IN

Incyte Corporation stock research

Sep 30, 2025

FY2025 Q3

Incyte (INCY) Gross Margin — Quarter Ended Sep 30, 2025

Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Cost of revenue also rose, leading to a slight sequential decline in gross margin, though the margin remained above the year-ago level.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Cost of revenue also rose, leading to a slight sequential decline in gross margin, though the margin remained above the year-ago level.

  • The gross margin was primarily driven by revenue growth outpacing the increase in cost of revenue on a year-over-year basis, while sequentially the cost of revenue grew at a faster pace relative to revenue.
  • Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more than revenue. Versus the same quarter one year earlier, gross margin improved as revenue growth exceeded the increase in cost of revenue.

Gross margin snapshot

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

Gross margin

92.8%

Gross profit

$1.3B

Revenue

$1.4B

Cost of revenue

$99.0M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$1.2B$1.1B$88.5M92.5%
Mar 31, 2025$1.1B$979.7M$73.2M93.0%
Jun 30, 2025$1.2B$1.1B$78.8M93.5%
Sep 30, 2025$1.4B$1.3B$99.0M92.8%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2025

-0.8 pts

Year-over-year change

Sep 30, 2024

+0.3 pts

What the margin says

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

The gross margin was primarily driven by revenue growth outpacing the increase in cost of revenue on a year-over-year basis, while sequentially the cost of revenue grew at a faster pace relative to revenue.

Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more than revenue. Versus the same quarter one year earlier, gross margin improved as revenue growth exceeded the increase in cost of revenue.

Monitor the filing's discussion of competitive pressures, including potential generic competition for JAKAFI, which could affect future revenue and margins.