Teva Pharmaceutical Exceeds Q4 2025 Expectations but Projects Lower 2026 Financials
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- 2025 Revenue Growth: Teva Pharmaceutical reported $17.3 billion in revenue for 2025, reflecting approximately 4% year-over-year growth, marking its third consecutive year of expansion, primarily driven by $3.1 billion in sales from key products Austedo, Ajovy, and Uzedy, showcasing its sustained competitiveness in the generics market.
- Product Sales Highlights: Ajovy and Uzedy achieved sales of $673 million and $191 million, with year-over-year growth rates of 30% and 63%, respectively, while Austedo's global revenues reached $2.26 billion, growing approximately 34%, indicating strong performance in the neuropsychiatric drug sector.
- 2026 Financial Outlook: Despite reporting an adjusted EPS of $0.96 for Q4 2025, exceeding market expectations by $0.32, Teva projects a non-GAAP EPS of $2.57 to $2.77 for 2026, with revenue between $16.4 billion and $16.8 billion, both falling short of consensus estimates, reflecting uncertainty in future growth.
- Margin Improvement: The company achieved non-GAAP gross profit and operating margins of 60.3% and 32.5% in Q4, significantly up from 54.8% and 27.6% in the prior year, demonstrating improvements in cost control and operational efficiency, despite facing challenges in overall business outlook.
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Analyst Views on TEVA
Wall Street analysts forecast TEVA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEVA is 35.71 USD with a low forecast of 29.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 33.210
Low
29.00
Averages
35.71
High
40.00
Current: 33.210
Low
29.00
Averages
35.71
High
40.00
About TEVA
Teva Pharmaceutical Industries Ltd is a Israeli-based pharmaceutical company. The Company operates through three segments: North America, Europe and International Markets. Each business segment manages entire product portfolio in its region, including generics, specialty and over-the-counter (OTC) products. In addition to these three segments, The Company has other activities, primarily the sale of active pharmaceutical ingredients (API) to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Teva Pharmaceuticals to Announce Q4 Earnings on January 28
- Earnings Announcement Date: Teva Pharmaceuticals is set to release its Q4 2023 earnings report on January 28 before the market opens, with a consensus EPS estimate of $0.64, reflecting a 9.9% year-over-year decline, which may impact investor confidence in the company's future profitability.
- Revenue Expectations: Analysts anticipate Teva's Q4 revenue to reach $4.33 billion, representing a modest 2.4% year-over-year growth, indicating some resilience in the company's market position that could support future business development.
- Historical Performance Review: Over the past two years, Teva has exceeded EPS and revenue estimates 88% of the time, suggesting a level of stability in financial performance that may attract more investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 5 downward revisions, while revenue estimates experienced 1 upward revision and 7 downward revisions, indicating a potential uncertainty in market expectations regarding Teva's future performance.
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Teva Pharmaceutical Shares Dip After Six-Day Rally Amid Cautious Outlook
- Stock Pullback: Teva Pharmaceutical shares closed 0.4% lower at $33.07 on Thursday after a six-day rally, indicating market caution regarding its short-term performance.
- Strong Annual Performance: Despite the recent dip, Teva's stock rose 47% over the past year, significantly outperforming the S&P 500's 16% increase, reflecting its relative strength in the market.
- Divergent Analyst Ratings: Seeking Alpha's Quant Rating gives Teva a Hold rating of 3.35, while 11 out of 12 Wall Street analysts recommend a Buy, showcasing differing views on its future growth potential.
- Growth Strategy: CEO Richard Francis's
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