Incyte (INCY) shares surged 5.04% intraday Tuesday, driven by a strong second-quarter earnings report that significantly exceeded Wall Street expectations. The biopharmaceutical company reported adjusted earnings of $3.09 per share, far above the consensus estimate of $2.10, while total revenue of $1.67 billion beat forecasts of $1.47 billion, representing a 37.7% increase from the prior year.

The stellar quarterly performance was underpinned by robust demand for its flagship products, including Jakafi and Opzelura, as well as growth from its hematology and oncology portfolio. Notably, Opzelura net sales were boosted by a one-time, non-cash benefit of approximately $246 million related to a litigation settlement with the Centers for Medicare & Medicaid Services (CMS). The settlement resolved a dispute over Medicaid rebate classification, with CMS agreeing not to classify Opzelura as a line extension of Jakafi, which Incyte estimates will add $300 million to $310 million to Opzelura's full-year net sales.

Reflecting the strong results and the positive CMS resolution, Incyte raised its full-year 2026 total net sales guidance to a range of $5.13 billion to $5.26 billion, up from its prior forecast of $4.77 billion to $4.94 billion. The company also lifted its outlook for Opzelura and its hematology and oncology segment, signaling confidence in sustained growth momentum across its key franchises.