Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $36.66B
• Dividend Yield: N/A
• Average Volume (3M): 8.10M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.62
• 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: 1,146,838,700
• 10 Day Avg. Volume: 7,842,538
• 30 Day Avg. Volume: 8,103,516
• 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: 1.44
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: 13.91
• 1Y Price Target: $38.25
• Price Target Upside: 15.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $35.00 ▲(5.39% Upside)

TEVA scores as moderately attractive: improving operational momentum and a generally positive earnings-call outlook support the score, reinforced by bullish technicals. The rating is held back by ongoing profitability/leverage concerns in the financials and a high P/E with no dividend support.

Positive Factors

Innovative brands driving durable growth

Sustained double‑digit growth across AUSTEDO, UZEDY and AJOVY shows Teva is building a diversified specialty franchise that generates higher‑margin, recurring revenue. This reduces reliance on generics and supports durable top‑line resilience and commercial scale over 2–6 months and beyond.

Improving gross margins and margin guidance

An 80bp YoY gross margin improvement and explicit 2026 guidance reflect a structural mix shift toward higher‑margin specialty and biosimilars. Higher gross margins support sustainable operating profitability even as SG&A/R&D investments rise, improving cash conversion over the medium term.

Deleveraging progress and clear capital targets

Meaningful net debt reduction and a defined target to reach ~2.0x net debt/EBITDA by 2027, plus rating upgrades, indicate improving financial flexibility. Steady deleveraging and pledged transformation savings enhance resilience to funding needs and lower long‑term financing costs.

Negative Factors

Elevated leverage still a structural risk

Persistently high leverage constrains strategic optionality and heightens sensitivity to interest rates and cash flow swings. Even with targets to deleverage, existing debt levels limit capital allocation flexibility for M&A or heavier R&D if pipeline readouts disappoint, raising medium‑term solvency risk.

Reliance on non‑recurring milestone boosts near‑term results

Material contribution from a one‑time milestone masks organic performance and implies reported growth may not persist. Reliance on such non‑recurring items elevates execution risk for sustainable revenue, particularly as management also flags a ~$1.1B Revlimid headwind in 2026.

Generics volatility and margin pressure from investment

A flat, regionally uneven generics business alongside intentional OpEx increases to fund innovation compresses operating margins. Structural generics pricing pressure and increased S&M/R&D spending raise profitability volatility and make free cash flow more dependent on successful specialty rollouts.

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 generates revenue primarily through the sales of its generic and specialty pharmaceuticals. The company's revenue model is predominantly based on the volume of medications sold, particularly in the generic segment, where it benefits from significant market share and cost advantages. Key revenue streams include the sale of generic drugs, which are often sold at lower prices than their branded counterparts, as well as specialty pharmaceuticals, which can command higher prices due to their unique therapeutic benefits. Teva also engages in partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare providers, which enhance its product offerings and market reach. Additionally, the company may earn revenue through licensing agreements and the development of generic versions of patented drugs once they come off patent. Factors contributing to Teva's earnings include its large manufacturing scale, diverse product portfolio, and the increasing global demand for affordable medications.

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	3.79B	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	2.05B	842.00M	1.04B	236.00M
Operating Cash Flow	1.65B	2.55B	1.37B	1.59B	798.00M
Investing Cash Flow	-519.09M	-565.67M	968.00M	656.00M	1.52B
Financing Cash Flow	-2.13B	-1.74B	-1.91B	-1.49B	-2.17B

Teva Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 33.21 is above the 20-day moving average (MA) of 32.07, above the 50-day MA of 29.84, and above the 200-day MA of 20.92, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEVA.

Teva Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	80 Outperform	$13.43B	32.95	14.96%	―	19.61%	11.36%
RDY	70 Outperform	$11.11B	17.10	―	0.64%	10.63%	6.35%
TEVA	63 Neutral	$36.66B	27.15	21.36%	―	-0.25%	―
VTRS	60 Neutral	$14.94B	-4.22	-21.09%	3.99%	-6.40%	-320.23%
AMRX	60 Neutral	$4.39B	993.66	―	―	9.50%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	49 Neutral	$1.92B	-36.47	-0.65%	8.48%	-2.55%	66.00%

Teva Pharmaceutical Corporate Events

Teva Pharmaceutical Extends Revolving Facility Agreement

On December 10, 2025, Teva Pharmaceutical Industries Limited announced that it has obtained consent from its lenders to extend the maturity date of its Revolving Facility Agreement from April 29, 2027, to April 29, 2028. The amendment also includes changes to financial covenants, such as the maximum permitted leverage ratio and conditions related to Investment Grade Status, which could impact the company’s financial flexibility and operational strategy.

The most recent analyst rating on (TEVA) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Teva Pharmaceutical stock, see the TEVA Stock Forecast page.