INCYTE CORPINCY
INCYTE CORP Segments Disclosure
Note 18. Segment Information
We operate in one operating segment, and therefore one reportable segment, focused on the global discovery, development and commercialization of proprietary therapeutics. We manage business activities on a consolidated basis through the development and commercialization of oncology and dermatology products, which are sold to U.S. and international customers. Our determination that we operate as a single operating segment is consistent with the financial information regularly reviewed by the chief operating decision maker for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Our chief operating decision maker is the Chief Executive Officer.
The accounting policies for our single operating segment are the same as those described in the summary of significant accounting policies. Our single operating segment generates revenues from the development and commercialization of oncology and dermatology pharmaceutical products, which are developed by our research and development department, as well as from product royalties, milestone and contract revenues from the out-licensing of our intellectual property to third parties.
For our segment, the chief operating decision maker uses net income, that also is reported on the consolidated statements of operations as consolidated net income, to allocate resources (including employees, property, and financial resources), predominantly during the annual budget and forecasting process. The chief operating decision maker also uses consolidated net income, along with non-financial inputs and qualitative information, to evaluate our performance, establish compensation, monitor budget versus actual results, and decide the level of investment in our various operating activities and other capital allocation activities. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets.
Net income for our segment was as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Product revenues, net | $ | 4,354,333 | $ | 3,618,888 | $ | 3,165,168 | |||||||||||
| Product royalty revenues | 636,909 | 579,329 | 523,481 | ||||||||||||||
| Milestone and contract revenues | 150,000 | 43,000 | 7,000 | ||||||||||||||
| Total revenues | 5,141,242 | 4,241,217 | 3,695,649 | ||||||||||||||
| Costs, expenses and other: | |||||||||||||||||
| Cost of product revenues (including definite-lived intangible amortization) | 372,130 | 312,068 | 254,990 | ||||||||||||||
| Contract dispute settlement | (242,251) | — | — | ||||||||||||||
Research and development - internal1 | 984,730 | 957,043 | 815,025 | ||||||||||||||
Research and development - external2 | 967,848 | 866,005 | 775,919 | ||||||||||||||
Other research and development3 | 97,574 | 783,800 | 36,650 | ||||||||||||||
| Sales and marketing | 1,094,754 | 945,428 | 876,703 | ||||||||||||||
| General and administrative | 281,452 | 296,729 | 278,959 | ||||||||||||||
| Asset impairment | 76,275 | — | 5,631 | ||||||||||||||
| (Gain) loss on change in fair value of acquisition-related contingent consideration | (6,129) | 19,803 | 29,202 | ||||||||||||||
| (Profit) and loss sharing under collaboration agreements | — | (1,025) | 2,045 | ||||||||||||||
Other segment items4 | 228,209 | 28,751 | 22,926 | ||||||||||||||
| Net income | $ | 1,286,650 | $ | 32,615 | $ | 597,599 | |||||||||||
1.Research and development - internal is comprised of internally generated costs such as salaries, travel, regulatory costs, lab costs, contracting, etc.
2.Research and development - external is comprised of specific program spend with external vendors (i.e. contract manufacturing organization, contract research organization and lab vendors for clinical, technical operations and toxicology services).
3.Other research and development is comprised of all other costs including certain one-time costs resulting from the acquisition of IPR&D assets and one-time development milestone expenses.
4.Other segment items is comprised of interest income, interest expense, realized and unrealized (gain) loss on equity investments, other, net, and provision for income taxes.
Total Revenues by Geographic Location
Total revenues by geographic region consisted of the following (in thousands):
| Twelve Months Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 4,799,941 | $ | 3,974,567 | $ | 3,514,873 | |||||||||||
| Europe | 323,734 | 260,437 | 175,866 | ||||||||||||||
| Other countries | 17,567 | 6,213 | 4,910 | ||||||||||||||
| Total revenues | $ | 5,141,242 | $ | 4,241,217 | $ | 3,695,649 | |||||||||||
Property and Equipment, Net by Geographic Location
Property and equipment, net by geographic location was as follows (in thousands):
| Dec 31, 2025 | Dec 31, 2024 | ||||||||||
| United States | $ | 406,829 | $ | 474,095 | |||||||
| Switzerland | 309,802 | 277,623 | |||||||||
| Other countries | 14,254 | 11,693 | |||||||||
| Total property and equipment, net | $ | 730,885 | $ | 763,411 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 10, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 8, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 14, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.