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Teva Pharmaceutical
(NYSE:TEVA)
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Rating:61Neutral
Price Target:
$33.00
▲(1.85% Upside)
Action:Reiterated
Date:05/29/26
TEVA scores above-average primarily on improving fundamentals (profitability and sharply better free cash flow) and a constructive earnings-call outlook with reaffirmed guidance and continued deleveraging targets. The score is held back by high leverage that limits flexibility, a mixed/neutral near-term technical picture, and valuation that is not clearly inexpensive given execution and generics-related volatility.
Positive Factors
Improving cash generation
Sustained, materially stronger free cash flow (TTM FCF ~$1.17B, +209% growth) gives Teva durable internal funding to pay down debt, invest in higher‑margin launches and fund transformation. Reliable FCF reduces dependence on external financing and supports multi‑year deleveraging plans, improving strategic optionality.
Negative Factors
High leverage level
Material net debt (~$16.9B) and elevated leverage (debt/equity ~2.2x) constrain strategic flexibility and increase interest and refinancing risk. Even with improving FCF, deleveraging to target levels will take multiple years and could restrict M&A optionality, buybacks or cyclical investments if cash flow falters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Sustained, materially stronger free cash flow (TTM FCF ~$1.17B, +209% growth) gives Teva durable internal funding to pay down debt, invest in higher‑margin launches and fund transformation. Reliable FCF reduces dependence on external financing and supports multi‑year deleveraging plans, improving 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
$40.35B
Dividend YieldN/A
Average Volume (3M)6.26M
Price to Earnings (P/E)25.1
Beta (1Y)0.63
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. Volume6,317,001
30 Day Avg. Volume6,257,854
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 Cap1.27
Enterprise Value/Revenue2.94
Enterprise Value/Gross Profit5.65
Enterprise Value/Ebitda15.62
Forecast
1Y Price Target
$42.38Price Target Upside30.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)2.18
Revenue Forecast (FY)$16.54B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 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
34.00
Positive
32.75
Positive
29.40
Positive
Market Momentum
-0.03
Negative
55.72
Neutral
79.78
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 32.4 is below the 20-day moving average (MA) of 33.57, below the 50-day MA of 34.00, and above the 200-day MA of 29.40, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 79.78 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $17.52B | 25.97 | 21.64% | ― | 28.59% | 120.51% | |
67 Neutral | $12.01B | 26.17 | 11.76% | 0.64% | -1.06% | -26.71% | |
61 Neutral | $40.35B | 25.11 | 20.79% | ― | 5.76% | ― | |
59 Neutral | $5.48B | 45.26 | -144.72% | ― | 7.62% | ― | |
57 Neutral | $19.60B | -63.28 | -1.97% | 3.99% | 2.14% | 91.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.52B | -0.84 | -50.65% | 8.48% | -3.62% | -932.84% |
* Healthcare Sector Average
TEVA
Teva Pharmaceutical
34.64
17.63
103.64%
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14.38
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VTRS
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16.70
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NBIX
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174.26
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PRGO
Perrigo Company
11.02
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AMRX
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17.15
8.73
103.68%
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...
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.