Incyte Corp. (INCY) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 29, 2026, before the open.

Consensus is -$4.27 EPS for Sep 2026 across 7 estimates, ranging -$5.72 to -$3.22.

INCY Jun 2026

Reported Jul 28, 2026

: 59.09%
: -2.18%

: $1.76
: $2.80
: —
: —

Highlights

Earnings beat: GAAP diluted EPS was $2.81 versus consensus of $1.76, a 59% surprise; non-GAAP diluted EPS was $3.09 versus $1.57 a year ago.
Revenue growth: Total revenue rose 38% year over year to $1.67 billion, up from $1.27 billion in Q1 2026 and $1.22 billion in Q2 2025.
Opzelura benefit: Opzelura sales reached $449.7 million, up 173%, including a $246 million one-time, non-cash CMS settlement benefit; underlying sales were $204 million, up 24%.
Core commercial portfolio: Jakafi/Jakafi XR sales increased 7% to $816.7 million, supported by 9% paid-demand growth, while Hematology and Oncology sales rose 69% to $222 million.
Profit expansion: GAAP operating income increased to $697.9 million from $301.1 million in Q1 and $530.3 million a year ago; net income was $585.6 million versus $303.3 million in Q1 and $405.0 million a year ago.
Guidance raised: 2026 total net sales guidance increased to $5.13-$5.26 billion from $4.77-$4.94 billion, with Opzelura guidance raised to $1.05-$1.10 billion.
Investment step-up: GAAP R&D and SG&A guidance rose to $4.915-$4.995 billion, including an approximately $1.27 billion Vega Therapeutics IPR&D charge expected in Q3.
Pipeline and business development: Incyte completed the $1.25 billion Vega acquisition, adding Phase 3 von Willebrand disease candidate latarcibart, and expects 10 clinical readouts in the second half of 2026.
Liquidity: Cash, cash equivalents and marketable securities reached $4.5 billion at June 30, 2026, up from $3.6 billion at year-end; operating cash flow was $877.0 million in the first half.

Analysis

Incyte’s second quarter was a substantial earnings beat, but the headline growth was amplified by the CMS resolution affecting Opzelura. GAAP diluted EPS of $2.81 exceeded the $1.76 consensus by 59%, while revenue of $1.67 billion rose 38% year over year and 32% sequentially from $1.27 billion in Q1. Net income increased 45% from $405.0 million a year ago and 93% from $303.3 million in the prior quarter. Operating income reached $697.9 million, versus $530.3 million in Q2 2025 and $301.1 million in Q1.

The defining feature was Opzelura: reported sales included a $246 million non-cash reversal of prior Medicaid-related accruals, lifting the quarter’s total net sales to $1.49 billion. Excluding that item, total net sales grew 17% year over year, with normalized Opzelura sales of $204 million, up 24%. The underlying commercial performance was broad: Jakafi grew 7% to $816.7 million, while newer Hematology and Oncology products grew 69% to $222 million. Incyte raised sales guidance, but also sharply raised expense guidance for the Vega acquisition and pipeline investment. The company is entering a data-heavy second half with 10 expected readouts, including four registrational trials.

Quarterly financial performance

Revenue: Total GAAP revenue was $1.674 billion, up 38% from $1.216 billion in Q2 2025 and 32% from $1.27 billion in Q1 2026. Total net sales rose 40% year over year to $1.488 billion, while royalty revenue increased 16% to $174.7 million.
Margins and profit: GAAP operating income was $697.9 million, compared with $530.3 million a year ago and $301.1 million in Q1. GAAP net income was $585.6 million, versus $405.0 million a year ago and $303.3 million in Q1.
Adjusted results: Non-GAAP operating income rose 102% year over year to $773.0 million, and non-GAAP net income increased to $643.4 million from $311.9 million. Non-GAAP diluted EPS was $3.09, compared with $1.57 in Q2 2025.
Expense base: GAAP R&D increased 4% to $517.0 million and SG&A rose 6% to $351.7 million, reflecting continued late-stage development spending, headcount growth, consumer marketing and pre-launch activity.

Opzelura CMS settlement

Reported sales: Opzelura net sales were $449.7 million, up 173% year over year, including a $246 million one-time, non-cash benefit from reversing accruals through March 31, 2026.
Underlying demand: Excluding the settlement benefit, Opzelura sales were $204 million, up 24%, driven by patient demand in atopic dermatitis and vitiligo. The company reported normal inventory levels.
Ongoing benefit: The CMS agreement means Opzelura will not be treated as a Jakafi line extension under Medicaid rebate rules. Incyte expects a further $40-$50 million of improved gross-to-net benefit in the third and fourth quarters, after a $15 million benefit in Q2.
Guidance impact: Full-year Opzelura guidance increased to $1.05-$1.10 billion from $750-$790 million. Management estimates the total 2026 incremental impact from the CMS agreement at $300-$310 million, including the one-time benefit.

Commercial portfolio growth

Jakafi franchise: Jakafi/Jakafi XR net sales rose 7% to $816.7 million, with paid demand up 9% and growth across all indications. Jakafi XR was approved in May for myelofibrosis, polycythemia vera and graft-versus-host disease.
Hematology and Oncology: Combined sales increased 69% to $222 million. Niktimvo sales rose 67% to $60.3 million, Monjuvi/Minjuvi grew 72% to $53.7 million and Zynyz increased to $49.9 million from $8.9 million.
Other products and royalties: Iclusig sales grew 5% to $34.4 million and Pemazyre sales rose 6% to $23.4 million. JAKAVI royalties increased 13% to $124.2 million, while Olumiant royalties rose 15% to $38.5 million.
Normalized growth: Excluding the Opzelura settlement benefit, total net sales increased 17% year over year, indicating that growth extended beyond the accounting-driven uplift.

Pipeline and acquisition

Vega acquisition: Incyte completed its acquisition of Vega Therapeutics on July 6 for $1.25 billion in cash, with up to $750 million in potential sales milestones. The transaction adds latarcibart, a Phase 3 monthly subcutaneous treatment for von Willebrand disease.
Latarcibart data: Phase 1/2 data showed an 81% median reduction in annualized bleeding rate across bleeding categories and von Willebrand disease types. Phase 3 VIVID-6 data are expected in early 2029.
Near-term readouts: Incyte expects 10 data readouts in the second half of 2026, including four from registrational trials. These include programs in chronic GVHD, mutant CALR myeloproliferative neoplasms, hidradenitis suppurativa and prurigo nodularis.
Commercial pipeline: Global submissions were accepted for Monjuvi/Minjuvi in newly diagnosed diffuse large B-cell lymphoma, with a potential U.S. launch in Q1 2027. European approval of Opzelura for moderate atopic dermatitis is expected in Q3 2026, while povorcitinib could launch in Europe in late 2026 and the U.S. in Q1 2027.

Guidance and capital allocation

Sales outlook: Full-year 2026 total net sales guidance increased to $5.130-$5.260 billion from $4.770-$4.940 billion. Jakafi guidance was unchanged at $3.220-$3.270 billion, while Hematology and Oncology guidance increased to $860-$890 million.
Expense outlook: GAAP R&D and SG&A guidance increased to $4.915-$4.995 billion from $3.495-$3.675 billion. Non-GAAP guidance increased to $4.625-$4.695 billion from $3.205-$3.375 billion.
Vega accounting: The acquisition is expected to generate approximately $1.27 billion of IPR&D expense in Q3 and across full-year 2026, with an additional $50 million of ongoing R&D investment tied to latarcibart.
Liquidity: Cash, cash equivalents and marketable securities were $4.5 billion at quarter-end, up $955 million from December 31, 2025. First-half operating cash flow was $877.0 million, before the $1.25 billion cash payment for Vega in July.

Incyte Corp.

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