01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Incyte Corporation's Form 10-Q for the quarter ended September 30, 2026 shows a net loss of $784.8 milliona, or $3.86 per share, for the three months ended September 30, 2026, compared with net income of $424.2 million, or $2.11 diluted per share, a year earlier.
The loss was driven primarily by a $1.23 billionb in-process R&D charge (recorded as R&D expense) for the acquisition of Vega Therapeutics, whose lead asset is latarcibart for von Willebrand disease. Total revenues were $1.557 billion for the quarter, up from $1.366 billion, led by JAKAFI net sales of $826.5 million and OPZELURA net sales of $254.9 million. For the nine months, net income was $104.1 million, down from $987.4 million, with total revenues of $4.504 billion.
The nine-month results include a one-time, non-cash $246.0 millionc benefit to OPZELURA net sales from the resolution of Medicaid rebate litigation with CMS. The filing also reports a non-deductible $1.23 billion Vega charge that pushed the nine-month effective tax rate to 74.4%. Operating cash flow fell to $201.7 million for the nine months from $870.2 million, which management attributes primarily to the Vega cash consideration.
At September 30, 2026, cash, cash equivalents and marketable securities totaled $3.9 billiond, and the company had no outstanding borrowings under its $500.0 million revolving credit facility. The filing also notes a change in inventory costing method to FIFO effective July 1, 2026, which the company states did not have a material effect on inventory or cost of sales for any period presented. Patent litigation against generic JAKAFI and OPZELURA filers remains pending, with JAKAFI composition-of-matter patents expiring in mid-2028, and the company states that JAKAFI revenues are expected to decline after patent exclusivity expires in 2028.
02—Key points
Key Highlights
- Q3 2026 net loss of $784.8 million ($3.86 per share) versus net income of $424.2 million ($2.11 diluted per share) in Q3 2025, driven by a $1.232 billion IPR&D charge from the Vega Therapeutics acquisition.
- Total revenues rose to $1.557 billion in Q3 2026 from $1.366 billion, with JAKAFI net sales of $826.5 million, OPZELURA net sales of $254.9 million, and NIKTIMVO net sales of $67.4 million.
- Nine-month OPZELURA net sales include a one-time, non-cash $246.0 million benefit from resolving the CMS Medicaid rebate litigation.
- Nine-month net income was $104.1 million, down from $987.4 million, and operating cash flow fell to $201.7 million from $870.2 million, which the company attributes primarily to the Vega cash consideration.
- Cash, cash equivalents and marketable securities totaled $3.9 billion at September 30, 2026, with no borrowings outstanding under the $500.0 million revolving credit facility.
- Vega acquisition closed July 6, 2026 for $1.25 billion in cash; Star Therapeutics is eligible for up to $750 million in additional U.S. net sales milestone payments.
- JAKAFI composition-of-matter patents expire in mid-2028, and the company expects JAKAFI revenues to begin declining after patent exclusivity expires in 2028; generic filers' litigation remains pending for several defendants.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Incyte lost $0.50.
- Revenue$1.56B100.0%
- Cost of revenue−$108.7M7.0%
- Gross profit$1.45B93.0%
- Operating costs−$2.16B138.5%
- Operating income−$708.4M45.5%
- Interest, other & tax−$76.4M4.9%
- Net income−$784.8M50.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.56B$1.37B | +14.0% |
| Cost of Revenue | $108.74M$99.00M | +9.8% |
| Gross Profit | $1.45B$1.27B | +14.3% |
| R&D Expenses | $1.79B$506.58M | +253.7% |
| SG&A Expenses | $364.27M$329.08M | +10.7% |
| Operating Expenses | $2.27B$922.46M | +145.6% |
| Operating Income | -$708.36M$443.52M | −259.7% |
| Net Income | -$784.80M$424.17M | −285.0% |
| EPS (Basic) | $-3.86$2.17 | −277.9% |
| EPS (Diluted) | $-3.86$2.11 | −282.9% |
| Shares Outstanding (Basic) | 203.25M195.67M | +3.9% |
| Shares Outstanding (Diluted) | 203.25M201.43M | +0.9% |
05—Questions
Frequently Asked Questions
Why did Incyte report a net loss this quarter?
The third-quarter 2026 net loss of $784.8 million reflects a $1.232 billion charge for acquired in-process R&D from the Vega Therapeutics acquisition, which the company recognized in full as R&D expense because the asset has no alternative future use. Excluding this charge, the filing does not present a separate adjusted result.
What drove the increase in revenue?
Total revenues increased to $1.557 billion in Q3 2026 from $1.366 billion in Q3 2025. Net sales of JAKAFI rose to $826.5 million from $791.1 million, OPZELURA rose to $254.9 million from $188.0 million, and ZYNYZ, MINJUVI/MONJUVI and NIKTIMVO also grew, while product royalty revenues increased to $191.0 million from $171.1 million.
What is the effect of the OPZELURA litigation settlement?
In the second quarter of 2026, Incyte recorded a one-time, non-cash benefit of $246.0 million to OPZELURA net sales, reflecting reversal of previously established accruals tied to potential application of Medicaid line extension rules. The company no longer accrues for that potential application and expects an improvement to OPZELURA's gross-to-net going forward.
How strong is the balance sheet and liquidity position?
At September 30, 2026, Incyte held $3.28 billion in cash and cash equivalents and $578.7 million in marketable securities, and total stockholders' equity was $5.64 billion. The company had no outstanding borrowings under its $500.0 million revolving credit facility, which matures in June 2027.
What is the outlook for JAKAFI and patent exclusivity?
The filing states that JAKAFI product sales are expected to contribute a significant share of revenues over the next several years but will begin to decline upon expiration of patent exclusivity in 2028. Several generic JAKAFI manufacturers have filed ANDAs or an NDA with paragraph IV certifications, and Incyte has settled litigation with six of them while actions against the others remain pending.
06—Continue