Teva Raises 2026 Outlook After Innovative Brands Reach $1.1 Billion

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter revenue was $4.4 billion as AUSTEDO, AJOVY and UZEDY grew 33% in local currency and GAAP diluted EPS fell to $0.20.

Teva Pharmaceutical Industries Ltd. (TEVA) reported third-quarter 2026 revenues of $4.4 billion, a 2% decline in both U.S. dollars and local currency, as global generics fell and its three key innovative brands collectively generated about $1.1 billion.

The Israeli drugmaker said the drop was mainly lower generics, primarily U.S. lenalidomide capsules, a generic of Revlimid, partly offset by higher sales of AUSTEDO, AJOVY and UZEDY. Global generics revenues declined 16% year-over-year in local currency. The company raised its 2026 revenue outlook for all three brands and lifted full-year revenue guidance to $16.7 billion–$17.0 billion from $16.4 billion–$16.8 billion.

AUSTEDO global revenues were $751 million, up 21% year-over-year in local currency. AJOVY global revenues were $269 million, up 61% year-over-year in local currency. UZEDY revenues were $85 million, up 96% year-over-year in local currency. Teva now expects 2026 AUSTEDO revenue of $2.55 billion–$2.65 billion, AJOVY of $930 million–$960 million and UZEDY of $290 million–$310 million. President and CEO Richard Francis said the brands’ 33% local-currency growth, margin expansion and cash flow supported the higher 2026 outlooks.

GAAP gross profit margin was 55.5%, compared with 51.4% a year earlier. Non-GAAP gross profit margin rose 345 basis points to 58.7%, which the company said was the highest quarterly level in the last decade excluding $500 million of duvakitug milestone payments received in the fourth quarter of 2025. Teva attributed the mix shift mainly to higher innovative-product sales, largely AUSTEDO, and lower generics, primarily lenalidomide.

Non-GAAP operating income was $1,393 million, a 31.7% margin, versus $1,294 million and 28.9% a year earlier, which the company said was mainly due to higher gross profit margin. GAAP operating income was $714 million, or 16.2% of revenues, down from $882 million and 19.7%, mainly because of higher tangible-asset impairments and higher legal settlements and loss contingencies. GAAP diluted EPS was $0.20, down from $0.37. Non-GAAP diluted EPS was $0.86, including $0.02 of acquired IPR&D charges. Adjusted EBITDA was $1,496 million.

The United States segment posted revenues of $1,870 million, down 11% from $2,090 million a year earlier. U.S. generic products, including biosimilars, fell 39% to $718 million. U.S. AJOVY rose 88% to $138 million, which the company said was mainly a reduction in sales allowance plus volume. U.S. AUSTEDO rose 21% to $727 million on volume and favorable mix including improved net-price realization. U.S. UZEDY rose 96% to $85 million mainly on volume. U.S. segment gross profit margin increased to 75.0% from 69.1%; segment profit fell 15% to $791 million.

Europe segment revenues were $1,319 million, with segment profit of $420 million and gross profit margin of 57.4%. R&D expenses, net, increased 16% to $297 million, mainly on immunology, neuroscience and biosimilars pipeline spending. Selling and marketing expenses rose 8% to $709 million on promotional activity for key innovative products, primarily AUSTEDO.

Cash flow from operations was $241 million, down from $369 million, which the company said resulted mainly from the timing of sales and collections. Free cash flow was $495 million. Debt was $16,718 million as of September 30, 2026. Teva refinanced about $4.9 billion of debt in the quarter, and Moody’s and S&P upgraded it to investment grade after Fitch’s earlier upgrade.

The FDA approved WELTRUZA, a once-monthly subcutaneous long-acting injectable for schizophrenia, in October 2026. Teva said it is expected to become available in the U.S. in the coming weeks and continues to target a $1.5 billion–$2.0 billion peak-sales potential for the LAI schizophrenia portfolio of UZEDY and WELTRUZA. The company also acquired BXCL-501 from BioXcel, deepened a Samsung Bioepis collaboration on two additional biosimilars, and said biosimilars are currently expected to exceed $0.8 billion in 2026 revenues, one year ahead of the original 2027 objective. Non-GAAP operating income for 2026 is now expected at $3.8 billion–$3.9 billion, including $0.87 billion of acquired IPR&D charges.