The Lexus IS pounced on the luxury car segment in 1999. It was introduced as a BMW 3 Series fighter, and did a commendable job — most remarkably, at a significant discount. Like the 3 Series, though, the Lexus IS has evolved many times since then. Gone are the suede seats, or an optional manual transmission. For 2026, Lexus introduces several changes to the IS that it hopes will keep it competitive in the segment — fighting cars like the Audi A5, Mercedes C-Class, and of course, the BMW 3 Series. Here’s how the 3 Series and the 2026 Lexus IS stack up.

Exterior Design

3 SERIES V 2026 LEXUS IS SIDE

Lexus changes up quite a bit for the car’s 2026 return. While the spindle grille remains, it’s a little more conservative, now featuring a two-part look that blends horizontal grille slats where the headlights meet it and the spindle look down below. Narrower headlights and some new paint and wheel options further modernize the car. Though, perhaps not so much that it’s immediately identifiable as a “new” Lexus model. Around back, Lexus now spells out the brand instead, replacing the “L” badge.

One of the best things about the existing Lexus IS is the aggressively stylized side profile. Thankfully, it remains mostly intact year-over-year. It’s one of the biggest ways that the Lexus IS differentiates itself and also scores some major styling points. From the side, we’re inclined to say the IS — at least in aggressive F Sport trim — is the better looking car. Interestingly, Leuxs is only offering the car in F Sport guise for 2026. That said, there’s nothing particularly unattractive about the BMW 3 Series. We still think it looks better from the front and rear, too. Light bars are not going to age well.

Interior Design

3 SERIES V 2026 LEXUS IS INTERIOR

Inside, Lexus takes a more screen-centric approach, but there are other changes to talk about, too. The first is the brand’s “Forged Bamboo” decorative trim, which surrounds the start/stop button bezel and upper console area. The new material joins new upholstery options, too. Disappointingly, the analog clock that used to sit between the air vents seems to be out for 2026. Maybe it’s an option. Nothing going on in the interior is something we haven’t seen before. While the black and red upholstery shown in the press photos is neat, the 3 Series and the Lexus seem about on par as far as general layout goes. The last IS I was in felt pretty good in terms of quality, too. So, we’re inclined to call this a tie, although the 3 Series cabin is unquestionably more “modern.” More on that later.

Performance

3 SERIES V 2026 LEXUS IS REAR

With the update, Lexus trims the fat. The 2026 Lexus IS only comes in the IS 350 guise. Previously, a V8-powered IS 500 and less powerful IS 300 existed, but they’re out — for now. We expect little to change from the current car’s 311-horsepower naturally aspirated V6. That puts the car smack dab in the middle of the BMW 3 Series lineup. The IS and 3 Series both can be had with all-wheel drive, too. Either way, we expect little real challenge from the 2026 Lexus IS when it comes to driving engagement. Especially compared to the excellent M340i model and its 386-horsepower B58 engine.

Technology

3 SERIES V 2026 LEXUS IS FRONT

The Lexus IS gets a bigger screen for 2026. However, the new 12.3-inch screen and 12.3-inch digital gauge cluster are still a bit less dominant in the cabin than in the 3er. Lexus touts a “next-generation multimedia system,” and also claims enhanced driver assistance systems. We’re certain the Lexus won’t do anything too differently from the 3 Series. However, we will admit that the new IS’s screen integration is noticeably smoother than the BMW’s.

Toyota’s minor changes to the Lexus IS add up. In the end, the car’s sporty styling and updated tech — the latter of which has always been a bit of a sticking point for the brand — could lure in some former 3er shoppers or newcomers to the segment. However, we can’t help but feel the IS’s charms are aging; it’s no longer the clear “value pick” it once was. Recent reports place 2026 Lexus IS pricing at around $46,795 to start. Meanwhile, the 2026 BMW 3 Series begins hardly a stone’s throw away, at $48,675 after destination fees. Perhaps the brand is leaving the door open for a lower entry point model in the future. Either way, the new IS reminds us of one thing: the BMW 3 Series has never had closer competition.