Teva Pharmaceutical Industries Limited (TEVA)
NYSE:TEVA
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Teva Pharmaceutical
(NYSE:TEVA)
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Rating:61Neutral
Price Target:
$37.00
▲(14.20% Upside)
Action:Reiterated
Date:05/05/26
TEVA scores moderately on a profitability and cash-flow turnaround that is still constrained by high leverage, which remains the key risk. Technicals are supportive with price above major averages, but momentum indicators are stretched. Guidance and commentary were broadly constructive (reaffirmed outlook, margin/FCF targets, innovative growth), while valuation is only middling with a ~23.6 P/E and no dividend support.
Positive Factors
Growing innovative portfolio (>20% revenue)
Teva’s deliberate pivot toward higher‑margin branded neuroscience and migraine assets (AUSTEDO, AJOVY, UZEDY) has materially increased the innovative mix to >20% of revenue. That structural shift supports more predictable margins, reduces pure‑generics cyclicality, and underpins sustainable earnings diversification over coming years.
Negative Factors
High leverage remains a constraint
Despite improvement, elevated absolute debt and a multi‑times leverage profile constrain financial flexibility for sustained capex, large acquisitions, or dividend initiation. Deleveraging depends on continued high FCF and execution; any setback in cash generation or unexpected outflows would prolong balance‑sheet risk and refinancing complexity.
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Positive Factors
Negative Factors
Growing innovative portfolio (>20% revenue)
Teva’s deliberate pivot toward higher‑margin branded neuroscience and migraine assets (AUSTEDO, AJOVY, UZEDY) has materially increased the innovative mix to >20% of revenue. That structural shift supports more predictable margins, reduces pure‑generics cyclicality, and underpins sustainable earnings diversification over coming years.
Read all positive factors
Teva Pharmaceutical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Reveals where sales are concentrated globally and which regions are growing or shrinking, helping investors assess geographic diversification, currency exposure, and where regulatory or market pressures could most impact overall revenue.
Reveals where sales are concentrated globally and which regions are growing or shrinking, helping investors assess geographic diversification, currency exposure, and where regulatory or market pressures could most impact overall revenue.
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The Fly
The FlyTeva Pharmaceutical (TEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.28B
Dividend YieldN/A
Average Volume (3M)6.48M
Price to Earnings (P/E)23.6
Beta (1Y)0.64
Revenue Growth5.76%
EPS GrowthN/A
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.37
Shares Outstanding1,164,638,700
10 Day Avg. Volume6,433,835
30 Day Avg. Volume6,475,244
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)4.53
Price to Sales (P/S)2.08
P/FCF Ratio31.24
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit5.94
Enterprise Value/Ebitda16.42
Forecast
1Y Price Target
$42.38Price Target Upside30.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.31
Revenue Forecast (FY)$16.57B
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 of...
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 ...
Teva Pharmaceutical Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive strategic and operational picture: strong growth and momentum in the innovative portfolio (AUSTEDO, UZEDY, AJOVY), improving gross margins and cash generation, clear progress on transformation savings and a disciplined, accretive acquisition (Emalex) aligned to the Pivot to Growth strategy. Near-term headwinds include generics comparatives (loss of REVLIMID), accounting and expense impacts from the Emalex asset purchase in 2026, margin reinvestment and some channel/inventory timing uncertainty (notably AUSTEDO destocking and IRA timing). Pipeline milestones present upside but carry binary clinical risk. On balance, the positives — accelerating innovative growth, margin trajectory, balance sheet improvement and clear execution plans — outweigh the near-term and manageable negatives.Positive Updates
Solid Top-Line and Underlying Revenue Growth (Adjusted Basis)
Reported revenue of approximately $4.0 billion in Q1 2026 (down ~1% in local currency vs. Q1 2025). On an underlying like-for-like basis (excluding the Japan divestment and generic REVLIMID), management reports revenue growth of ~7%.
Negative Updates
Generics Revenue Decline (Impact of REVLIMID)
Global generics down ~13% YoY in Q1 2026 (mainly due to loss of generic REVLIMID). U.S. generics declined ~28% YoY on a reported basis; however, excluding generic REVLIMID, U.S. generics were up ~10%. Q1 2025 included a large REVLIMID contribution (~$300M), which weighs comparatives.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Top-Line and Underlying Revenue Growth (Adjusted Basis)
Reported revenue of approximately $4.0 billion in Q1 2026 (down ~1% in local currency vs. Q1 2025). On an underlying like-for-like basis (excluding the Japan divestment and generic REVLIMID), management reports revenue growth of ~7%.
Read all positive updates
Company Guidance
Teva reaffirmed its 2026 outlook (on an underlying basis excluding Emalex) and reiterated targets to improve margins and grow EBITDA this year, while keeping 2027 targets intact: revenue mid-single‑digit growth, non‑GAAP operating income of 30%, net debt/EBITDA <2.0x and cash-to-earnings ~80%. Q1 set the baseline with revenue of ~$4.0B (down 1% y/y; +7% ex‑Japan and generic REVLIMID), adjusted EBITDA ~$1.1B (+2%), non‑GAAP EPS $0.53 (+2%), non‑GAAP gross margin 52.9%, Q1 free cash flow ~$188–$200M (+~76%) and net debt/EBITDA 2.42x. For 2026 the company expects non‑GAAP gross margin of 54.5%–55.5%, operating expenses of 27%–28% of revenue (weighted to H1), an effective tax rate of 16%–19% (ex‑Emalex), and free cash flow of $2.0B–$2.4B (unchanged). Teva also announced the Emalex asset deal (upfront $700M cash + up to $200M milestones, expected close late Q2/early Q3) that will be treated as an asset purchase with the $700M upfront flowing through R&D, ~ $75M incremental operating costs in 2026 (starting Q3) and a ~ $775M P&L impact reflected in guidance; ecopipam is expected to carry ~80% gross margin (subject to approval), to contribute to revenue in 2027 and to be accretive to non‑GAAP EPS from 2028, while the company remains on track for ~$700M of transformation savings by 2027 (about two‑thirds realized by end‑2026).Teva Pharmaceutical Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.35B | 17.26B | 16.54B | 15.85B | 14.93B | 15.88B |
| Gross Profit | 9.03B | 8.94B | 8.06B | 7.64B | 6.97B | 7.59B |
| EBITDA | 3.27B | 3.14B | 4.43B | 1.56B | -925.00M | 4.41B |
| Net Income | 1.56B | 1.41B | -1.64B | -559.00M | -2.45B | 417.00M |
Balance Sheet | ||||||
| Total Assets | 40.04B | 40.75B | 39.33B | 43.48B | 44.01B | 47.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.74B | 3.56B | 3.30B | 3.23B | 2.80B | 2.17B |
| Total Debt | 16.91B | 17.38B | 18.08B | 20.15B | 21.56B | 23.46B |
| Total Liabilities | 31.81B | 32.83B | 33.61B | 35.35B | 35.41B | 36.42B |
| Stockholders Equity | 8.23B | 7.91B | 5.37B | 7.51B | 7.80B | 10.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.17B | 1.15B | 749.00M | 842.00M | 1.04B | 236.00M |
| Operating Cash Flow | 1.71B | 1.65B | 1.25B | 1.37B | 1.59B | 798.00M |
| Investing Cash Flow | 765.00M | 737.00M | 792.00M | 968.00M | 656.00M | 1.52B |
| Financing Cash Flow | -394.00M | -2.15B | -1.79B | -1.91B | -1.49B | -2.17B |
Teva Pharmaceutical Technical Analysis
Positive
32.40
Price Trends
31.88
Positive
32.42
Positive
27.12
Positive
Market Momentum
0.74
Positive
53.50
Neutral
17.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Positive. The current price of 32.4 is below the 20-day moving average (MA) of 34.47, above the 50-day MA of 31.88, and above the 200-day MA of 27.12, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEVA.
Teva Pharmaceutical Risk Analysis
Teva Pharmaceutical disclosed 82 risk factors in its most recent earnings report. Teva Pharmaceutical 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
Teva Pharmaceutical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $15.55B | 16.73 | 21.64% | ― | 28.59% | 120.51% | |
67 Neutral | $11.41B | 23.89 | 11.76% | 0.64% | -1.06% | -26.67% | |
61 Neutral | $40.28B | 23.59 | 20.79% | ― | 5.76% | ― | |
61 Neutral | $19.32B | 22.12 | -1.97% | 3.99% | 2.14% | 91.93% | |
60 Neutral | $3.90B | 16.36 | -144.72% | ― | 7.62% | ― | |
52 Neutral | $1.54B | -0.83 | -50.65% | 8.48% | -3.62% | -932.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TEVA
Teva Pharmaceutical
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PRGO
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AMRX
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Teva Pharmaceutical Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Teva Posts Strong Q1 2026 Results, Eyes Share Buybacks
Positive
Apr 29, 2026
Teva Pharmaceutical Industries Ltd. is a global pharmaceutical company focused on both innovative and generic medicines, with a growing portfolio in neuroscience, migraine, psychiatric disorders and biosimilars. The company is reshaping its portfo...
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.