Teva Pharmaceutical (TEVA) traded lower in the premarket on Wednesday after the generic drugmaker projected lower-than-expected financials for 2026 and a contraction in its business even as its Q4 2025 results exceeded expectations.
Israel-based Teva (TEVA) recorded $17.3B in revenue for 2025 with ~4% YoY growth on a reported basis, marking its third consecutive year of expansion as its key revenue generators, Austedo, Ajovy, and Uzedy, added $3.1B in sales.
Migraine product Ajovy and schizophrenia therapy Uzedy brought in $673M and $191M in sales with 30% and 63% YoY growth in local currency terms, respectively, while Austedo global revenues hit $2.26B with ~34% YoY growth.
Having posted $2.93 of adjusted EPS last year, Teva (TEVA) projects $2.57 – $2.77 of non-GAAP EPS in 2026 on $16.4B – $16.8B of revenue, both of which at the midpoint fell short of $2.77 and $16.99B in the consensus, respectively.
However, the company recorded $4.7B in revenue for the quarter, beating the Street forecasts by $380M with ~11% YoY growth, as Austedo, Ajovy, and Uzedy collectively generated nearly $1B of quarterly sales for the first time.
“In 2025, our Pivot to Growth strategy drove Teva’s third year of consecutive growth, solidifying our transformation into a leading biopharmaceutical company,” CEO Richard Francis remarked.
During the quarter, the company’s non-GAAP gross profit margin and non-GAAP operating margin reached 60.3% and 32.5%, compared to 54.8% and 27.6% in the prior year period, respectively, while its adjusted EPS improved ~35% YoY to $0.96, exceeding the consensus by $0.32.