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Teva
(TASE:TEVA)
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Rating:64Neutral
Price Target:
12,840.00
▲(16.41% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving financial performance and a positive earnings update: strong free cash flow, recovering profitability, and raised guidance for key innovative products. These positives are tempered by balance-sheet leverage and headline revenue pressure, while the technical trend is supportive but lacks momentum-indicator confirmation; valuation appears moderate with no stated dividend yield.
Positive Factors
Innovative portfolio growth
Rapid growth in innovative medicines is shifting Teva toward a more differentiated product mix and reducing reliance on mature generics. The raised outlook for AUSTEDO, AJOVY, and UZEDY supports continued revenue expansion and stronger earnings quality over the next several quarters.
Negative Factors
Elevated leverage
Although leverage has improved, Teva remains debt-heavy and has less financial flexibility than a lower-levered competitor. Operating cash flow covers only a modest portion of total debt, so continued execution and cash generation are needed before balance-sheet risk materially declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Innovative portfolio growth
Rapid growth in innovative medicines is shifting Teva toward a more differentiated product mix and reducing reliance on mature generics. The raised outlook for AUSTEDO, AJOVY, and UZEDY supports continued revenue expansion and stronger earnings quality over the next several quarters.
Read all positive factors
Teva (TEVA) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪139.84B
Dividend Yield1.67%
Average Volume (3M)1.05M
Price to Earnings (P/E)62.2
Beta (1Y)0.60
Revenue Growth-9.13%
EPS GrowthN/A
CountryIL
Employees33,346
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.63
Shares Outstanding1,165,296,100
10 Day Avg. Volume1,021,070
30 Day Avg. Volume1,054,717
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)4.58
Price to Sales (P/S)1.94
P/FCF Ratio14.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪14,593.83Price Target Upside32.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)6.2
Revenue Forecast (FY)₪50.69B
Teva Business Overview & Revenue Model
Company Description
Teva Pharmaceutical Industries Limited operates as a prominent global pharmaceutical firm, involved in the research, development, manufacturing, marketing, and distribution of generic, specialized, and biopharmaceutical products throughout North A...
How the Company Makes Money
Teva makes money mainly by selling pharmaceutical products to wholesalers, distributors, pharmacies, hospitals, healthcare providers, and government or managed-care customers, with revenue recognized from product sales across its geographic market...
Teva Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call highlighted strong execution on the company’s Pivot-to-Growth strategy: rapid innovation-driven revenue growth (innovative portfolio +43% YoY), multiple product-level beats and raises (AUSTEDO, AJOVY, UZEDY), improving non-GAAP gross margins (+80 bps), and materially stronger free cash flow (+31%). At the same time, the quarter carried significant, largely one-time, charges from the MLX/Amylyx acquisition that suppressed GAAP results and non-GAAP EPS, and generics weakness (notably the loss of generic REVLIMID) produced headline revenue pressure. Management reiterated multi-year targets (30% operating margin by 2027, net debt/EBITDA <=2x) and showed pipeline momentum and credit-rating improvements. Overall, positives from accelerating innovative growth, cash generation, biosimilars traction and a clear pipeline cadence outweigh near-term headwinds from acquisition charges, generics comparisons and inventory/IRA timing effects.Positive Updates
Strong Innovative Portfolio Growth
Innovative portfolio grew 43% year-over-year in Q2 2026 and is driving the company transformation; innovative revenues are expected to represent ~22% of total revenue in 2026 (up from 9%). Management raised combined 2026 revenue outlook for key innovative products by ~ $150M at the midpoint to roughly $3.7B, implying ~17% growth over 2025 for that cohort.
Negative Updates
Headline Revenue Slight Decline
Q2 2026 GAAP revenues were approximately $4.1B, down ~1% in USD (or ~3% in local currency) versus Q2 2025, reflecting generics pressure that offset innovative growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Innovative Portfolio Growth
Innovative portfolio grew 43% year-over-year in Q2 2026 and is driving the company transformation; innovative revenues are expected to represent ~22% of total revenue in 2026 (up from 9%). Management raised combined 2026 revenue outlook for key innovative products by ~ $150M at the midpoint to roughly $3.7B, implying ~17% growth over 2025 for that cohort.
Read all positive updates
Company Guidance
Management raised the midpoint of full‑year revenue guidance by $75M and increased combined 2026 guidance for AUSTEDO/AJOVY/UZEDY by ~ $150M (AUSTEDO $2.45–2.60B, UZEDY $270–290M, AJOVY $850–870M), taking the three‑product outlook to ~ $3.7B (~+17% vs 2025); 2026 non‑GAAP gross margin is guided to 54.5–55.5% (Q2 was 55.4%, +80 bps YoY), OpEx ~27–28% (management cited ~28%), and the company reiterates a 30% non‑GAAP operating margin target by 2027 while reaffirming operating profit, adjusted EBITDA, EPS and free‑cash‑flow ranges. Q2 highlights underpinning guidance: revenue ≈ $4.1B (−1% YoY), free cash flow $622M (+31%), non‑GAAP EPS $0.02 (‑$0.61 MLX impact; ex‑MLX $0.63), net debt $12.9B (net‑debt/EBITDA 2.8x; ex‑MLX 2.3x) with a goal <2x by 2027, and longer‑term targets including mid‑single‑digit revenue growth, ~22% of revenue from innovation in 2026 (vs 9% prior), >$800M biosimilars by 2027, $16.5–16.8B revenue for 2026, cash conversion ~80% and gross margin >60% by 2030+.Teva Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
44
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.40B | 18.68B | 16.54B | 15.85B | 14.93B | 15.88B |
| Gross Profit | 9.13B | 9.63B | 8.06B | 7.65B | 6.97B | 7.59B |
| EBITDA | 3.08B | 3.34B | 777.00M | 1.56B | -925.00M | 2.88B |
| Net Income | 716.92M | 1.53B | -1.64B | -559.00M | -2.35B | 417.00M |
Balance Sheet | ||||||
| Total Assets | 39.86B | 40.76B | 39.33B | 43.48B | 44.01B | 47.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.63B | 3.56B | 3.30B | 3.23B | 2.80B | 2.17B |
| Total Debt | 16.76B | 17.39B | 18.08B | 20.15B | 21.56B | 23.46B |
| Total Liabilities | 32.10B | 32.84B | 33.61B | 35.35B | 35.31B | 36.42B |
| Stockholders Equity | 7.75B | 7.91B | 5.37B | 7.51B | 7.90B | 10.28B |
Cash Flow | ||||||
| Free Cash Flow | 2.38B | 2.56B | 749.00M | 842.00M | 1.04B | 236.00M |
| Operating Cash Flow | 2.93B | 3.10B | 1.25B | 1.37B | 1.59B | 798.00M |
| Investing Cash Flow | -917.17M | -557.47M | 792.00M | 968.00M | 656.00M | 1.52B |
| Financing Cash Flow | -353.26M | -2.29B | -1.79B | -1.91B | -1.49B | -2.17B |
Teva Technical Analysis
Positive
11030.00
Price Trends
11233.10
Positive
10558.37
Positive
10271.53
Positive
Market Momentum
298.72
Negative
70.42
Negative
47.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TEVA, the sentiment is Positive. The current price of 11030 is below the 20-day moving average (MA) of 11850.50, below the 50-day MA of 11233.10, and above the 200-day MA of 10271.53, indicating a bullish trend. The MACD of 298.72 indicates Negative momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 47.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TEVA.
Teva Risk Analysis
Teva disclosed 42 risk factors in its most recent earnings report. Teva reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teva Peers Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.