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Incyte
(NASDAQ:INCY)
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Rating:81Outperform
Price Target:
$139.00
▲(18.13% Upside)
Action:Reiterated
Date:08/18/26
INCY scores well primarily on strong financial performance (high margins, strong free cash flow, and a very low-debt balance sheet). The earnings call adds support via raised guidance and product/pipeline momentum, but the score is tempered by reliance on a one-time CMS settlement benefit and sharply higher operating expense guidance tied to acquisition and expanded Phase III investment. Technicals are constructive but not strongly momentum-driven, and valuation appears reasonable without a dividend.
Positive Factors
Strong profitability and cash generation
Very high margins and robust free cash flow provide internal funding for research, launches and acquisitions. Strong cash conversion indicates earnings are supported by cash generation, improving resilience across the development cycle.
Negative Factors
Reported growth partly relies on a one-time benefit
The settlement improves Opzelura economics, but it does not represent recurring product demand or sustainable revenue. Underlying growth is therefore lower than reported figures, creating a tougher base and greater reliance on execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Very high margins and robust free cash flow provide internal funding for research, launches and acquisitions. Strong cash conversion indicates earnings are supported by cash generation, improving resilience across the development cycle.
Read all positive factors
Incyte Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business units or product lines, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Analyzes revenue from different business units or product lines, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
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The Fly
The FlyIncyte (INCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.36B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)15.2
Beta (1Y)0.36
Revenue Growth26.93%
EPS Growth80.66%
CountryUS
Employees2,844
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)8.13
Shares Outstanding202,697,740
10 Day Avg. Volume1,426,717
30 Day Avg. Volume1,759,802
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)3.73
Price to Sales (P/S)3.75
P/FCF Ratio14.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$129.61Price Target Upside10.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)3.94
Revenue Forecast (FY)$5.92B
Incyte Business Overview & Revenue Model
Company Description
Incyte Corporation is a biopharmaceutical firm engaged in the research, development, and global marketing of its own innovative therapies. Its current product offerings include JAKAFI, prescribed for myelofibrosis and polycythemia vera; PEMAZYRE, ...
How the Company Makes Money
Incyte makes money primarily through (1) net product revenues from medicines it commercializes and (2) collaboration and licensing revenues from partnerships that monetize its intellectual property and pipeline.
1) Net product revenues (commercia...
Incyte Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented strong commercial momentum and meaningful pipeline maturation: double-digit and multi-factor sales growth (notably Opzelura and core products), multiple regulatory milestones and new Phase III starts, a strategic acquisition adding a high-potential hematology asset, and an upward revision to full-year revenue guidance. Offsetting these positives are reliance on a one-time CMS settlement that materially boosted near-term results and guidance, the discontinuation of the 058 JAK2 program, and materially higher near-term operating expenses driven by acquisition-related charges and expanded late-stage investments. Management emphasized execution risk, reimbursement dynamics and regulatory discussions that remain unresolved for some programs. Overall, the highlights — broad commercial growth, pipeline progression and strengthened late-stage portfolio — outweigh the lowlights, though near-term margin and execution risks merit monitoring.Positive Updates
Strong Top-Line Revenue Growth
Total revenue of $1.67 billion in Q2 2026, up 38% year-over-year; total net product sales of $1.49 billion, up 40% YoY. Excluding a one-time CMS settlement benefit, total net sales increased 17% YoY.
Negative Updates
One-Time CMS Settlement Boosts Reported Results
A $246 million one-time noncash benefit related to the CMS/Medicaid rebate settlement materially inflated Q2 Opzelura results and contributed an estimated $300M–$310M impact to full-year Opzelura guidance; underlying growth excluding the benefit was 17% total net sales YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Revenue Growth
Total revenue of $1.67 billion in Q2 2026, up 38% year-over-year; total net product sales of $1.49 billion, up 40% YoY. Excluding a one-time CMS settlement benefit, total net sales increased 17% YoY.
Read all positive updates
Company Guidance
Incyte raised full‑year 2026 total net sales guidance to $5.130–$5.260 billion and updated Opzelura guidance to $1.050–$1.100 billion (previously $750–$790M), reflecting a $246 million one‑time noncash CMS settlement and an estimated $300–$310M incremental impact overall (about $40–$50M in H2); hematology & oncology net sales guidance was narrowed and raised to $860–$890M. They also raised and narrowed GAAP R&D+SG&A to $4.915–$4.995B and non‑GAAP R&D+SG&A to $4.625–$4.695B, driven by ~ $1.27B of upfront IPR&D/transaction costs plus ≈$50M of latarcibart Phase III spend; COGS is expected to be 8–9% of net sales. Quarterly metrics supporting the outlook included Q2 total revenue $1.67B and total net product sales $1.49B (ex‑one‑time net sales +17% YoY), Opzelura Q2 $450M (incl. $204M net product sales + $246M one‑time), Jakafi Q2 $817M, cash ~$4.5B, COGS $105M (7% of net sales), and Jakafi XR/Opzelura operational notes (XR $10M in Q2 and XR full‑year $40–$50M; XR formulary target 50–70% by year‑end; Opzelura U.S. sales excl. onetime $161M, +22% YoY; prescriptions +26%).Incyte Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.82B | 5.14B | 4.24B | 3.70B | 3.39B | 2.99B |
| Gross Profit | 5.39B | 4.77B | 3.93B | 3.44B | 3.19B | 2.84B |
| EBITDA | 2.04B | 1.76B | 408.16M | 919.43M | 599.64M | 630.20M |
| Net Income | 1.61B | 1.29B | 32.62M | 597.60M | 340.66M | 948.58M |
Balance Sheet | ||||||
| Total Assets | 7.87B | 6.96B | 5.44B | 6.78B | 5.84B | 4.93B |
| Cash, Cash Equivalents and Short-Term Investments | 4.54B | 3.58B | 2.16B | 3.66B | 3.24B | 2.35B |
| Total Debt | 38.27M | 69.43M | 43.54M | 38.29M | 41.46M | 44.82M |
| Total Liabilities | 1.53B | 1.80B | 2.00B | 1.59B | 1.47B | 1.16B |
| Stockholders Equity | 6.34B | 5.17B | 3.45B | 5.19B | 4.37B | 3.77B |
Cash Flow | ||||||
| Free Cash Flow | 1.92B | 1.35B | 249.07M | 449.00M | 892.11M | 568.48M |
| Operating Cash Flow | 1.98B | 1.41B | 335.34M | 496.49M | 969.94M | 749.49M |
| Investing Cash Flow | -224.83M | -102.61M | 157.52M | -207.68M | -78.54M | -207.70M |
| Financing Cash Flow | 275.24M | 101.04M | -2.02B | -20.03M | -794.00K | 6.18M |
Incyte Technical Analysis
Positive
117.67
Price Trends
114.29
Positive
105.30
Positive
103.01
Positive
Market Momentum
1.95
Positive
60.41
Neutral
63.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INCY, the sentiment is Positive. The current price of 117.67 is below the 20-day moving average (MA) of 120.56, above the 50-day MA of 114.29, and above the 200-day MA of 103.01, indicating a bullish trend. The MACD of 1.95 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INCY.
Incyte Risk Analysis
Incyte disclosed 40 risk factors in its most recent earnings report. Incyte reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Incyte Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $24.36B | 15.19 | 29.70% | ― | 26.93% | 80.66% | |
78 Outperform | $12.70B | 15.90 | 42.49% | ― | 9.23% | 53.08% | |
74 Outperform | $21.43B | 16.82 | 20.18% | ― | 2.49% | 9.29% | |
68 Neutral | $15.50B | 17.65 | 190.44% | ― | 128.41% | ― | |
68 Neutral | $18.75B | 25.46 | 14.55% | ― | 21.75% | -36.69% | |
65 Neutral | $13.04B | 175.37 | 1.18% | ― | 13.69% | -89.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
INCY
Incyte
123.50
38.58
45.43%
BMRN
BioMarin Pharmaceutical
66.64
9.20
16.02%
EXEL
Exelixis
52.32
14.56
38.56%
UTHR
United Therapeutics
508.48
194.38
61.88%
ASND
Ascendis Pharma
247.40
53.32
27.47%
GMAB
Genmab
32.84
9.42
40.22%
Incyte Corporate Events
Business Operations and StrategyM&A Transactions
Incyte Acquires Vega Therapeutics, Expands Hematology Pipeline
Positive
Jul 6, 2026
On July 6, 2026, Incyte completed its $1.25 billion acquisition of Vega Therapeutics, a wholly owned subsidiary of Star Therapeutics, in a deal that also includes up to $750 million in sales milestone payments and will be recorded as a one-time RD...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Incyte Resolves Opzelura Medicaid Dispute, Gains One-Time Benefit
Positive
Jun 22, 2026
Incyte Corporation has reached an agreement with the Centers for Medicare Medicaid Services to resolve litigation over the application of Medicaid rebate rules to Opzelura, its ruxolitinib cream. CMS agreed not to treat Opzelura as a line extensi...
Executive/Board ChangesShareholder Meetings
Incyte Shareholders Back Board, Pay and Auditor Choices
Positive
Jun 9, 2026
At Incyte Corporation’s Annual Meeting of Shareholders held on June 8, 2026, investors elected all nominated directors, including Julian C. Baker, Jean-Jacques Bienaimé and Otis W. Brawley, signaling broad support for the company’...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Incyte to Acquire Vega Therapeutics in $2B Deal
Positive
Jun 8, 2026
On June 8, 2026, Incyte announced a definitive agreement to acquire Vega Therapeutics, a wholly owned subsidiary of Star Therapeutics, for $1.25 billion upfront, plus up to $750 million in sales-based milestones, for potential total consideration ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.