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Teva
(NYSE:TEVA)
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Rating:61Neutral
Price Target:
$39.00
▲(2.36% Upside)
Action:Reiterated
Date:09/16/26
TEVA scores in the low-60s primarily because improving profitability and strong free cash flow are tempered by elevated leverage and a pressured/volatile revenue profile. Technicals add moderate support (price above major averages with positive MACD), but valuation is a clear drag given the high P/E. The latest earnings call and recent refinancing actions are supportive, pointing to strengthening innovators and balance-sheet progress, though near-term generics weakness and transitional items remain key risks.
Positive Factors
Innovative Portfolio Growth
Growth in innovative medicines is becoming a larger part of Teva’s mix, reducing reliance on mature generics over time. The 43% Q2 increase and raised product outlook support stronger revenue quality, while broader adoption of AUSTEDO, AJOVY and UZEDY can reinforce recurring commercial scale.
Negative Factors
Elevated Leverage
Debt remains a material constraint despite improvement from 2024. TTM debt-to-equity of about 2.05 and net debt/EBITDA of 2.8x leave less flexibility for investment or shocks, while operating cash flow covers only a modest portion of total debt and deleveraging depends on continued execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Innovative Portfolio Growth
Growth in innovative medicines is becoming a larger part of Teva’s mix, reducing reliance on mature generics over time. The 43% Q2 increase and raised product outlook support stronger revenue quality, while broader adoption of AUSTEDO, AJOVY and UZEDY can reinforce recurring commercial scale.
Read all positive factors
Teva Key Performance Indicators (KPIs)
Any
Revenue by Geography
Reveals where sales are concentrated globally and which regions are growing or shrinking, helping investors assess geographic diversification, currency exposure, and where regulatory or market pressures could most impact overall revenue.
Reveals where sales are concentrated globally and which regions are growing or shrinking, helping investors assess geographic diversification, currency exposure, and where regulatory or market pressures could most impact overall revenue.
Data provided by:
The Fly
The FlyTeva (TEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.60B
Dividend Yield5.8%
Average Volume (3M)4.03M
Price to Earnings (P/E)64.8
Beta (1Y)-0.55
Revenue Growth4.40%
EPS GrowthN/A
CountryUS
Employees32,008
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.63
Shares Outstanding1,165,296,100
10 Day Avg. Volume1,549,352
30 Day Avg. Volume4,031,297
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.00Price Target Upside18.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.02
Revenue Forecast (FY)$163.50M
Teva Business Overview & Revenue Model
Company Description
Teva Pharmaceutical Industries Limited functions as a global pharmaceutical enterprise, involved in the conception, manufacturing, marketing, and provision of a broad spectrum of generic, specialty, and biopharmaceutical products throughout North ...
How the Company Makes Money
Teva makes money mainly by selling prescription and, in some markets, over-the-counter medicines, with revenues largely derived from (1) generic medicines and (2) specialty (branded) medicines, alongside other smaller sources.
1) Generic medicin...
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 skewed positive: the company showed strong, broad-based growth in its innovative portfolio (AUSTEDO, AJOVY, UZEDY) with multiple guidance increases, substantial free cash flow improvement (+31% YoY), margin expansion (gross margin +80 bps) and progressing pipeline and biosimilars commercialization that together materially reshape the company’s revenue mix and long-term outlook. Near-term challenges include a Q/Q revenue decline driven by the loss of generic REVLIMID, sizable one-time MLX acquisition charges that compressed reported margins and EPS, elevated AUSTEDO channel inventory and planned higher OpEx to support launches. Management framed these negatives as transitional (one-time or sequencing effects) while emphasizing durable growth drivers and credit-rating upgrades. On balance, the positive items (strong product growth, guidance raises, cash flow, pipeline progress and biosimilars momentum) outweigh the short-term headwinds.Positive Updates
Innovative Portfolio Strong Growth
Innovative revenue grew 43% YoY in Q2 2026. Key products: AUSTEDO up 40% YoY, UZEDY up 43% YoY, AJOVY up 56% YoY. Combined 2026 revenue outlook for AUSTEDO/AJOVY/UZEDY increased ~ $150M at the midpoint (~$3.7B combined, ~17% growth vs 2025).
Negative Updates
Overall Revenue Slight Decline
Total Q2 revenues were ~$4.1B, down 1% in USD (down 3% in local currency) vs Q2 2025, despite strong innovative growth, driven by generics weakness and one-time effects.
Read all updates
Q2-2026 Updates
Positive
Negative
Innovative Portfolio Strong Growth
Innovative revenue grew 43% YoY in Q2 2026. Key products: AUSTEDO up 40% YoY, UZEDY up 43% YoY, AJOVY up 56% YoY. Combined 2026 revenue outlook for AUSTEDO/AJOVY/UZEDY increased ~ $150M at the midpoint (~$3.7B combined, ~17% growth vs 2025).
Read all positive updates
Company Guidance
Management raised the midpoint of full‑year revenue guidance by $75 million and bumped product guidance for key innovators — AUSTEDO to $2.45–$2.60 billion (midpoint $2.5B, +$50M), UZEDY to $270–$290 million (+$15M) and AJOVY to $850–$870 million (+$90M) — bringing the three-product combined 2026 outlook to roughly $3.7 billion (≈17% growth vs. 2025). They reaffirmed ranges for operating profit, adjusted EBITDA, EPS and free cash flow, reiterated mid‑single digit revenue growth targets, a 30% non‑GAAP operating margin goal by 2027, and a net debt/EBITDA target below 2% (Q2 net debt $12.9B; net debt/EBITDA 2.8x, 2.3x ex‑MLX). 2026 non‑GAAP gross margin is guided to 54.5%–55.5% (Q2 was 55.4%, +80 bps Y/Y); OpEx is expected at ~28% of revenue; Q2 free cash flow was $622M (+31% Y/Y). They expect global generics flat to down low‑single digits ex‑generic REVLIMID, biosimilars on track to exceed $800M by 2027, and noted Q4 phasing assumptions (AUSTEDO Q4 YoY pressure related to IRA dynamics and inventory normalization; olanzapine initial Q4 volumes expected to be samples with no revenue).Teva Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
71
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 | 3.42B | 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
38.10
Price Trends
34.54
Positive
33.03
Positive
30.91
Positive
Market Momentum
1.27
Positive
62.64
Neutral
59.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Positive. The current price of 38.1 is below the 20-day moving average (MA) of 38.13, above the 50-day MA of 34.54, and above the 200-day MA of 30.91, indicating a bullish trend. The MACD of 1.27 indicates Positive momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 59.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.45B | 30.74 | 8.88% | 0.89% | -6.76% | -44.35% | |
61 Neutral | $45.60B | 64.82 | 9.18% | 5.80% | 4.40% | ― | |
59 Neutral | $20.48B | -50.75 | -2.79% | 2.63% | 4.92% | 87.81% | |
58 Neutral | $6.31B | 41.21 | -326.75% | ― | 9.28% | 4917.17% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $6.85B | 99.63 | 3.72% | ― | 10.79% | -81.14% | |
54 Neutral | $2.14B | -1.21 | -55.97% | 7.68% | -4.18% | -2138.82% |
* General Sector Average
TEVA
Teva
38.88
18.87
94.30%
ALKS
Alkermes
40.15
11.11
38.26%
RDY
Dr Reddy's Laboratories
12.51
-1.38
-9.95%
VTRS
Viatris
18.27
8.98
96.66%
PRGO
Perrigo Company
15.10
-4.76
-23.96%
AMRX
Amneal Pharmaceuticals
20.50
10.63
107.70%
Teva Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Teva Pharmaceutical Announces New Senior Notes Offering
Positive
Sep 16, 2026
On September 16, 2026, Teva’s Dutch finance units issued €1.5 billion of senior euro notes and $3.2 billion of senior U.S. dollar notes, all guaranteed on a senior unsecured basis by Teva Pharmaceutical Industries. The new notes carry ...
Business Operations and StrategyPrivate Placements and Financing
Teva Pharmaceutical Announces Major Senior Notes Financing
Positive
Sep 11, 2026
On September 10, 2026, Teva announced it had successfully priced approximately $4.9 billion equivalent in unsecured senior notes issued through three Dutch financing subsidiaries. The euro- and dollar-denominated tranches, carrying coupons between...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
Teva Advances NYSE Listing With ADS Exchange Plan
Neutral
Sep 3, 2026
On August 31, 2026, Teva Pharmaceutical Industries Ltd. executed an amendment to its Second Amended and Restated Deposit Agreement with Citibank, N.A. and updated the form of American depositary receipt, as part of its previously disclosed plan to...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Teva Recasts Segments to Support Pivot to Growth
Neutral
Sep 3, 2026
Teva Pharmaceutical Industries said it has recast historical segment information in its Form 10-K for the year ended December 31, 2025, following a reclassification of Anda, its U.S. distribution business, effective January 1, 2026. Under its Pivo...
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.