Teva Pharmaceutical Industries Limited (TEVA) Q2 2025 Earnings Call Transcript

Written by Emily J. Thompson, Senior Investment Analyst

TEVA+0.47%

Source: SeekingAlpha

Updated: Jul 30 2025

0mins

Source: SeekingAlpha

Revenue $4.2 billion, up 1% year-over-year. Growth driven by innovative portfolio of AUSTEDO, AJOVY, and UZEDY.

Adjusted EBITDA Up 7% year-over-year. Growth attributed to strong performance of innovative products.

Non-GAAP EPS Up 10% year-over-year. Reflects improved profitability from innovative portfolio.

AUSTEDO Revenue $495 million, up 19% year-over-year. Growth driven by good TRx growth and particularly growth of XR formulation.

UZEDY Revenue $54 million, up 120% year-over-year. Growth attributed to strong execution by U.S. team and favorable product profile.

AJOVY Revenue $155 million, up 31% year-over-year. Growth driven by competitive execution in the CGRP and injectable markets.

Global Generics Business Declined 2% year-over-year. Decline due to strong prior year comparison and phasing/timing of shipments.

TAPI Revenue Down 11% year-over-year. Decline attributed to seasonality and timing of shipments, considered an anomaly.

Non-GAAP Gross Margin 54.6%, up 130 basis points year-over-year. Increase driven by portfolio mix shift towards innovative products and sale of certain product rights in Europe.

Non-GAAP Operating Margin 27.1%, up 170 basis points year-over-year. Improvement due to lower R&D expenses and portfolio mix shift.

Free Cash Flow $476 million, up 47% year-over-year. Growth driven by higher net income and working capital improvements.

Net Debt $15.1 billion, with net debt to EBITDA just over 3x. Reflects repayments of $1.4 billion of notes and exchange rate fluctuations.

TEVA

$31.81+Infinity%1D

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: 31.660

Low

29.00

Averages

35.71

High

40.00

Current: 31.660

Low

29.00

Averages

35.71

High

40.00

Truist

Buy

maintain

$32 -> $36

2026-01-07

Reason

Truist

Price Target

$32 -> $36

AI Analysis

2026-01-07

maintain

Buy

Reason

Truist raised the firm's price target on Teva to $36 from $32 and keeps a Buy rating on the shares. The affordable medicines theme remains attractive heading into 2026, the analyst tells investors in a research note.

Jefferies

Buy

maintain

$29 -> $40

2026-01-06

Reason

Jefferies

Price Target

$29 -> $40

2026-01-06

maintain

Buy

Reason

Jefferies raised the firm's price target on Teva to $40 from $29 and keeps a Buy rating on the shares, which the analyst introduced as a top 2026 idea. The narrative should shift in 2026 and beyond with several pipeline catalysts, but key is convincing investors to ascribe a positive terminal value to reflect R&D productivity when historically none was given, says the analyst, who expects the R&D engine to "start bearing fruit in 2026."

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Piper Sandler

Overweight

upgrade

$30 -> $40

2025-12-22

Reason

Piper Sandler

Price Target

$30 -> $40

2025-12-22

upgrade

Overweight

Reason

Piper Sandler raised the firm's price target on Teva to $40 from $30 and keeps an Overweight rating on the shares. The firm is also making an argument for further multiple expansion. Teva's peer group is evolving as the mix continues to shift towards novel brand assets. In other words, the larger cap biopharma group is becoming a more appropriate peer group for Teva, Piper argues. As the firm layers in contribution from TL1A-directed treatment duvakitug in inflammatory bowel disease, and considers that Teva is not staring down significant loss of exclusivity exposure, it believes an even richer multiple is in order.

Goldman Sachs

Buy

maintain

$31 -> $35

2025-12-18

Reason

Goldman Sachs

Price Target

$31 -> $35

2025-12-18

maintain

Buy

Reason

Goldman Sachs raised the firm's price target on Teva to $35 from $31 and keeps a Buy rating on the shares.

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.