Teva Pharmaceutical Industries Limited (NYSE:TEVA) has reported its financial results for the third quarter of 2026, revealing adjusted earnings of $0.86 per share. This figure surpasses the Zacks Consensus Estimate of $0.72 per share, marking a 10.2% increase compared to the same period last year. The growth in earnings is attributed to robust sales of innovative drugs.
The company’s revenue for the quarter reached $4.40 billion, exceeding the Zacks Consensus Estimate of $4.24 billion. However, this represents a 2% decline from the previous year, both on a reported basis and when adjusted for currency fluctuations. The decrease is primarily due to reduced revenues from generic products.
Teva’s key branded medications, including Austedo, Ajovy, and Uzedy, continued to perform well. In the United States, sales amounted to $1.87 billion, an 11% decrease year over year, mainly due to declining generic product revenues. Nevertheless, strong sales of innovative drugs partially offset this decline. The U.S. segment’s sales slightly missed the Zacks Consensus Estimate of $1.88 billion.
Specifically, revenues from generic and biosimilar products in the U.S. fell by 39% year over year to $718 million. This decline was largely driven by increased competition for lenalidomide capsules, a generic version of Bristol Myers’ Revlimid. This figure fell short of the Zacks Consensus Estimate of $799 million.
In contrast, Austedo, a treatment for Huntington’s disease, achieved U.S. sales of $727 million, reflecting a 21% increase year over year. This growth was fueled by higher prescription volumes and improved net-price realization, surpassing the Zacks Consensus Estimate of $674 million. Ajovy, another key product, generated $138 million in revenue, an 88% increase year over year, driven by reduced sales allowances and volume growth, exceeding the Zacks Consensus Estimate of $98 million.
Uzedy, a long-acting subcutaneous atypical antipsychotic injection for schizophrenia, recorded U.S. sales of $85 million in the third quarter, up 96% year over year, mainly due to volume growth. This performance surpassed the Zacks Consensus Estimate of $75 million. Meanwhile, Copaxone’s sales in the U.S. declined by 8% year over year to $58 million, missing the Zacks Consensus Estimate of $60 million.
In the European market, Teva reported revenues of $1.32 billion, a 7% increase year over year on both reported and constant-currency bases. This growth was driven by higher sales of generic products, increased proceeds from product-rights sales, and stronger Ajovy revenues. However, European revenues fell short of the Zacks Consensus Estimate of $1.28 billion.
The International Markets segment generated $592 million in revenue, growing 6% year over year on a reported basis and 4% in constant currency. This growth was supported by stronger sales of innovative drugs, particularly Ajovy and Austedo, primarily in China. The segment’s revenues exceeded the Zacks Consensus Estimate of $581 million.
Teva’s adjusted gross margin improved by 345 basis points year over year to 58.7%, benefiting from a favorable product mix, particularly higher Austedo revenues, which were partially offset by weaker generic sales. Adjusted research and development expenses rose 16% year over year to $297 million, reflecting increased investment in neuroscience, immunology, and biosimilars. Selling and marketing expenses increased by 8% to $709 million, while general and administrative expenses declined by 6% to $298 million.
Adjusted operating income rose 8% year over year to $1.39 billion, with the adjusted operating margin expanding to 31.7% from 28.9% in the prior year. Adjusted EBITDA grew by 7% year over year to $1.50 billion. Teva remains on track to achieve an adjusted operating margin of 30% by 2027 through cost savings and continued growth of its branded drugs.
In light of its strong performance, Teva has raised its 2026 revenue guidance to a range of $16.7 billion to $17.0 billion, up from the previous estimate of $16.5 billion to $16.85 billion. This reflects ongoing momentum across its innovative portfolio. Teva’s shares rose by 3% following the announcement of better-than-expected earnings results and the increased 2026 sales outlook.
Teva has also updated its revenue forecasts for specific products. The Austedo revenue forecast has been increased to $2.55 billion to $2.65 billion, up from $2.45 billion to $2.60 billion. Ajovy guidance has been raised to $930 million to $960 million, compared to the previous range of $850 million to $870 million. Uzedy guidance has been increased to $290 million to $310 million, from $270 million to $290 million.
Additionally, Teva has adjusted its 2026 EPS guidance to $1.92 to $2.11 per share, up from the previous range of $1.91 to $2.11. This updated outlook includes a $0.71 per share impact from acquired in-process research and development (IPR&D) charges. Excluding the impact of acquired IPR&D, the company has raised its adjusted earnings outlook by $0.08 per share at the midpoint, reflecting stronger underlying operating performance.
Teva’s adjusted operating income is now projected to be in the range of $3.8 billion to $3.9 billion, compared to the earlier projection of $3.8 billion to $4.0 billion. Adjusted EBITDA guidance has been tightened to $4.23 billion to $4.43 billion, from $4.23 billion to $4.53 billion. Free cash flow expectations have been revised to $2.1 billion to $2.4 billion, from $2.0 billion to $2.4 billion.
Teva continues to advance its innovative pipeline. In October 2026, the company received FDA approval for Weltruza (olanzapine), a once-monthly long-acting injectable treatment for schizophrenia. The U.S. approval and launch of Weltruza further expand Teva’s long-acting injectable schizophrenia portfolio, building on the commercial momentum established by Uzedy. Weltruza is expected to be launched in the coming weeks, with combined peak sales of $1.5 billion to $2.0 billion anticipated from Weltruza and Uzedy.
The FDA has also accepted a new drug application for ecopipam, an investigational treatment for pediatric Tourette syndrome, with a regulatory decision expected in the first quarter of 2027. Teva has strengthened its neuroscience portfolio by acquiring BXCL-501 from BioXcel Therapeutics last month.
Earlier this week, Teva announced the discontinuation of its phase II TOPAS-MSA study evaluating emrusolmin (TEV-‘286) in adults with multiple system atrophy, following a recommendation from the independent data monitoring committee based on a prespecified interim futility analysis.
In a separate announcement, Teva revealed a license and commercialization agreement covering two FDA-approved immunology biosimilars: Eticovo (etanercept-ykro), a biosimilar to Amgen’s Enbrel, and infliximab-abda, a biosimilar to J&J’s Remicade. Under the agreement, Teva will obtain U.S. commercialization rights to Eticovo upon closing, while rights to infliximab-abda will transfer in the third quarter of 2027. The transaction is expected to close by the end of 2026, subject to customary conditions and regulatory approvals. This agreement expands Teva’s existing partnership and strengthens its U.S. biosimilar portfolio as part of its Pivot to Growth strategy.
Footnotes:
- Teva’s Q3 earnings per share of $0.86 exceeded the Zacks Consensus Estimate of $0.72. Source.
- Teva raised its 2026 revenue guidance to $16.7-$17.0 billion. Source.
- Teva received FDA approval for Weltruza, a treatment for schizophrenia, in October 2026. Source.
- Teva announced a license and commercialization agreement for two FDA-approved immunology biosimilars. Source.
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