What Happened?
Shares of biopharmaceutical company Incyte Corporation (NASDAQ: INCY) fell 4.2% in the morning session after the company reported underwhelming third-quarter 2025 financial results.
The biopharmaceutical firm announced total revenues of $1.37 billion, a 20% increase year-on-year, which beat estimates by 8.5%. Its adjusted earnings per share of $2.26 also came in 38% ahead of predictions. The company's operating margin expanded significantly to 32.5% from 12.8% in the same quarter last year, showcasing improved efficiency. However, the positive results did not translate into stock gains. The negative reaction could be attributed to investors looking ahead, as analysts forecast revenue growth to slow to 7.6% over the next 12 months, a deceleration from previous years. Additionally, the consensus one-year price target of $85.81 from Wall Street analysts sits below the stock's recent price, suggesting concerns about its valuation.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Incyte? Access our full analysis report here.
What Is The Market Telling Us
Incyte’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 1.5% on the news that the company announced Health Canada's approval of its Opzelura cream for treating atopic dermatitis in children.
Incyte's Canadian division stated that Opzelura, a non-steroidal topical cream, was approved for pediatric patients aged two and older with mild to moderate conditions not adequately controlled by other topical therapies. This marked the third Canadian regulatory approval for the product. Following the positive regulatory news, Stifel raised its price target for Incyte, expecting the approval to contribute to the company's revenue growth. This signaled confidence in the drug's expanded market potential.
Incyte is up 27.1% since the beginning of the year, and at $88.37 per share, it is trading close to its 52-week high of $93.08 from October 2025. Investors who bought $1,000 worth of Incyte’s shares 5 years ago would now be looking at an investment worth $1,016.
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