What Happened?
Shares of biopharmaceutical company Incyte Corporation (NASDAQ: INCY) fell 8.8% in the morning session after the company reported mixed fourth-quarter 2025 results, where a significant revenue beat was overshadowed by an earnings miss. The company's adjusted earnings per share (EPS) came in at $1.80, falling short of Wall Street's consensus estimate of $1.92. This earnings shortfall appeared to be the primary concern for investors, despite revenue showing strong performance. Sales for the quarter grew 27.8% year-over-year to $1.51 billion, comfortably surpassing analysts' expectations. Adding to the pressure, the company's operating margin contracted to 22.3% from 25.6% in the same period last year, indicating that expenses grew faster than revenue.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Incyte? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Incyte’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 27 days ago when the stock gained 3.2% on the news that TD Cowen maintained a 'Buy' rating on the stock and increased its price target. The firm's analyst, Marc Frahm, lifted the price target from $101.00 to $128.00, a significant increase of nearly 27%. This adjustment signaled a strong positive outlook for the company's future stock performance. The action from the analyst suggested a heightened confidence in the biopharmaceutical company's value.
Incyte is up 1% since the beginning of the year, and at $102.45 per share, it is trading close to its 52-week high of $110.57 from January 2026. Investors who bought $1,000 worth of Incyte’s shares 5 years ago would now be looking at an investment worth $1,203.
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