Incyte 2025 Q2 Earnings Beats Expectations as Net Income Swings 191% Positive

Incyte (INCY) reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. Incyte's results for the second quarter of 2025 surpassed market expectations, with both earnings per share and revenue outperforming predictions. The company beat EPS forecasts, achieving non-GAAP earnings of $1.57 per share, exceeding the expected $1.47. Furthermore, Incyte raised its full-year 2025 guidance, reflecting increased demand and strong product performance. The updated guidance suggests a positive outlook for the remainder of the fiscal year, with anticipated revenue growth across key segments, reinforcing investor confidence.

Revenue
Incyte's total revenue for 2025 Q2 rose by 16.5% to $1.22 billion, compared to $1.04 billion in the same quarter last year. Product revenues, net amounted to $1.06 billion, showcasing robust sales performance. Product royalty revenues contributed an impressive $151.12 million, while milestone and contract revenues added $5 million to the overall total. This comprehensive revenue increase underscores Incyte's strong market position and successful product strategy during the quarter.

Earnings/Net Income
Incyte returned to profitability with an earnings per share (EPS) of $2.09 in 2025 Q2, reversing from a loss of $2.04 per share in 2024 Q2, marking a 202.5% positive change. The company achieved a remarkable turnaround, with net income reaching $405 million in 2025 Q2, showcasing a 191.1% positive swing from the net loss of $444.60 million in 2024 Q2. The EPS performance indicates a strong recovery and financial strength.

Price Action
The stock price of Incyte has edged down 0.27% during the latest trading day, has climbed 4.13% during the most recent full trading week, and has climbed 3.86% month-to-date.

Post-Earnings Price Action Review
Over the past three years, a strategy involving purchasing Incyte (INCY) shares following quarters with revenue increases and holding them for 30 days has led to disappointing results. The strategy yielded a negative return of -56.60%, significantly underperforming the benchmark return of 88.74%. This brought about an excess return of -145.33%, with a compound annual growth rate (CAGR) of -15.44%, indicating considerable losses over the period. Despite a maximum drawdown of 0.00%, which implies no additional downside risk, the strategy failed to generate any profit. Based on this backtest, the approach appears unviable, as it consistently underperformed, highlighting the need for investors to reconsider such strategies.

CEO Commentary
"As I begin my tenure as CEO, I look forward to leading Incyte through its next phase of growth and value creation for patients, partners, and shareholders. Our second quarter results reflect strong growth for Jakafi® (ruxolitinib), Opzelura® (ruxolitinib) cream, and Niktimvo™ (axatilimab), positioning us well to deliver on our 2025 objectives," said Bill Meury, Chief Executive Officer, Incyte. "During the quarter, we achieved two regulatory milestones with the approvals of Zynyz® (retifanlimab-dlwr) and Monjuvi® (tafasitamab-cxix), further expanding our ability to address patients' needs. Continued progress and diversification of our portfolio, including advancements with povorcitinib and mutCALR, are strengthening the foundation for sustainable, long-term growth."

Guidance
Incyte has raised its full-year 2025 revenue guidance to a new range of $3,000 - $3,050 million, up from the previous range of $2,950 - $3,000 million. Furthermore, the company has increased its full-year 2025 Other Oncology revenue guidance to a new range of $500 - $520 million, previously set at $415 - $455 million. The anticipated Phase 1 data for INCA033989 in patients with myelofibrosis and the ongoing trials for axatilimab in chronic GVHD are expected to contribute to the company's growth trajectory moving forward.

Additional News
On June 26, 2025, Incyte appointed Bill Meury as Chief Executive Officer, succeeding Hervé Hoppenot who retired. The transition marked a significant leadership change for the biopharmaceutical company. Earlier, on June 15, 2025, Incyte announced a precision medicine collaboration with QIAGEN to develop companion diagnostics for patients with mutant CALR-expressing myeloproliferative neoplasms (MPNs), highlighting its commitment to advancing personalized medicine. Additionally, on June