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Teva
(TASE:TEVA)
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Rating:67Neutral
Price Target:
10,053.00
▲(3.94% Upside)
Action:Reiterated
Date:05/05/26
The score is driven primarily by improving profitability and cash generation, partially offset by still-elevated leverage. Technicals are supportive with strong trend/momentum, while valuation appears only moderate at a ~23x P/E without dividend yield support. Earnings call tone and reaffirmed guidance add support, though generics headwinds and near-term acquisition-related P&L impacts temper upside.
Positive Factors
Profitability turnaround
Teva has moved from multi-year losses to sustained positive margins (TTM ~9% net, ~13% EBIT). Durable margin improvement indicates operational fixes, better product mix, and stronger cost control — supporting reinvestment capacity, resilience to cyclical shocks, and a more predictable earnings base over the medium term.
Negative Factors
Elevated leverage
Teva's elevated leverage reduces financial flexibility and increases vulnerability to profit volatility or higher rates. Even with improving cash flow, debt levels constrain the company's ability to invest, pursue large M&A, or accelerate buybacks until net-debt/EBITDA moves meaningfully below current levels, extending balance-sheet repair needs.
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Positive Factors
Negative Factors
Profitability turnaround
Teva has moved from multi-year losses to sustained positive margins (TTM ~9% net, ~13% EBIT). Durable margin improvement indicates operational fixes, better product mix, and stronger cost control — supporting reinvestment capacity, resilience to cyclical shocks, and a more predictable earnings base over the medium term.
Read all positive factors
Teva (TEVA) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪111.16B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)23.0
Beta (1Y)0.61
Revenue Growth-5.23%
EPS GrowthN/A
CountryIL
Employees37,000
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.38
Shares Outstanding1,164,638,700
10 Day Avg. Volume1,312,069
30 Day Avg. Volume1,917,294
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
₪13,708.00Price Target Upside41.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.28
Revenue Forecast (FY)₪49.78B
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 prescription and over-the-counter generic medicines, which are typically priced competitively and sold in high volumes through pharmacies, wholesalers, hospital systems, and other healthcare channels. A second ma...
Teva Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and positive picture driven by strong growth in the innovative portfolio (notably AUSTEDO, UZEDY, AJOVY), meaningful free cash flow improvement, accelerating biosimilar footprint, multiple near‑term pipeline catalysts (seven material readouts), and a strategically aligned acquisition (Emalex) expected to be high‑margin and value‑accretive over time. Near‑term headwinds include generics revenue declines driven by REVLIMID loss, channel destocking/timing risk that may produce quarterly volatility, incremental 2026 P&L impacts from the Emalex deal (accounting treatment and incremental operating expenses), and ongoing restructuring costs. Overall, management reiterated multi‑year margin targets (30% operating margin by 2027), a clear capital allocation framework (including potential buybacks), and a path to reduce leverage to target levels.Positive Updates
Solid Top-Line and Profitability Metrics
Revenue of $4.0 billion (Q1 2026), roughly down 1% year-over-year on a reported basis but up materially on an underlying basis after adjusting for the Japan divestment and generic REVLIMID; adjusted EBITDA about $1.1 billion (up ~2% YoY); non-GAAP EPS $0.53 (up ~2% YoY). Non-GAAP gross margin reported at 52.9% in Q1 '26.
Negative Updates
Generics Revenue Pressure and REVLIMID Impact
Global generics were down ~13% (ex-Japan) year-over-year, driven largely by the expected loss of generic REVLIMID revenue. U.S. generics declined ~28% on a reported basis but were up ~10% excluding generic REVLIMID, underscoring a difficult base effect and mix shift away from legacy generics.
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Q1-2026 Updates
Positive
Negative
Solid Top-Line and Profitability Metrics
Revenue of $4.0 billion (Q1 2026), roughly down 1% year-over-year on a reported basis but up materially on an underlying basis after adjusting for the Japan divestment and generic REVLIMID; adjusted EBITDA about $1.1 billion (up ~2% YoY); non-GAAP EPS $0.53 (up ~2% YoY). Non-GAAP gross margin reported at 52.9% in Q1 '26.
Read all positive updates
Company Guidance
Management reaffirmed its 2026 outlook on an underlying basis (excluding Emalex) and said it expects EBITDA to grow in 2026, with 2026 non‑GAAP gross margin guided to 54.5–55.5% and operating expenses to be ~27–28% of revenue (first half higher); free cash flow guidance remains $2.0–2.4 billion and the effective tax rate outlook stays 16–19%. They reiterated 2027 targets of mid‑single‑digit revenue growth, non‑GAAP operating margin of 30%, net debt/EBITDA <2.0x (current 2.42x) and cash‑to‑earnings of ~80%, and remain on track for $700 million of transformation savings by 2027 (roughly two‑thirds realized by end‑2026). On Emalex, terms are $700 million upfront plus up to $200 million in milestones (expected close late Q2/early Q3), the $700M upfront will be expensed through R&D in 2026 with ~ $75M additional operating costs starting in Q3 (total ~$775M P&L impact) but with no change to the $2.0–2.4B FCF guide; Emalex is expected to carry ~80% gross margin, contribute revenue from 2027 and be accretive to non‑GAAP EPS from 2028. (Q1 metrics: revenue ~$4.0B, adj. EBITDA ~$1.1B, non‑GAAP EPS $0.53.)Teva Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.44B | 18.68B | 16.54B | 15.85B | 14.93B | 15.88B |
| Gross Profit | 9.08B | 9.63B | 8.06B | 7.65B | 6.97B | 7.59B |
| EBITDA | 3.33B | 3.42B | 777.00M | 1.56B | -925.00M | 2.88B |
| Net Income | 1.57B | 1.53B | -1.64B | -559.00M | -2.35B | 417.00M |
Balance Sheet | ||||||
| Total Assets | 40.43B | 40.76B | 39.33B | 43.48B | 44.01B | 47.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.78B | 3.56B | 3.30B | 3.23B | 2.80B | 2.17B |
| Total Debt | 17.07B | 17.39B | 18.08B | 20.15B | 21.56B | 23.46B |
| Total Liabilities | 32.11B | 32.84B | 33.61B | 35.35B | 35.31B | 36.42B |
| Stockholders Equity | 8.31B | 7.91B | 5.37B | 7.51B | 7.90B | 10.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.89B | 2.56B | 749.00M | 842.00M | 1.04B | 236.00M |
| Operating Cash Flow | 2.44B | 3.10B | 1.25B | 1.37B | 1.59B | 798.00M |
| Investing Cash Flow | 127.97M | -557.47M | 792.00M | 968.00M | 656.00M | 1.52B |
| Financing Cash Flow | -345.89M | -2.29B | -1.79B | -1.91B | -1.49B | -2.17B |
Teva Technical Analysis
Negative
9672.00
Price Trends
10021.38
Negative
9885.14
Negative
9239.41
Positive
Market Momentum
13.29
Positive
40.98
Neutral
9.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TEVA, the sentiment is Negative. The current price of 9672 is below the 20-day moving average (MA) of 9954.70, below the 50-day MA of 10021.38, and above the 200-day MA of 9239.41, indicating a neutral trend. The MACD of 13.29 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:TEVA.
Teva Risk Analysis
Teva disclosed 82 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
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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.