Teva Reports Q3 2026 Earnings: Strong Innovative Brand Growth and Raised Full-Year Guidance

Executive Summary

On November 3, 2026, Teva Pharmaceutical Industries Ltd. reported its financial results for the third quarter ended September 30, 2026, via Form 8-K (Item 2.02). The results demonstrated ongoing execution of Teva's "Pivot to Growth" strategy, marked by 33% year-over-year revenue growth across key innovative brands (AUSTEDO, AJOVY, and UZEDY), significant gross margin expansion, and raised full-year guidance for its core innovative portfolio.

Key Financial Highlights

• Revenues: $4,395 million in Q3 2026, down 2% YoY in both USD and local currency terms, primarily impacted by lower U.S. generic lenalidomide revenues due to heightened market competition, offset by innovative brand expansion.
• Profitability & Margins:
  • GAAP Gross Margin: 55.5% (vs. 51.4% in Q3 2025).
  • Non-GAAP Gross Margin: 58.7%, up 345 basis points YoY.
  • Operating Income: $714 million GAAP ($1,393 million non-GAAP, representing a 31.7% non-GAAP operating margin).
  • Adjusted EBITDA: $1,496 million, an increase of 7% YoY.
• Earnings Per Share:
  • GAAP Diluted EPS: $0.20 (vs. $0.37 in Q3 2025).
  • Non-GAAP Diluted EPS: $0.86 (vs. $0.78 in Q3 2025, up 10% YoY), including $0.02 of acquired IPR&D charges.
• Cash Flow: Operating cash flow of $241 million; Free cash flow generated was $495 million.

Product & Pipeline Developments

• AUSTEDO: Generated $751 million in global revenue (+21% YoY in local currency). Full-year 2026 revenue outlook raised to $2.55B–$2.65B (from $2.45B–$2.60B).
• AJOVY: Generated $269 million in global revenue (+61% YoY in local currency). Full-year 2026 revenue outlook raised to $930M–$960M (from $850M–$870M).
• UZEDY: Generated $85 million (+96% YoY in local currency). Full-year 2026 revenue outlook raised to $290M–$310M (from $270M–$290M).
• WELTRUZA: Received U.S. FDA approval in October 2026 for long-acting injectable schizophrenia treatment, strengthening Teva's neuroscience portfolio alongside UZEDY.
• Biosimilars & Business Development: Acquired BXCL-501 from BioXcel Therapeutics; broadened collaboration with Samsung Bioepis for biosimilars to Remicade and Enbrel.

Full-Year 2026 Guidance Update

• Total Revenues: $16.7 billion – $17.0 billion
• Non-GAAP Operating Income: $3.8 billion – $3.9 billion (includes $0.87B acquired IPR&D charges)
• Adjusted EBITDA: $4.23 billion – $4.43 billion
• Non-GAAP Diluted EPS: $1.92 – $2.11
• Free Cash Flow: $2.1 billion – $2.4 billion

Balance Sheet & Capital Structure

During Q3 2026, Teva returned to investment-grade credit ratings from Moody's and S&P (following a prior upgrade by Fitch), completed a refinancing of ~$4.9 billion in senior notes, and completed the direct listing of its ordinary shares on the NYSE. Total debt stood at $16.7 billion as of September 30, 2026, with financial leverage at 68% and average debt maturity extended to 6.3 years.