INCY · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

INCYTE CORP · 2026-10-29 · Importance 32 · Surprise 32 · In source text

Incyte recorded income tax provisions of $96.0 million for the third quarter and $302.1 million for the first nine months of 2026, compared with $58.1 million and $287.1 million in 2025. The 2026 effective tax rates were unfavorably affected by the $1.23 billion non-deductible Vega acquisition charge and increased valuation allowances against certain U.S. federal and state deferred tax assets. Tax credits, stock-compensation deductions and foreign tax effects partly offset those impacts, while changes in unrecognized tax benefits favorably affected the nine-month rate.

Key facts

• Incyte's effective tax rates for the three and nine months ended September 30, 2026 were unfavorably affected by a one-time non-deductible $1.23 billion Vega acquisition charge and a net increase in valuation allowances against certain U.S. federal and state deferred tax assets. source
• The 2026 effective tax rate impact of the Vega charge and valuation allowances was partially offset by tax benefits from tax credits, stock compensation-related tax deductions, and foreign tax effects. source
• The effective tax rate for the nine months ended September 30, 2026 was favorably impacted by changes in unrecognized tax benefits. source

Impact estimates