IN

Incyte Corporation stock research

Jun 30, 2023

FY2023 Q2

Incyte (INCY) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly relative to both periods.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly relative to both periods.

  • The strongest observable margin driver is the increase in cost of revenue relative to revenue, resulting in a modest compression of gross margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

92.8%

Gross profit

$886.3M

Revenue

$954.6M

Cost of revenue

$68.3M

Quarter-over-quarter change

-0.1 pts

Year-over-year change

-1.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$808.7M$751.9M$56.8M93.0%
Jun 30, 2023$954.6M$886.3M$68.3M92.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

-0.1 pts

Year-over-year change

Jun 30, 2022

-1.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the increase in cost of revenue relative to revenue, resulting in a modest compression of gross margin.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.

Monitor the trajectory of cost of revenue given its impact on gross margin, as well as the competitive landscape for key products noted in the filing.