Incyte (NASDAQ:INCY) Shares Gap Down After Earnings Miss

Incyte Corporation (NASDAQ:INCY)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $109.03, but opened at $103.00. Incyte shares last traded at $101.96, with a volume of 585,178 shares changing hands.

The biopharmaceutical company reported $1.80 earnings per share for the quarter, missing the consensus estimate of $1.96 by ($0.16). The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.35 billion. Incyte had a net margin of 24.69% and a return on equity of 26.56%. The company’s revenue for the quarter was up 27.8% on a year-over-year basis. During the same period last year, the firm posted $1.43 earnings per share.

Key Headlines Impacting Incyte

Here are the key news stories impacting Incyte this week:

• Positive Sentiment: Q4 revenue and net income surprised to the upside — revenue of $1.51B beat consensus (~$1.35B) and the company reported higher net for the quarter, which supports near-term cash flow and valuation metrics. MarketWatch: Incyte 4Q Net Up on Higher Revenue
• Neutral Sentiment: Analyst & media previews highlight Incyte as a value play and focus attention on the pipeline as the key to reducing Jakafi reliance; these are longer‑term considerations that could moderate risk if clinical/readouts progress. Investing.com: Can pipeline ease Jakafi reliance?
• Negative Sentiment: Management issued a weak 2026 revenue forecast below Street estimates and said Opzelura is expected to underperform, heightening worry about its ability to replace revenue from Jakafi ahead of patent losses — a key driver of the stock decline after the print. Reuters: Incyte weak 2026 revenue forecast
• Negative Sentiment: EPS missed consensus ($1.80 vs. $1.96 expected) despite the revenue beat, signaling margin/expense pressure and amplifying near-term uncertainty; investors will watch guidance, Opzelura uptake, and Jakafi exclusivity developments closely. Incyte Q4 press release / slides

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Wall Street Zen upgraded Incyte from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 1st. HC Wainwright started coverage on shares of Incyte in a research note on Thursday, February 5th. They set a “buy” rating and a $135.00 price target for the company. Zacks Research downgraded shares of Incyte from a “strong-buy” rating to a “hold” rating in a report on Monday, November 10th. The Goldman Sachs Group reiterated a “neutral” rating and set a $90.00 price objective on shares of Incyte in a report on Thursday, January 8th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Incyte in a report on Thursday, January 22nd. Nine analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $103.29.

Insiders Place Their Bets

In other news, EVP Michael James Morrissey sold 54,008 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $97.29, for a total value of $5,254,438.32. Following the completion of the transaction, the executive vice president directly owned 31,830 shares of the company’s stock, valued at $3,096,740.70. This represents a 62.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Mohamed Khairie Issa sold 10,856 shares of the stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $109.07, for a total value of $1,184,063.92. Following the sale, the executive vice president directly owned 66,132 shares of the company’s stock, valued at $7,213,017.24. The trade was a 14.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 95,225 shares of company stock worth $9,519,745 over the last 90 days. 17.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Incyte

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Harbor Capital Advisors Inc. purchased a new stake in Incyte during the third quarter worth about $26,000. FNY Investment Advisers LLC bought a new position in shares of Incyte during the 2nd quarter valued at approximately $27,000. Root Financial Partners LLC purchased a new stake in shares of Incyte during the 3rd quarter worth approximately $28,000. Elyxium Wealth LLC bought a new stake in shares of Incyte in the 4th quarter worth approximately $28,000. Finally, Smithfield Trust Co lifted its stake in Incyte by 135.0% in the fourth quarter. Smithfield Trust Co now owns 282 shares of the biopharmaceutical company’s stock valued at $28,000 after purchasing an additional 162 shares during the last quarter. 96.97% of the stock is owned by hedge funds and other institutional investors.

Incyte Trading Down 5.6%

The firm has a fifty day simple moving average of $101.83 and a two-hundred day simple moving average of $93.57. The firm has a market capitalization of $20.20 billion, a P/E ratio of 17.11, a price-to-earnings-growth ratio of 0.65 and a beta of 0.82. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.20 and a quick ratio of 3.13.

About Incyte

Incyte Corporation is a Wilmington, Delaware–based biopharmaceutical company focused on the discovery, development and commercialization of novel therapies in oncology and inflammation. Since its founding in 2002, Incyte has grown from a small research organization into a global enterprise, advancing a portfolio of internally developed and partnered assets. The company’s research and development efforts center on small-molecule drugs and biologics that modulate critical signaling pathways implicated in cancer, autoimmune disorders and rare diseases.

The company’s flagship product is Jakafi® (ruxolitinib), a Janus kinase (JAK) inhibitor approved for the treatment of myelofibrosis and polycythemia vera.