Teva Pharmaceutical Industries Limited Ordinary Shares (TEVA) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Nov 4, 2026.

Consensus is $0.70 EPS for Sep 2026 across 3 estimates, ranging $0.65 to $0.73.

TEVA Jun 2026

Reported Jul 29, 2026

: 100.00%
: +2.02%

: $0.05
: $0.00
: —
: $4.14B

Reported results

: $4.14B; from $4.18B
: 51.98%; from 50.34%
: -$231.00M; from $455.00M
: -5.58%; from 10.90%
: -$576.00M; from $282.00M
: -$0.49; from $0.24

Highlights

Quarterly result: Revenue was $4.142 billion, down 1% year over year and up 4% from Q1 2026; reported EPS was $0.00 versus a $0.05 consensus estimate, while GAAP diluted EPS was a $0.49 loss and non-GAAP diluted EPS was $0.02.
Emalex charge: The $700 million acquisition of Emalex Biosciences produced $724 million of acquired IPR&D expense and $2 million of operating expense, driving the quarter’s $231 million operating loss and $576 million net loss.
Innovative brands: AUSTEDO, AJOVY and UZEDY generated more than $1 billion of combined revenue, up 43% year over year in local currency; quarterly revenue was $696 million, $244 million and $77 million, respectively.
Brand outlook: Teva raised its 2026 revenue outlook for all three growth brands to $2.45-$2.60 billion for AUSTEDO, $850-$870 million for AJOVY and $270-$290 million for UZEDY.
Generics pressure: Global generics revenue declined 15% in local currency, primarily because of increased U.S. competition for lenalidomide; U.S. generic revenue fell 31% to $660 million.
Underlying profitability: Non-GAAP operating income fell to $375 million from $1.133 billion a year ago, with margin falling to 9.0% from 27.1%; adjusted EBITDA declined 62% to $474 million.
Cash and leverage: Operating cash flow was $411 million and free cash flow was $622 million, while total debt was $16.593 billion and net debt was $12.938 billion at June 30.
Pipeline and structure: Teva submitted the ecopipam NDA, advanced olanzapine LAI and duvakitug, launched the AHZANTIVE biosimilar in Europe, and will replace its ADSs with one-for-one ordinary shares trading on the NYSE from September 14, 2026.

Analysis

Teva’s second quarter was a transition quarter in which fast-growing innovative brands continued to improve the portfolio mix, but a large pipeline acquisition and ongoing generics erosion overwhelmed reported earnings. Revenue of $4.142 billion was 1% below the year-ago $4.176 billion but 4% above Q1’s $3.98 billion. The company’s reported EPS was $0.00 versus a $0.05 consensus estimate; GAAP diluted EPS was a $0.49 loss, compared with $0.24 of income a year ago and $0.31 in Q1. Net loss was $576 million, versus net income of $282 million a year ago and $369 million in Q1.

The central operational positive was the growth portfolio: AUSTEDO, AJOVY and UZEDY together exceeded $1 billion of revenue and grew 43% in local currency, supporting higher full-year brand targets. That progress was offset by a 15% local-currency decline in generics, led by lenalidomide competition in the U.S. The Emalex acquisition added $724 million of acquired IPR&D expense, while $230 million of legal provisions and $121 million of tax expense further depressed GAAP results. Even excluding these items, non-GAAP EPS was only $0.02 and operating margin was 9.0%, down sharply from 27.1% a year ago. Teva maintained its full-year revenue, earnings and free-cash-flow outlook while raising brand forecasts.

Innovative brands

Teva’s growth strategy was most visible in the three key innovative brands, which together generated more than $1 billion of quarterly revenue and grew 43% year over year in local currency. The mix shift also lifted gross margin to 52.0% from 50.3% a year ago.

AUSTEDO: Global revenue was $696 million, up 40% in local currency. U.S. revenue rose 37% to $676 million, supported by volume growth and improved net-price realization.
AJOVY: Global revenue was $244 million, up 56% in local currency. U.S. revenue increased 83% to $116 million, while Europe revenue rose 10% to $78 million.
UZEDY: Revenue was $77 million, up 43% year over year, driven by volume growth despite higher sales allowances.
Guidance: Teva raised its 2026 revenue outlook to $2.45-$2.60 billion for AUSTEDO, $850-$870 million for AJOVY and $270-$290 million for UZEDY, implying combined revenue of approximately $3.7 billion at the midpoint.

Emalex acquisition

The quarter’s earnings distortion came primarily from Teva’s acquisition of Emalex Biosciences and its ecopipam asset for approximately $700 million. Because the deal was accounted for as an asset acquisition, Teva expensed the acquired IPR&D immediately rather than recording goodwill.

Income statement impact: Teva recorded $724 million of acquired IPR&D expense and $2 million of operating expense. Total Emalex-related expense reduced reported EPS by approximately $0.61 and non-GAAP EPS by $0.61.
Reported profitability: R&D expense increased 298% to $970 million, operating income swung to a $231 million loss from $455 million of income, and net income attributable to Teva fell to a $576 million loss from $282 million of income.
Development progress: Teva submitted the ecopipam NDA to the FDA in June for pediatric Tourette syndrome. It also received European acceptance for olanzapine LAI and plans a U.S. launch in Q4 2026, subject to approval.
Broader pipeline: Teva reported positive Phase 1b results for TEV-’408 in vitiligo, plans a Phase 2 study in Q4 2026, and intends to expand duvakitug development into hidradenitis suppurativa and fibrostenotic Crohn’s disease.

Generics pressure

Generics remained the main drag on revenue, particularly in the United States. Global generics revenue fell 15% in local currency, principally because additional generic competitors reduced lenalidomide revenue. Teva is using biosimilars to rebuild this part of the portfolio, but that momentum has not yet offset the erosion.

United States: Segment revenue fell 5% to $1.702 billion, with generic products down 31% to $660 million. Trailing-twelve-month prescriptions declined to approximately 237 million from 266 million, reducing Teva’s share of U.S. generic prescriptions to 6.1% from 6.9%.
Europe: Revenue declined 3% to $1.263 billion, or 8% in local currency, reflecting lower generic revenue and lower proceeds from product-rights sales. Segment profit nonetheless increased 1% to $367 million.
International markets: Revenue rose 11% to $550 million and segment profit increased 34% to $99 million, helped by AJOVY and AUSTEDO growth, particularly in China.
Biosimilars: Teva launched AHZANTIVE, an aflibercept biosimilar to Eylea, in Europe and expects its biosimilar portfolio to reach $800 million of revenue by 2027.

Cash and balance sheet

Cash generation was stronger than the earnings result suggests, although free cash flow includes $311 million of beneficial interest collected through the European securitized receivables program. Teva also spent $696 million in cash to acquire Emalex.

Cash flow: Operating cash flow rose to $411 million from $227 million a year ago, and free cash flow increased to $622 million from $476 million. Capital investment was $104 million.
Debt: Total debt was $16.593 billion at June 30, down from $16.807 billion at December 31, 2025, while cash was $3.655 billion and net debt was $12.938 billion.
Maturity profile: Short-term debt represented 27% of total debt versus 11% at year-end, and average debt maturity shortened to approximately 5.1 years from 5.6 years.
Litigation and tax: Legal settlements and loss contingencies were $230 million, including an estimated antitrust provision and an opioid settlement update. The company recorded a $121 million tax expense on a $455 million pretax loss.

Outlook and transformation

Teva maintained its overall 2026 financial outlook despite raising the innovative-brand targets. The company continues to position cost savings and portfolio modernization as the bridge from near-term investment to its longer-term profitability objective.

2026 outlook: Revenue remains $16.5-$16.85 billion, non-GAAP operating income $3.8-$4.0 billion, adjusted EBITDA $4.23-$4.53 billion, non-GAAP diluted EPS $1.91-$2.11 and free cash flow $2.0-$2.4 billion.
Acquisition effect: The outlook includes approximately $770 million of Emalex-related expense and a $0.66 per-share reduction to 2026 non-GAAP EPS. Teva expects a 20%-23% non-GAAP tax rate.
Savings target: Transformation programs are expected to deliver approximately $700 million of net savings by 2027, with two-thirds of the targeted savings expected in 2026; management continues to target a 30% non-GAAP operating margin by 2027.
Trading structure: Teva plans to end its ADS program after trading closes on September 11, 2026. One ADS will convert into one ordinary share, which will begin trading on the NYSE on September 14, 2026.

Teva Pharmaceutical Industries Limited Ordinary Shares

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