Executive Summary

Q2 2025 delivered broad-based strength: total revenues $1.216B (+16% Y/Y) and total product revenues $1.059B (+17% Y/Y); GAAP diluted EPS $2.04 and Non-GAAP diluted EPS $1.57, with demand-led growth in Jakafi, Opzelura, and the Niktimvo launch .
Management raised FY25 guidance for Jakafi to $3.00–$3.05B and “Other Oncology” to $500–$520M; COGS guidance lowered reflecting a 50% royalty rate reduction on U.S. Jakafi post Novartis settlement; R&D guidance increased due to new collaborations; Opzelura guidance unchanged .
Results beat Wall Street consensus: Q2 revenue $1.216B vs $1.1516B* and EPS (non-GAAP) $1.57 vs $1.473*; Q1 also beat revenue/EPS, supporting estimate revisions higher across key franchises. Bolded beats below.
Strategic narrative sharpened under new CEO Bill Meury: prioritizing MPNs (mutCALR “989” and JAK2V617F programs), dermatology (Opzelura franchise, povorcitinib), and disciplined capital allocation; multiple regulatory wins (Zynyz in SCAC, Monjuvi in FL) augment diversification .
Near-term stock reaction catalysts: FY25 guidance raises, Niktimvo adoption momentum (82% account penetration), and pipeline catalysts (989 MF data by year-end; Opzelura pediatric AD PDUFA 9/19/25) .

What Went Well and What Went Wrong

What Went Well

Demand-led growth across core products: Jakafi net revenue $764M (+8% Y/Y) on +8% paid demand; Opzelura $164M (+35% Y/Y); Niktimvo $36M with rapid adoption; total royalty revenues +10% led by Jakavi .
FY25 guidance raised and cost structure improved: Jakafi and Other Oncology guidance increased; COGS reduced (ongoing 50% royalty rate cut to Novartis); operating leverage improving per CFO .
Strategic/regulatory progress: FDA approvals for Zynyz (SCAC) and Monjuvi (FL); strong early-phase mutCALR “989” data (ET) suggesting disease-modifying potential; clear path for povorcitinib across HS, PN, vitiligo .
“As I begin my tenure as CEO… our second quarter results reflect strong growth for Jakafi, Opzelura and Niktimvo, positioning us well to deliver on our 2025 objectives.” — Bill Meury, CEO .

What Went Wrong

R&D and SG&A increased (non-GAAP R&D +16% Y/Y; GAAP SG&A +8% Y/Y), with heightened legal costs and collaboration-related expenses; R&D guidance raised by $35M for FY25 .
Timeline slippage: initial proof-of-concept for JAK2V617F shifted to 1H26 (dose escalation needs higher doses and longer follow-up) .
Ongoing pipeline and BD execution risks called out explicitly by management (competitive G12D space, need for defensible positioning); disciplined capital allocation emphasized .
Management transition risk: CFO announced departure effective Sept 16, 2025 (company reaffirmed guidance) .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total GAAP Revenues ($USD Billions)	$1.179	$1.053	$1.216
Total Product Revenues ($USD Billions)	$1.019	$0.922	$1.059
GAAP Diluted EPS ($)	$1.02	$0.80	$2.04
Non-GAAP Diluted EPS ($)	$1.43	$1.16	$1.57
GAAP Operating Income ($USD Millions)	$301.5	$205.2	$530.3
GAAP Net Income ($USD Millions)	$201.2	$158.2	$405.0

Notes: Operating margin and net margin improved Q/Q and Y/Y; Q2 margins benefited from Novartis contract dispute settlement recorded as $(242.3)M and a 50% reduction in Jakafi U.S. royalty rate .

Segment net product revenue breakdown:

Product ($USD Millions)	Q4 2024	Q1 2025	Q2 2025
Jakafi	$773.1	$709.4	$763.8
Opzelura	$161.6	$118.7	$164.5
Iclusig	$27.4	$29.5	$32.7
Pemazyre	$23.1	$18.4	$22.2
Minjuvi/Monjuvi	$32.8	$29.6	$31.1
Niktimvo	$1.4	$13.6	$36.2
Zynyz	$1.4	$3.0	$8.9
Total Net Product Revenues	$1,019.4	$922.3	$1,059.4

Selected KPIs and operational metrics:

KPI	Q1 2025	Q2 2025
Jakafi paid demand growth (Y/Y)	+10%	+8%
Opzelura U.S. net revenue ($USD Millions)	$95	$132
Opzelura ex-U.S. net revenue ($USD Millions)	$23	$32
Niktimvo net revenue ($USD Millions)	$13.6	$36.2
Niktimvo account penetration	—	~82% BMT centers
Niktimvo launch metrics	—	~4,000+ infusions; ~700 patients; <5% inventory impact

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Jakafi net product revenues ($USD Billions)	FY 2025	$2.95 – $3.00	$3.00 – $3.05	Raised
Opzelura net product revenues ($USD Millions)	FY 2025	$630 – $670	Unchanged	Maintained
Other Oncology net product revenues ($USD Millions)	FY 2025	$415 – $455	$500 – $520	Raised
GAAP Cost of Product Revenues (% of net product revenues)	FY 2025	8.5% – 9.0%	8.0% – 9.0%	Lowered
Non-GAAP Cost of Product Revenues (%)	FY 2025	7.5% – 8.0%	7.0% – 8.0%	Lowered
GAAP R&D Expenses ($USD Millions)	FY 2025	$1,930 – $1,960	$1,965 – $1,995	Raised
Non-GAAP R&D Expenses ($USD Millions)	FY 2025	$1,780 – $1,805	$1,815 – $1,840	Raised
GAAP SG&A ($USD Millions)	FY 2025	$1,280 – $1,310	Unchanged	Maintained
Non-GAAP SG&A ($USD Millions)	FY 2025	$1,160 – $1,185	Unchanged	Maintained

Drivers: Reduced COGS from the Novartis settlement (50% royalty rate reduction); higher R&D from Genesis/BioTheryx collaborations; higher Other Oncology demand (Niktimvo, Zynyz) and FX tailwinds .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
MPN strategy (mutCALR “989”, JAK2V617F)	MPN programs enrolling; expectation of 2025 PoC readouts; 989 highlighted in catalysts	CEO prioritizes MPNs as #1 focus; ET data shows normalization of platelets and VAF reduction; MF monotherapy+combo data by YE25; pivotal ET trials targeted early 2026	Strengthening prioritization; accelerating toward pivotal
Dermatology franchise (Opzelura + povorcitinib)	Strong AD/vitiligo growth; HS Phase 3 positive; CSU PoC positive	Opzelura +35% Y/Y; pediatric AD PDUFA 9/19/25; povorcitinib filing 2026 (HS), vitiligo/PN data 2026	Sustained growth with near-term label expansion
Regulatory/legal	2025 catalysts (multiple launches/readouts)	FDA approvals: Zynyz (SCAC), Monjuvi (FL); Novartis settlement benefits COGS; CFO departure announced (guidance reaffirmed)	Net positive regulatory flow; governance transition
R&D execution/BD	Large 2025 slate (18 milestones); CDK2 Ph3 plan; Genesis AI collaboration	R&D spend increased; BET Ph3 in 2H25; V617F shifted to 1H26; disciplined capital allocation; potential BD for de-risked assets	Active, with select timeline resets
Oncology diversification	Zynyz SCAC sBLA; Monjuvi programs; Niktimvo launch ramp	Niktimvo 82% penetration; 4k+ infusions; “Other Oncology” guidance raised; LATAM distribution expansion via Knight	Accelerating adoption and regional footprint
Macro/IRA	IRA Part D redesign benefited Q1 GTN	IRA had no impact in Q2; growth driven by demand	Normalization post Q1 GTN benefit

Management Commentary

“Incyte has all the intrinsic characteristics of a high-quality growth business… we will take a fresh look at R&D productivity, operating expenses, and capital allocation… and dedicate resources to accelerating product flow and growth.” — Bill Meury, CEO .
“In Q2, we delivered strong financial results… Jakafi net product revenue was $764 million (+8% Y/Y)… we are raising our full-year revenue guidance for Jakafi to a new range of $3–$3.05 billion.” — Christiana Stamoulis, CFO .
“989… is the first truly targeted therapy for a subset of MPNs… normalization of platelet counts in ET, sustained VAF reductions… well tolerated… we aim to start pivotal trials in ET by early 2026.” — Pablo Cagnoni, President & Head of R&D .
“We expect an FDA approval for Opzelura in pediatric AD in September… povorcitinib pivotal trials enrolling on track.” — Bill Meury, CEO .

Q&A Highlights

Strategic prioritization: MPNs designated top priority with aim to set new standard of care; dermatology strategy leverages Opzelura+povorcitinib franchise; BD to be disciplined and defensible .
989 MF expectations: Company “absolutely” expects single-agent activity in MF; presenting MF monotherapy+combo (rux) data later this year .
Niktimvo launch dynamics: ~10% penetration of 3L+ GVHD market; <5% inventory impact; path to ~1,000 patients by YE; reimbursement facilitated by codes; strong real-world persistence .
Opzelura cadence: Unchanged FY guidance; pediatric approval a tailwind; ex-U.S strength in France/Italy/Germany/Canada; large prescriber base (~20,000) and solid coverage .
JAK2V617F timeline shift: Dose escalation required higher doses and longer follow-up; now 1H26 for initial data; conviction in mechanism remains .
G12D positioning: Competitive space; differentiation may come via combinability in first-line pancreatic chemo regimens; high bar for continued investment .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD Billions)	$0.998*	$1.053	$1.1516*	$1.216
Primary EPS (non-GAAP, $)	$1.033*	$1.16	$1.473*	$1.57

Q2: Bold beat on revenue and EPS vs consensus; Q1: beat on both revenue and EPS.
Primary EPS Consensus Mean and Revenue Consensus Mean from S&P Global; Actuals per company filings.
Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

Broad-based demand strength and raised FY25 guidance indicate durable growth in core franchises; reduced COGS from Novartis settlement adds structural margin support .
Niktimvo is tracking ahead of analogs with rapid BMT adoption; FY25 “Other Oncology” guide raised—watch persistence, combination trials with rux/steroids, and subQ formulation progress .
Opzelura continues double-digit growth; pediatric AD approval (9/19/25) and ex-U.S launches sustain momentum; franchise strategy with povorcitinib catalyzes medium-term expansion .
Pipeline catalysts: 989 MF data (YE25) and ET pivotal start (early 2026) could reshape MPN treatment paradigms; BET inhibitor Phase 3 initiation in 2H25 maintains hematology optionality .
Watch execution risks: JAK2V617F timeline shift to 1H26 and competitive solid-tumor landscape (G12D); management signaling high investment bars and defensible positions .
Governance: CFO transition announced with FY25 guidance reaffirmed—monitor continuity of financial discipline and capital allocation strategy .
Near-term trading implications: Guidance raises and ongoing demand beats are supportive; pipeline/regulatory catalysts provide optionality; any surprises around pediatric AD approval or 989 MF data likely stock-moving .

Additional detail and cross-references:

Total revenues, EPS, product revenues, costs and guidance from Q2 2025 press release/8-K .
Prior quarter trends Q1 2025 and Q4 2024 .
Regulatory wins and pipeline updates (Zynyz SCAC; Monjuvi FL; Opzelura pediatric AD timeline; mutCALR 989 data) .
LATAM distribution expansion for Zynyz/Niktimvo via Knight Therapeutics .

S&P Global estimates disclaimer: Values with asterisks are consensus figures retrieved from S&P Global.

INCYTE CORP (INCY)·Q2 2025 Earnings Summary