Incyte Reports Second Quarter 2026 Financial Results and Provides Business Updates

Total revenue of$1.67 billionand total net sales of$1.49 billionin the second quarter of 2026, an increase of 38% and 40%, respectively, compared to the second quarter of 2025

Total net sales, excluding the one-time, non-cash benefit for Opzelura®(ruxolitinib) cream related to the CMS settlement,*grew 17% compared to the prior year period

Jakafi®/Jakafi XR™(ruxolitinib) net sales of$817 million, an increase of 7% compared to the same period in 2025

Opzelura net sales of$450 million, an increase of 173% versus the prior year period; excluding the one-time, non-cash benefit,*Opzelura net sales were$204 million, an increase of 24% versus the prior year period

Hematology and Oncology portfolio net sales of$222 million, an increase of 69%, compared to the second quarter of 2025

Updating 2026 full year financial guidance for total net sales and operating expenses

Ten clinical data readouts, including data from four registrational trials, expected throughout the second half of 2026

WILMINGTON, Del.--(BUSINESS WIRE)--Jul. 28, 2026--Incyte(Nasdaq:INCY) today reported financial results for the second quarter of 2026 and provided a business update.

“Our second quarter was marked by broad-based sales growth, continued pipeline progress and strategic business development,” saidBill Meury, Chief Executive Officer,Incyte. “Every marketed product contributed to growth, reflecting the strength of our commercial portfolio and execution. We also recently strengthened our Hematology franchise through the acquisition of latarcibart, a potentially transformative medicine for von Willebrand disease currently in Phase 3 development. With ten data readouts expected in the second half of 2026, alongside product launches through early next year, we are well positioned for our next phase of growth.”

• Total revenue:Total revenue was$1.67 billion, an increase of 38% compared to the second quarter of 2025,*primarily driven by an increase in total net sales across marketed products.

• Total net sales:Total net sales were$1.49 billion, an increase of 40% compared to the second quarter of 2025.*The increase was driven by a one-time, non-cash benefit of$246 millionassociated with the reversal of previously established accrual balances throughMarch 31, 2026, for Opzelura®(ruxolitinib) cream, and increased demand across marketed products, including continued demand for Jakafi®(ruxolitinib) across all indications, Opzelura in atopic dermatitis (AD) and vitiligo, Niktimvo™(axatilimab-csfr) in chronic graft versus host disease (GVHD), Monjuvi®(tafasitamab-cxix)/Minjuvi®(tafasitamab) in follicular lymphoma (FL) and Zynyz®(retifanlimab-dlwr) in squamous cell carcinoma of the anal canal (SCAC).

• Cost of sales:GAAP and non-GAAP cost of sales were$105.0 millionand$98.6 million, respectively, representing 7% of total net sales.

• Research and development (R&D) expenses:GAAP and non-GAAP R&D expenses were$517.0 millionand$478.8 million, an increase of 4% and 5%, respectively, compared to the prior year period.

• Selling, general and administrative (SG&A) expenses:GAAP and non-GAAP SG&A expenseswere$351.7 millionand$323.6 million, an increase of 6% for each, respectively, compared to the prior year period.

• Cash, cash equivalents and marketable securities position:As ofJune 30, 2026andDecember 31, 2025, cash, cash equivalents and marketable securities totaled$4.5 billionand$3.6 billion, respectively.

As a result of the agreement with CMS,*the total estimated incremental impact on Opzelura net sales for the full year 2026 is$300-$310 millionwhich includes the reversal of previously established accrual balances through the first quarter of 2026 and effects of an improved gross-to-net (GTN) profile on a go-forward basis as summarized in the table below.

| | Opzelura Net Sales1

Total estimated incremental impact on Opzelura net sales for the full year 2026 | | $300-$310 million

One-time, non-cash benefit of the reversal of previously established accrued balances through the first quarter of 2026 endingMarch 31, 2026 | | $246 million

Impact on second quarter of 2026 net sales resulting in improved GTN | | $15 million

Estimated impact on third and fourth quarters of 2026 net sales from improved GTN | | $40-$50 million

1Totals may not add due to rounding.

Total estimated incremental impact on Opzelura net sales for the full year 2026

One-time, non-cash benefit of the reversal of previously established accrued balances through the first quarter of 2026 endingMarch 31, 2026

$246 million

Impact on second quarter of 2026 net sales resulting in improved GTN

$15 million

Estimated impact on third and fourth quarters of 2026 net sales from improved GTN

$40-$50 million

1Totals may not add due to rounding.

Incyteis raising its full year 2026 total net sales guidance to$5,130-$5,260 million, reflecting the impact of the agreement with CMS related to the Opzelura line extension,*as well as the continued strong performance of its Hematology and Oncology growth products, including Niktimvo, Monjuvi/Minjuvi and Zynyz.Incyteis raising its full year 2026 Opzelura net sales guidance to$1,050-$1,100 millionand full year 2026 Hematology and Oncology net sales guidance to$860-$890 million.

Incyteis also raising its full year 2026 operating expense guidance. Total GAAP R&D and SG&A operating expense guidance is$4,915-$4,995 millionand total non-GAAP R&D and SG&A operating expense guidance is$4,625-$4,695 million. The revised guidance reflects the impact of the acquisition of Vega Therapeutics, including an IPR&D expense of approximately$1,270 millionexpected in the third quarter 2026 associated with the upfront payment and related transaction costs, as well as$50 millionof incremental ongoing R&D investments related to the development of latarcibart. The transaction upfront payment is expected to result in an IPR&D expense reflected in the third quarter and full year 2026 GAAP and non-GAAP financial results.

Incyte’s guidance for the fiscal year 2026 is summarized below.

| | Current | | Previous

Total net sales | | $5,130-$5,260 million | | $4,770-$4,940 million

Jakafi net sales(1) | | unchanged | | $3,220-$3,270 million

Opzelura net sales(2) | | $1,050-$1,100 million | | $750-$790 million

Hematology and Oncology net sales(3) | | $860-$890 million | | $800-$880 million

Total GAAP R&D and SG&A operating expenses(4) | | $4,915-$4,995 million | | $3,495-$3,675 million

Total Non-GAAP R&D and SG&A operating expenses(4,5) | | $4,625-$4,695 million | | $3,205-$3,375 million

1Includes Jakafi XR™(ruxolitinib) net sales.

2Includes net sales for moderate atopic dermatitis inEurope, which is anticipated to be approved in the second half of 2026.

3IncludesPemazyre®(pemigatinib)in theU.S.,Canada,Europe,Japan,Asia Pacific(APAC),Middle EastandAfrica(MEA), andLatin America(LatAm); Niktimvo and Monjuvi in theU.S.; Zynyz in theU.S.,EuropeandJapan; Iclusig®(ponatinib) inEuropeand MEA; and Minjuvi inCanada,Europe,Japan, APAC, MEA and LatAm.

4Includes upfront cost related to the acquisition of Vega Therapeutics, which will be recognized as an IPR&D expense impacting both the third quarter and full-year 2026 in addition to incremental R&D investment related to latarcibart.

5Adjusted to exclude the estimated cost of stock-based compensation.

Total net sales

$5,130-$5,260 million

$4,770-$4,940 million

Jakafi net sales(1)

unchanged

$3,220-$3,270 million

Opzelura net sales(2)

$1,050-$1,100 million

$750-$790 million

Hematology and Oncology net sales(3)

$860-$890 million

$800-$880 million

Total GAAP R&D and SG&A operating expenses(4)

$4,915-$4,995 million

$3,495-$3,675 million

Total Non-GAAP R&D and SG&A operating expenses(4,5)

$4,625-$4,695 million

$3,205-$3,375 million

1Includes Jakafi XR™(ruxolitinib) net sales.

2Includes net sales for moderate atopic dermatitis inEurope, which is anticipated to be approved in the second half of 2026.

3IncludesPemazyre®(pemigatinib)in theU.S.,Canada,Europe,Japan,Asia Pacific(APAC),Middle EastandAfrica(MEA), andLatin America(LatAm); Niktimvo and Monjuvi in theU.S.; Zynyz in theU.S.,EuropeandJapan; Iclusig®(ponatinib) inEuropeand MEA; and Minjuvi inCanada,Europe,Japan, APAC, MEA and LatAm.

4Includes upfront cost related to the acquisition of Vega Therapeutics, which will be recognized as an IPR&D expense impacting both the third quarter and full-year 2026 in addition to incremental R&D investment related to latarcibart.

5Adjusted to exclude the estimated cost of stock-based compensation.

• In May, Jakafi XR was approved by theFDAfor the treatment of adults with intermediate- or high-risk myelofibrosis (MF) and adults with polycythemia vera (PV) who have had an inadequate response to or are intolerant to hydroxyurea, as well as for adults and children aged 12 years and older with steroid-refractory acute GVHD or chronic GVHD after failure of one or two lines of systemic therapy.

• Data from the pivotal Phase 3 frontMIND trial evaluating tafasitamab and lenalidomide in addition to R-CHOP (rituximab, cyclophosphamide, doxorubicin, vincristine and prednisone) as a first-line treatment for adults with previously untreated diffuse large B-cell lymphoma (DLBCL) and high-grade B-cell lymphoma (HGBL) were presented as a featured oral presentation at the2026American Society of Clinical Oncology(ASCO)Annual Meeting in May and during the Plenary Abstract session at the2026European Hematology Association(EHA)Congressin June. These results, which were also recently published inThe Lancet, demonstrate that treatment with Tafa-Len-R-CHOP resulted in statistically significant and clinically meaningful improvements in progression-free survival (PFS), the primary endpoint in the study.

• Global regulatory submissions for Monjuvi/Minjuvi as a treatment for patients with newly diagnosed DLBCL were submitted and accepted in the second quarter of 2026. The Company anticipates a potential approval and launch in theU.S. in the first quarter of 2027.

• In June,Minjuvi was approvedby Japan’sMinistry of Health, Labour and Welfare(MHLW) for the treatment of adults with relapsed or refractory DLBCL in combination with lenalidomide. This approval represents the second regulatory approval for Minjuvi inJapan.

• Topline data from the Phase 2 trial evaluating axatilimab in combination with ruxolitinib in patients with newly diagnosed chronic GVHD are anticipated in the second half of 2026.

• The registrational Phase 3 study (EXCALIBUR-ET2), evaluating INCA033989 in mutCALR positive patients with ET who are resistant or intolerant to at least one prior cytoreductive therapy was initiated in mid-2026.

• UpdatedPhase 1 data for INCA033989were presented at the 2026EHA Congress, demonstrating robust clinical activity, durable hematologic and symptom responses, molecular responses consistent with potential disease modification and a favorable tolerability profile in patients with mutCALR-positive essential thrombocythemia (ET) and MF.

• Data from the Phase 1 cohort evaluating INCA033989 as a monotherapy and in combination with ruxolitinib in treatment naïve MF patients are anticipated in the second half of 2026.

• A Phase 1 study evaluating INCA033989 as a subcutaneous (SC) administration in mutCALR positive patients was initiated in the second quarter of 2026.

• Following a comprehensive review of available data, the Company has discontinued further development of INCB160058 to prioritize its next-generation JAK2V617F-targeted pipeline.

• In July, data from the Phase 1/2 multidose study of latarcibart in patients with von Willebrand disease (VWD) were presented at the2026International Society on Thrombosis and Haemostasis(ISTH)Congress, demonstrating that once-monthly SC treatment with latarcibart resulted in an 81% median reduction in annualized bleeding rate (ABR) across all bleeding categories and VWD types.

• Latarcibart is being evaluated in a global Phase 3, single-arm crossover study (VIVID-6) assessing the safety and efficacy of once-monthly SC administration of latarcibart as prophylaxis for bleeding in patients with all types of VWD. Topline data from the VIVID-6 study are anticipated in early 2029.

• The Phase 3 study (DAWN-303) evaluating INCB161734 as a first-line treatment in patients with metastatic pancreatic ductal adenocarcinoma (PDAC) in combination with standard-of-care chemotherapy (mFOLFIRINOX or GEMNabP) versus chemotherapy alone is ongoing.

• Data from the ongoing Phase 1 trial evaluating INCB161734 in combination with standard-of-care chemotherapy (mFOLFOX and GemNabP) as a first-line treatment in patients with metastatic PDAC, as well asdata evaluating INCB161734 in combination with cetuximabin patients with advanced/metastatic colorectal cancer (CRC), will be highlighted as rapid oral presentations at the 2026European Society for Medical Oncology (ESMO) Congress, being held October 23–27 inMadrid, Spain.

• The Phase 3 study evaluating INCA33890 in combination with standard-of-care chemotherapy and bevacizumab as a first-line treatment in patients with microsatellite stable colorectal cancer (MSS CRC) is ongoing.

• Data from the ongoingPhase 1 trial evaluating INAC33890in combination with standard-of-care therapies as a first-line treatment in patients with MSS CRC will be highlighted in a rapid oral presentation at the 2026ESMO Congress.

• A Phase 3 study evaluating INCB123667 in first-line maintenance ovarian cancer is expected to initiate in the second half of 2026.

• Preliminary efficacy data from the ongoingPhase 1 trial evaluating INCB123667in combination with bevacizumab in patients with recurrent epithelial ovarian cancer (rEOC) will be highlighted in a rapid oral presentation at the 2026ESMO Congress.

• In June, theCommittee for Medicinal Products for Human Use (CHMP)of theEuropean Medicines Agency(EMA) issued a positive opinion recommending the approval of Opzelura cream for the treatment of moderate AD in adult patients for whom topical corticosteroids (TCSs) and topical calcineurin inhibitors (TCIs) are inadequate or inappropriate. The Company expects a regulatory decision in the third quarter of 2026.

• Topline results from the Phase 3 studies (TRuE-HS1 and TRuE-HS2) evaluating ruxolitinib cream in mild to moderate hidradenitis suppurativa (HS) are anticipated in the fourth quarter of 2026.

• The New Drug Application (NDA) submission for povorcitinib as a treatment for patients with moderate to severe HS was accepted by theFDAin the first quarter of 2026. The Company anticipates potential approval and launches in late-2026 in the European Union and the first quarter of 2027 in theU.S.

• Data from the Phase 3 studies (STOP-PN1 and STOP-PN2) evaluating povorcitinib in patients with moderate to severe prurigo nodularis (PN) are anticipated in the fourth quarter of 2026.

• Topline data from the Phase 2 proof-of-concept trial for povorcitinib in asthma are anticipated in the second half of 2026.

• In July, the Company announced a global collaboration and license agreement withHalozymeto support the subcutaneous formulation development of INCA033989 utilizing Halozyme’s proprietary ENHANZE®Technology.

• In July, the Company completed itsacquisition ofVega Therapeutics, Inc., a wholly owned subsidiary ofStar Therapeutics, LLC. The acquisition adds latarcibart, a novel investigational monoclonal antibody in Phase 3 development for patients with VWD, to its late-stage pipeline. Under the terms of the parties’ stock purchase agreement,Incyteacquired all outstanding shares of Vega Therapeutics for$1.25 billion.Star Therapeuticswill be eligible to receive up to$750 millionin additional payments upon the achievement of sales milestones.

• In May, the Company expanded its use of artificial intelligence (AI) across its discovery and development pipeline, entering astrategic collaboration with Edison Scientificto employ their AI scientist Kosmos, and expanding its existingcollaboration with Genesis Molecular AIto build and deploy state-of-the-art AI models to accelerate discovery of novel molecules for collaboration targets selected byIncyte.

• In the second quarter of 2026, the Company entered into an exclusive license agreement with Mirum Pharmaceuticals, granting Mirum worldwide rights to zilurgisertib, an ALK2 inhibitor in development for fibrodysplasia ossificans progressiva (FOP). Under the terms of the agreement,Incytereceived an upfront payment and is eligible to receive additional development and regulatory milestone payments, as well as sales-based milestones and tiered royalties in the mid-to-high single digit percent range on worldwide net sales.

The financial measures presented in this press release for the three and six months endedJune 30, 2026and 2025 have been prepared by the Company in accordance withU.S. Generally Accepted Accounting Principles (“GAAP”), unless otherwise identified as a Non-GAAP financial measure. Management believes that Non-GAAP information is useful for investors, when considered in conjunction with Incyte’s GAAP disclosures. Management uses such information internally and externally for establishing budgets, operating goals and financial planning purposes. These metrics are also used to manage the Company’s business and monitor performance. The Company adjusts, where appropriate, for expenses in order to reflect the Company’s core operations. The Company believes these adjustments are useful to investors by providing an enhanced understanding of the financial performance of the Company’s core operations. The metrics have been adopted to align the Company with disclosures provided by industry peers.

Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used in conjunction with and to supplement Incyte’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in our industry.

As changes in exchange rates are an important factor in understanding period-to-period comparisons, management believes the presentation of certain revenue results on a constant currency basis in addition to reported results helps improve investors’ ability to understand the Company’s operating results and evaluate its performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period over period. The Company calculates constant currency by calculating current year results using prior year foreign currency exchange rates and generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Financial Highlights

(unaudited, in thousands, except per share amounts)

| Three Months EndedJune 30, | | Six Months EndedJune 30,

| 2026 | | 2025 | | 2026 | | 2025

Total GAAP revenues | $ | 1,674,039 | | $ | 1,215,529 | | $ | 2,946,715 | | $ | 2,268,427

Total GAAP operating income | | 697,898 | | | 530,314 | | | 999,015 | | | 735,482

Total Non-GAAP operating income | | 773,044 | | | 382,579 | | | 1,166,717 | | | 666,220

GAAP net income | | 585,605 | | | 404,999 | | | 888,935 | | | 563,202

Non-GAAP net income | | 643,359 | | | 311,927 | | | 1,017,786 | | | 541,386

GAAP basic EPS | $ | 2.92 | | $ | 2.09 | | $ | 4.45 | | $ | 2.91

Non-GAAP basic EPS | $ | 3.21 | | $ | 1.61 | | $ | 5.09 | | $ | 2.79

GAAP diluted EPS | $ | 2.81 | | $ | 2.04 | | $ | 4.28 | | $ | 2.84

Non-GAAP diluted EPS | $ | 3.09 | | $ | 1.57 | | $ | 4.90 | | $ | 2.73

Total GAAP revenues

$

1,674,039

$

1,215,529

$

2,946,715

$

2,268,427

Total GAAP operating income

697,898

530,314

999,015

735,482

Total Non-GAAP operating income

773,044

382,579

1,166,717

666,220

GAAP net income

585,605

404,999

888,935

563,202

Non-GAAP net income

643,359

311,927

1,017,786

541,386

GAAP basic EPS

$

2.92

$

2.09

$

4.45

$

2.91

Non-GAAP basic EPS

$

3.21

$

1.61

$

5.09

$

2.79

GAAP diluted EPS

$

2.81

$

2.04

$

4.28

$

2.84

Non-GAAP diluted EPS

$

3.09

$

1.57

$

4.90

$

2.73

Revenue Details

(unaudited, in thousands)

| Three Months EndedJune 30, | | %Change(as reported) | | %Change(constant currency)1 | | Six Months EndedJune 30, | | %Change(as reported) | | %Change(constant currency)1

| 2026 | | 2025 | | 2026 | | 2025 |

Net sales | | | | | | | | | | | | | | |

Jakafi2 | $ | 816,659 | | $ | 763,788 | | 7 | % | | NA | | $ | 1,574,414 | | $ | 1,473,200 | | 7 | % | | NA

Opzelura | | 449,736 | | | 164,499 | | 173 | % | | 173 | % | | | 592,751 | | | 283,204 | | 109 | % | | 108 | %

Iclusig | | 34,394 | | | 32,729 | | 5 | % | | 3 | % | | | 69,857 | | | 62,273 | | 12 | % | | 5 | %

Pemazyre | | 23,418 | | | 22,192 | | 6 | % | | 5 | % | | | 45,961 | | | 40,632 | | 13 | % | | 11 | %

Minjuvi/Monjuvi | | 53,686 | | | 31,131 | | 72 | % | | 72 | % | | | 102,913 | | | 60,682 | | 70 | % | | 67 | %

Niktimvo | | 60,309 | | | 36,154 | | 67 | % | | 67 | % | | | 115,397 | | | 49,767 | | 132 | % | | 132 | %

Zynyz | | 49,947 | | | 8,921 | | 460 | % | | 458 | % | | | 91,340 | | | 11,930 | | 666 | % | | 661 | %

Total net sales | | 1,488,149 | | | 1,059,414 | | 40 | % | | 40 | % | | | 2,592,633 | | | 1,981,688 | | 31 | % | | 30 | %

Royalty revenues: | | | | | | | | | | | | | | |

Jakavi | | 124,190 | | | 109,714 | | 13 | % | | 12 | % | | | 229,746 | | | 201,859 | | 14 | % | | 15 | %

Olumiant | | 38,479 | | | 33,482 | | 15 | % | | 16 | % | | | 74,886 | | | 64,282 | | 16 | % | | 14 | %

Tabrecta | | 6,691 | | | 6,632 | | 1 | % | | NA | | | 12,673 | | | 13,045 | | (3 | %) | | NA

Other | | 5,330 | | | 1,287 | | 314 | % | | NA | | | 8,577 | | | 2,553 | | 236 | % | | NA

Total royalty revenues | | 174,690 | | | 151,115 | | 16 | % | | | | | 325,882 | | | 281,739 | | 16 | % | |

Total net sales and royalty revenues | | 1,662,839 | | | 1,210,529 | | 37 | % | | | | | 2,918,515 | | | 2,263,427 | | 29 | % | |

Milestone and contract revenues | | 11,200 | | | 5,000 | | 124 | % | | 124 | % | | | 28,200 | | | 5,000 | | 464 | % | | 464 | %

Total GAAP revenues | $ | 1,674,039 | | $ | 1,215,529 | | 38 | % | | | | $ | 2,946,715 | | $ | 2,268,427 | | 30 | % | |

NA = not applicable

1Percentage change in constant currency is calculated using 2025 foreign exchange rates to recalculate 2026 results.

2Second quarter 2026 Jakafi net sales include Jakafi and Jakafi XR following the launch of Jakafi XR in the second quarter of 2026.

Net sales

Jakafi2

$

816,659

$

763,788

7

%

NA

$

1,574,414

$

1,473,200

7

%

NA

Opzelura

449,736

164,499

173

%

173

%

592,751

283,204

109

%

108

%

Iclusig

34,394

32,729

5

%

3

%

69,857

62,273

12

%

5

%

Pemazyre

23,418

22,192

6

%

5

%

45,961

40,632

13

%

11

%

Minjuvi/Monjuvi

53,686

31,131

72

%

72

%

102,913

60,682

70

%

67

%

Niktimvo

60,309

36,154

67

%

67

%

115,397

49,767

132

%

132

%

Zynyz

49,947

8,921

460

%

458

%

91,340

11,930

666

%

661

%

Total net sales

1,488,149

1,059,414

40

%

40

%

2,592,633

1,981,688

31

%

30

%

Royalty revenues:

Jakavi

124,190

109,714

13

%

12

%

229,746

201,859

14

%

15

%

Olumiant

38,479

33,482

15

%

16

%

74,886

64,282

16

%

14

%

Tabrecta

6,691

6,632

1

%

NA

12,673

13,045

(3

%)

NA

Other

5,330

1,287

314

%

NA

8,577

2,553

236

%

NA

Total royalty revenues

174,690

151,115

16

%

325,882

281,739

16

%

Total net sales and royalty revenues

1,662,839

1,210,529

37

%

2,918,515

2,263,427

29

%

Milestone and contract revenues

11,200

5,000

124

%

124

%

28,200

5,000

464

%

464

%

Total GAAP revenues

$

1,674,039

$

1,215,529

38

%

$

2,946,715

$

2,268,427

30

%

NA = not applicable

1Percentage change in constant currency is calculated using 2025 foreign exchange rates to recalculate 2026 results.

2Second quarter 2026 Jakafi net sales include Jakafi and Jakafi XR following the launch of Jakafi XR in the second quarter of 2026.

Net Salesand Royalty RevenuesTotal net sales and royalty revenue for the quarter endedJune 30, 2026increased 37% over the prior year comparative period.

• Total net sales for the quarter endedJune 30, 2026increased 40% over the prior year comparative period.

• Jakafi net sales increased 7% in the second quarter of 2026 versus the prior year comparable period to$817 million, primarily driven by a 9% increase in paid demand and growth across all indications. Jakafi inventory levels were within normal range at the end of the second quarter of 2026.

• Opzelura net sales increased 173% in the second quarter of 2026 versus the prior year comparable period to$450 million. The increase was driven in part by a one-time, non-cash benefit of$246 millionassociated with the reversal of previously established accrual balances throughMarch 31, 2026, for Opzelura. Net growth was also driven by increased patient demand in both AD and vitiligo. Opzelura inventory levels were within normal range at the end of the second quarter of 2026.

• Hematology and oncology net sales increased 69% in the second quarter of 2026 versus the prior year comparable period to$222 million, driven by increased demand for Niktimvo, Monjuvi/Minjuvi and Zynyz.

INCYTE CORPORATION

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE THREE AND SIX MONTHS ENDEDJUNE 30, 2026and 2025

(unaudited, in thousands)

| | Three Months EndedJune 30, 2026

| | Cost of Sales1 | | Research and Development2 | | Selling, General and Administrative3 | | Operating Income | | Net Income

GAAP (as reported) | | $ | 104,957 | | | $ | 516,950 | | | $ | 351,735 | | | $ | 697,898 | | $ | 585,605 |

Adjustments - Add / (Subtract) | | | | | | | | | |

Non-cash stock compensation from equity awards | | | (932 | ) | | | (38,189 | ) | | | (28,142 | ) | | | 67,263 | | | 67,263 |

Amortization of acquired product rights | | | (5,384 | ) | | | — | | | | — | | | | 5,384 | | | 5,384 |

Loss on change in fair value of contingent consideration | | | — | | | | — | | | | — | | | | 2,499 | | | 2,499 |

Non-cash interest | | | — | | | | — | | | | — | | | | — | | | 81 |

(Gain) on equity investments | | | — | | | | — | | | | — | | | | — | | | (9,805 | )

Tax effect of Non-GAAP pre-tax adjustments | | | — | | | | — | | | | — | | | | — | | | (7,668 | )

Non-GAAP (as adjusted) | | $ | 98,641 | | | $ | 478,761 | | | $ | 323,593 | | | $ | 773,044 | | $ | 643,359 |

$

104,957

$

516,950

$

351,735

$

697,898

$

585,605

Adjustments - Add / (Subtract)

Non-cash stock compensation from equity awards

(932

)

(38,189

)

(28,142

)

67,263

67,263

Amortization of acquired product rights

(5,384

)

—

—

5,384

5,384

Loss on change in fair value of contingent consideration

—

—

—

2,499

2,499

Non-cash interest

—

—

—

—

81

(Gain) on equity investments

—

—

—

—

(9,805

)

Tax effect of Non-GAAP pre-tax adjustments

—

—

—

—

(7,668

)

$

98,641

$

478,761

$

323,593

$

773,044

$

643,359

| | Three Months EndedJune 30, 2025

| | Cost of Sales1 | | Research and Development2 | | Selling, General and Administrative3 | | Operating Income | | Net Income

GAAP (as reported) | | $ | 78,766 | | | $ | 494,917 | | | $ | 331,022 | | | $ | 530,314 | | | $ | 404,999 |

Adjustments - Add / (Subtract) | | | | | | | | | |

Non-cash stock compensation from equity awards | | | (838 | ) | | | (37,700 | ) | | | (26,071 | ) | | | 64,609 | | | | 64,609 |

Contract dispute settlement | | | — | | | | — | | | | — | | | | (242,251 | ) | | | (242,251 | )

Amortization of acquired product rights | | | (5,384 | ) | | | — | | | | — | | | | 5,384 | | | | 5,384 |

Loss on change in fair value of contingent consideration | | | — | | | | — | | | | — | | | | 22,761 | | | | 22,761 |

Escient acquisition related compensation expense | | | — | | | | (1,582 | ) | | | (180 | ) | | | 1,762 | | | | 1,762 |

Non-cash interest | | | — | | | | — | | | | — | | | | — | | | | 81 |

Loss on equity investments | | | — | | | | — | | | | — | | | | — | | | | 4,151 |

Tax effect of Non-GAAP pre-tax adjustments | | | — | | | | — | | | | — | | | | — | | | | 50,431 |

Non-GAAP (as adjusted) | | $ | 72,544 | | | $ | 455,635 | | | $ | 304,771 | | | $ | 382,579 | | | $ | 311,927 |

$

78,766

$

494,917

$

331,022

$

530,314

$

404,999

Adjustments - Add / (Subtract)

Non-cash stock compensation from equity awards

(838

)

(37,700

)

(26,071

)

64,609

64,609

Contract dispute settlement

—

—

—

(242,251

)

(242,251

)

Amortization of acquired product rights

(5,384

)

—

—

5,384

5,384

Loss on change in fair value of contingent consideration

—

—

—

22,761

22,761

Escient acquisition related compensation expense

—

(1,582

)

(180

)

1,762

1,762

Non-cash interest

—

—

—

—

81

Loss on equity investments

—

—

—

—

4,151

Tax effect of Non-GAAP pre-tax adjustments

—

—

—

—

50,431

$

72,544

$

455,635

$

304,771

$

382,579

$

311,927

| | Six Months EndedJune 30, 2026

| | Cost of Sales1 | | Research and Development2 | | Selling, General and Administrative3 | | Operating Income | | Net Income

GAAP (as reported) | | $ | 209,480 | | | $ | 1,032,853 | | | $ | 679,822 | | | $ | 999,015 | | $ | 888,935 |

Adjustments - Add / (Subtract) | | | | | | | | | |

Non-cash stock compensation from equity awards | | | (1,814 | ) | | | (77,409 | ) | | | (52,166 | ) | | | 131,389 | | | 131,389 |

Amortization of acquired product rights | | | (10,768 | ) | | | — | | | | — | | | | 10,768 | | | 10,768 |

Loss on change in fair value of contingent consideration | | | — | | | | — | | | | — | | | | 2,331 | | | 2,331 |

Asset impairment and related disposal costs | | | — | | | | — | | | | — | | | | 23,214 | | | 23,214 |

Non-cash interest | | | — | | | | — | | | | — | | | | — | | | 163 |

(Gain) on equity investments | | | — | | | | — | | | | — | | | | — | | | (16,396 | )

Tax effect of Non-GAAP pre-tax adjustments | | | — | | | | — | | | | — | | | | — | | | (22,618 | )

Non-GAAP (as adjusted) | | $ | 196,898 | | | $ | 955,444 | | | $ | 627,656 | | | $ | 1,166,717 | | $ | 1,017,786 |

$

209,480

$

1,032,853

$

679,822

$

999,015

$

888,935

Adjustments - Add / (Subtract)

Non-cash stock compensation from equity awards

(1,814

)

(77,409

)

(52,166

)

131,389

131,389

Amortization of acquired product rights

(10,768

)

—

—

10,768

10,768

Loss on change in fair value of contingent consideration

—

—

—

2,331

2,331

Asset impairment and related disposal costs

—

—

—

23,214

23,214

Non-cash interest

—

—

—

—

163

(Gain) on equity investments

—

—

—

—

(16,396

)

Tax effect of Non-GAAP pre-tax adjustments

—

—

—

—

(22,618

)

$

196,898

$

955,444

$

627,656

$

1,166,717

$

1,017,786

| | Six Months EndedJune 30, 2025

| | Cost of Sales1 | | Research and Development2 | | Selling, General and Administrative3 | | Operating Income | | Net Income

GAAP (as reported) | | $ | 151,954 | | | $ | 932,196 | | | $ | 656,713 | | | $ | 735,482 | | | $ | 563,202 |

Adjustments - Add / (Subtract) | | | | | | | | | |

Non-cash stock compensation from equity awards | | | (1,697 | ) | | | (74,424 | ) | | | (49,470 | ) | | | 125,591 | | | | 125,591 |

Contract dispute settlement | | | — | | | | — | | | | — | | | | (242,251 | ) | | | (242,251 | )

Amortization of acquired product rights | | | (10,768 | ) | | | — | | | | — | | | | 10,768 | | | | 10,768 |

Loss on change in fair value of contingent consideration | | | — | | | | — | | | | — | | | | 34,333 | | | | 34,333 |

Escient acquisition related compensation expense | | | — | | | | (2,117 | ) | | | (180 | ) | | | 2,297 | | | | 2,297 |

Non-cash interest | | | — | | | | — | | | | — | | | | — | | | | 163 |

Loss on equity investments | | | — | | | | — | | | | — | | | | — | | | | 5,494 |

Tax effect of Non-GAAP pre-tax adjustments | | | — | | | | — | | | | — | | | | — | | | | 41,789 |

Non-GAAP (as adjusted) | | $ | 139,489 | | | $ | 855,655 | | | $ | 607,063 | | | $ | 666,220 | | | $ | 541,386 |

1Non-GAAP cost of sales excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business ofARIAD Pharmaceuticals, Inc.and the cost of stock-based compensation.

2Non-GAAP research and development expenses exclude the cost of stock-based compensation and Escient acquisition related compensation expense related to severance payments.

3Non-GAAP selling, general and administrative expenses exclude the cost of stock-based compensation and Escient acquisition related compensation expense related to severance payments.

$

151,954

$

932,196

$

656,713

$

735,482

$

563,202

Adjustments - Add / (Subtract)

Non-cash stock compensation from equity awards

(1,697

)

(74,424

)

(49,470

)

125,591

125,591

Contract dispute settlement

—

—

—

(242,251

)

(242,251

)

Amortization of acquired product rights

(10,768

)

—

—

10,768

10,768

Loss on change in fair value of contingent consideration

—

—

—

34,333

34,333

Escient acquisition related compensation expense

—

(2,117

)

(180

)

2,297

2,297

Non-cash interest

—

—

—

—

163

Loss on equity investments

—

—

—

—

5,494

Tax effect of Non-GAAP pre-tax adjustments

—

—

—

—

41,789

$

139,489

$

855,655

$

607,063

$

666,220

$

541,386

1Non-GAAP cost of sales excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business ofARIAD Pharmaceuticals, Inc.and the cost of stock-based compensation.

2Non-GAAP research and development expenses exclude the cost of stock-based compensation and Escient acquisition related compensation expense related to severance payments.

3Non-GAAP selling, general and administrative expenses exclude the cost of stock-based compensation and Escient acquisition related compensation expense related to severance payments.

Cost of salesGAAP and Non-GAAP cost of sales for the quarter endedJune 30, 2026were$105.0 millionand$98.6 million, respectively, representing 7% of total net sales.

Contract dispute settlementInMay 2025,Incyteand Novartis entered into a settlement agreement with respect to litigation relating to the duration of royalty payments owed under the Collaboration and License Agreement betweenIncyteand Novartis. Under the settlement agreement, the royalty rate payable byIncyteon future net sales of Jakafi in the United Stated is reduced by 50% beginningJanuary 1, 2025andIncytepaid Novartis$280.0 millionas the settlement of disputed royalties on net sales of Jakafi inthe United StatesthroughDecember 31, 2024. The difference of$242.2 millionbetween the accrued royalties and the total amount paid by us to Novartis was recorded in contract dispute settlement on the condensed consolidated statement of operations for the three and six months endedJune 30, 2025.

Research and development expensesGAAP and Non-GAAP research and development expenses for the quarter endedJune 30, 2026were$517.0 millionand$478.8 million, an increase of 4% and 5%, respectively, compared to the same period in 2025, primarily due to continued investment in our late stage development assets.

Selling, general and administrative expensesGAAP and Non-GAAP selling, general and administrative expenses for the quarter endedJune 30, 2026were$351.7 millionand$323.6 million, an increase of 6% for each, respectively, compared to the same period in 2025, primarily due to increased consumer marketing and pre-launch activities.

Change in fair value of acquisition-related contingent considerationThe change in fair value of contingent consideration during the quarter endedJune 30, 2026, compared to the same period in 2025, was primarily due to updated projections of future net sales of Iclusig, including the impacts from fluctuations in foreign currency exchange rates.

Operating incomeGAAP and Non-GAAP operating income for the quarter endedJune 30, 2026increased 32% and 102%, respectively, compared to the same period in 2025, driven primarily by growth in total revenue, including the impact of the$246 millionof additional net sales of Opzelura relating to the aforementioned CMS agreement, and the impacts of the contract dispute settlement in the second quarter of 2025 on Non-GAAP operating income.

Cash, cash equivalents and marketable securities positionCash, cash equivalents and marketable securities as ofJune 30, 2026, were$4.5 billion, compared to$3.6 billionas ofDecember 31, 2025.

Incytewill hold a conference call and webcast this morning at8:00 a.m. ET. To access the conference call, please dial 877-407-3042 for domestic callers or 201-389-0864 for international callers. When prompted, provide the conference identification number, 13759527.

If you are unable to participate, a replay of the conference call will be available for 90 days. The replay dial-in number forthe United Statesis 877-660-6853 and the dial-in number for international callers is 201-612-7415. To access the replay you will need the conference identification number, 13759527.

The conference call will also be webcast live and can be accessed atinvestor.incyte.com.

Incyteis redefining what’s possible in biopharmaceutical innovation. Through deep scientific expertise and a relentless focus on patients, we have built an established portfolio of first-in-class medicines and an extensive portfolio of next-generation medicines across our key franchises: Hematology, Oncology and Inflammation and Autoimmunity.

To learn more, visitIncyte.comandInvestor.Incyte.com. Follow us on social media:LinkedIn,XandInstagram.

Incyteis a registered trademark ofIncyte.

Jakafi®(ruxolitinib) is a JAK1/JAK2 inhibitor approved for use in theU.S. for the treatment of polycythemia vera (PV) in adults who have had an inadequate response to, or are intolerant of, hydroxyurea; intermediate or high-risk myelofibrosis (MF), including primary MF, post-PV MF and post-essential thrombocythemia MF in adults; steroid-refractory acute graft-versus-host disease (GVHD) in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.

Jakafi is a registered trademark ofIncyte.

Jakafi XR™(ruxolitinib) extended-release tablets are a once-daily (QD) formulation of ruxolitinib, approved for use in theU.S. for the treatment of PV in adults who have had an inadequate response to, or are intolerant of, hydroxyurea; intermediate or high-risk MF, including primary MF, post-PV MF, and post-essential thrombocythemia MF in adults; steroid-refractory acute GVHD in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.

It is not known if Jakafi XR is safe or effective in children for the treatment of MF or PV.

Jakafi XR and the Jakafi XR logo are trademarks ofIncyte.

Opzelura®(ruxolitinib) cream, a novel cream formulation of Incyte’s JAK1/JAK2 inhibitor ruxolitinib, is the first and only treatment for repigmentation approved for use in theU.S. for the topical treatment of nonsegmental vitiligo in patients 12 years of age and older. Opzelura also is approved for use in theU.S. for the topical short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (AD) in non-immunocompromised patients 2 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. Use of Opzelura in combination with therapeutic biologics, other JAK inhibitors, or potent immunosuppressants, such as azathioprine or cyclosporine, is not recommended.

InEurope, Opzelura (ruxolitinib) cream 15mg/g is approved for the treatment of nonsegmental vitiligo with facial involvement in adults and adolescents from 12 years of age.

Incytehas worldwide rights for the development and commercialization of Opzelura.

Opzelura is a registered trademark ofIncyte.

Monjuvi®(tafasitamab-cxix)/Minjuvi®(tafasitamab) is a humanized Fc-modified cytolytic CD19-targeting monoclonal antibody. Tafasitamab incorporates an XmAb®engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanism including Antibody-Dependent Cell-Mediated Cytotoxicity (ADCC) and Antibody-Dependent Cellular Phagocytosis (ADCP).Incytelicenses exclusive worldwide rights to develop and commercialize tafasitamab from Xencor, Inc.

In theU.S., Monjuvi is approved for use in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL).

Monjuvi is not indicated and is not recommended for the treatment of patients with relapsed or refractory marginal zone lymphoma outside of controlled clinical trials.

Additionally, Monjuvi received approval in theU.S. in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT). This indication is approved under accelerated approval based on overall response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

InEurope, Minjuvi (tafasitamab) received conditional marketing authorization from theEuropean Medicines Agencyin combination with lenalidomide, followed by Minjuvi monotherapy, for the treatment of adult patients with relapsed or refractory DLBCL who are not eligible for ASCT. Additionally, Minjuvi is approved for use inEuropein combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory FL (Grade 1-3a) after at least one line of systemic therapy.

InJapan, Minjuvi is approved for use in combination with rituximab and lenalidomide for the treatment of adult patients with relapsed or refractory FL (2L+ FL).

XmAb is a registered trademark of Xencor, Inc.

Monjuvi and Minjuvi are registered trademarks ofIncyte.

Pemazyre®(pemigatinib) is a kinase inhibitor approved for use in theU.S. for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by anFDA-approved test. This indication is approved under accelerated approval based on overall response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in one or more confirmatory trials.

Pemazyre is also the first targeted treatment approved for use in theU.S. for the treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement.

InJapan, Pemazyre is approved for use for the treatment of patients with unresectable biliary tract cancer (BTC) with an FGFR2 fusion gene that worsens after cancer chemotherapy.

InEurope, Pemazyre is approved for use for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that has progressed after at least one prior line of systemic therapy.

Pemazyre is a potent, selective, oral inhibitor of FGFR isoforms 1, 2 and 3 that has demonstrated selective pharmacologic activity against cancer cells with FGFR alterations.

Pemazyre is marketed byIncyteinthe United States,EuropeandJapan.

Pemazyre is a trademark ofIncyte.

Iclusig®(ponatinib) targets not only native BCR-ABL, an abnormal, fused gene and protein associated with several types of leukemia, most notably Chronic Myeloid Leukemia (CML) andPhiladelphia-positive Acute Lymphoblastic Leukemia (Ph+ ALL), but also its isoforms that carry mutations that confer resistance to treatment, including the T315I mutation, which has been associated with resistance to other approved tyrosine kinase inhibitors.

InEurope, Iclusig is approved for use for the treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia (CML) who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or nilotinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation, or the treatment of adult patients withPhiladelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL) who are resistant to dasatinib; who are intolerant to dasatinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation.

Incytehas an exclusive license fromTakeda Pharmaceuticals International AGto commercialize ponatinib in the European Union and 29 other countries, includingSwitzerland, theUK,Norway,Turkey,IsraelandRussia. Iclusig is marketed in theU.S. byMillennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited.

Zynyz®(retifanlimab-dlwr) is a humanized monoclonal antibody targeting programmed death receptor-1 (PD-1), approved for use in theU.S.,EuropeandJapanin combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of adult patients with inoperable locally recurrent or metastatic squamous cell carcinoma of the anal canal (SCAC) and in theU.S. as a single agent for the treatment of adult patients with locally recurrent or metastatic SCAC with disease progression or intolerance to platinum-based chemotherapy.

Zynyz is also approved for use as monotherapy for the first-line treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC) in theU.S.,Europe,CanadaandSwitzerland.

Incytelicenses exclusive worldwide rights to develop and commercialize Zynyz from MacroGenics, Inc.

Zynyz is a registered trademark ofIncyte.

Niktimvo™(axatilimab-csfr) is a first-in-class colony stimulating factor-1 receptor (CSF-1R)-blocking antibody approved for use in the U.S. for the treatment of chronic GVHD after failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg (88.2 lbs).

In September 2021, Syndax Pharmaceuticals, Inc. and Incyte entered into an exclusive worldwide co-development and co-commercialization license agreement for axatilimab in chronic GVHD and any future indications.

Axatilimab is being studied in frontline combination trials in chronic GVHD – a Phase 2 combination trial with ruxolitinib (NCT06388564) and a Phase 3 combination trial with steroids (NCT06585774) are underway. Axatilimab is also being studied in an ongoing Phase 2 trial in patients with idiopathic pulmonary fibrosis (NCT06132256).

Niktimvo is a trademark of Incyte.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding Incyte’s expected financial and operational performance; Incyte’s updated 2026 full year financial guidance; expectations regarding the impact of Incyte’s agreement with CMS pertaining to Opzelura; Incyte’s ability to deliver sustained long-term growth; the strength of Incyte’s core business and marketed products; the potential and progress of programs in Incyte’s pipeline; expectations regarding clinical trials to be initiated, ongoing clinical trials and anticipated data readouts, including for Niktimvo (axatilimab), INCA033989 (mutCALR), latarcibart, INCB161734 (KRASG12D), INCA33890 (TGFβR2xPD-1), INCB123667 (CDK2), Opzelura (ruxolitinib) cream and povorcitinib; expectations regarding regulatory submissions, regulatory approvals and launches, including for Monjuvi in newly diagnosed DLBCL and Opzelura in moderate atopic dermatitis in Europe; expectations regarding Incyte’s partnerships and collaborations; and Incyte’s aspirations and goals as set forth under the heading “About Incyte.”

Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including the sufficiency of clinical trial data to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; the efficacy or safety of Incyte’s products; Incyte’s ability to achieve commercial success for its marketed products and product candidates, if approved; Incyte’s ability to obtain and maintain protection of intellectual property for its products and technology; Incyte’s reliance on third parties and partners; the acceptance of Incyte’s products in the marketplace; market competition, sales, marketing, manufacturing and distribution requirements; greater than expected expenses, including expenses relating to litigation or strategic activities; the effects of announced or unexpected price regulation or limitations on reimbursement or coverage for Incyte’s products; and those risks and uncertainties discussed in greater detail in Incyte’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2025. Incyte disclaims any intent or obligation to update these forward-looking statements.

*In the second quarter of 2026, the Company reached an agreement with theCenters for Medicare & Medicaid Services(CMS) to resolve the Company’s litigation related to the application of Medicaid rebate rules to Opzelura®(ruxolitinib) cream. Under the agreement, CMS will not apply the line extension regulation to Opzelura as if it were a line extension of Jakafi®(ruxolitinib). In the second quarter of 2026, the Company recorded a one-time, non-cash benefit of$246 millionassociated with the reversal of previously established accrual balances throughMarch 31, 2026, related to liabilities associated with the potential application of the line extension regulations to Opzelura.

†INCA33890, a TGFβR2×PD-1 bispecific Biclonics antibody, is developed in collaboration with Merus (legacy partnership); Merus is now part of Genmab A/S.

INCYTE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

| Three Months EndedJune 30, | | Six Months EndedJune 30,

| | 2026 | | | | 2025 | | | | 2026 | | | | 2025 |

| GAAP | | GAAP

Revenues: | | | | | | |

Net sales | $ | 1,488,149 | | | $ | 1,059,414 | | | $ | 2,592,633 | | | $ | 1,981,688 |

Product royalty revenues | | 174,690 | | | | 151,115 | | | | 325,882 | | | | 281,739 |

Milestone and contract revenues | | 11,200 | | | | 5,000 | | | | 28,200 | | | | 5,000 |

Total revenues | | 1,674,039 | | | | 1,215,529 | | | | 2,946,715 | | | | 2,268,427 |

Costs, expenses and other: | | | | | | |

Cost of sales (including definite-lived intangible amortization) | | 104,957 | | | | 78,766 | | | | 209,480 | | | | 151,954 |

Contract dispute settlement | | — | | | | (242,251 | ) | | | — | | | | (242,251 | )

Research and development | | 516,950 | | | | 494,917 | | | | 1,032,853 | | | | 932,196 |

Selling, general and administrative | | 351,735 | | | | 331,022 | | | | 679,822 | | | | 656,713 |

Asset impairment and related disposal costs | | — | | | | — | | | | 23,214 | | | | — |

Loss on change in fair value of acquisition-related contingent consideration | | 2,499 | | | | 22,761 | | | | 2,331 | | | | 34,333 |

Total costs, expenses and other | | 976,141 | | | | 685,215 | | | | 1,947,700 | | | | 1,532,945 |

Income from operations | | 697,898 | | | | 530,314 | | | | 999,015 | | | | 735,482 |

Interest income | | 38,118 | | | | 25,136 | | | | 71,805 | | | | 48,065 |

Interest expense | | (582 | ) | | | (594 | ) | | | (1,151 | ) | | | (1,254 | )

Gain (loss) on equity investments | | 9,805 | | | | (4,151 | ) | | | 16,396 | | | | (5,494 | )

Other, net | | 6,275 | | | | 7,307 | | | | 9,049 | | | | 15,403 |

Income before provision for income taxes | | 751,514 | | | | 558,012 | | | | 1,095,114 | | | | 792,202 |

Provision for income taxes | | 165,909 | | | | 153,013 | | | | 206,179 | | | | 229,000 |

Net income | $ | 585,605 | | | $ | 404,999 | | | $ | 888,935 | | | $ | 563,202 |

Net income per share: | | | | | | |

Basic | $ | 2.92 | | | $ | 2.09 | | | $ | 4.45 | | | $ | 2.91 |

Diluted | $ | 2.81 | | | $ | 2.04 | | | $ | 4.28 | | | $ | 2.84 |

Shares used in computing net income per share: | | | | | | |

Basic | | 200,378 | | | | 193,995 | | | | 199,860 | | | | 193,853 |

Diluted | | 208,216 | | | | 198,744 | | | | 207,670 | | | | 198,526 |

Revenues:

Net sales

$

1,488,149

$

1,059,414

$

2,592,633

$

1,981,688

Product royalty revenues

174,690

151,115

325,882

281,739

Milestone and contract revenues

11,200

5,000

28,200

5,000

Total revenues

1,674,039

1,215,529

2,946,715

2,268,427

Costs, expenses and other:

Cost of sales (including definite-lived intangible amortization)

104,957

78,766

209,480

151,954

Contract dispute settlement

—

(242,251

)

—

(242,251

)

Research and development

516,950

494,917

1,032,853

932,196

Selling, general and administrative

351,735

331,022

679,822

656,713

Asset impairment and related disposal costs

—

—

23,214

—

Loss on change in fair value of acquisition-related contingent consideration

2,499

22,761

2,331

34,333

Total costs, expenses and other

976,141

685,215

1,947,700

1,532,945

Income from operations

697,898

530,314

999,015

735,482

Interest income

38,118

25,136

71,805

48,065

Interest expense

(582

)

(594

)

(1,151

)

(1,254

)

Gain (loss) on equity investments

9,805

(4,151

)

16,396

(5,494

)

Other, net

6,275

7,307

9,049

15,403

Income before provision for income taxes

751,514

558,012

1,095,114

792,202

Provision for income taxes

165,909

153,013

206,179

229,000

Net income

$

585,605

$

404,999

$

888,935

$

563,202

Net income per share:

Basic

$

2.92

$

2.09

$

4.45

$

2.91

Diluted

$

2.81

$

2.04

$

4.28

$

2.84

Shares used in computing net income per share:

Basic

200,378

193,995

199,860

193,853

Diluted

208,216

198,744

207,670

198,526

INCYTE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

| June 30,2026 | | December 31,2025

ASSETS | | |

Cash, cash equivalents and marketable securities | $ | 4,535,740 | | $ | 3,580,604

Accounts receivable | | 1,125,203 | | | 1,024,407

Property and equipment, net | | 709,469 | | | 730,885

Finance lease right-of-use assets, net | | 25,559 | | | 27,520

Inventory | | 457,568 | | | 443,292

Prepaid expenses and other assets | | 341,662 | | | 337,849

Equity investments | | 104,387 | | | 47,991

Other intangible assets, net | | 103,196 | | | 117,131

Goodwill | | 133,000 | | | 133,000

Deferred income tax asset | | 336,863 | | | 515,294

Total assets | $ | 7,872,647 | | $ | 6,957,973

LIABILITIES AND STOCKHOLDERS’ EQUITY | | |

Accounts payable, accrued expenses and other liabilities | $ | 1,393,541 | | $ | 1,634,780

Finance lease liabilities | | 32,679 | | | 34,715

Acquisition-related contingent consideration | | 102,000 | | | 121,000

Stockholders’ equity | | 6,344,427 | | | 5,167,478

Total liabilities and stockholders’ equity | $ | 7,872,647 | | $ | 6,957,973

Cash, cash equivalents and marketable securities

$

4,535,740

$

3,580,604

Accounts receivable

1,125,203

1,024,407

Property and equipment, net

709,469

730,885

Finance lease right-of-use assets, net

25,559

27,520

Inventory

457,568

443,292

Prepaid expenses and other assets

341,662

337,849

Equity investments

104,387

47,991

Other intangible assets, net

103,196

117,131

Goodwill

133,000

133,000

Deferred income tax asset

336,863

515,294

Total assets

$

7,872,647

$

6,957,973

Accounts payable, accrued expenses and other liabilities

$

1,393,541

$

1,634,780

Finance lease liabilities

32,679

34,715

Acquisition-related contingent consideration

102,000

121,000

Stockholders’ equity

6,344,427

5,167,478

Total liabilities and stockholders’ equity

$

7,872,647

$

6,957,973

INCYTE CORPORATION

RECONCILIATION OF GAAP NET INCOME TO SELECTED NON-GAAP ADJUSTED INFORMATION

(unaudited, in thousands, except per share amounts)

| Three Months EndedJune 30, | | Six Months EndedJune 30,

| | 2026 | | | | 2025 | | | | 2026 | | | | 2025 |

GAAP Net Income | $ | 585,605 | | | $ | 404,999 | | | $ | 888,935 | | | $ | 563,202 |

Adjustments1: | | | | | | |

Non-cash stock compensation from equity awards (R&D)2 | | 38,189 | | | | 37,700 | | | | 77,409 | | | | 74,424 |

Non-cash stock compensation from equity awards (SG&A)2 | | 28,142 | | | | 26,071 | | | | 52,166 | | | | 49,470 |

Non-cash stock compensation from equity awards (COGS)2 | | 932 | | | | 838 | | | | 1,814 | | | | 1,697 |

Non-cash interest3 | | 81 | | | | 81 | | | | 163 | | | | 163 |

(Gain) loss on equity investments4 | | (9,805 | ) | | | 4,151 | | | | (16,396 | ) | | | 5,494 |

Amortization of acquired product rights5 | | 5,384 | | | | 5,384 | | | | 10,768 | | | | 10,768 |

Loss on change in fair value of contingent consideration6 | | 2,499 | | | | 22,761 | | | | 2,331 | | | | 34,333 |

Asset impairment and related disposal costs7 | | — | | | | — | | | | 23,214 | | | | — |

Contract dispute settlement | | — | | | | (242,251 | ) | | | — | | | | (242,251 | )

Escient acquisition related compensation expense8 | | — | | | | 1,762 | | | | — | | | | 2,297 |

Tax effect of Non-GAAP pre-tax adjustments9 | | (7,668 | ) | | | 50,431 | | | | (22,618 | ) | | | 41,789 |

Non-GAAP Net Income | $ | 643,359 | | | $ | 311,927 | | | $ | 1,017,786 | | | $ | 541,386 |

Non-GAAP net income per share: | | | | | | |

Basic | $ | 3.21 | | | $ | 1.61 | | | $ | 5.09 | | | $ | 2.79 |

Diluted | $ | 3.09 | | | $ | 1.57 | | | $ | 4.90 | | | $ | 2.73 |

Shares used in computing Non-GAAP net income per share: | | | | | | |

Basic | | 200,378 | | | | 193,995 | | | | 199,860 | | | | 193,853 |

Diluted | | 208,216 | | | | 198,744 | | | | 207,670 | | | | 198,526 |

1Included within the Milestone and contract revenues line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and six months endedJune 30, 2026are milestones of$11,200and$28,200, respectively, earned from our collaborative partners, as compared to$5,000of milestones earned for both the three and six months endedJune 30, 2025. Included within the Research and development expenses line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and six months endedJune 30, 2026are upfront consideration and milestones of$0and$12,600, respectively, related to our collaborative partners as compared to upfront consideration and milestones of$12,550and$28,050, respectively, for the three and six months endedJune 30, 2025.

2As included within the Cost of sales (including definite-lived intangible amortization) line item; the Research and development expenses line item; and the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.

3As included within the Interest expense line item in the Condensed Consolidated Statements of Operations.

4As included within the (Gain) loss on equity investments line item in the Condensed Consolidated Statements of Operations.

5As included within the Cost of sales (including definite-lived intangible amortization) line item in the Condensed Consolidated Statements of Operations. Acquired product rights of licensed intellectual property for Iclusig is amortized utilizing a straight-line method over the estimated useful life of 12.5 years.

6As included within the Loss on change in fair value of acquisition-related contingent consideration line item in the Condensed Consolidated Statements of Operations.

7As included within the Asset impairment and related disposal costs line item in the Condensed Consolidated Statements of Operations.

8Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is$1,582and$2,117for the three and six months endedJune 30, 2025, and included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations is$180for both the three and six months endedJune 30, 2025. Escient acquisition related compensation expense represents non-recurring charges associated with severance payments to former Escient employees.

9Income tax effects of Non-GAAP pre-tax adjustments are calculated using an estimated annual effective tax rate, taking into consideration any permanent items and valuation allowances against related deferred tax assets.

$

585,605

$

404,999

$

888,935

$

563,202

Adjustments1:

Non-cash stock compensation from equity awards (R&D)2

38,189

37,700

77,409

74,424

Non-cash stock compensation from equity awards (SG&A)2

28,142

26,071

52,166

49,470

Non-cash stock compensation from equity awards (COGS)2

932

838

1,814

1,697

Non-cash interest3

81

81

163

163

(Gain) loss on equity investments4

(9,805

)

4,151

(16,396

)

5,494

Amortization of acquired product rights5

5,384

5,384

10,768

10,768

Loss on change in fair value of contingent consideration6

2,499

22,761

2,331

34,333

Asset impairment and related disposal costs7

—

—

23,214

—

Contract dispute settlement

—

(242,251

)

—

(242,251

)

Escient acquisition related compensation expense8

—

1,762

—

2,297

Tax effect of Non-GAAP pre-tax adjustments9

(7,668

)

50,431

(22,618

)

41,789

$

643,359

$

311,927

$

1,017,786

$

541,386

Non-GAAP net income per share:

Basic

$

3.21

$

1.61

$

5.09

$

2.79

Diluted

$

3.09

$

1.57

$

4.90

$

2.73

Shares used in computing Non-GAAP net income per share:

Basic

200,378

193,995

199,860

193,853

Diluted

208,216

198,744

207,670

198,526

1Included within the Milestone and contract revenues line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and six months endedJune 30, 2026are milestones of$11,200and$28,200, respectively, earned from our collaborative partners, as compared to$5,000of milestones earned for both the three and six months endedJune 30, 2025. Included within the Research and development expenses line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and six months endedJune 30, 2026are upfront consideration and milestones of$0and$12,600, respectively, related to our collaborative partners as compared to upfront consideration and milestones of$12,550and$28,050, respectively, for the three and six months endedJune 30, 2025.

2As included within the Cost of sales (including definite-lived intangible amortization) line item; the Research and development expenses line item; and the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.

3As included within the Interest expense line item in the Condensed Consolidated Statements of Operations.

4As included within the (Gain) loss on equity investments line item in the Condensed Consolidated Statements of Operations.

5As included within the Cost of sales (including definite-lived intangible amortization) line item in the Condensed Consolidated Statements of Operations. Acquired product rights of licensed intellectual property for Iclusig is amortized utilizing a straight-line method over the estimated useful life of 12.5 years.

6As included within the Loss on change in fair value of acquisition-related contingent consideration line item in the Condensed Consolidated Statements of Operations.

7As included within the Asset impairment and related disposal costs line item in the Condensed Consolidated Statements of Operations.

8Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is$1,582and$2,117for the three and six months endedJune 30, 2025, and included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations is$180for both the three and six months endedJune 30, 2025. Escient acquisition related compensation expense represents non-recurring charges associated with severance payments to former Escient employees.

9Income tax effects of Non-GAAP pre-tax adjustments are calculated using an estimated annual effective tax rate, taking into consideration any permanent items and valuation allowances against related deferred tax assets.

View source version onbusinesswire.com:https://www.businesswire.com/news/home/20260728733422/en/

Source:Incyte