Teva Shares Climb as Revenue Beat and Innovative Drug Growth Offset Earnings Miss

Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) reported mixed second-quarter results, with revenue exceeding Wall Street expectations while adjusted earnings fell short due to acquisition-related costs. Investors focused on the company’s strong sales growth from its key branded medicines, sending shares about 3% higher.

The drugmaker reported adjusted earnings of $0.02 per share, well below analysts’ consensus estimate of $0.62.

Quarterly revenue totalled $4.14 billion, ahead of the market forecast of $4.05 billion, while declining just 1% from the same period last year.

Acquisition Costs Weigh on Earnings

Teva said the earnings shortfall was largely the result of $726 million in expenses linked to its acquisition of Emalex Biosciences and its lead therapy, ecopipam, a first-in-class treatment for Tourette syndrome.

The acquisition-related charges reduced quarterly earnings by approximately $0.61 per share.

Innovative Medicines Continue to Drive Growth

The company’s three flagship branded medicines generated more than $1 billion in combined revenue during the quarter, delivering 43% year-over-year growth in local currency.

AUSTEDO remained Teva’s largest growth product, with global revenue rising 40% to $696 million.

AJOVY generated revenue of $244 million, an increase of 56% from a year earlier, while UZEDY recorded sales of $77 million, up 43%.

Reflecting the continued momentum, Teva increased its 2026 revenue outlook for the three products and now expects combined annual sales of approximately $3.7 billion, representing around 17% year-over-year growth at the midpoint of its guidance.

Generics Business Faces Competitive Pressure

Performance in Teva’s generics division remained under pressure during the quarter.

Global generics revenue declined 15% year over year in local currency, primarily because of increased competition for lenalidomide capsules in the U.S. market.

Revenue Forecast Raised

Teva maintained its adjusted earnings guidance for fiscal 2026 at between $1.91 and $2.11 per share.

The midpoint of that range, $2.01, remains below analysts’ consensus estimate of $2.16 and includes a $0.66 per-share impact from costs associated with the Emalex acquisition.

The company also increased its full-year revenue guidance to between $16.5 billion and $16.85 billion, compared with its previous forecast of $16.4 billion to $16.8 billion.

President and Chief Executive Officer Richard Francis said: “Our second quarter reflects continued execution of our Pivot to Growth strategy.”

Teva Pharmaceutical Industries