Teva Innovative Portfolio and Consistent Execution of Pivot to Growth Strategy Deliver Third Consecutive Year of Growth; Pipeline Positioned to Unlock Significant Value Potential
Rhea-AI Summary
Teva (NYSE:TEVA) reported 2025 revenues of $17.3 billion, a 4% YoY increase (3% in local currency), marking its third consecutive year of growth. Key innovative brands surpassed $3 billion (+35% YoY LC), with AUSTEDO $2.26B and AJOVY $673M. Gross profit rose 11% to $8.94B. Free cash flow was $2.40B, debt reduced via $1.812B senior note repayment, and 2026 guidance forecasts revenues of $16.4–$16.8B and non-GAAP diluted EPS of $2.57–$2.77.
Positive
- Key brands revenue +35% YoY in local currency
- AUSTEDO global revenues of $2.26B
- Gross profit +11% to $8.94B
- Free cash flow of $2.40B
- Secured up to $500M funding agreement with Royalty Pharma
Negative
- 2026 revenue outlook of $16.4–$16.8B below 2025 revenues
- Impairment and restructuring-related non-GAAP adjustments of $1.03B impairment and $225M restructuring
- Legal settlements and loss contingencies of $473M
Key Figures
Market Reality Check
Peers on Argus
TEVA gained 1.21% while peers were mixed: TAK +1.38%, UTHR +0.62%, RDY +0.37%, but VTRS -0.38% and NBIX -0.45%. The mixed moves and lack of momentum flags suggest a company-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 14 | AJOVY trial data | Positive | -0.9% | Phase 3 SPACE trial showed significant efficacy in pediatric episodic migraine. |
| Jan 11 | JPM outlook update | Positive | +2.4% | Management outlined 2025–2030 financial outlook and growth targets at JPM conference. |
| Jan 11 | Royalty Pharma funding | Positive | +2.4% | Up to $500M funding agreement to accelerate development of TEV-’408 for vitiligo. |
| Jan 05 | Conference notice | Neutral | +0.2% | Announcement of Teva CEO presentation timing at the J.P. Morgan Healthcare Conference. |
| Dec 24 | Credit rating upgrade | Positive | +0.6% | S&P upgrade to BB+ and Moody’s outlook raised on deleveraging and growth momentum. |
Positive strategic and clinical news has more often led to modest gains, with occasional divergences where strong clinical data did not lift the stock.
Over the past months, Teva has highlighted its Pivot to Growth execution with several milestones. Clinical data for AJOVY published on Jan 14, 2026 showed statistically significant benefits in pediatric episodic migraine but was followed by a mild share decline. Strategic presentations and the funding deal with Royalty Pharma on Jan 11, 2026 coincided with gains of 2.44%. A ratings upgrade on Dec 24, 2025 also saw a positive reaction. Today’s full-year 2025 results and 2026 outlook extend this transformation narrative.
Market Pulse Summary
This announcement details Teva’s third consecutive year of growth, with 2025 revenues of $17.3 billion, key brands above $3 billion, and non-GAAP EPS of $2.93. Management pairs these results with a 2026 outlook of $16.4–$16.8 billion in revenue and continued transformation efforts. Historical news flow shows steady progress on deleveraging, ratings upgrades, and pipeline funding. Investors may watch upcoming late-stage readouts, execution on cost-saving targets, and performance of AUSTEDO, AJOVY, and UZEDY for confirmation of the growth thesis.
Key Terms
long-acting injectable medical
phase 3 medical
new drug application regulatory
nda regulatory
fast track regulatory
non-gaap financial
adjusted ebitda financial
free cash flow financial
AI-generated analysis. Not financial advice.
- Teva delivers 3 consecutive years of growth - 2025 revenues of
$17.3 billion , an increase of4% year-over-year (YoY) in U.S. dollars, or3% in local currency (LC) terms, compared to 2024. Excluding Japan BV, revenues increased5% YoY in LC. - Key Innovative brands continued to drive growth and provide value for patients, with 2025 revenues surpassing
$3 billion , +35% YoY in LC:- AUSTEDO® global revenues of
$2.26 billion , growing34% YoY in LC.
- AUSTEDO® global revenues of
- AJOVY® global revenues of
$673 million , up30% YoY in LC. - UZEDY® revenues of
$191 million , up63% YoY in LC; underscoring Teva's commitment to drive new advances in neuroscience:- Fastest growing long-acting injectable (LAI)1
- FDA expanded indication approval for Bipolar 1 Disorder.
- Q4 2025 marks the first quarter in which these key brands collectively delivered ~
$1 billion of revenues.
- Generics portfolio stable:
- Increased by
2% in the U.S., decreased by2% in Europe and decreased by2% in International Markets, all in LC terms compared to 2024. Excluding Japan BV, revenues increased by1% in International Markets in LC, compared to 2024.
- Increased by
- Biosimilars pipeline and portfolio fueling growth: – with the second-largest portfolio and most biosimilars launched across the industry since 2020.2
- Innovative late-stage pipeline continued to drive transformation:
- 4 innovative product submissions targeted over the next 5 years.
- Up to
$500 million in funding secured via Teva’s agreement with Royalty Pharma to fund the development of anti-IL-15 (TEV-’408) for vitiligo indication. - duvakitug (anti-TL1A) Phase 3 initiated for ulcerative colitis and Crohn's disease.
- Preparing for olanzapine LAI U.S. launch, subject to regulatory approval; New Drug Application (NDA) submitted to FDA in December 2025.
- FDA fast track designations for emrusolmin for Multiple System Atrophy and anti-IL-15 for Celiac disease.
- Transforming and modernizing our business through Teva Transformation programs – combined with innovative product growth, expected to achieve
30% non-GAAP operating income margin by 2027. On track to deliver ~$700 million of net savings by 2027; In 2025, achieved$70 million savings and expect to realize two-thirds of the targeted savings by 2026.
Q4 and FY 2025 Highlights:
| | Q4 2025 | FY 2025 | |
| Revenues | | | |
| GAAP diluted earnings per share | | | |
| Non-GAAP diluted EPS | | | |
| Cash flow generated from operating activities | | | |
| Free cash flow | | | |
| | | |
2026 Business Outlook:
- Revenues of
$16.4 -$16.8 billion - Non-GAAP operating income of
$4.55 -$4.8 billion - Adjusted EBITDA of
$5.0 -$5.3 billion - Non-GAAP diluted EPS of
$2.57 -$2.77 - Free cash flow of
$2.0 -$2.4 billion
TEL AVIV, Israel, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the year and the quarter ended December 31, 2025.
Mr. Richard Francis, Teva's President and CEO, said: “In 2025, our Pivot to Growth strategy drove Teva's third year of consecutive growth, solidifying our transformation into a leading biopharmaceutical company. Our key innovative brands led our growth, reaching
Throughout the year, our teams executed with discipline across the business, driving momentum in innovative medicines, scaling our global generics and biosimilars portfolio, and further optimizing our operations and capital allocation. We also continue to make progress on our deleveraging, in line with our 2027 targets.”
Mr. Francis continued: “Looking ahead, 2026 will be a milestone-rich year with multiple late-stage pipeline readouts across immunology and neurology; the anticipated FDA approval of olanzapine LAI, and important data expected for duvakitug, our anti-TL1A, and for our anti-IL-15 programs. Together, these pipeline assets represent a potential of over
Pivot to Growth Strategy
In 2025, we continued to execute on the four key pillars of our “Pivot to Growth” strategy, which we announced in May 2023.
- Delivering on our growth engines - We continued to showcase strong performance of our key innovative brands, mainly AUSTEDO, AJOVY, and UZEDY collectively, +
35% YoY in revenues for 2025. During 2025, the FDA approved an expansion of AJOVY's indication, to include its use as an anti-CGRP preventive treatment for pediatric episodic migraine, as well as an expansion of UZEDY as treatment for adults living with Bipolar 1 Disorder.
- Stepping up innovation - We continued to accelerate the development of certain key pipeline assets. Teva submitted a New Drug Application for olanzapine LAI to the FDA in December 2025, and during the year we received FDA fast track designations for both emrusolmin in MSA and our IL-15 (TEV-‘408) for Celiac Disease. Phase 3 programs for duvakitug (anti-TL1A) in ulcerative colitis and Crohn's disease were initiated, and Teva is working with its partner Sanofi on targeting additional indications. By the end of 2025, we achieved the targeted initial enrollment for adult and pediatric populations for DARI’s (Dual-action Asthma Rescue Inhaler) Phase 3 trial. In January 2026, we announced a funding agreement to accelerate the development of anti-IL-15 (TEV-‘408) for vitiligo with Royalty Pharma.
- Sustaining our generics powerhouse - We continued to optimize our generics business and build a strong pipeline of biosimilars; For biosimilars, we launched SELARSDITM (ustekinumab-aekn) the biosimilar to Stelara® and EPYSQLI®(eculizumab-aagh) the biosimilar to Soliris®, and also received EMA approvals for PONLIMSI® (denosumab) the biosimilar to Prolia® and DEGEVMA® (denosumab) the biosimilar to Xgeva®.
- Focusing our business - We are actively transforming and modernizing our business through Teva Transformation programs. On May 7, 2025, we announced that these programs are expected to generate ~
$700 million of net savings through 2027. In 2025, we achieved$70 million in savings and expect to realize two-thirds of the targeted savings by 2026. We continued to optimize our portfolio and global manufacturing footprint. In addition, we continue our deleveraging efforts, reducing our gross debt levels to$16.8 billion and net debt to$13.3 billion through cash flow, repayment and refinancing, and optimizing our working capital management. In response to our improved capital structure and stronger underlying performance, our credit ratings were upgraded by one level at three credit ratings agencies in 2025.
2025 Annual Consolidated Results
Revenues in 2025 were
Exchange rate movements during 2025, net of hedging effects, positively impacted revenues by
Gross profit was
Research and Development (R&D) expenses, net in 2025 were
Selling and Marketing (S&M) expenses in 2025 were
General and Administrative (G&A) expenses in 2025 were
Operating Income was
In 2025, financial expenses, net were
In 2025, we recognized a tax benefit of
Non-GAAP tax rate for 2025 was
Net income attributable to Teva and diluted earnings per share in 2025 were
Adjusted EBITDA was
As of December 31, 2025 and 2024, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,184 million and 1,174 million, respectively.
Non-GAAP information: non-GAAP adjustments for non-GAAP net income attributable to Teva and non-GAAP diluted EPS in 2025 were
- Amortization of purchased intangible assets totaling
$581 million , of which$541 million is included in cost of goods sold and the remaining$40 million in S&M expenses; - Legal settlements and loss contingencies of
$473 million ; - Impairment of long-lived assets of
$1,029 million ; - Restructuring expenses of
$225 million ; - Equity compensation expenses of
$157 million ; - Contingent consideration expenses of
$54 million ; - Loss on sale of business of
$22 million ; - Accelerated depreciation of
$21 million ; - Financial expenses of
$69 million ; - Items attributable to non-controlling interests of
$2 million ; - Other non-GAAP items of
$186 million ; and - Corresponding tax effects and unusual tax items of
$819 million .
We believe that excluding such items facilitates investors’ understanding of our business including underlying trends, thereby improving the comparability of our business performance results between reporting periods.
For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities in 2025 was
During 2025, we generated free cash flow of
As of December 31, 2025, our debt was
Fourth Quarter 2025 Consolidated Results
Revenues in the fourth quarter of 2025 were
Exchange rate movements during the fourth quarter of 2025, net of hedging effects, positively impacted revenues by
Gross profit in the fourth quarter of 2025 was
Research and Development (R&D) expenses, net in the fourth quarter of 2025 were
Selling and Marketing (S&M) expenses in the fourth quarter of 2025 were
General and Administrative (G&A) expenses in the fourth quarter of 2025 were
Operating income in the fourth quarter of 2025 was
Financial expenses, net in the fourth quarter of 2025 were
In the fourth quarter of 2025, we recognized a tax benefit of
Non-GAAP tax rate in the fourth quarter of 2025 was
Net income attributable to Teva and diluted earnings per share in the fourth quarter of 2025 were
Adjusted EBITDA was
Non-GAAP information: non-GAAP adjustments for non-GAAP net income attributable to Teva and non-GAAP diluted EPS in the fourth quarter of 2025 were
- Amortization of purchased intangible assets of
$145 million , of which$135 million is included in cost of sales and the remaining$10 million in S&M expenses; - Impairment of long-lived assets in amount of
$773 million ; - Legal settlements and loss contingencies of
$164 million ; - Contingent consideration expenses of
$8 million ; - Equity compensation expenses of
$51 million ; - Restructuring expenses of
$29 million ; - Loss on sale of business of
$4 million ; - Accelerated depreciation of
$9 million ; - Financial expenses of
$11 million ; - Other non-GAAP items of
$49 million ; and - Corresponding tax effects and unusual tax items of
$594 million .
We believe that excluding such items facilitates investors’ understanding of our business including underlying performance trends, thereby improving the comparability of our business performance results between reporting periods.
For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
Cash flow generated from operating activities during the fourth quarter of 2025 was
During the fourth quarter of 2025, we generated free cash flow of
Segment Results for the Fourth Quarter of 2025
United States Segment
The following table presents revenues, expenses and profit for our United States segment for the three months ended December 31, 2025 and 2024:
| | | | | | | |
| | Three months ended December 31, | |||||
| | 2025 | | 2024 | |||
| | (U.S. $ in millions / % of Segment Revenues) | |||||
| Revenues | $ | 2,643 | | $ | 1,975 | |
| Cost of sales | | 820 | | | 877 | |
| Gross profit | | 1,823 | | | 1,097 | |
| R&D expenses | | 166 | | | 158 | |
| S&M expenses | | 341 | | | 260 | |
| G&A expenses | | 135 | | | 109 | |
| Other | | § | § | | 1 | § |
| Segment profit* | $ | 1,181 | | $ | 569 | |
| | | | | | | |
| *Segment profit does not include amortization and certain other items. | ||||||
Revenues from our United States segment in the fourth quarter of 2025 were
Revenues by Major Products and Activities
The following table presents revenues for our United States segment by major products and activities for the three months ended December 31, 2025 and 2024:
| | | | | | ||||
| | | Three months ended | | Percentage | ||||
| | | 2025 | | 2024 | | 2025-2024 | ||
| | | (U.S. $ in millions) | | | ||||
| | | | | | | | | |
| Generic products (including biosimilars) | | $ | 673 | | $ | 674 | | § |
| AJOVY | | | 105 | | | 63 | | |
| AUSTEDO | | | 725 | | | 518 | | |
| BENDEKA®and TREANDA® | | | 35 | | | 41 | | ( |
| COPAXONE® | | | 77 | | | 63 | | |
| UZEDY | | | 55 | | | 43 | | |
| Anda | | | 366 | | | 402 | | ( |
| Other* | | | 608 | | | 171 | | |
| Total | | $ | 2,643 | | $ | 1,975 | | |
| | | | | | | | | |
| § Represents an amount less than | ||||||||
| | ||||||||
Generic products (including biosimilars) revenues in our United States segment in the fourth quarter of 2025 were
Among the most significant generic products we sold in the United States in the fourth quarter of 2025 were Truxima® (the biosimilar to Rituxan®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®) and Fidaxomicin tablets (the generic equivalent of Dificid®). In the fourth quarter of 2025, our total prescriptions were approximately 254 million (based on trailing twelve months), representing
AJOVY revenues in our United States segment in the fourth quarter of 2025 were
AUSTEDO revenues (which include AUSTEDO XR®) in our United States segment in the fourth quarter of 2025 were
AUSTEDO XR (deutetrabenazine) extended-release tablets was approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. The FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg in May 2024 and in 18 mg dose in July 2024. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041.
During 2025, Teva and the Centers for Medicare and Medicaid Services (“CMS”) negotiated a maximum fair price for AUSTEDO and AUSTEDO XR, based on CMS’s list of prescription medicines selected for price-setting discussions, in which they were originally included. The agreement was announced by the CMS in November 2025. The revised prices set by the U.S. Government will become effective on January 1, 2027 and will apply to eligible Medicare patients.
UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the fourth quarter of 2025 were
BENDEKA and TREANDA combined revenues in our United States segment in the fourth quarter of 2025 were
COPAXONE revenues in our United States segment in the fourth quarter of 2025 were
Anda revenues from third-party products in our United States segment in the fourth quarter of 2025 were
United States Gross Profit
Gross profit from our United States segment in the fourth quarter of 2025 was
Gross profit margin for our United States segment in the fourth quarter of 2025 increased to
United States Profit
Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
Profit from our United States segment in the fourth quarter of 2025 was
Europe Segment
Our Europe segment includes the European Union, the United Kingdom and certain other European countries.
The following table presents revenues, expenses and profit for our Europe segment for the three months ended December 31, 2025 and 2024:
| | Three months ended December 31, | |||||
| | 2025 | | 2024 | |||
| | (U.S. $ in millions / % of Segment Revenues) | |||||
| Revenues | $ | 1,314 | | $ | 1,353 | |
| Cost of sales | | 606 | | | 561 | |
| Gross profit | | 708 | | | 792 | |
| R&D expenses | | 65 | | | 56 | |
| S&M expenses | | 250 | | | 221 | |
| G&A expenses | | 84 | | | 75 | |
| Other | | 1 | § | | 2 | § |
| Segment profit* | $ | 308 | | $ | 438 | |
| | | | | | | |
| *Segment profit does not include amortization and certain other items. | ||||||
Revenues from our Europe segment in the fourth quarter of 2025 were
In the fourth quarter of 2025, revenues were positively impacted by exchange rate fluctuations of
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major products and activities for the three months ended December 31, 2025 and 2024:
| | | Three months ended | | Percentage | ||||
| | | 2025 | | 2024 | | 2025-2024 | ||
| | | (U.S. $ in millions) | | | ||||
| Generic products (including OTC and biosimilars) | | $ | 1,033 | | $ | 979 | | |
| AJOVY | | | 76 | | | 58 | | |
| COPAXONE | | | 45 | | | 50 | | ( |
| Respiratory products | | | 65 | | | 61 | | |
| Other* | | | 96 | | | 205 | | ( |
| Total | | $ | 1,314 | | $ | 1,353 | | ( |
| *Other revenues in the fourth quarter of 2025 and 2024 include the sale of certain product rights. | | | ||||||
Generic products revenues (including OTC and biosimilar products) in our Europe segment in the fourth quarter of 2025, were
AJOVY revenues in our Europe segment in the fourth quarter of 2025 increased by
COPAXONE revenues in our Europe segment in the fourth quarter of 2025 were
Respiratory products revenues in our Europe segment in the fourth quarter of 2025 were
Europe Gross Profit
Gross profit from our Europe segment in the fourth quarter of 2025 was
Gross profit margin for our Europe segment in the fourth quarter of 2025 decreased to
Europe Profit
Profit from our Europe segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
Profit from our Europe segment in the fourth quarter of 2025 was
International Markets Segment
Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries.
The countries in our International Markets segment include highly regulated, mainly generic markets, such as Canada and Israel, and branded generics-oriented markets, such as Russia and certain Latin America markets.
On March 31, 2025, we divested our Teva-Takeda business venture in Japan, which included generic products and legacy products. Since the establishment of the business venture and until the completion of its sale, Teva held
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended December 31, 2025 and 2024:
| | Three months ended December 31, | |||||
| | 2025 | | 2024 | |||
| | (U.S. $ in millions / % of Segment Revenues) | |||||
| Revenues | $ | 528 | | $ | 661 | |
| Cost of sales | | 281 | | | 315 | |
| Gross profit | | 247 | | | 346 | |
| R&D expenses | | 27 | | | 27 | |
| S&M expenses | | 121 | | | 137 | |
| G&A expenses | | 40 | | | 42 | |
| Other | | (11) | § | | (1) | § |
| Segment profit* | $ | 70 | | $ | 141 | |
| | | | | | | |
| *Segment profit does not include amortization and certain other items. | | |||||
Revenues from our International Markets segment in the fourth quarter of 2025 were
In the fourth quarter of 2025, revenues were positively impacted by exchange rate fluctuations of
The following table presents revenues for our International Markets segment by major products and activities for the three months ended December 31, 2025 and 2024:
| | | | | | ||||
| | | Three months ended | | Percentage | ||||
| | | 2025 | | 2024 | | 2025-2024 | ||
| | | (U.S. $ in millions) | | | ||||
| Generic products (including OTC and biosimilars) | | $ | 422 | | $ | 497 | | ( |
| AJOVY | | | 30 | | | 22 | | |
| AUSTEDO | | | 9 | | | 7 | | |
| COPAXONE | | | 6 | | | 9 | | ( |
| Other* | | | 60 | | | 126 | | ( |
| Total | | $ | 528 | | $ | 661 | | ( |
| | | | ||||||
| *Other revenues in the fourth quarter of 2025 and 2024 include the sale of certain product rights. | | | ||||||
Generic products revenues (including OTC and biosimilar products) in our International Markets segment were
AJOVY revenues in our International Markets segment in the fourth quarter of 2025 were
AUSTEDO revenues in our International Markets segment in the fourth quarter of 2025 were
COPAXONE revenues in our International Markets segment in the fourth quarter of 2025 were
International Markets Gross Profit
Gross profit from our International Markets segment in the fourth quarter of 2025 was
Gross profit margin for our International Markets segment in the fourth quarter of 2025 decreased to
International Markets Profit
Profit from our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
Profit from our International Markets segment in the fourth quarter of 2025 was
Other Activities
We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above. For information on a change to our reporting segments commencing January 1, 2026, see below under “Post Quarter Developments.”
Revenues from other activities in the fourth quarter of 2025 were
API sales to third parties in the fourth quarter of 2025 were
Post Quarter Developments
To align with Teva's Pivot to Growth strategy, commencing January 1, 2026, Anda will no longer be reported under Teva's United States segment. This shift will allow the United States segment to continue to manage its entire product portfolio in the region, while strengthening focus on its biopharmaceutical business, growth engines and innovation. As a result, from that date, Anda will be reported as part of the Company’s Other Activities.
In January 2026, we announced a funding agreement to accelerate the development of anti-IL-15 (TEV-‘408) for vitiligo with Royalty Pharma; in addition, Teva and Abingworth signed an amendment to the development funding agreement to increase the total development funding by an additional
2026 Financial Outlook
| $ billions, except diluted EPS or as noted | 2026 Outlook | |
| Revenues | 16.4 - 16.8 | |
| AUSTEDO ($m) | 2,400 - 2,550 | |
| AJOVY ($m) | 750 - 790 | |
| UZEDY ($m) | 250 - 280 | |
| Operating Income* | 4.55-4.8 | |
| Adjusted EBITDA* | 5.0-5.3 | |
| Finance Expenses* ($m) | ~800 | |
| Tax Rate* | | |
| Diluted EPS* ($) | 2.57 - 2.77 | |
| Free Cash Flow* | 2.0 - 2.4 | |
| CAPEX | 0.5 | |
| Foreign Exchange | Volatile swings in FX can negatively | 1,177M shares |
*Certain items above are non-GAAP financial measures. For more information, see “Non-GAAP Financial Measures” below. Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables.
Annual Report on Form 10-K
Teva's Annual Report on Form 10-K for the year ended December 31, 2025, which will be filed with the SEC, will be available on Teva’s website: http://ir.tevapharm.com, as well as on the SEC’s website: http://www.sec.gov.
Conference Call
Teva will host a conference call and live webcast along with a slide presentation on Wednesday, January 28, 2026 at 8:00 a.m. ET to discuss its fourth quarter of 2025 and annual 2025 financial results and overall business environment.
A question & answer session will follow.
In order to participate, please register in advance here to obtain a local or toll-free phone number and your personal pin.
A live webcast of the call will be available on Teva's website at: https://ir.tevapharm.com/Events-and-Presentations.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.
Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Non-GAAP Financial Measures
This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross profit margin, Adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS, are presented in order to facilitate investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational performance and, to compare our results against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management’s annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing the most comparable forward-looking GAAP measures for non-GAAP metrics included in our financial outlook or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items including, but not limited to, the amortization of purchased intangible assets, legal settlements and loss contingencies, impairment of long-lived assets and goodwill impairment, without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. These forward-looking statements include statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information that is not historical information. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe,” "outlook" and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to:
- our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical companies and changes in regulatory policy that may result in costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical products in a timely manner; intense competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize our innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness of our patents and other measures to protect our intellectual property rights;
- our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and our potential need to raise additional funds in the future, which may not be available on acceptable terms or at all;
- our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and the governmental and societal responses thereto, and our exposure to changes in international trade policies, including the imposition of tariffs in the jurisdictions in which we operate, and any effects of such developments on sales of our products and the pricing and availability of our raw materials; effectiveness of our optimization efforts; significant disruptions of information technology systems, including cybersecurity attacks, as well as risks and uncertainties related to the adoption of artificial intelligence technologies, and breaches of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; challenges associated with conducting business globally, including political or economic instability, prolonged government shutdowns, widespread outbreaks of major diseases and major hostilities or acts of terrorism, such as the ongoing conflicts between Russia and Ukraine and in the Middle East; our ability to attract, hire, integrate and retain highly skilled personnel; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants and facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our planned divestiture of our API business;
- compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory requirements, the effects of regulatory uncertainty and changes and the results of increased regulatory oversight, including expenditures required to ensure compliance with research, production and quality control regulations and remedial actions taken to address product issues, such as delayed product launches, product recalls, and facility shutdowns; the effects of governmental, regulatory and civil proceedings and litigation which we are, or in the future become, party to; the effects of reforms in healthcare regulation and related reductions in pharmaceutical pricing, reimbursement and coverage, including as a result of the One Big Beautiful Bill signed into law in the U.S. in July 2025 (“OBBBA”), which will likely reduce the number of insured in Medicaid and Health Insurance Exchange markets, which may alter utilization patterns and shift negotiating leverage among payors, U.S. Executive Orders issued in April and May 2025 intended to reduce the prices paid by Americans for prescription medicines, including Most-Favored-Nation pricing; legal and regulatory actions in connection with public concern over the abuse of opioid medications; our ability to timely make payments required under our nationwide opioids settlement agreement and provide our generic version of Narcan® (naloxone hydrochloride nasal spray) in the amounts and at the times required under the terms of such agreement; scrutiny from competition and pricing authorities around the world, including our ability to comply with and operate under our deferred prosecution agreement (“DPA”) with the U.S. Department of Justice (“DOJ”); potential liability for intellectual property right infringement; significant product liability claims; claims brought by regulatory agencies; failure to comply with complex Medicare, Medicaid and other governmental programs’ reporting and payment obligations; compliance with sanctions and trade control laws; environmental risks and changes in governmental, investor and societal responses to climate change and sustainability related issues;
- other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; impairments of our long-lived assets; potential significant increases in tax liabilities; the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business; and the impact of any failure to maintain effective internal control over our financial reporting;
and other factors discussed in this press release, in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the section captioned "Risk Factors” and in other periodic reports we subsequently file with the SEC available on the SEC’s website: http://www.sec.gov. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward‐looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
| Consolidated Statements of Income | |||||||||
| (U.S. dollars in millions, except share and per share data) | |||||||||
| Unaudited | |||||||||
| Three months ended | Year ended | ||||||||
| December 31, | December 31, | ||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||
| Net revenues | 4,711 | 4,229 | 17,258 | 16,544 | |||||
| Cost of sales | 2,056 | 2,109 | 8,320 | 8,481 | |||||
| Gross profit | 2,656 | 2,120 | 8,938 | 8,064 | |||||
| Research and development expenses | 267 | 248 | 1,013 | 998 | |||||
| Selling and marketing expenses | 753 | 650 | 2,686 | 2,541 | |||||
| General and administrative expenses | 367 | 302 | 1,287 | 1,161 | |||||
| Intangible assets impairments | 32 | 81 | 259 | 251 | |||||
| Goodwill impairment | - | 280 | - | 1,280 | |||||
| Other asset impairments, restructuring and other items.................................................... | 778 | 457 | 1,050 | 1,388 | |||||
| Legal settlements and loss contingencies........................................................................... | 155 | 123 | 467 | 761 | |||||
| Other (income) loss ............................................................................................................ | 3 | 8 | 18 | (14) | |||||
| Operating income (loss) | 300 | (29) | 2,157 | (303) | |||||
| Financial expenses, net | 220 | 218 | 934 | 981 | |||||
| Income (loss) before income taxes | 80 | (247) | 1,223 | (1,284) | |||||
| Income taxes (benefit)..................................................................................... | (389) | 29 | (180) | 676 | |||||
| Share in (profits) losses of associated companies, net | (11) | (1) | (15) | (1) | |||||
| Net income (loss) | 481 | (275) | 1,418 | (1,959) | |||||
| Net income (loss) attributable to non-controlling interests | § | (58) | 7 | (320) | |||||
| Net income (loss) attributable to Teva | 480 | (217) | 1,410 | (1,639) | |||||
| Earnings (loss) per share attributable to Teva: | Basic ($) | 0.42 | (0.19) | 1.23 | (1.45) | ||||
| Diluted ($) | 0.41 | (0.19) | 1.21 | (1.45) | |||||
| Weighted average number of shares (in millions): | Basic | 1,149 | 1,133 | 1,145 | 1,131 | ||||
| Diluted | 1,173 | 1,133 | 1,163 | 1,131 | |||||
| Non-GAAP net income attributable to Teva for diluted earnings per share:* | 1,130 | 816 | 3,411 | 2,860 | |||||
| Non-GAAP earnings per share attributable to Teva:* | Diluted ($) | 0.96 | 0.71 | 2.93 | 2.49 | ||||
| Non-GAAP average number of shares (in millions): | Diluted | 1,173 | 1,157 | 1,163 | 1,150 | ||||
| Amounts may not add up due to rounding. | |||||||||
| § Represents an amount less than | |||||||||
| * See reconciliation attached. | |||||||||
| Condensed Consolidated Balance Sheets | ||||
| (U.S. dollars in millions) | ||||
| Audited | ||||
| December 31, | December 31, | |||
| 2025 | 2024 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | 3,556 | 3,300 | ||
| Accounts receivables, net of allowance for credit losses of | 3,709 | 3,059 | ||
| Inventories | 3,179 | 3,007 | ||
| Prepaid expenses | 1,122 | 1,006 | ||
| Other current assets | 539 | 409 | ||
| Assets held for sale | 1,842 | 1,771 | ||
| Total current assets | 13,946 | 12,552 | ||
| Deferred income taxes | 2,191 | 1,799 | ||
| Other non-current assets | 405 | 462 | ||
| Property, plant and equipment, net | 4,080 | 4,581 | ||
| Operating lease right-of-use assets | 345 | 367 | ||
| Identifiable intangible assets, net | 3,781 | 4,418 | ||
| Goodwill | 16,000 | 15,147 | ||
| Total assets | 40,748 | 39,326 | ||
| LIABILITIES & EQUITY | ||||
| Current liabilities: | ||||
| Short-term debt | 1,820 | 1,781 | ||
| Sales reserves and allowances | 4,143 | 3,678 | ||
| Trade payables | 2,531 | 2,203 | ||
| Employee-related obligations | 739 | 624 | ||
| Accrued expenses | 2,687 | 2,792 | ||
| Other current liabilities | 1,182 | 1,020 | ||
| Liabilities held for sale | 354 | 698 | ||
| Total current liabilities | 13,456 | 12,796 | ||
| Long-term liabilities: | ||||
| Deferred income taxes | 296 | 483 | ||
| Other taxes and long-term liabilities | 3,808 | 4,028 | ||
| Senior notes and loans | 14,986 | 16,002 | ||
| Operating lease liabilities | 288 | 296 | ||
| Total long-term liabilities | 19,379 | 20,809 | ||
| Redeemable non-controlling interests | - | 340 | ||
| Equity: | ||||
| Teva shareholders’ equity: | 7,910 | 5,373 | ||
| Non-controlling interests....................................................... | 4 | 7 | ||
| Total equity | 7,914 | 5,380 | ||
| Total liabilities and equity | 40,748 | 39,326 | ||
| TEVA PHARMACEUTICAL INDUSTRIES LIMITED | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (U.S. dollars in millions) | |||||||||||
| Unaudited | |||||||||||
| Year ended | Three months ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Operating activities: | (Audited) | (Audited) | Unaudited | Unaudited | |||||||
| Net income (loss)........................................................................................... | 1,418 | — | (1,959) | $ | 480 | $ | (275) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operations: | |||||||||||
| Impairment of goodwil | - | 1,280 | - | 280 | |||||||
| Impairment of long-lived assets and assets held for sale........... | 1,028 | 1,275 | 773 | 517 | |||||||
| Depreciation and amortization....................................................................... | 1,002 | 1,059 | 260 | 269 | |||||||
| Net change in operating assets and liabilities............................................... | (1,366) | (435) | 181 | (246) | |||||||
| Deferred income taxes — net and uncertain tax positions......................... | (671) | (634) | (595) | 32 | |||||||
| Stock-based compensation............................................................................. | 157 | 123 | 51 | 34 | |||||||
| Net loss (gain) from sale of business and long-lived assets | - | (22) | - | - | |||||||
| Other items,net* ..................................................................................................... | 81 | 560 | 8 | (37) | |||||||
| Net cash provided by (used in) operating activities....................................................................................... | 1,649 | 1,247 | 1,158 | 575 | |||||||
| Investing activities: | |||||||||||
| Beneficial interest collected in exchange for securitized trade receivables | 1,214 | 1,291 | 282 | 340 | |||||||
| Purchases of property, plant and equipment and intangible assets............. | (501) | (498) | (142) | (129) | |||||||
| Proceeds from sale of business and long lived assets................................. | 34 | 43 | - | 4 | |||||||
| Purchases of investments and other assets................................................... | (57) | (71) | (17) | (15) | |||||||
| Proceeds from sale of investments............................................................... | 42 | 40 | 41 | - | |||||||
| Acquisitions of businesses, net of cash acquired ........................................ | - | (15) | - | - | |||||||
| Other investing activities................................................................................ | 5 | 2 | 1 | 2 | |||||||
| Net cash provided by (used in) investing activities............................... | 737 | 792 | 165 | 202 | |||||||
| Financing activities: | |||||||||||
| Repayment of senior notes and loans and other long term liabilities........ | (4,112) | (1,641) | - | (685) | |||||||
| Proceeds from senior notes, net of issuance costs..................................... | 2,298 | - | - | - | |||||||
| Purchase of shares from redeemable and non-redeemable non-controlling interests | (38) | (64) | - | - | |||||||
| Dividends paid to redeemable and non-redeemable non-controlling interests | (340) | (78) | - | - | |||||||
| Other financing activities............................................................................... | 41 | (8) | 40 | 10 | |||||||
| Net cash provided by (used in) financing activities.............................. | (2,151) | (1,791) | 40 | 675 | |||||||
| Translation adjustment on cash, cash equivalents and restricted cash | 21 | (174) | (10) | (121) | |||||||
| Net change in cash, cash equivalents and restricted cash | $ | 256 | $ | 74 | $ | 1,353 | $ | (19) | |||
| Balance of cash, cash equivalents and restricted cash at beginning of year | 3,300 | 3,227 | 2,203 | 3,319 | |||||||
| Balance of cash, cash equivalents and restricted cash at end of year | 3,556 | 3,300 | 3,556 | 3,300 | |||||||
| Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets: | |||||||||||
| Cash and cash equivalents | 3,556 | 3,300 | 3,556 | 3,300 | |||||||
| Restricted cash included in other current assets | - | - | - | - | |||||||
| Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 3,556 | 3,300 | 3,556 | 3,300 | |||||||
| *"Other items, net" in the year ended December 31, 2024 includes mainly amounts related to an agreement with the Israeli Tax Authorities. | |||||||||||
| Reconciliation of net income (loss) attributable to Teva | |||||||||
| to Non-GAAP net income (loss) attributable to Teva | |||||||||
| Unaudited | |||||||||
| Three months ended | Year ended | ||||||||
| December 31, | December 31, | ||||||||
| ($ in millions except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||
| Net income (Loss) attributable to Teva | ($) | 480 | (217) | ($) | 1,410 | (1,639) | |||
| Increase (decrease) for excluded items: | |||||||||
| Amortization of purchased intangible assets | 145 | 144 | 581 | 588 | |||||
| Legal settlements and loss contingencies(1) | 164 | 123 | 473 | 761 | |||||
| Goodwill impairment(2) | - | 280 | - | 1,280 | |||||
| Impairment of long-lived assets(3) | 773 | 517 | 1,029 | 1,275 | |||||
| Restructuring costs(4) | 29 | 22 | 225 | 74 | |||||
| Equity compensation | 51 | 34 | 157 | 123 | |||||
| Contingent consideration(5) | 8 | (2) | 54 | 303 | |||||
| Loss (Gain) on sale of business | 4 | 6 | 22 | (15) | |||||
| Accelerated depreciation | 9 | 5 | 21 | 13 | |||||
| Financial expenses | 11 | 13 | 69 | 49 | |||||
| Items attributable to non-controlling interests(3) | - | (63) | 2 | (339) | |||||
| Other non-GAAP items(6) | 49 | 67 | 186 | 229 | |||||
| Corresponding tax effects and unusual tax items(7) | (594) | (114) | (819) | 157 | |||||
| Non-GAAP net income attributable to Teva | ($) | 1,130 | 816 | ($) | 3,411 | 2,860 | |||
| Non-GAAP tax rate(8) | |||||||||
| GAAP diluted earnings (loss) per share attributable to Teva | ($) | 0.41 | (0.19) | ($) | 1.21 | (1.45) | |||
| EPS difference(9) | 0.55 | 0.90 | 1.72 | 3.94 | |||||
| Non-GAAP diluted EPS attributable to Teva(9) | ($) | 0.96 | 0.71 | ($) | 2.93 | 2.49 | |||
| Non-GAAP average number of shares (in millions)(9) | 1,173 | 1,157 | 1,163 | 1,150 | |||||
| (1) | For the forth quarter of 2025, adjustments of legal settlements and loss contingencies mainly consisted of | ||||||||
| (2) | During the fourth quarter of 2024 a goodwill impairment charge of | ||||||||
| (3) | Adjustments for impairment of long-lived assets in the fourth quarter of 2025 primarily consisted of | ||||||||
| (4) | In 2025, Teva recorded | ||||||||
| (5) | Adjustments in 2024 primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®) of | ||||||||
| (6) | Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, certain inventory write-offs, material litigation fees and other unusual events. | ||||||||
| (7) | Adjustments for corresponding tax effects and unusual tax items in the fourth quarter and year ended december 2025 include an income tax item in an amount of | ||||||||
| (8) | Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above. | ||||||||
| (9) | EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares. | ||||||||
| Reconciliation of gross profit (loss) to Non-GAAP gross profit (loss) | ||||||||
| Unaudited | ||||||||
| Three months ended | Year ended | |||||||
| December 31, | December 31, | |||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | ||||
| GAAP gross profit | ($) | 2,656 | 2,120 | ($) | 8,938 | 8,064 | ||
| GAAP gross profit margin | ||||||||
| Increase (decrease) for excluded items:(1) | ||||||||
| Amortization of purchased intangible assets | 135 | 135 | 541 | 543 | ||||
| Costs related to regulatory actions taken in facilities | 5 | 3 | 6 | 8 | ||||
| Equity compensation | 7 | 5 | 24 | 23 | ||||
| Accelerated Depreciation | 9 | 5 | 20 | 13 | ||||
| Other non-GAAP items | 28 | 51 | 117 | 164 | ||||
| Non-GAAP gross profit | ($) | 2,840 | 2,319 | ($) | 9,647 | 8,814 | ||
| Non-GAAP gross profit margin(2) | ||||||||
| (1)For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | ||||||||
| (2)Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue. | ||||||||
| Reconciliation of net income (loss) to adjusted EBITDA | ||||||||
| Unaudited | ||||||||
| Three months ended | Year ended, | |||||||
| December 31, | December 31, | |||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | ||||
| Net income (loss) | $ | 481 | (275) | $ | 1,418 | (1,959) | ||
| Increase (decrease) for excluded items:(1) | ||||||||
| Financial expenses | 220 | 218 | 934 | 981 | ||||
| Income taxes | (389) | 29 | (180) | 676 | ||||
| Share in profits (losses) of associated companies –net | (11) | (1) | (15) | (1) | ||||
| Depreciation | 114 | 119 | 421 | 465 | ||||
| Amortization | 145 | 144 | 581 | 588 | ||||
| EBITDA | 560 | 235 | 3,159 | 750 | ||||
| Legal settlements and loss contingencies | 164 | 123 | 473 | 761 | ||||
| Goodwill impairment | - | 280 | - | 1,280 | ||||
| Impairment of long lived assets | 773 | 517 | 1,029 | 1,275 | ||||
| Restructuring costs | 29 | 22 | 225 | 74 | ||||
| Equity compensation | 51 | 34 | 157 | 123 | ||||
| Contingent consideration | 8 | (2) | 54 | 303 | ||||
| Loss (Gain) on sale of Business | - | 6 | - | (15) | ||||
| Other non-GAAP items | 53 | 67 | 208 | 229 | ||||
| Adjusted EBITDA | $ | 1,637 | 1,282 | $ | 5,305 | 4,781 | ||
| (1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | ||||||||
| Reconciliation of operating income (loss) to Non-GAAP operating income (loss) | |||||||||
| Unaudited | |||||||||
| Three months ended | Year ended, | ||||||||
| December 31, | December 31, | ||||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | |||||
| Operating income (loss) | ($) | 300 | (29) | ($) | 2,157 | (303) | |||
| Operating margin | ( | ( | |||||||
| Increase (decrease) for excluded items:(1) | |||||||||
| Amortization of purchased intangible assets | 145 | 144 | 581 | 588 | |||||
| Legal settlements and loss contingencies | 164 | 123 | 473 | 761 | |||||
| Goodwill impairment | - | 280 | - | 1,280 | |||||
| Impairment of long-lived assets | 773 | 517 | 1,029 | 1,275 | |||||
| Restructuring costs | 29 | 22 | 225 | 74 | |||||
| Equity compensation | 51 | 34 | 157 | 123 | |||||
| Contingent consideration | 8 | (2) | 54 | 303 | |||||
| Loss (gain) on sale of business | 4 | 6 | 22 | (15) | |||||
| Accelerated depreciation | 9 | 5 | 21 | 13 | |||||
| Other non-GAAP items | 49 | 67 | 186 | 229 | |||||
| Non-GAAP operating income (loss) | ($) | 1,532 | 1,168 | ($) | 4,905 | 4,329 | |||
| Non-GAAP operating margin(2) | ($) | ($) | |||||||
| (1)For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table. | |||||||||
| (2)Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues. | |||||||||
| Segment Information | |||||||||||||||||
| Unaudited | |||||||||||||||||
| United States | Europe | International Markets | |||||||||||||||
| Three months ended December 31, | Three months ended December 31, | Three months ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
| Revenues | $ | 2,643 | $ | 1,975 | $ | 1,314 | $ | 1,353 | $ | 528 | $ | 661 | |||||
| Cost of sales | 820 | 877 | 606 | 561 | 281 | 315 | |||||||||||
| Gross profit | 1,823 | 1,097 | 708 | 792 | 247 | 346 | |||||||||||
| R&D expenses | 166 | 158 | 65 | 56 | 27 | 27 | |||||||||||
| S&M expenses | 341 | 260 | 250 | 221 | 121 | 137 | |||||||||||
| G&A expenses | 135 | 109 | 84 | 75 | 40 | 42 | |||||||||||
| Other | § | 1 | 1 | 2 | (11) | (1) | |||||||||||
| Segment profit* | $ | 1,181 | $ | 569 | $ | 308 | $ | 438 | $ | 70 | $ | 141 | |||||
| * Segment profit does not include amortization and certain other items. | |||||||||||||||||
| § Represents an amount less than | |||||||||||||||||
| Segment Information | |||||||||||||||||
| Unaudited | |||||||||||||||||
| United States | Europe | International Markets | |||||||||||||||
| Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
| Revenues | $ | 9,186 | $ | 8,034 | $ | 5,040 | $ | 5,103 | $ | 2,162 | $ | 2,463 | |||||
| Cost of sales | 3,568 | 3,646 | 2,293 | 2,197 | 1,116 | 1,229 | |||||||||||
| Gross profit | 5,618 | 4,388 | 2,747 | 2,905 | 1,046 | 1,235 | |||||||||||
| R&D expenses | 633 | 633 | 247 | 229 | 103 | 112 | |||||||||||
| S&M expenses | 1,172 | 1,049 | 902 | 826 | 475 | 534 | |||||||||||
| G&A expenses | 458 | 410 | 295 | 272 | 147 | 150 | |||||||||||
| Other income | § | § | 1 | 3 | (14) | (2) | |||||||||||
| Segment profit | $ | 3,356 | $ | 2,296 | $ | 1,303 | $ | 1,575 | $ | 336 | $ | 440 | |||||
| * Segment profit does not include amortization and certain other items. | |||||||||||||||||
| § Represents an amount less than | |||||||||||||||||
| Reconciliation of our segment profit | ||||||
| to consolidated income (loss) before income taxes | ||||||
| Unaudited | ||||||
| Three months ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| (U.S.$ in millions) | ||||||
| United States profit | $ | 1,181 | $ | 569 | ||
| Europe profit | 308 | 438 | ||||
| International Markets profit | 70 | 141 | ||||
| Total reportable segment profit | 1,559 | 1,148 | ||||
| Profit (loss) of other activities | (27) | 19 | ||||
| Amounts not allocated to segments: | ||||||
| Amortization | 145 | 144 | ||||
| Other asset impairments, restructuring and other items | 778 | 458 | ||||
| Goodwill impairment | - | 280 | ||||
| Intangible asset impairments | 32 | 81 | ||||
| Legal settlements and loss contingencies | 164 | 123 | ||||
| Other unallocated amounts | 112 | 110 | ||||
| Consolidated operating income (loss) | 300 | (29) | ||||
| Financial expenses - net | 220 | 218 | ||||
| Consolidated income (loss) before income taxes | $ | 80 | $ | (247) | ||
| Reconciliation of our segment profit | ||||||
| to consolidated income (loss) before income taxes | ||||||
| Unaudited | ||||||
| Year ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| (U.S.$ in millions) | ||||||
| United States profit | $ | 3,356 | $ | 2,296 | ||
| Europe profit | 1,303 | 1,575 | ||||
| International Markets profit | 336 | 440 | ||||
| Total reportable segment profit | 4,995 | 4,311 | ||||
| Profit (loss) of other activities | (90) | 18 | ||||
| Amounts not allocated to segments: | ||||||
| Amortization | 581 | 588 | ||||
| Other asset impairments, restructuring and other items | 1,050 | 1,388 | ||||
| Goodwill impairment | - | 1,280 | ||||
| Intangible asset impairments | 259 | 251 | ||||
| Legal settlements and loss contingencies | 473 | 761 | ||||
| Other unallocated amounts | 384 | 364 | ||||
| Consolidated operating income (loss) | 2,157 | (303) | ||||
| Financial expenses - net | 934 | 981 | ||||
| Consolidated income (loss) before income taxes | $ | 1,223 | $ | (1,284) | ||
| Segment revenues by major products and activities | ||||||||
| Unaudited | ||||||||
| Three months ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| United States segment | ||||||||
| Generic products (including biosimilars) | $ | 673 | $ | 674 | § | |||
| AJOVY | 105 | 63 | ||||||
| AUSTEDO | 725 | 518 | ||||||
| BENDEKA/TREANDA | 35 | 41 | ( | |||||
| COPAXONE | 77 | 63 | ||||||
| UZEDY | 55 | 43 | ||||||
| Anda | 366 | 402 | ( | |||||
| Other* | 608 | 171 | ||||||
| Total | 2,643 | 1,975 | ||||||
| *Other revenues in the fourth quarter of 2025 were mainly comprised of development milestone payments of | ||||||||
| Three months ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| Europe segment | ||||||||
| Generic products (including biosimilars) | $ | 1,033 | $ | 979 | ||||
| AJOVY | 76 | 58 | ||||||
| COPAXONE | 45 | 50 | ( | |||||
| Respiratory products | 65 | 61 | ||||||
| Other* | 96 | 205 | ( | |||||
| Total | 1,314 | 1,353 | ( | |||||
| *Other revenues in the fourth quarter of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Three months ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| International Markets segment | ||||||||
| Generic products (including biosimilars) | $ | 422 | $ | 497 | ( | |||
| AJOVY | 30 | 22 | ||||||
| AUSTEDO | 9 | 7 | ||||||
| COPAXONE | 6 | 9 | ( | |||||
| Other* | 60 | 126 | ( | |||||
| Total | 528 | 661 | ( | |||||
| *Other revenues in the fourth quarter of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Segment revenues by major products and activities | ||||||||
| Audited | ||||||||
| Year ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S.$ in millions) | ||||||||
| United States segment | ||||||||
| Generic products (including biosimilars) | $ | 3,657 | $ | 3,599 | ||||
| AJOVY | 295 | 207 | ||||||
| AUSTEDO | 2,217 | 1,642 | ||||||
| BENDEKA / TREANDA | 147 | 168 | ( | |||||
| COPAXONE | 255 | 242 | ||||||
| UZEDY | 191 | 117 | ||||||
| Anda | 1,496 | 1,536 | ( | |||||
| Other* | 929 | 523 | ||||||
| Total | 9,186 | 8,034 | ||||||
| * Other revenues in 2025 were mainly comprised of development milestone payments of | ||||||||
| Year ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S.$ in millions) | ||||||||
| Europe segment | ||||||||
| Generic products (including biosimilars) | $ | 4,044 | $ | 3,926 | ||||
| AJOVY | 270 | 216 | ||||||
| COPAXONE | 181 | 213 | ( | |||||
| Respiratory products | 227 | 244 | ( | |||||
| Other* | 319 | 504 | ( | |||||
| Total | 5,040 | 5,103 | ( | |||||
| *Other revenues in 2025 and 2024 include the sale of certain product rights. | ||||||||
| Year ended | ||||||||
| December 31, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S.$ in millions) | ||||||||
| International Markets segment | ||||||||
| Generic products (including biosimilars) | $ | 1,721 | $ | 1,937 | ( | |||
| AJOVY | 108 | 84 | ||||||
| Austedo | 43 | 46 | ( | |||||
| COPAXONE | 32 | 48 | ( | |||||
| Other* | 259 | 349 | ( | |||||
| Total | 2,162 | 2,463 | ( | |||||
| *Other revenues in 2025 and 2024 include the sale of certain product rights. | ||||||||
| Free cash flow reconciliation | |||||
| Unaudited | |||||
| Three months ended December 31, | |||||
| 2025 | 2024 | ||||
| (U.S. $ in millions) | |||||
| Net cash provided by (used in) operating activities | 1,158 | 575 | |||
| Beneficial interest collected in exchange for securitized account receivables | 282 | 340 | |||
| Purchases of property, plant and equipment and intangible assets | (142) | (129) | |||
| Proceeds from divestitures of businesses and other assets | - | 4 | |||
| Free cash flow | $ | 1,298 | $ | 790 | |
| Free cash flow reconciliation | |||||
| Audited | |||||
| Year ended December 31 | |||||
| 2025 | 2024 | ||||
| (U.S. $ in millions) | |||||
| Net cash provided by (used in) operating activities | 1,649 | 1,247 | |||
| Beneficial interest collected in exchange for securitized account receivables | 1,214 | 1,291 | |||
| Purchases of property, plant and equipment and intangible assets | (501) | (498) | |||
| Acquisition of businesses, net of cash acquired | - | (15) | |||
| Proceeds from divestitures of businesses and other assets | 34 | 43 | |||
| Free cash flow | $ | 2,396 | - | $ | 2,068 |
| Net debt reconciliation | |||||
| Audited | |||||
| Year ended December 31, | |||||
| 2025 | 2024 | ||||
| (U.S. $ in millions) | |||||
| Short-term debt | 1,820 | 1,781 | |||
| Senior notes and loans | 14,986 | 16,002 | |||
| Total debt | 16,807 | 17,783 | |||
| Net of cash and cash equivalents | 3,556 | 3,300 | |||
| Net debt | $ | 13,251 | - | $ | 14,482 |
FAQ
What were TEVA's full-year 2025 revenues and growth rate?
How did TEVA's key innovative brands perform in 2025 (TEVA)?
What is TEVA's 2026 financial outlook and its implications for shareholders?
What material cash and capital actions did TEVA complete in 2025 (TEVA)?
What pipeline and regulatory milestones did TEVA announce for 2025–2026 (TEVA)?
