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Teva Pharmaceutical
(NYSE:TEVA)
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Rating:71Outperform
Price Target:
$38.00
▲(23.34% Upside)
Action:Upgraded
Date:07/30/26
The score is driven primarily by improving fundamentals and a strong, upbeat earnings call (guidance raises, innovative portfolio growth, margin expansion, and higher free cash flow). This is supported by constructive technical positioning above key moving averages. Offsetting factors are still-elevated leverage, recent top-line pressure (TTM revenue decline and generics headwinds), and a valuation that appears only moderate with no dividend yield support.
Positive Factors
Strong free cash flow
Substantial and growing free cash flow is a durable strength: it funds R&D, launches, and biosimilars roll‑out without immediate equity issuance, supports debt paydown plans, and underpins management's net‑debt/EBITDA target. Even with modest coverage vs. debt, persistent FCF growth materially improves strategic optionality.
Negative Factors
Elevated leverage
High absolute and relative debt levels constrain flexibility and increase sensitivity to execution setbacks or slower cash conversion. Although leverage has improved from prior years and management targets <2x by 2027, sizable debt requires sustained FCF outperformance to materially reduce refinancing and strategic risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Substantial and growing free cash flow is a durable strength: it funds R&D, launches, and biosimilars roll‑out without immediate equity issuance, supports debt paydown plans, and underpins management's net‑debt/EBITDA target. Even with modest coverage vs. debt, persistent FCF growth materially improves strategic optionality.
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
$40.61B
Dividend YieldN/A
Average Volume (3M)5.15M
Price to Earnings (P/E)55.5
Beta (1Y)0.64
Revenue Growth4.33%
EPS GrowthN/A
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.63
Shares Outstanding1,164,638,700
10 Day Avg. Volume4,333,180
30 Day Avg. Volume5,148,168
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$41.17Price Target Upside33.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.02
Revenue Forecast (FY)$16.52B
Teva Pharmaceutical Business Overview & Revenue Model
Company Description
Teva Pharmaceutical Industries Limited functions as a global pharmaceutical enterprise, involved in the conception, manufacturing, marketing, and provision of a broad spectrum of generic, specialty, and biopharmaceutical products throughout North ...
How the Company Makes Money
Teva makes money mainly by selling pharmaceutical products to wholesalers, distributors, pharmacies, hospitals, and health systems, with revenue recognized from product sales (net of rebates, chargebacks, returns, and other typical industry deduct...
Teva Pharmaceutical Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call skewed positive: the company showed strong, broad-based growth in its innovative portfolio (AUSTEDO, AJOVY, UZEDY) with multiple guidance increases, substantial free cash flow improvement (+31% YoY), margin expansion (gross margin +80 bps) and progressing pipeline and biosimilars commercialization that together materially reshape the company’s revenue mix and long-term outlook. Near-term challenges include a Q/Q revenue decline driven by the loss of generic REVLIMID, sizable one-time MLX acquisition charges that compressed reported margins and EPS, elevated AUSTEDO channel inventory and planned higher OpEx to support launches. Management framed these negatives as transitional (one-time or sequencing effects) while emphasizing durable growth drivers and credit-rating upgrades. On balance, the positive items (strong product growth, guidance raises, cash flow, pipeline progress and biosimilars momentum) outweigh the short-term headwinds.Positive Updates
Innovative Portfolio Strong Growth
Innovative revenue grew 43% YoY in Q2 2026. Key products: AUSTEDO up 40% YoY, UZEDY up 43% YoY, AJOVY up 56% YoY. Combined 2026 revenue outlook for AUSTEDO/AJOVY/UZEDY increased ~ $150M at the midpoint (~$3.7B combined, ~17% growth vs 2025).
Negative Updates
Overall Revenue Slight Decline
Total Q2 revenues were ~$4.1B, down 1% in USD (down 3% in local currency) vs Q2 2025, despite strong innovative growth, driven by generics weakness and one-time effects.
Read all updates
Q2-2026 Updates
Positive
Negative
Innovative Portfolio Strong Growth
Innovative revenue grew 43% YoY in Q2 2026. Key products: AUSTEDO up 40% YoY, UZEDY up 43% YoY, AJOVY up 56% YoY. Combined 2026 revenue outlook for AUSTEDO/AJOVY/UZEDY increased ~ $150M at the midpoint (~$3.7B combined, ~17% growth vs 2025).
Read all positive updates
Company Guidance
Management raised the midpoint of full‑year revenue guidance by $75 million and bumped product guidance for key innovators — AUSTEDO to $2.45–$2.60 billion (midpoint $2.5B, +$50M), UZEDY to $270–$290 million (+$15M) and AJOVY to $850–$870 million (+$90M) — bringing the three-product combined 2026 outlook to roughly $3.7 billion (≈17% growth vs. 2025). They reaffirmed ranges for operating profit, adjusted EBITDA, EPS and free cash flow, reiterated mid‑single digit revenue growth targets, a 30% non‑GAAP operating margin goal by 2027, and a net debt/EBITDA target below 2% (Q2 net debt $12.9B; net debt/EBITDA 2.8x, 2.3x ex‑MLX). 2026 non‑GAAP gross margin is guided to 54.5%–55.5% (Q2 was 55.4%, +80 bps Y/Y); OpEx is expected at ~28% of revenue; Q2 free cash flow was $622M (+31% Y/Y). They expect global generics flat to down low‑single digits ex‑generic REVLIMID, biosimilars on track to exceed $800M by 2027, and noted Q4 phasing assumptions (AUSTEDO Q4 YoY pressure related to IRA dynamics and inventory normalization; olanzapine initial Q4 volumes expected to be samples with no revenue).Teva Pharmaceutical Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.31B | 17.26B | 16.54B | 15.85B | 14.93B | 15.88B |
| Gross Profit | 9.09B | 8.94B | 8.06B | 7.64B | 6.97B | 7.59B |
| EBITDA | 3.01B | 3.14B | 4.43B | 1.56B | -925.00M | 4.41B |
| Net Income | 706.00M | 1.41B | -1.64B | -559.00M | -2.45B | 417.00M |
Balance Sheet | ||||||
| Total Assets | 39.86B | 40.75B | 39.33B | 43.48B | 44.01B | 47.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.65B | 3.56B | 3.30B | 3.23B | 2.80B | 2.17B |
| Total Debt | 16.87B | 17.38B | 18.08B | 20.15B | 21.56B | 23.46B |
| Total Liabilities | 32.10B | 32.83B | 33.61B | 35.35B | 35.41B | 36.42B |
| Stockholders Equity | 7.76B | 7.91B | 5.37B | 7.51B | 7.80B | 10.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.15B | 749.00M | 842.00M | 1.04B | 236.00M |
| Operating Cash Flow | 2.05B | 1.65B | 1.25B | 1.37B | 1.59B | 798.00M |
| Investing Cash Flow | -280.78M | 737.00M | 792.00M | 968.00M | 656.00M | 1.52B |
| Financing Cash Flow | -400.88M | -2.15B | -1.79B | -1.91B | -1.49B | -2.17B |
Teva Pharmaceutical Technical Analysis
Positive
30.81
Price Trends
33.30
Positive
32.56
Positive
30.72
Positive
Market Momentum
-0.75
Positive
40.15
Neutral
29.67
Neutral
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 30.81 is below the 20-day moving average (MA) of 32.57, below the 50-day MA of 33.30, and above the 200-day MA of 30.72, indicating a bullish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $18.65B | 23.66 | 20.67% | ― | 34.42% | 102.44% | |
71 Outperform | $40.61B | 55.53 | 9.30% | ― | 4.33% | ― | |
62 Neutral | $10.01B | 28.90 | 9.08% | 0.95% | -6.76% | -44.33% | |
61 Neutral | $5.91B | 37.58 | -144.72% | ― | 9.28% | 4917.17% | |
57 Neutral | $20.84B | -66.54 | -1.97% | 2.78% | 2.14% | 91.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.43B | -0.77 | -50.65% | 11.50% | -3.62% | -932.84% |
* Healthcare Sector Average
TEVA
Teva Pharmaceutical
35.01
19.63
127.63%
RDY
Dr Reddy's Laboratories
11.85
-2.01
-14.53%
VTRS
Viatris
17.56
9.08
107.20%
NBIX
Neurocrine
166.80
37.89
29.39%
PRGO
Perrigo Company
10.11
-14.43
-58.81%
AMRX
Amneal Pharmaceuticals
18.32
10.49
133.97%
Teva Pharmaceutical Corporate Events
Executive/Board ChangesShareholder Meetings
Teva Shareholders Back Board, Executive Pay and Auditor
Positive
May 28, 2026
Teva Pharmaceutical Industries Limited shareholders met on May 28, 2026, where they elected Dr. Sol J. Barer to the board of directors to serve until the 2029 annual meeting, reinforcing continuity in the company’s leadership. Investors also...
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.