Teva beats analysts on Q3, raises guidance

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has presented strong third quarter results and calmed investors. Despite concerns, the forecast for sales of branded drug Austedo remain unchanged even though the US Inflation Reduction Act (IRA) aims to cut pharmaceutical prices. Earlier this year, Teva predicted that sales of Austedo would reach $2.05-2.15 billion, higher than the previous forecast of $2-2.05 billion. The market has reacted positively to the financial report and in premarket trading on Wall Street, Teva’s share price is 18% higher, giving a market cap of $27.9 billion.

Teva CEO Richard Francis said, “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.”

Teva is also updating its full-year guidance, forecasting revenue of $16.8-17 billion, down from its previous range of $16.8-17.2 billion; and non-GAAP earnings per share of $2.55-2.65, down from its previous range of $2.5-2.65. The company is also raising its operating profit and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance to $4.4-4.6 billion and $4.8-5 billion, respectively. There is no change to its free cash flow guidance, which is expected to be $1.6-1.9 billion.

Beating Q3 forecasts

In the third quarter, Teva beat the analysts’ expectations with 3.4% revenue growth to $4.5 billion, compared with forecasts of $4.33 billion. GAAP net profit was $433 million, compared with a loss in the same quarter last year, and non-GAAP net profit rose 14% to $910 million – earnings per share of $0.78, significantly above analysts’ estimates. Year-on-year revenue grew 1.9% to $12.5 billion, GAAP net profit was $930 million, and non-GAAP net profit was $2.28 billion.

By geographic region, the US market generated quarterly revenue of $2.5 billion for Teva, up 11.6% increase from the corresponding quarter of 2024. Non-GAAP net profit was $937 million, compared with $748 million in the corresponding quarter. Sales of generic products in the US grew by 7.4% to $1.18 billion, and sales of Austedo grew by 38.2% to $601 million.

In Europe, revenue fell 2.4% to $1.2 billion, and fell more in local currency terms. Non-GAAP net profit fell 18.8% to $303 million. In other markets around the world, revenue fell 9.1% to $557 million, and net profit fell 12.8% to $95 million, partly due to the spin-off of the company’s business in Japan.

Teva jumps ahead of Q3 results

Stanley Druckenmiller builds Teva position.

Teva generated $369 million from operating activities in the third quarter. At the end of the third quarter, Teva’s debt was $16.8 billion, with a negligible portion of it being short-term.

Francis added, “Our innovative portfolio driving the 11 th 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 33% increase in local currency, underscoring their impact on both patient outcomes and our financial performance.’

Teva is traded on the NYSE and TASE with a market cap of $23.6 billion (at start of trade today), after a 60% increase in its share price since its annual low-point in April. According to the Wall Street Journal, out of 10 analysts covering Teva’s stock, nine are positive and one is negative, and their average price target is 25% higher than yesterday’s price.

Published by Globes, Israel business news – en.globes.co.il – on November 5, 2025.

Source link