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Incyte Corporation stock research

Dec 31, 2025

FY2025 Q4

Incyte (INCY) Gross Margin — Quarter Ended Dec 31, 2025

Revenue and gross profit rose compared with both the prior quarter and the same quarter last year, while gross margin declined slightly. The decline in gross margin was driven by cost of revenue increasing at a faster rate than revenue.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

Revenue and gross profit rose compared with both the prior quarter and the same quarter last year, while gross margin declined slightly. The decline in gross margin was driven by cost of revenue increasing at a faster rate than revenue.

  • The strongest observable driver of the gross margin change is the relationship between cost of revenue and revenue. Cost of revenue grew at a higher rate than revenue, which compressed the margin.
  • Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.

Gross margin snapshot

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

Gross margin

92.0%

Gross profit

$1.4B

Revenue

$1.5B

Cost of revenue

$121.2M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

-0.5 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, 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%
Dec 31, 2025$1.5B$1.4B$121.2M92.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2025

-0.8 pts

Year-over-year change

Dec 31, 2024

-0.5 pts

What the margin says

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

The strongest observable driver of the gross margin change is the relationship between cost of revenue and revenue. Cost of revenue grew at a higher rate than revenue, which compressed the margin.

Compared with the immediately preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.

Monitor the growth rate of cost of revenue relative to revenue growth.