Incyte 2025 Q1 Earnings Misses Targets as Net Income Falls 6.7%

Incyte (INCY) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The company posted total revenues of $1.05 billion, reflecting a 19.5% increase from the same quarter last year, surpassing analyst expectations of $988.8 million. However, Incyte's net income declined by 6.7% to $158.20 million from $169.55 million in the prior year, missing forecasts. The company raised its full-year guidance for Jakafi to $2.95 billion to $3 billion, indicating a positive outlook for this key product.

Revenue

Incyte's total revenue for Q1 2025 reached $1.05 billion, a 19.5% increase compared to Q1 2024. This growth was driven by net product revenues of $922.27 million and product royalty revenues of $130.62 million, highlighting the continued success of its key products, Jakafi and Opzelura.

Earnings/Net Income

Incyte's earnings per share (EPS) increased by 7.9%, rising to $0.82 in Q1 2025 from $0.76 in Q1 2024. Despite this growth in EPS, the net income decreased by 6.7% year-over-year, totaling $158.20 million. The EPS growth indicates a positive trend for shareholders, although net income reflects challenges in maintaining profitability.

Post-Earnings Price Action Review

Following the earnings report, Incyte's stock price experienced modest fluctuations. The 3-Day win rate for earnings release was 42.86%, but it improved to 57.14% over a 10-Day period before dropping to 38.10% for a 30-Day span. The highest observed return post-earnings release was 2.05%, occurring 53 days after the announcement. These metrics suggest that while Incyte's earnings reports can lead to positive stock movements, the impact is generally modest and accompanied by a notable risk of negative returns.

CEO Commentary

Hervé Hoppenot, CEO of Incyte, emphasized the significance of Q1 2025 as pivotal, with a robust commercial portfolio performance. He attributed the company's over 20% revenue growth to strong demand for Jakafi and Opzelura. Hoppenot highlighted the successful launch of Niktimvo, addressing a critical medical need, and expressed optimism regarding future product launches and R&D advancements.

Guidance

Incyte raised its full-year 2025 net product revenue guidance for Jakafi to a range of $2.95 billion to $3 billion. The company anticipates total revenue of approximately $1.05 billion for Q1 2025, reflecting a 20% year-over-year increase, driven by strong demand for Jakafi and Opzelura. Guidance for Opzelura and other hematology/oncology products remains unchanged, while R&D spending is expected to rise by $15 million due to a recent deal with Genesis.

Additional News

In February 2025, Incyte and Genesis Therapeutics, Inc. entered into a strategic collaboration aimed at discovering and developing novel small molecule medicines. This partnership gives Incyte exclusive rights to develop and commercialize products using Genesis' GEMS artificial intelligence platform. Moreover, in March 2025, Incyte presented positive results from two Phase 3 studies of ruxolitinib cream in prurigo nodularis at a dermatology meeting. Additionally, Incyte plans to initiate Phase 3 studies for its CDK2 inhibitor in ovarian cancer within 2025, as part of its ongoing efforts to expand its oncology portfolio.