Teva posts Q2 revenue miss as generic products underperform

Teva (NYSE:TEVA) shares traded flat in the premarket on Wednesday after the Israeli drugmaker missed the consensus for revenue with its Q2 2025 results, as its branded medications failed to offset headwinds to its generics business.

The company reported $4.2B in revenue for the quarter, largely unchanged from last year, while indicating an ~1% YoY drop in local currency terms, driven mainly by weakness in its generic business in the international markets and the U.S.

However, TEVA’s innovative product portfolio outperformed, with the company’s movement disorder therapy, Austedo, adding $498M in the U.S. and from international markets, with a ~19% growth, and its migraine therapy Ajovy generating $155M globally with a ~34% YoY growth.

“Teva’s performance this quarter stands as a testament to the exceptional strength of our innovative portfolio, which remains the primary engine driving our revenue growth,” CEO Richard Francis remarked.

The Tel Aviv-based drugmaker recorded ~55% of adjusted gross margin and ~27% of adjusted operating margin in Q2 compared to ~53% and ~25% in the prior year period, and its non-GAAP earnings per share improved ~8% YoY to $0.66, beating the consensus by $0.04.

“Our focus on innovation is unwavering, placing us firmly on track to achieve a 30% operating profit margin by 2027,” CEO Francis added ahead of the earnings call at 8:00 a.m. ET.

The company raised its full-year revenue outlook for key branded products Austedo, Ajovy, and Uzedy to $2.00B-$2.05B, $630M-$640M, and $190M-$200M, respectively, but reaffirmed its 2025 revenue guidance at $16.8B-$17.2B.

However, its revised outlook for non-GAAP diluted earnings per share at $2.50‐$2.65 compared to $2.45‐$2.65 previously stood in line with the consensus.