Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $33.94B
• Dividend Yield: N/A
• Average Volume (3M): 8.26M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.73
• Revenue Growth: -0.25%
• EPS Growth: N/A
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.96
• Shares Outstanding: 1,164,638,700
• 10 Day Avg. Volume: 8,862,062
• 30 Day Avg. Volume: 8,259,408
• PEG Ratio: -0.14
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 31.24
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 15.59
• 1Y Price Target: $39.78
• Price Target Upside: 35.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.7
• Revenue Forecast (FY): $16.66B

• Rating: 61 Neutral
• Price Target: $30.00 ▲(1.83% Upside)
• Action: Reiterated Date: 01/29/26
• Date: Action: Reiterated 01/29/26

The score is driven primarily by improving fundamentals (return to profitability and solid free cash flow) but constrained by elevated leverage and historical volatility. Technicals are supportive with strong uptrend momentum, while valuation is a headwind at a ~27 P/E and no dividend yield. Earnings-call guidance is constructive on margins, growth brands, and deleveraging, but near-term revenue and quarterly volatility risks cap the upside.

Positive Factors

Innovative-brand momentum

Sustained double-digit growth across AUSTEDO, UZEDY and AJOVY provides a durable, higher-margin revenue stream that diversifies Teva away from low-margin generics. Consistent brand growth supports long-term gross margin expansion, predictable cash generation and reduced dependence on volatile generic pricing.

Gross margin improvement & guidance

Improving and guided gross margins reflect a structural portfolio shift toward specialty products and operational efficiencies. Higher sustained gross margins increase operating leverage on revenue, supporting durable profitability even if top-line growth is uneven across quarters or geographies.

Cash generation & deleveraging progress

Improving free cash flow alongside explicit net-debt reduction targets strengthens financial flexibility and lowers refinancing risk. Reliable cash generation funds R&D and brand investment, and management's deleveraging goal indicates sustainable capital allocation improving credit profile over the medium term.

Negative Factors

Elevated leverage

Teva's high leverage remains a material structural constraint on strategic flexibility and increases sensitivity to interest costs or cash-flow volatility. Even after improvement from prior years, the capital structure limits capacity for large investments, M&A or buffers against generics revenue swings.

Generics softness & Revlimid headwind

A flat generics business and the anticipated loss of Revlimid volume create a structural revenue gap exceeding $1B, pressuring near-term top-line and forcing greater reliance on branded launches and milestones. This reduces predictability of free cash flow and heightens execution reliance on new products.

Clinical and execution risk in pipeline

Teva's growth thesis depends on multiple upcoming clinical readouts and registrations. Binary outcomes for key programs (duvakitug, anti-IL-15, emrusolmin, DARI) create sustained event risk: failures would materially impair projected brand revenue and margin improvement over the next 2–6 months and beyond.

Teva Pharmaceutical Business Overview & Revenue Model

Company Description

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company offers sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It also develops, manufactures, and sells active pharmaceutical ingredients. In addition, it focuses on the central nervous system, pain, respiratory, and oncology areas. Its products in the central nervous system include Copaxone for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. The company's products in the respiratory market comprise ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, and ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick for the treatment of asthma and chronic obstructive pulmonary disease. Its products in the oncology market include Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited has a collaboration MedinCell for the development and commercialization of multiple long-acting injectable products, a risperidone suspension for the treatment of patients with schizophrenia. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Teva makes money mainly by selling prescription pharmaceuticals through two principal revenue streams: (1) generics and (2) specialty (branded) medicines. 1) Generic medicines (core revenue stream) - Product sales to channels: Teva earns revenue by manufacturing and selling off-patent (generic) versions of branded drugs to wholesale distributors, pharmacies, hospitals, pharmacy benefit managers, and other healthcare providers. Revenue is recognized from product shipments under customer contracts, typically at negotiated prices that reflect expected rebates, chargebacks, returns, and other deductions. - Scale manufacturing and portfolio breadth: Generics are a volume-driven business; Teva’s earnings depend on efficient manufacturing, broad product offerings, and supply reliability. The company benefits when it is one of the first approved generic entrants for a given molecule (where temporary limited competition can support higher prices), and when it can maintain cost advantages as competition increases and prices decline. - Geographic mix: Teva sells generics across multiple regions (notably the U.S. and Europe), and regional pricing and reimbursement dynamics affect realized prices and margins. 2) Specialty/branded medicines (higher-margin revenue stream) - Branded product sales: Teva also generates revenue from selling certain proprietary medicines. These products typically have patent/exclusivity protection (at least for some period) and are promoted to physicians and other prescribers. Branded/specialty revenue depends on prescription demand, competitive dynamics (including branded competitors and eventual generic entry), and payer coverage. - Lifecycle management and indications: Earnings from specialty products are influenced by label expansions, formulation improvements, and efforts to sustain demand as products mature. 3) Other contributors to revenue and earnings - API (active pharmaceutical ingredient) and supply-chain capabilities: Teva has internal manufacturing of APIs for its own products and, where applicable, can generate revenue from supplying APIs or finished-dose products to third parties. Specific amounts are not available here. - Licensing/alliances and settlements: Pharmaceutical companies may generate income from collaboration arrangements (e.g., development, commercialization, or licensing deals), milestone payments, royalties, or litigation-related settlements. Specific current partnerships, terms, or material contributions are not available here. Key factors that influence how much Teva earns - Product mix (generics vs. specialty), pricing pressure in generics, competitive entries, and the timing of major product launches. - Manufacturing efficiency, quality/compliance performance, and supply continuity. - Regulatory approvals for new generic launches and for branded product indications, and payer reimbursement/coverage decisions.

Teva Pharmaceutical Financial Statement Overview

Summary

Turnaround is evident with TTM profitability back to positive, rising revenue since 2022, and solid free cash flow. Offsetting this, the balance sheet remains highly leveraged (debt-to-equity ~2.36) and earnings/cash-flow have been historically volatile with thin net margins, keeping the score in the mid-range.

Income Statement

TTM (Trailing-Twelve-Months) shows a clear profitability rebound with positive EBIT ($3.1B) and net income ($1.4B) after multi-year losses (2022–2024). Revenue is trending up (TTM $17.3B vs. $14.9B in 2022), and gross margin has been fairly stable around the high‑40% to ~50% range. However, net profitability remains modest (TTM net margin ~4%), and results have been volatile historically (large losses in 2020, 2022, 2023, and 2024), which lowers confidence in consistency.

Balance Sheet

Leverage remains the key constraint. TTM total debt is ~$17.1B versus equity of ~$7.9B (debt-to-equity ~2.36), which is improved from 2024 (~3.36) but still high. Equity has recovered from 2024, and TTM return on equity is back to positive (~11%), yet the capital structure still carries meaningful balance-sheet risk given the elevated debt load relative to equity and assets.

Cash Flow

Cash generation is a relative strength, with positive free cash flow across all periods provided and a strong TTM increase (free cash flow up ~25% to ~$1.15B). That said, TTM operating cash flow is notably lower than 2024 ($1.65B vs. $2.55B), and free cash flow is only about ~54% of TTM net income, suggesting cash conversion is not consistently strong. Overall, the company is generating cash, but the year-to-year variability is a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.26B	16.54B	15.85B	14.93B	15.88B
Gross Profit	8.94B	8.06B	7.64B	6.97B	7.59B
EBITDA	3.14B	4.43B	1.56B	-925.00M	4.41B
Net Income	1.41B	-1.64B	-559.00M	-2.45B	417.00M
Balance Sheet
Total Assets	40.75B	39.33B	43.48B	44.01B	47.67B
Cash, Cash Equivalents and Short-Term Investments	3.56B	3.30B	3.23B	2.80B	2.17B
Total Debt	17.38B	18.08B	20.15B	21.56B	23.46B
Total Liabilities	32.83B	33.61B	35.35B	35.41B	36.42B
Stockholders Equity	7.91B	5.37B	7.51B	7.80B	10.28B
Cash Flow
Free Cash Flow	1.15B	749.00M	842.00M	1.04B	236.00M
Operating Cash Flow	1.65B	1.25B	1.37B	1.59B	798.00M
Investing Cash Flow	737.00M	792.00M	968.00M	656.00M	1.52B
Financing Cash Flow	-2.15B	-1.79B	-1.91B	-1.49B	-2.17B

Teva Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Neutral. The current price of 29.46 is below the 20-day moving average (MA) of 32.22, below the 50-day MA of 32.79, and above the 200-day MA of 23.66, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEVA.

Teva Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	78 Outperform	$13.03B	22.95	16.67%	―	19.61%	11.36%
RDY	70 Outperform	$11.52B	21.72	16.00%	0.64%	10.63%	6.35%
TEVA	61 Neutral	$33.94B	25.43	20.09%	―	-0.25%	―
VTRS	56 Neutral	$15.56B	-4.15	-22.99%	3.99%	-6.40%	-320.23%
AMRX	54 Neutral	$3.76B	54.80	-67.91%	―	9.50%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	50 Neutral	$1.34B	-1.35	-35.16%	8.48%	-2.55%	66.00%