Truist Securities reiterated its Hold recommendation on Incyte and preserved a $103.00 price target, citing the company's guidance and upcoming milestones as the primary near-term drivers for investor attention.
The firm highlighted Incyte's fiscal year 2026 net product revenue guidance of $4.77 billion to $4.94 billion, which it noted is in line with the consensus estimate of $4.83 billion. Truist said it expects the company to concentrate in 2026 on pipeline readouts and sustained commercial execution.
Market reaction to Incyte's fourth-quarter disclosure was sharp. Shares declined by roughly 10% in pre-market trading after the company reported fourth-quarter earnings that included an adjusted diluted earnings per share figure of $1.46 versus consensus expectations of $1.93.
At the same time, Incyte reported a revenue beat. Total revenue for the quarter came in at $1.51 billion compared with consensus of $1.35 billion. The company characterized that revenue as showing 10% quarter-over-quarter growth and 28% year-over-year growth.
Product-level performance contributed to the top-line strength. Jakafi generated $828 million in revenue, about 3% above the consensus view of $805 million. Opzelura produced $207 million in revenue, around 4% higher than the $199 million consensus.
Expenses, however, weighed on profitability. GAAP research and development expenses were reported at $611 million, exceeding consensus estimates of $539 million by 13%.
Truist underscored several specific catalysts and monitoring points for investors. Those include the imminent approval and launch of povorcitinib for hidradenitis suppurativa, progress on '989 mCALR in indications such as myelofibrosis and essential thrombocythemia, and the commercial trajectories for Opzelura, Niktimvo, and Monjuvi.
Separately noted in the company updates was a mixed characterization of the quarter. Revenue of $1.51 billion exceeded analysts' expectations of $1.35 billion, described as an 11.85% positive surprise. By contrast, an earnings metric was reported at $1.80 per share versus a $1.91 consensus, described as a 5.76% negative surprise. The two sets of earnings figures were presented in the company's disclosures.
Taken together, Truist's Hold stance reflects a balance between commercial momentum on key products and nearer-term concerns around profitability and execution on pipeline milestones. The firm left its price target unchanged while signaling that investor focus will likely remain on the upcoming regulatory and clinical readouts as well as sales trends for the highlighted products.
Contextual note: The foregoing presents the company's guidance, quarterly results, product revenues, expense figures, and the analyst response as disclosed by the company and reported by the coverage team.