Teva's Innovative Portfolio Drives 11th Consecutive Quarter of Growth in Q3 2025; Increases 2025 Outlook for Austedo® and Non-GAAP EPS
Rhea-AI Summary
Teva (NYSE: TEVA) reported Q3 2025 revenues of $4.5 billion, marking the 11th consecutive quarter of growth. Key innovative brands grew 33% YoY in local currency to $830 million, led by AUSTEDO $618M (+38% LC), and Teva raised AUSTEDO's 2025 outlook to $2,050M–$2,150M. Q3 non-GAAP operating margin was 28.9% (+86 bps YoY), with a target of 30% by 2027. Q3 GAAP EPS was $0.37 and non-GAAP EPS $0.78. Free cash flow was $515M. Updated 2025 outlook: revenues $16.8B–$17.0B, non-GAAP EPS $2.55–$2.65.
Positive
- Innovative brands revenue +33% YoY in local currency to $830 million
- AUSTEDO revenue $618 million, +38% YoY in local currency
- AUSTEDO 2025 outlook raised to $2,050M–$2,150M (+$50M–$100M)
- Non-GAAP operating margin 28.9% (+86 bps YoY), on track to 30% by 2027
- Free cash flow of $515 million in Q3 2025
Negative
- Europe segment revenue down 10% in local currency in Q3 2025
- International Markets revenue down 10% in local currency in Q3 2025
- Company tightened high-end 2025 revenue guidance by $200 million
- Exclusive discussions to sell TAPI ended; renewed sales process to start
News Market Reaction
On the day this news was published, TEVA gained 20.23%, reflecting a significant positive market reaction. Argus tracked a peak move of +17.4% during that session. Our momentum scanner triggered 100 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $4.82B to the company's valuation, bringing the market cap to $28.67B at that time. Trading volume was very high at 4.3x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
For an accessible version of this Press Release, please visit www.tevapharm.com
- Teva reports revenues of
$4.5 billion in the third quarter of 2025, an increase of3% year-over-year (YoY) in U.S. dollars or1% in local currency (LC). Excluding Japan BV in Q3 2024, revenues increased5% in U.S. dollars or3% in LC. United States segment increased by12% ; Europe segment decreased by10% in LC; and International Markets segment decreased by10% in LC, or increased by2% in LC excluding Japan BV in Q3 2024, all compared to the third quarter of 2024. - GAAP operating income margin of
19.7% and non-GAAP operating income margin of28.9% (+86 bps YoY), driven by our key innovative brands’ growth. On track for non-GAAP operating profit margin target of30% by 2027, in line with our Pivot to Growth Strategy. - Key Innovative brands continue to drive growth, with revenues +
33% YoY in LC to$830 million , and to provide value to diverse and critical patient populations:
-
- AUSTEDO® – shows continued strong growth with global revenues of
$618 million in Q3 2025 (+38% in LC YoY); led by U.S. revenue growth (+38% YoY). Increasing AUSTEDO 2025 revenue outlook by$50 million -$100 million to a new range of$2,050 million -$2,150 million .- Inflation Reduction Act (IRA) price-setting reinforces confidence in our long-term outlook; on track for 2027 revenue target of >
$2.5 billion and beyond 2027 peak year revenue target of >$3 billion .
- Inflation Reduction Act (IRA) price-setting reinforces confidence in our long-term outlook; on track for 2027 revenue target of >
- AJOVY® – global revenues of
$168 million (+19% LC YoY). Reaffirming 2025 revenue outlook of$630 million -$640 million . - UZEDY® – revenues of
$43 million (+24% YoY). Reaffirming 2025 revenue outlook of$190 million -$200 million and long-term LAI schizophrenia franchise expectations of$1.5 billion -$2.0 billion , including olanzapine LAI, subject to regulatory approvals.
- AUSTEDO® – shows continued strong growth with global revenues of
- Generics portfolio shows stable growth:
-
- Global generics increased by
2% year-over-year in the third quarter of 2025 in LC excluding Japan BV in Q3 2024; launch of liraglutide injection (the generic version of Saxenda®), the first-ever generic GLP-1 treatment for weight loss, strengthening Teva’s complex generics portfolio.- Biosimilars strategic portfolio shows strong growth, with revenues on track for 2027 expectations, subject to regulatory product approvals.
- Global generics increased by
- Innovative pipeline achieves key milestones:
- Phase 3 SOLARIS clinical trial data for olanzapine LAI (TEV-‘749) as a treatment for schizophrenia showing no PDSS(1) cases (link).
- emrusolmin (TEV-’286) receiving U.S. FDA ‘Fast Track’ designation for Multiple System Atrophy (link).
- Phase 3 programs for duvakitug (anti-TL1A) in ulcerative colitis (UC) and Crohn’s disease (CD) initiated by Sanofi and Teva in October 2025.
- 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. We are on track to achieving our targeted savings for 2025. - Exclusive discussions with selected buyer on TAPI sale have terminated; Teva to initiate a renewed sales process, maintaining strategic intention to divest.
Q3 2025 Highlights:
- Revenues of
$4.5 billion - GAAP diluted EPS of
$0.37 - Non-GAAP diluted EPS of
$0.78 - Cash flow generated from operating activities of
$369 million - Free cash flow of
$515 million - Updating full-year outlook(2)(3):
- Revenues of
$16.8 billion ‐$17.0 billion (tightening high-end of the range by -$200 million versus our prior expectations) - Non‐GAAP operating income of
$4.4 billion ‐$4.6 billion (+$100 million at the low-end; mid-point increased by$50 million ) - Adjusted EBITDA of
$4.8 billion ‐$5.0 billion (+$100 million at the low-end; mid-point increased by$50 million ) - Non‐GAAP diluted EPS of
$2.55 ‐$2.65 (+$0.05 at the low-end, mid-point increased by$0.02 5) - Free cash flow of
$1.6 billion ‐$1.9 billion (unchanged)
- Revenues of
1 PDSS = post-injection delirium/sedation syndrome
2 Revised 2025 outlook includes no contribution from the Japan BV after Q1 2025 and continues to include a full year contribution from TAPI, as well as exclude the expected income from development milestone payments from Sanofi in connection with the duvakitug Phase 3 study initiation for ulcerative colitis and Crohn’s disease. Japan BV revenues were
3 This outlook is based on the existing tariff and trade environment as of November 5, 2025.
TEL AVIV, Israel, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results for the quarter ended September 30, 2025.
Mr. Richard Francis, Teva's President and CEO, said, “Our innovative portfolio driving the 11th consecutive quarter of growth in the third quarter reflects the accelerating momentum of our transformation and the strength of our innovation-led Pivot to Growth strategy. Our key growth drivers—particularly our innovative medicines—delivered a
Mr. Francis added, “Following the conclusion of the IRA pricing negotiations, we are reiterating our strong confidence in our AUSTEDO 2027 target. Our differentiated innovative portfolio is now a defining strength for Teva as we transform into a leading innovative biopharma, while our world-class generics business continues to provide a resilient foundation. With our talented team and unwavering commitment to patients, we are confident about Teva’s future and our ability to deliver enduring value to all our stakeholders.”
Pivot to Growth Strategy
In the third quarter of 2025, we continued to execute on the four key pillars of our “Pivot to Growth” strategy, announced in May 2023. As part of this strategy, in the second quarter of 2025 Teva entered its "Accelerate Growth" phase, during which we expect to focus on growing our innovative portfolio, aligning capital allocation to invest in activities we expect to have the highest value, and modernizing our organization and operations to drive both efficiency and cost savings.
- Delivering on our Growth Engines - on the first pillar, our key innovative brands – AUSTEDO, AJOVY and UZEDY – continued to demonstrate strong performance. Collectively, these products grew ~
33% in Q3 2025 YoY in local currency. For AUSTEDO, we are raising the 2025 revenue outlook by$50 million -$100 million to a new range of$2,050 million -$2,150 million . For AJOVY and UZEDY, we are reaffirming our previous outlooks of$630 million -$640 million and$190 million -$200 million , respectively. The conclusion of the IRA pricing negotiations reinforces confidence in our long-term outlook for AUSTEDO. We are on track for our 2027 revenue target of >$2.5 billion for AUSTEDO and peak year revenue target of >$3 billion . During the third quarter of 2025, the FDA approved an expansion of AJOVY's indication, to include its use as an anti-CGRP preventive treatment for pediatric episodic migraine in patients aged 6 to17 years who weigh 45 kg or more. This approval marks an important step in Teva’s efforts to advance care for neurological conditions. - Stepping Up Innovation - on the second pillar, we continued to accelerate the development of certain key pipeline assets. For olanzapine LAI, we presented new long-term safety data from the SOLARIS Trial with no PDSS observed and anticipate filing its New Drug Application (NDA) in Q4 2025. Teva’s investigational therapy emrusolmin (TEV-56286) received U.S. FDA Fast Track designation for the treatment of Multiple System Atrophy (MSA), a rare and progressive neurodegenerative disease with no approved treatments to slow its progression —another step forward in Teva’s commitment to advancing innovative neuroscience therapies. Phase 3 programs for duvakitug (anti-TL1A) in UC and CD were initiated by Sanofi and Teva in October 2025; on track to achieve target enrollment levels in the adult and pediatric populations for DARI’s (Dual-action Asthma Rescue Inhaler) Phase 3 trial at the end of 2025.
- Sustaining Our Generics Powerhouse - on the third pillar, we remain focused on strengthening our world-class global generics business with a streamlined portfolio of high-value complex generics and biosimilars, a robust pipeline, and an integrated global manufacturing and commercial footprint. In the U.S., we received FDA approval and launched liraglutide injection (the generic version of Saxenda®), the first-ever generic GLP-1 treatment indicated for weight loss. This milestone strengthens Teva’s complex generics portfolio, expanding access to effective weight management options for adults and adolescents. Our recently launched biosimilars – SIMLANDI® (adalimumab-ryvk), SELARSDITM (ustekinumab-aekn) and EPYSQLI® (eculizumab-aagh) – continue to grow as does our legacy biosimilar portfolio.
- Focusing our Business - Lastly, on the fourth pillar, to accelerate our growth, 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. We are on track to achieving our targeted savings for 2025. - Teva continues in its effort to sell its active-pharmaceutical ingredient (API) business. Exclusive discussions with a selected buyer on the sale have terminated. Teva is initiating a renewed sales process, maintaining its strategic intention to divest its API business. On December 31, 2024, Teva classified the business (including its R&D, manufacturing and commercial activities) as held for sale.
Third Quarter 2025 Consolidated Results
Revenues in the third quarter of 2025 were
Exchange rate movements during the third quarter of 2025, net of hedging effects, positively impacted revenues by
Exchange rate movements during the third quarter of 2025, including hedging effects, had a positive impact of
Gross profit in the third quarter of 2025 was
Research and Development (R&D) expenses, net in the third quarter of 2025 were
Selling and Marketing (S&M) expenses in the third quarter of 2025 were
General and Administrative (G&A) expenses in the third quarter of 2025 were
Other loss in the third quarter of 2025 was
Operating income in the third quarter of 2025 was
Financial expenses, net in the third quarter of 2025 were
In the third quarter of 2025, we recognized a tax expense of
Non-GAAP tax rate in the third quarter of 2025 was
We expect our annual non-GAAP tax rate for 2025 to be between
Net income attributable to Teva and diluted earnings per share in the third quarter of 2025 were
Adjusted EBITDA was
As of September 30, 2025 and 2024, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,184 million shares and 1,167 million shares, respectively.
Non-GAAP information: non-GAAP adjustments for non-GAAP net income attributable to Teva and non-GAAP diluted EPS in the third quarter of 2025 were
- Amortization of purchased intangible assets of
$144 million , of which$134 million is included in cost of sales and the remaining$10 million in S&M expenses; - Impairment of long-lived assets of
$79 million ; - Legal settlements and loss contingencies of
$60 million ; - Contingent consideration expenses of
$16 million ; - Equity compensation expenses of
$34 million ; - Restructuring expenses of
$29 million ; - Financial expenses of
$7 million ; - Other non-GAAP items of
$51 million ; and - Corresponding tax effects and unusual tax items of
$58 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 during the third quarter of 2025 was
During the third quarter of 2025, we generated free cash flow of
As of September 30, 2025, our debt was
Segment Results for the Third Quarter of 2025
United States Segment
The following table presents revenues, expenses and profit for our United States segment for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, | ||||||
| 2025 | 2024 | |||||
| (U.S. $ in millions / % of Segment Revenues) | ||||||
| Revenues | $ | 2,483 | $ | 2,225 | ||
| Cost of sales | 996 | 960 | ||||
| Gross profit | 1,486 | 1,265 | ||||
| R&D expenses | 161 | 151 | ||||
| S&M expenses | 278 | 259 | ||||
| G&A expenses | 114 | 107 | ||||
| Other | (3) | § | § | § | ||
| Segment profit* | $ | 937 | $ | 748 | ||
| * Segment profit does not include amortization and certain other items. § Represents an amount less than | ||||||
Revenues from our United States segment in the third 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 September 30, 2025 and 2024:
| Three months ended September 30, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S. $ in millions) | ||||||||
| Generic products (including biosimilars) | $ | 1,175 | $ | 1,094 | ||||
| AJOVY | 73 | 58 | ||||||
| AUSTEDO | 601 | 435 | ||||||
| BENDEKA® and TREANDA® | 35 | 40 | ( | |||||
| COPAXONE | 62 | 69 | ( | |||||
| UZEDY | 43 | 35 | ||||||
| Anda | 392 | 380 | ||||||
| Other | 101 | 115 | ( | |||||
| Total | $ | 2,483 | $ | 2,225 | ||||
Generic products (including biosimilars) revenues in our United States segment in the third quarter of 2025 were
Among the most significant generic products we sold in the United States in the third quarter of 2025 were lenalidomide capsules (the generic version of Revlimid®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®) and Truxima® (the biosimilar to Rituxan®). In the third quarter of 2025, our total prescriptions were approximately 261 million (based on trailing twelve months), representing
AJOVY revenues in our United States segment in the third quarter of 2025 were
AUSTEDO revenues (which include AUSTEDO XR®) in our United States segment in the third quarter of 2025 were
During the third quarter of 2025, Teva and the Centers for Medicare and Medicaid Services (“CMS”) negotiated a maximum fair price for the AUSTEDO products, based on CMS’s list of prescription medicines selected for price-setting discussions, in which they were originally included. The agreement is expected to be announced by CMS in November 2025. The revised prices set by the U.S. Government, will become effective January 1, 2027 and will apply to eligible Medicare patients.
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 a 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, in addition to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041.
UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the third quarter of 2025 were
BENDEKA and TREANDA combined revenues in our United States segment in the third quarter of 2025 were
COPAXONE revenues in our United States segment in the third quarter of 2025 were
Anda revenues from third-party products in our United States segment in the third quarter of 2025 were
United States Gross Profit
Gross profit from our United States segment in the third quarter of 2025 was
Gross profit margin for our United States segment in the third 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 third 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 September 30, 2025 and 2024:
| Three months ended September 30, | ||||||
| 2025 | 2024 | |||||
| (U.S. $ in millions / % of Segment Revenues) | ||||||
| Revenues | $ | 1,235 | $ | 1,265 | ||
| Cost of sales | 570 | 566 | ||||
| Gross profit | 665 | 698 | ||||
| R&D expenses | 62 | 55 | ||||
| S&M expenses | 225 | 203 | ||||
| G&A expenses | 75 | 67 | ||||
| Other | § | § | 1 | § | ||
| Segment profit* | $ | 303 | $ | 373 | ||
| * Segment profit does not include amortization and certain other items. § Represents an amount less than | ||||||
Revenues from our Europe segment in the third quarter of 2025 were
In the third 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 September 30, 2025 and 2024:
| Three months ended September 30, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S. $ in millions) | ||||||||
| Generic products (including OTC and biosimilars) | $ | 982 | $ | 973 | ||||
| AJOVY | 66 | 56 | ||||||
| COPAXONE | 44 | 53 | ( | |||||
| Respiratory products | 52 | 60 | ( | |||||
| Other* | 91 | 124 | ( | |||||
| Total | $ | 1,235 | $ | 1,265 | ( | |||
| *Other revenues in the third 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 third quarter of 2025 were
AJOVY revenues in our Europe segment in the third quarter of 2025 increased by
COPAXONE revenues in our Europe segment in the third quarter of 2025 were
Respiratory products revenues in our Europe segment in the third quarter of 2025 were
Europe Gross Profit
Gross profit from our Europe segment in the third quarter of 2025 was
Gross profit margin for our Europe segment in the third 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 third 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.
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, | ||||||
| 2025 | 2024 | |||||
| (U.S. $ in millions / % of Segment Revenues) | ||||||
| Revenues | $ | 557 | $ | 613 | ||
| Cost of sales | 280 | 307 | ||||
| Gross profit | 278 | 306 | ||||
| R&D expenses | 26 | 27 | ||||
| S&M expenses | 122 | 134 | ||||
| G&A expenses | 36 | 36 | ||||
| Other | § | § | § | § | ||
| Segment profit* | $ | 95 | $ | 109 | ||
| * Segment profit does not include amortization and certain other items. § Represents an amount less than | ||||||
Revenues from our International Markets segment in the third quarter of 2025 were
In the third 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 September 30, 2025 and 2024:
| Three months ended September 30, | Percentage Change | |||||||
| 2025 | 2024 | 2025-2024 | ||||||
| (U.S. $ in millions) | ||||||||
| Generic products (including OTC and biosimilars) | $ | 421 | $ | 477 | ( | |||
| AJOVY | 30 | 24 | ||||||
| AUSTEDO | 17 | 13 | ||||||
| COPAXONE | 8 | 13 | ( | |||||
| Other* | 82 | 86 | ( | |||||
| Total | $ | 557 | $ | 613 | ( | |||
| *Other revenues in the third 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 was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the third quarter of 2025 were
AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China with Jiangsu Nhwa Hexin Pharmaceutical Marketing Co., Ltd. In April 2025, AUSTEDO received marketing authorization in South Korea. We continue to pursue additional submissions in various other markets.
AUSTEDO revenues in our International Markets segment in the third quarter of 2025 were
COPAXONE revenues in our International Markets segment in the third quarter of 2025 were
International Markets Gross Profit
Gross profit from our International Markets segment in the third quarter of 2025 was
Gross profit margin for our International Markets segment in the third 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 third 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.
On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. As of the date of this Press Release, exclusive discussions with a selected buyer on the sale have terminated. Teva is initiating a renewed sales process, maintaining its strategic intention to divest its API business. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all.
Revenues from other activities in the third quarter of 2025 were
API sales to third parties in the third quarter of 2025 were
Outlook for 2025 Non-GAAP Results
| $ billions, except EPS or as noted | January 2025 | May 2025 | July 2025 | November 2025 | |||
| Revenues* | |||||||
| AUSTEDO ($m)* | 1,900-2,050 | 1,950-2,050 | 2,000-2,050 | 2,050-2,150 | |||
| AJOVY ($m)* | ~600 | ~600 | 630-640 | 630-640 | |||
| UZEDY ($m)* | ~160 | ~160 | 190-200 | 190-200 | |||
| COPAXONE ($m)* | ~370 | ~370 | ~370 | ~370 | |||
| Operating Income | 4.1 - 4.6 | 4.3 - 4.6 | 4.3 - 4.6 | 4.4 - 4.6 | |||
| Adjusted EBITDA | 4.5 - 5.0 | 4.7 - 5.0 | 4.7 - 5.0 | 4.8 - 5.0 | |||
| Tax Rate | |||||||
| Finance Expenses | ~0.9 | ~0.9 | ~0.9 | ~0.9 | |||
| Diluted EPS ($) | 2.35 - 2.65 | 2.45 - 2.65 | 2.50 - 2.65 | 2.55 - 2.65 | |||
| Free Cash Flow** | 1.6 – 1.9 | 1.6 – 1.9 | 1.6 – 1.9 | 1.6 – 1.9 | |||
| CAPEX* | ~0.5 | ~0.5 | ~0.5 | ~0.5 | |||
| Foreign Exchange | Volatile swings in FX can negatively impact revenue and income | ||||||
| * Revenues and CAPEX presented on a GAAP basis. ** 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. | |||||||
Conference Call
Teva will host a conference call and live webcast along with a slide presentation on Wednesday, November 5, 2025 at 8:00 a.m. ET to discuss its third quarter 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: www.tevapharm.com
Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website.
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 forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure 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. 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 additional costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical products; 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 the innovative medicines and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics 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, including any potential challenges to our Orange Book patent listings in the U.S.;
- 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; the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; effectiveness of our optimization efforts; significant disruptions of information technology systems, including cybersecurity attacks and breaches of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; any impact of a prolonged government shutdown; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism, such as the ongoing conflict 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 and changes; the effects of governmental and civil proceedings and litigation which we are, or in the future become, party to; the effects of reforms in healthcare regulation and 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 is expected to result in stricter Medicaid eligibility requirements and work requirements, which may result in reduced Medicaid enrollment and a resulting decline in coverage for purchases of our medicines, and 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; increased legal and regulatory action 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; product liability claims; 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 the impact of sustainability issues;
- other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our long-lived assets; the impact of geopolitical conflicts including in the Middle East and in Russia and Ukraine; 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; our exposure to changes in international trade policies, including the imposition of tariffs in the jurisdictions in which we operate, and the effects of such developments on sales of our products and the pricing and availability of our raw materials; and the impact of any future failure to establish and maintain effective internal control over our financial reporting;
and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the third quarter of 2025 and in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” 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 | Nine months ended | |||||||||
| September 30, | September 30, | |||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||
| Net revenues | 4,480 | 4,332 | 12,547 | 12,315 | ||||||
| Cost of sales | 2,176 | 2,183 | 6,264 | 6,372 | ||||||
| Gross profit | 2,304 | 2,148 | 6,282 | 5,943 | ||||||
| Research and development expenses | 256 | 240 | 746 | 751 | ||||||
| Selling and marketing expenses | 656 | 626 | 1,933 | 1,891 | ||||||
| General and administrative expenses | 317 | 298 | 920 | 859 | ||||||
| Intangible assets impairments | 64 | 28 | 227 | 169 | ||||||
| Goodwill impairment | - | 600 | - | 1,000 | ||||||
| Other asset impairments, restructuring and other items | 62 | (23) | 272 | 931 | ||||||
| Legal settlements and loss contingencies | 60 | 450 | 312 | 638 | ||||||
| Other loss (income) | 7 | (21) | 15 | (22) | ||||||
| Operating income (loss) | 882 | (51) | 1,857 | (274) | ||||||
| Financial expenses, net | 237 | 272 | 714 | 763 | ||||||
| Income (loss) before income taxes | 646 | (324) | 1,143 | (1,037) | ||||||
| Income taxes (benefit) | 214 | 69 | 210 | 648 | ||||||
| Share in (profits) losses of associated companies, net | (2) | (3) | (4) | (1) | ||||||
| Net income (loss) | 434 | (390) | 937 | (1,684) | ||||||
| Net income (loss) attributable to redeemable and non-redeemable non-controlling interests | 1 | 47 | 7 | (262) | ||||||
| Net income (loss) attributable to Teva | 433 | (437) | 930 | (1,422) | ||||||
| Earnings (loss) per share attributable to Teva: | Basic ($) | 0.38 | (0.39) | 0.81 | (1.26) | |||||
| Diluted ($) | 0.37 | (0.39) | 0.80 | (1.26) | ||||||
| Weighted average number of shares (in millions): | Basic | 1,147 | 1,133 | 1,144 | 1,130 | |||||
| Diluted | 1,164 | 1,133 | 1,160 | 1,130 | ||||||
| Non-GAAP net income attributable to Teva for diluted earnings per share:* | 910 | 798 | 2,281 | 2,043 | ||||||
| Non-GAAP earnings per share attributable to Teva:* | Diluted ($) | 0.78 | 0.69 | 1.97 | 1.78 | |||||
| Non-GAAP average number of shares (in millions): | Diluted | 1,164 | 1,155 | 1,160 | 1,148 | |||||
| Amounts may not add up due to rounding. | ||||||||||
| § Represents an amount less than | ||||||||||
| * See reconciliation attached. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (U.S. dollars in millions, except for share data) | ||||||||||
| (Unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
| 2025 | 2024 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 2,203 | $ | 3,300 | ||||||
| Accounts receivables, net of allowance for credit losses of | 3,810 | 3,059 | ||||||||
| Inventories | 3,323 | 3,007 | ||||||||
| Prepaid expenses | 1,115 | 1,006 | ||||||||
| Other current assets | 477 | 409 | ||||||||
| Assets held for sale | 1,809 | 1,771 | ||||||||
| Total current assets | 12,736 | 12,552 | ||||||||
| Deferred income taxes | 1,634 | 1,799 | ||||||||
| Other non-current assets | 444 | 462 | ||||||||
| Property, plant and equipment, net | 4,820 | 4,581 | ||||||||
| Operating lease right-of-use assets, net | 342 | 367 | ||||||||
| Identifiable intangible assets, net | 3,936 | 4,418 | ||||||||
| Goodwill | 15,945 | 15,147 | ||||||||
| Total assets | $ | 39,856 | $ | 39,326 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Short-term debt | $ | 24 | $ | 1,781 | ||||||
| Sales reserves and allowances | 4,134 | 3,678 | ||||||||
| Accounts payables | 2,355 | 2,203 | ||||||||
| Employee-related obligations | 561 | 624 | ||||||||
| Accrued expenses | 2,989 | 2,792 | ||||||||
| Other current liabilities | 1,103 | 1,020 | ||||||||
| Liabilities held for sale | 324 | 698 | ||||||||
| Total current liabilities | 11,491 | 12,796 | ||||||||
| Long-term liabilities: | ||||||||||
| Deferred income taxes | 399 | 483 | ||||||||
| Other taxes and long-term liabilities | 3,664 | 4,028 | ||||||||
| Senior notes and loans | 16,766 | 16,002 | ||||||||
| Operating lease liabilities | 283 | 296 | ||||||||
| Total long-term liabilities | 21,111 | 20,809 | ||||||||
| Total liabilities | 32,602 | 33,606 | ||||||||
| Redeemable non-controlling interests | - | 340 | ||||||||
| Equity: | ||||||||||
| Teva shareholders’ equity: | 7,250 | 5,373 | ||||||||
| Non-controlling interests | 4 | 7 | ||||||||
| Total equity | 7,254 | 5,380 | ||||||||
| Total liabilities and equity | $ | 39,856 | $ | 39,326 | ||||||
| Amounts may not add up due to rounding. | ||||||||||
| TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (U.S. dollars in millions) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Nine months ended | |||||||
| September 30, | September 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Operating activities: | ||||||||
| Net income (loss) | $ | 434 | (390) | $ | 937 | (1,684) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
| Depreciation and amortization | 249 | 259 | 742 | 790 | ||||
| Impairment of goodwill | - | 600 | - | 1,000 | ||||
| Impairment of long-lived assets and assets held for sale | 79 | (51) | 255 | 758 | ||||
| Net change in operating assets and liabilities | (561) | 317 | (1,595) | (190) | ||||
| Deferred income taxes – net and uncertain tax positions | 107 | (53) | (76) | (666) | ||||
| Stock-based compensation | 34 | 29 | 106 | 89 | ||||
| Other items* | 27 | 2 | 122 | 597 | ||||
| Net loss (gain) from sale of business and long-lived assets | - | (21) | - | (22) | ||||
| Net cash provided by (used in) operating activities | 369 | 693 | 491 | 672 | ||||
| Investing activities: | ||||||||
| Beneficial interest collected in exchange for securitized trade receivables | 274 | 339 | 932 | 951 | ||||
| Purchases of property, plant and equipment and intangible assets | (136) | (148) | (359) | (369) | ||||
| Proceeds from sale of business and long-lived assets, net | 8 | 38 | 34 | 39 | ||||
| Acquisition of businesses, net of cash acquired | - | - | - | (15) | ||||
| Purchases of investments and other assets . | (13) | (1) | (40) | (56) | ||||
| Proceeds from sale of investments | - | 40 | - | 40 | ||||
| Other investing activities | 2 | - | 5 | - | ||||
| Net cash provided by (used in) investing activities | 135 | 268 | 572 | 590 | ||||
| Financing activities: | ||||||||
| Repayment of senior notes and loans and other long-term liabilities | (444) | - | (4,112) | (956) | ||||
| Proceeds from senior notes, net of issuance costs | (7) | - | 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 | (2) | - | 1 | (19) | ||||
| Net cash provided by (used in) financing activities | (453) | - | (2,191) | (1,117) | ||||
| Translation adjustment on cash and cash equivalents | (9) | 100 | 31 | (53) | ||||
| Net change in cash and cash equivalents | 42 | 1,061 | (1,097) | 92 | ||||
| Balance of cash, cash equivalents at beginning of period | 2,161 | 2,258 | 3,300 | 3,227 | ||||
| Balance of cash, cash equivalents at end of period | $ | 2,203 | 3,319 | $ | 2,203 | 3,319 | ||
| Non-cash financing and investing activities: | ||||||||
| Beneficial interest obtained in exchange for securitized accounts receivables | $ | 296 | 332 | $ | 937 | 964 | ||
| *Adjustment in the three months period ended September 30, 2024 was mainly related to an agreement with the Israeli Tax Authorities. | ||||||||
| Amounts may not add up due to rounding. The accompanying notes are an integral part of the financial statements. | ||||||||
| Reconciliation of net income (loss) attributable to Teva | |||||||||
| to Non-GAAP net income (loss) attributable to Teva | |||||||||
| Three months ended | Nine months ended | ||||||||
| September 30, | September 30, | ||||||||
| ($ in millions except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||
| Net income (Loss) attributable to Teva | ($) | 433 | (437) | ($) | 930 | (1,422) | |||
| Increase (decrease) for excluded items: | |||||||||
| Amortization of purchased intangible assets | 144 | 146 | 436 | 444 | |||||
| Legal settlements and loss contingencies(1) | 60 | 450 | 309 | 638 | |||||
| Goodwill impairment(2) | - | 600 | - | 1,000 | |||||
| Impairment of long-lived assets(3) | 79 | (51) | 255 | 758 | |||||
| Restructuring costs(4) | 29 | 21 | 196 | 52 | |||||
| Equity compensation | 34 | 29 | 106 | 89 | |||||
| Contingent consideration(5) | 16 | 34 | 46 | 305 | |||||
| Loss (Gain) on sale of business | - | (20) | - | (21) | |||||
| Financial expenses | 7 | 11 | 58 | 35 | |||||
| Redeemable and non-redeemable non-controlling interests(6) | - | 41 | 2 | (276) | |||||
| Other non-GAAP items(7) | 51 | 57 | 167 | 170 | |||||
| Corresponding tax effects and unusual tax items(8) | 58 | (83) | (225) | 270 | |||||
| Non-GAAP net income attributable to Teva | ($) | 910 | 798 | ($) | 2,281 | 2,043 | |||
| Non-GAAP tax rate(9) | |||||||||
| GAAP diluted earnings (loss) per share attributable to Teva | ($) | 0.37 | (0.39) | ($) | 0.80 | (1.26) | |||
| EPS difference(10) | 0.41 | 1.08 | 1.16 | 3.04 | |||||
| Non-GAAP diluted EPS attributable to Teva(10) | ($) | 0.78 | 0.69 | ($) | 1.97 | 1.78 | |||
| Non-GAAP average number of shares (in millions)(10) | 1,164 | 1,155 | 1,160 | 1,148 | |||||
| (1) | For the third quarter of 2025, adjustments of legal settlements and loss contingencies mainly consisted of an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments) of | ||||||||
| (2) | Goodwill impairment charges of | ||||||||
| (3) | For the nine months ended September 30, 2025, the adjustment for impairment of long-lived assets was mainly related to products in the U.S. and Europe. For the nine months ended September 30, 2024, adjustments for impairment of long-lived assets and redeemable and non-redeemable non-controlling interests, primarily consisted of | ||||||||
| (4) | In the nine months ended September 30, 2025, Teva recorded | ||||||||
| (5) | Adjustments for the nine months ended September 30, 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) | For the nine months ended September 30, 2024, the redeemable and non-redeemable non-controlling interests portion of long-lived assets impairment related to the classification of our business venture in Japan as held for sale. | ||||||||
| (7) | Other non-GAAP adjustments include other exceptional items for which their exclusion is important to facilitate an understanding of trends in our financial results and primarily related to the rationalization of our plants, accelerated depreciation, certain inventory write-offs, material litigation fees and other unusual events. | ||||||||
| (8) | Adjustments for corresponding tax effects and unusual tax items exclusively consisted of the tax impact directly attributable to the pre-tax items that are excluded from non-GAAP net income included in the other adjustments to this table. | ||||||||
| (9) | 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. | ||||||||
| (10) | 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 to Non-GAAP gross profit | |||||||||
| (Unaudited) | |||||||||
| Three months ended | Nine months ended | ||||||||
| September 30, | September 30, | ||||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | |||||
| Gross profit | $ | 2,304 | 2,148 | $ | 6,282 | 5,943 | |||
| Gross profit margin | |||||||||
| Increase (decrease) for excluded items: (1) | |||||||||
| Amortization of purchased intangible assets | 134 | 136 | 406 | 409 | |||||
| Equity compensation | 6 | 5 | 17 | 17 | |||||
| Other non-GAAP items | 32 | 38 | 101 | 125 | |||||
| Non-GAAP gross profit | $ | 2,475 | 2,327 | $ | 6,807 | 6,495 | |||
| 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 operating income (loss) to Non-GAAP operating income (loss) | |||||||||
| (Unaudited) | |||||||||
| Three months ended | Nine months ended | ||||||||
| September 30, | September 30, | ||||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | |||||
| Operating income (loss) | ($) | 882 | (51) | ($) | 1,857 | (274) | |||
| Operating margin | ( | ( | |||||||
| Increase (decrease) for excluded items: (1) | |||||||||
| Amortization of purchased intangible assets | 144 | 146 | 436 | 444 | |||||
| Legal settlements and loss contingencies | 60 | 450 | 309 | 638 | |||||
| Goodwill impairment | - | 600 | - | 1,000 | |||||
| Impairment of long-lived assets | 79 | (51) | 255 | 758 | |||||
| Restructuring costs | 29 | 21 | 196 | 52 | |||||
| Equity compensation | 34 | 29 | 106 | 89 | |||||
| Contingent consideration | 16 | 34 | 46 | 305 | |||||
| Loss (gain) on sale of business | - | (20) | - | (21) | |||||
| Other non-GAAP items | 51 | 56 | 167 | 169 | |||||
| Non-GAAP operating income (loss) | ($) | 1,294 | 1,214 | ($) | 3,373 | 3,162 | |||
| 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. | |||||||||
| Reconciliation of net income (loss) to adjusted EBITDA | |||||||||
| (Unaudited) | |||||||||
| Three months ended | Nine months ended | ||||||||
| September 30, | September 30, | ||||||||
| ($ in millions) | 2025 | 2024 | 2025 | 2024 | |||||
| Net income (loss) | $ | 434 | (390) | $ | 937 | (1,684) | |||
| Increase (decrease) for excluded items:(1) | |||||||||
| Financial expenses | 237 | 272 | 714 | 763 | |||||
| Income taxes | 214 | 69 | 210 | 648 | |||||
| Share in profits (losses) of associated companies –net | (2) | (3) | (4) | (1) | |||||
| Depreciation | 105 | 113 | 306 | 346 | |||||
| Amortization | 144 | 146 | 436 | 444 | |||||
| EBITDA | 1,131 | 208 | 2,599 | 515 | |||||
| Legal settlements and loss contingencies | 60 | 450 | 309 | 638 | |||||
| Goodwill impairment | - | 600 | - | 1,000 | |||||
| Impairment of long lived assets | 79 | (51) | 255 | 758 | |||||
| Restructuring costs | 29 | 21 | 196 | 52 | |||||
| Equity compensation | 34 | 29 | 106 | 89 | |||||
| Contingent consideration | 16 | 34 | 46 | 305 | |||||
| Loss (Gain) on sale of Business | - | (20) | - | (21) | |||||
| Other non-GAAP items | 46 | 56 | 156 | 162 | |||||
| Adjusted EBITDA | $ | 1,394 | 1,327 | $ | 3,668 | 3,500 | |||
| (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. | |||||||||
| § Represents an amount of less than | |||||||||
| Segment Information | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| United States | Europe | International Markets | |||||||||||||||
| Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
| Revenues | $ | 2,483 | $ | 2,225 | $ | 1,235 | $ | 1,265 | $ | 557 | $ | 613 | |||||
| Cost of sales | 996 | 960 | 570 | 566 | 280 | 307 | |||||||||||
| Gross profit | 1,486 | - | 1,265 | - | 665 | - | 698 | - | 278 | - | 306 | ||||||
| R&D expenses | 161 | 151 | 62 | 55 | 26 | 27 | |||||||||||
| S&M expenses | 278 | 259 | 225 | 203 | 122 | 134 | |||||||||||
| G&A expenses | 114 | 107 | 75 | 67 | 36 | 36 | |||||||||||
| Other | (3) | § | § | 1 | § | § | |||||||||||
| Segment profit | $ | 937 | $ | 748 | $ | 303 | $ | 373 | $ | 95 | $ | 109 | |||||
| § Represents an amount less than | |||||||||||||||||
| Segment Information | |||||||||||||||||
| Unaudited | |||||||||||||||||
| United States | Europe | International Markets | |||||||||||||||
| Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (U.S. $ in millions) | (U.S. $ in millions) | (U.S. $ in millions) | |||||||||||||||
| Revenues | $ | 6,543 | $ | 6,060 | $ | 3,726 | $ | 3,749 | $ | 1,634 | $ | 1,802 | |||||
| Cost of sales | 2,748 | 2,769 | 1,687 | 1,637 | 835 | 914 | |||||||||||
| Gross profit | 3,795 | 3,291 | 2,039 | 2,113 | 799 | 889 | |||||||||||
| R&D expenses | 467 | 475 | 181 | 173 | 75 | 85 | |||||||||||
| S&M expenses | 831 | 789 | 652 | 605 | 353 | 397 | |||||||||||
| G&A expenses | 323 | 300 | 210 | 197 | 107 | 109 | |||||||||||
| Other | (1) | (1) | § | 1 | (3) | (1) | |||||||||||
| Segment profit | $ | 2,175 | $ | 1,727 | $ | 996 | $ | 1,137 | $ | 266 | $ | 299 | |||||
| § Represents an amount less than | |||||||||||||||||
| Reconciliation of our segment profit | ||||||
| to consolidated income (loss) before income taxes | ||||||
| Three months ended | ||||||
| September 30, | ||||||
| 2025 | 2024 | |||||
| (U.S.$ in millions) | ||||||
| United States profit | $ | 937 | $ | 748 | ||
| Europe profit | 303 | 373 | ||||
| International Markets profit | 95 | 109 | ||||
| Total reportable segment profit | 1,334 | 1,230 | ||||
| Profit (loss) of other activities | (40) | (16) | ||||
| Total segment profit | 1,294 | 1,214 | ||||
| Amounts not allocated to segments: | ||||||
| Amortization | 144 | 146 | ||||
| Other asset impairments, restructuring and other items | 62 | (23) | ||||
| Goodwill impairment | - | 600 | ||||
| Intangible asset impairments | 64 | 28 | ||||
| Legal settlements and loss contingencies | 60 | 450 | ||||
| Other unallocated amounts | 82 | 64 | ||||
| Consolidated operating income (loss) | 882 | (51) | ||||
| Financial expenses - net | 237 | 272 | ||||
| Consolidated income (loss) before income taxes | $ | 646 | $ | (324) | ||
| Reconciliation of our segment profit | |||||||
| to consolidated income (loss) before income taxes | |||||||
| Nine months ended | |||||||
| September 30, | |||||||
| 2025 | 2024 | ||||||
| (U.S.$ in millions) | |||||||
| United States profit | $ | 2,175 | $ | 1,727 | |||
| Europe profit | 996 | 1,137 | |||||
| International Markets profit | 266 | 299 | |||||
| Total reportable segment profit | 3,437 | 3,163 | |||||
| Profit (loss) of other activities | (64) | (1) | |||||
| Total segment profit | 3,373 | 3,162 | |||||
| Amounts not allocated to segments: | |||||||
| Amortization | 436 | 444 | |||||
| Other asset impairments, restructuring and other items | 272 | 931 | |||||
| Goodwill impairment | - | 1,000 | |||||
| Intangible asset impairments | 227 | 169 | |||||
| Legal settlements and loss contingencies | 309 | 638 | |||||
| Other unallocated amounts | 272 | 254 | |||||
| Consolidated operating income (loss) | 1,857 | (274) | |||||
| Financial expenses - net | 714 | 763 | |||||
| Consolidated income (loss) before income taxes | $ | 1,143 | $ | (1,037) | |||
| Segment revenues by major products and activities | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| United States segment | ||||||||
| Generic products (including biosimilars) | $ | 1,175 | $ | 1,094 | ||||
| AJOVY | 73 | 58 | ||||||
| AUSTEDO | 601 | 435 | ||||||
| BENDEKA and TREANDA | 35 | 40 | ( | |||||
| COPAXONE | 62 | 69 | ( | |||||
| UZEDY | 43 | 35 | ||||||
| Anda | 392 | 380 | ||||||
| Other | 101 | 115 | ( | |||||
| Total | 2,483 | 2,225 | ||||||
| Three months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| Europe segment | ||||||||
| Generic products (including OTC and biosimilars) | $ | 982 | $ | 973 | ||||
| AJOVY | 66 | 56 | ||||||
| COPAXONE | 44 | 53 | ( | |||||
| Respiratory products | 52 | 60 | ( | |||||
| Other* | 91 | 124 | ( | |||||
| Total | 1,235 | 1,265 | ( | |||||
| *Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Three months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| International Markets segment | ||||||||
| Generic products (including OTC and biosimilars) | $ | 421 | $ | 477 | ( | |||
| AJOVY | 30 | 24 | ||||||
| AUSTEDO | 17 | 13 | ||||||
| COPAXONE | 8 | 13 | ( | |||||
| Other* | 82 | 86 | ( | |||||
| Total | 557 | 613 | ( | |||||
| *Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Segment revenues by major products and activities | ||||||||
| (Unaudited) | ||||||||
| Nine months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| United States segment | ||||||||
| Generic products | $ | 2,984 | $ | 2,924 | ||||
| AJOVY | 190 | 144 | ||||||
| AUSTEDO | 1,492 | 1,124 | ||||||
| BENDEKA / TREANDA | 111 | 127 | ( | |||||
| COPAXONE | 179 | 179 | ||||||
| UZEDY | 136 | 75 | ||||||
| Anda | 1,130 | 1,134 | ||||||
| Other | 321 | 352 | ( | |||||
| Total | 6,543 | 6,060 | ||||||
| Nine months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| Europe segment | ||||||||
| Generic products | $ | 3,011 | $ | 2,947 | ||||
| AJOVY | 195 | 158 | ||||||
| COPAXONE | 135 | 163 | ( | |||||
| Respiratory products | 162 | 183 | ( | |||||
| Other* | 223 | 299 | ( | |||||
| Total | 3,726 | 3,749 | ( | |||||
| *Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Nine months ended | Percentage | |||||||
| September 30, | Change | |||||||
| 2025 | 2024 | 2024-2025 | ||||||
| (U.S.$ in millions) | ||||||||
| International Markets segment | ||||||||
| Generic products | $ | 1,298 | $ | 1,440 | ( | |||
| AJOVY | 78 | 63 | ||||||
| AUSTEDO | 34 | 39 | ( | |||||
| COPAXONE | 25 | 38 | ( | |||||
| Other* | 199 | 222 | ( | |||||
| Total | 1,634 | 1,802 | ( | |||||
| *Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. | ||||||||
| Free cash flow reconciliation | |||||
| (Unaudited) | |||||
| Three months ended September 30, | |||||
| 2025 | 2024 | ||||
| (U.S. $ in millions) | |||||
| Net cash provided by (used in) operating activities | 369 | 693 | |||
| Beneficial interest collected in exchange for securitized accounts receivables | 274 | 339 | |||
| Capital investment | (136) | (148) | |||
| Proceeds from divestitures of businesses and other assets, net | 8 | 38 | |||
| Free cash flow | $ | 515 | $ | 922 | |
| Free cash flow reconciliation | ||||||
| (Unaudited) | ||||||
| Nine months ended September 30, | ||||||
| 2025 | 2024 | |||||
| (U.S. $ in millions) | ||||||
| Net cash provided by (used in) operating activities | 491 | 672 | ||||
| Beneficial interest collected in exchange for securitized trade receivables | 932 | 951 | ||||
| Capital investment | (359) | (369) | ||||
| Proceeds from divestitures of businesses and other assets, net | 34 | 39 | ||||
| Acquisition of businesses, net of cash acquired | - | (15) | ||||
| Free cash flow | $ | 1,098 | $ | 1,278 | ||
Teva Media Inquiries
TevaCommunicationsNorthAmerica@tevapharm.com
Teva Investor Relations Inquiries
TevaIR@Tevapharm.com
A PDF accompanying this announcement is available at http://ml-eu.globenewswire.com/Resource/Download/cc1e9e1b-106f-4032-8294-dc114bd3e936
FAQ
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