Teva 2025-26: AUSTEDO $2.26B, FY26 EPS $2.57-$2.77
FY25 revenue $17.26B (+4%); Op income $2.16B (vs -$303M FY24); NI $1.41B (vs -$1.64B FY24); EPS $1.20 (vs -$1.45). 3 consecutive years of growth (4% → 11% → 2%). Pivot to Growth Strategy. AUSTEDO $2.26B (+35%); UZEDY $191M (+63%); AJOVY $673M (+30%). FY26 guide: revenue $16.4-$16.8B, GM 54.5-55.5%, EPS $2.57-$2.77, FCF $2-$2.4B.
Key takeaways
- Major operating turnaround. Op income +$2.16B vs -$303M FY24 — full reset year. Net income +$1.41B vs -$1.64B FY24. EPS $1.20 vs -$1.45.
- Innovative portfolio compounding. AUSTEDO $2.26B FY25 (+35%); Q4 $725M (+40%). UZEDY $191M (+63%). AJOVY $673M (+30%). Three innovative drugs all growing 30%+.
- 3 consecutive years of revenue growth (4% FY23, 11% FY24, 2% FY25 — modest but resumed direction).
- FY26 guide: revenue $16.4-$16.8B (1% growth to 2% decline ex Japan divestment + milestones). EPS $2.57-$2.77; GM 54.5-55.5%; FCF $2-$2.4B.
- AUSTEDO XR (extended-release) at 60% of new patients. Indicates successful product evolution + patient adherence advantage. AUSTEDO franchise FY26 guide $2.4-$2.55B.
Business
Teva Pharmaceutical Industries is a global generic + specialty pharmaceutical company headquartered in Israel. Three primary business pillars:
- Innovative Portfolio (~25% of revenue, growing fastest): AUSTEDO (deutetrabenazine for Huntington's chorea + tardive dyskinesia) + UZEDY (long-acting injectable risperidone) + AJOVY (CGRP inhibitor for migraine prevention) + others. The growth engine.
- Generics Powerhouse (~60% of revenue): Generic prescription drugs (oral solid + injectable + biosimilars). Multi-decade franchise.
- OTC + Other (~15% of revenue): Over-the-counter products + API + specialty.
Pipeline: Olanzapine LAI (long-acting injectable) submission in December 2025. Multiple biosimilars + innovative candidates.
Strategic position: post-multi-year restructuring + leadership change, Teva is in "Pivot to Growth" mode. 4-pillar strategy: (1) growth engines (innovative + biosimilars), (2) sustained generics powerhouse, (3) focus the business, (4) culture.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 15.85 | 16.54 | 17.26 |
| Gross profit ($B) | 7.65 | 8.06 | 8.94 |
| Op income ($B) | 0.43 | -0.30 | 2.16 |
| Op margin | 2.7% | -1.8% | 12.5% |
| EBITDA ($B) | 1.56 | 4.43 | 3.14 |
| Net income ($B) | -0.56 | -1.64 | 1.41 |
| Diluted EPS ($) | -0.50 | -1.45 | 1.20 |
| FCF ($B) | 0.84 | 0.75 | 1.15 |
| Capex ($M) | -526 | -498 | -501 |
| Total debt ($B) | 20.15 | 18.08 | 17.38 |
| Dividends | 0 | 0 | 0 |
| Buyback | 0 | 0 | 0 |
The earnings print: Revenue +4%, but op income flipped from -$303M to +$2.16B — major turnaround. Net income +$3B swing. EPS $1.20 vs -$1.45.
Total debt $17.38B (-$0.7B YoY). Continued deleveraging.
Capital allocation
- Capex: $-501M FY25 (2.9% of revenue).
- Dividends: zero (Teva does not pay).
- Buybacks: zero.
- M&A / Divestitures: Japan business divestiture ongoing.
- Debt management: $17.38B (-$0.7B YoY). Multi-year deleveraging.
FY26 outlook (per Q4 FY25 call, 2026-01-28)
| FY26 guide | Range |
|---|---|
| Total revenue | $16.4B-$16.8B (1% growth to 2% decline) |
| Non-GAAP gross margin | 54.5%-55.5% |
| Non-GAAP EPS | $2.57-$2.77 |
| Free cash flow | $2.0B-$2.4B |
| AUSTEDO | $2.4B-$2.55B |
The flat-to-slight-decline revenue guide reflects: Japan divestment + lower milestones + maturing innovative portfolio offset by underlying growth. Adj EPS $2.57-$2.77 implies meaningful operating leverage on stable revenue.
Key risks
- Generic pricing: Continued generic price erosion + biosimilar competition.
- Innovative portfolio competition: AUSTEDO + UZEDY + AJOVY all face competition from peers.
- R&D pipeline execution: Olanzapine LAI submission pending; multiple programs.
- Litigation + opioid liabilities: Continued legal exposures.
- Currency: Multi-currency global business; FX exposure.
- IRA Medicare drug pricing: AUSTEDO + AJOVY potentially in scope.
Bottom line
TEVA FY25 is the major operating turnaround year. Op income +$2.16B (vs -$303M); EPS $1.20 (vs -$1.45). Innovative portfolio (AUSTEDO + UZEDY + AJOVY) compounding. FY26 guide revenue $16.4-$16.8B, EPS $2.57-$2.77, FCF $2-$2.4B. Risks are generic pricing + competition + litigation + IRA. Pivot to Growth strategy in mid-execution.
Citations
- Teva Pharmaceutical Industries FY25 Annual Report (filed January 2026, SEC EDGAR + ISA Israel).
- TEVA Q4 2025 earnings call, 2026-01-28 — Pivot to Growth strategy 4 pillars, 3 consecutive years of growth (4% / 11% / 2%); AUSTEDO $2.26B (+35%, Q4 $725M +40%, AUSTEDO XR 60% of new patients); UZEDY $191M (+63%); AJOVY $673M (+30%); olanzapine LAI submission Dec 2025; FY26 guide (revenue $16.4-$16.8B, GM 54.5-55.5%, EPS $2.57-$2.77, FCF $2-$2.4B; AUSTEDO $2.4-$2.55B).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).