thing: the BMW 3 Series has never had stronger competition.