Krystal Biotech walked into this earnings season with a premium biotech label and a stock that had climbed about 28% over the past three months. Today the air came out fast. The shares dropped about 8% to US$312.37 even as the company posted Q1 2026 revenue of US$116.4m and basic earnings per share of US$1.91.

The headline for you is simple. Profits remain solid and margins look healthy for a commercial stage gene therapy company. The sell off reflects a reset in expectations, not a collapse in the earnings story. The full numbers provide additional context.

Is Krystal Biotech now a rare bargain after an 8% drop, or just a richly priced stock that still carries premium risk on a 44.7x trailing P/E? See how that trade off looks inside…