Teva Pharmaceutical (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:ReiteratedDate:04/30/26
The score is driven primarily by improving fundamentals and cash generation, but capped by high leverage that limits flexibility. Technicals support the near-term trend, while valuation (P/E ~25) and earnings risks (Revlimid headwind, one-time items and volatility) keep the overall score in the low 60s.
Positive Factors
Improving cash generation
Teva's materially stronger free cash flow (TTM FCF ~$1.17B and +209% growth) creates a durable funding source to support deleveraging, sustain R&D and late‑stage development, and finance targeted M&A or buybacks without relying solely on new debt issuance.
Negative Factors
Elevated leverage
Despite improvement from prior years, very high absolute debt and a 2.2x debt/equity posture constrain capital allocation. Heavy leverage increases vulnerability to lower cash flow or higher rates, slows strategic optionality, and means deleveraging must persist for several years to normalize risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Teva's materially stronger free cash flow (TTM FCF ~$1.17B and +209% growth) creates a durable funding source to support deleveraging, sustain R&D and late‑stage development, and finance targeted M&A or buybacks without relying solely on new debt issuance.
Read all positive factors
Teva Pharmaceutical (TEVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.28B
Dividend YieldN/A
Average Volume (3M)6.03M
Price to Earnings (P/E)25.4
Beta (1Y)0.66
Revenue Growth4.73%
EPS GrowthN/A
CountryUS
Employees37,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.53
Shares Outstanding1,164,638,700
10 Day Avg. Volume4,368,298
30 Day Avg. Volume6,030,755
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 Cap1.34
Enterprise Value/Revenue3.11
Enterprise Value/Gross Profit5.97
Enterprise Value/Ebitda17.72
Forecast
1Y Price Target
$42.13Price Target Upside30.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.64
Revenue Forecast (FY)$16.59B
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 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.
Data provided by:
The Fly
The FlyTeva Pharmaceutical Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented strong progress on the company’s Pivot to Growth: double-digit growth in key innovative brands, improved gross margins, meaningful pipeline validation and clear deleveraging progress. These positives were tempered by dependency on a $500M milestone for headline Q4 growth, a flat generics business with regional softness, near-term one-time inventory/gross-to-net effects that complicate comparability, higher OpEx pressure and persistent clinical/catalyst risk. On balance the strong commercial momentum, improving margin profile and validated pipeline catalysts outweigh the transitory one-time effects and execution risks.Positive Updates
Revenue and Profit Growth (FY 2025)
Total revenues increased 5% to $17.3B; adjusted EBITDA grew 12% to $5.3B; EPS increased 19% to $2.93; free cash flow rose ~16% to $2.4B (includes $500M Sanofi milestone).
Negative Updates
Dependency on One-Time Milestone for Q4 Growth
Q4 growth of 11% included a $500M Sanofi development milestone; excluding the milestone, Q4 revenue was slightly down (~1%), highlighting reliance on non-recurring items.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Profit Growth (FY 2025)
Total revenues increased 5% to $17.3B; adjusted EBITDA grew 12% to $5.3B; EPS increased 19% to $2.93; free cash flow rose ~16% to $2.4B (includes $500M Sanofi milestone).
Read all positive updates
Company Guidance
Teva guided 2026 full‑year revenue of $16.4–$16.8 billion (excluding the $500M duvakitug milestone and ~$75M Japan contribution), non‑GAAP gross margin of 54.5%–55.5%, operating expenses of ~27%–28% of revenue, non‑GAAP EPS of $2.57–$2.77, and adjusted free cash flow of $2.0–$2.4 billion; finance expenses are expected to be about $800 million and the non‑GAAP tax rate 16%–19%. Product-level guidance includes AUSTEDO $2.4–$2.55 billion, UZEDY $250–$280 million, and AJOVY $750–$790 million. Management expects revenue to ramp through the year with H2 above H1, Q1 to be light due to the ~ $300 million Revlimid decline and reversal of Q4 one‑time benefits (AUSTEDO year‑end stocking and ~ $100 million gross‑to‑net), and an approximate $1.1 billion Revlimid headwind for 2026; balance‑sheet targets include net debt of about $13 billion (net debt/EBITDA 2.5x today, targeting 2.0x by 2027). The company reaffirmed a ~$700 million transformation savings target by 2027 ( $70 million achieved in 2025; ~2/3 expected by end‑2026) and a 30% non‑GAAP operating margin ambition by 2027, with free cash flow rising toward >$3.5 billion by 2030.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 | 3.04B | 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 | 18.28B | 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
31.63
Positive
31.16
Positive
25.08
Positive
Market Momentum
0.22
Negative
61.60
Neutral
87.93
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 32.4 is above the 20-day moving average (MA) of 30.15, above the 50-day MA of 31.63, and above the 200-day MA of 25.08, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 87.93 is Negative, 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 41 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.17B | 29.49 | 16.67% | ― | 21.45% | 41.73% | |
70 Outperform | $11.68B | 21.72 | 16.00% | 0.64% | 6.61% | 1.21% | |
61 Neutral | $40.28B | 25.43 | 20.09% | ― | 4.73% | ― | |
58 Neutral | $4.08B | -64.92 | -67.91% | ― | 7.64% | ― | |
56 Neutral | $17.43B | -4.15 | -22.99% | 3.99% | -2.61% | -456.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.55B | -1.35 | -35.16% | 8.48% | -2.75% | -761.90% |
* Healthcare Sector Average
TEVA
Teva Pharmaceutical
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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.