Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) reported positive third quarter results today due to growing revenue from its branded drugs. The Israeli pharmaceutical company beat the analysts and raised its revenue forecast for 2026 for the second straight quarter.
Revenue in the third quarter was $4.4 billion, while analysts had predicted $4.2 billion and non-GAAP earnings per share was $0.86, well above the analysts’ consensus of $0.72.
Teva’s GAAP net profit in the third quarter was $233 million, while Non-GAAP net profit was $1 billion. Compared to the corresponding quarter in 2025, revenue declined by approximately 2% and GAAP net profit fell 46%, while non-GAAP net profit rose 11.3%. As is typical for Teva, there is a significant gap between these two profit figures; in the third quarter. This is driven, among other factors, by the amortization of intangible assets, costs related to legal proceedings, and financial expenses.
In August, when Teva released its second-quarter financial results, the company raised its annual revenue guidance to a range of $16.5-$16.85 billion. The company has now further increased this guidance, seeing revenue of $16.7-$17 billion.
Conversely, the annual adjusted EBITDA range has been revised from $4.23-$4.53 billion to $4.23-$4.43 billion, and the non-GAAP operating profit range has been revised from $3.8-$4 billion to $3.8-$3.9 billion. Free cash flow is seen totaling $2.1-$2.4 billion this year, raising the forecast range compared with the previous projection of $2-$2.4 billion. Net earnings per share are seen at $1.92-$2.11 this year, reflecting an upward adjustment to the lower end of the range, which was previously $0.01 lower.
33% growth in branded products
During the third quarter, Teva generated $241 million from ongoing operations, with free cash flow reaching $495 million. At the end of the quarter, Teva’s debt stood at $16.7 billion, following a debt refinancing initiative in which the company raised approximately $4.9 billion through issuing bonds. As a result of this move, the average maturity of the debt is now 6.3 years, compared with 5.6 years at the end of 2025.
Teva CEO Richard Francis said, Our strong third-quarter performance is another clear demonstration of Pivot to Growth in action and how far Teva has come. The FDA approval of WELTRUZA has further advanced our innovative portfolio, our recently announced biosimilars agreement with Samsung Bioepis has strengthened our generics powerhouse and our return to investment grade reflects the transformation of our financial position. Together, these achievements represent how we are delivering sustained innovative growth and translating that growth into greater profitability.
He added, "Our three key innovative brands collectively grew 33% in local currency to approximately $1.1 billion year-over-year. This performance, together with continued margin expansion and cash flow generation, gives us the confidence to raise our 2026 revenue outlook for all three brands."
Austedo, a treatment for movement disorders, produced $751 million in quarterly sales. Teva now expects full-year revenue for the drug to reach $2.55-$2.65 billion, up from the previous forecast of $2.45-$2.6 billion. Ajovy, for the treatment of migraine, recorded $269 million in quarterly sales, with its revenue forecast raised from $850-$870 million to $930-$960 million. Uzedy, for schizophrenia, produced $85 million in sales and is projected to reach $290-$310 million for 2026, up from the prior forecast of $270-$290 million.
Francis also mentioned US FDA marketing approval for WELTRUZA, which expands Teva’s presence in the field of schizophrenia, as well as progress on other branded products. This development, according to the company, "Supports our ambition to launch at least five potential innovative products within five years."
Teva has a market cap of $47.5 billion on the NYSE and TASE, following a roughly 30% rise in its share price since the beginning of the year, reaching a ten-year high. Recently, the company released several positive updates that bolstered market sentiment, including success in a Phase 2a clinical trial for an antibody to treat celiac disease, FDA approval for the drug WELTRUZA (for the treatment of schizophrenia), and credit rating upgrades, marking the first time in a decade that all major international rating agencies have assigned Teva’s debt an investment-grade rating.
This week, alongside its financial results, Teva issued two announcements. The first concerns the discontinuation of a Phase II clinical trial for a drug to treat multiple system atrophy. The second relates to the expansion of its partnership with Samsung Bioepis in the biosimilars sector, covering the commercialization of two FDA-approved biosimilar drugs.
Published by Globes, Israel business news - en.globes.co.il - on November 3, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.