INCY's Q2 Earnings & Revenues Beat Estimates on Higher Product Sales

Incyte Corporation INCY reported second-quarter 2025 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.39. The company had incurred an adjusted loss of $1.82 per share in the year-ago quarter.

Total revenues in the second quarter were $1.22 billion, which grew 16% year over year, driven by the sustained performance of its lead drug, Jakafi (ruxolitinib), and increased sales of Opzelura (ruxolitinib) cream on strong launch and demand. The top line beat the Zacks Consensus Estimate of $1.15 billion.

All percentages mentioned below are on a reported basis.

INCY's Q2 Results in Detail

Revenues from the sale of Jakafi, a first-in-class JAK1/JAK2 inhibitor approved for polycythemia vera, myelofibrosis and refractory acute graft-versus-host disease (GVHD), came in at $763.8 million, up 8% from the year-ago quarter, owing to an 8% increase in paid demand. Jakafi's sales beat the Zacks Consensus Estimate of $744.1 million.

Opzelura (ruxolitinib) cream, approved for atopic dermatitis and vitiligo, generated $164.5 million in sales, which rose 35% year over year, and beat the Zacks Consensus Estimate of $148.6 million. The year-over-year rise in sales was driven by increased patient demand and refills in the United States for both its approved indications, as well as higher ex-U.S. sales.

The newly approved medicine Zynyz (retifanlimab-dlwr) generated sales of $8.9 million, which significantly increased from the year-ago quarter and beat the Zacks Consensus Estimate of $2.7 million. The company obtained accelerated approval for Zynyz to treat metastatic or recurrent locally advanced Merkel cell carcinoma. Net product revenues of Iclusig were $32.7 million, up 22% year over year. The figure beat the Zacks Consensus Estimate of $29 million. Pemazyre generated $22.2 million in sales, reflecting a year-over-year increase of 9%. The figure also surpassed the Zacks Consensus Estimate of $20.2 million.

Minjuvi's revenues totaled $31.1 million, which was relatively flat year over year. The figure missed the Zacks Consensus Estimate of $34.3 million. Incyte gained worldwide exclusive global rights for tafasitamab from MorphoSys AG, which is marketed as Monjuvi in the United States and as Minjuvi in the ex-U.S. markets in 2024.

Incyte and partner Syndax Pharmaceuticals obtained FDA approval for axatilimab-csfr, an anti-CSF-1R antibody, for the treatment of GVHD after the failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg. The candidate was approved under the brand name Niktimvo. The drug is Incyte’s second approved treatment for chronic GVHD (third-line) and was launched in the United States during the first quarter of 2025. The drug recorded $36.2 million in sales in the second quarter of 2025.

Shares of Incyte have gained 1.6% year to date compared with the industry’s 0.6% growth.

Jakafi is marketed by Incyte in the United States and by Novartis NVS as Jakavi in ex-U.S. markets. Jakavi royalty revenues from Novartis for commercialization in ex-U.S. markets rose 10% to $109.7 million. Jakavi royalties beat the Zacks Consensus Estimate of $103.4 million.

Incyte also receives royalties from the sales of Tabrecta (capmatinib) for the treatment of adult patients with metastatic non-small-cell lung cancer. Its partner, Novartis, has exclusive worldwide development and commercialization rights for Tabrecta. Royalty revenues from the drug’s sales amounted to $6.6 million, up 25% year over year. However, the reported figure missed the Zacks Consensus Estimate of $6.9 million.

Olumiant’s (baricitinib) product royalty revenues from Eli Lilly LLY totaled $33.5 million, up 6% year over year. The figure marginally missed the Zacks Consensus Estimate of $33.6 million. Incyte has a collaboration agreement with Eli Lilly for Olumiant. The drug is a once-daily oral JAK inhibitor discovered by Incyte and licensed to LLY. It is approved for several types of autoimmune diseases.

Adjusted research and development (R&D) expenses totaled $455.6 million, down 58% year over year. This massive decrease was primarily due to an upfront payment made in the year-ago quarter related to the acquisition of Escient. Excluding the acquisition expense from the year-ago period, R&D expenses increased 8% in second-quarter 2025, primarily driven by continued investment in late-stage development assets.

Adjusted selling, general and administrative (SG&A) expenses were $304.8 million, up 16% from the prior-year quarter’s number, primarily due to increased legal costs relating to the Novartis contract dispute settlement and other matters, as well as the timing of consumer marketing activities.

INCY’s cash, cash equivalents and marketable securities remained unchanged at $2.4 billion as of June 30, 2025, compared with that as of March 31, 2025.

Incyte Corporation Price, Consensus and EPS Surprise

Incyte Corporation price-consensus-eps-surprise-chart | Incyte Corporation Quote

INCY Updates 2025 Guidance

The company now expects Jakafi revenues for 2025 in the range of $3-$3.05 billion compared with the previously reported band of $2.95-$3 billion. Opzelura net product revenues are expected to remain unchanged in the band of $630-$670 million in 2025.

Adjusted R&D expenses are expected in the range of $1.82-$1.84 billion in 2025, up from the previously reported guidance of $1.78-$1.81 billion. Adjusted SG&A expenses are expected to be in the range of $1.16-$1.19 billion.

INCY's Zacks Rank & Stock to Consider

Incyte currently carries a Zacks Rank #3 (Hold).

A better-ranked stock from the sector is Bayer BAYRY, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

BAYRY’s 2025 earnings per share estimate has increased from $1.19 to $1.30 for 2025 over the past 90 days. The same for 2026 has risen from $1.28 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 71.1%.

BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%.

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