$TEVA · TEVA PHARMACEUTICAL INDUSTRIES LTD
Teva reported Q3 2026 revenue of $4.395B, down 2% YoY, as a 39% drop in U.S. generics (lenalidomide erosion) offset 33% local-currency growth across its three key innovative brands. Non-GAAP diluted EPS rose 10% to $0.86, while GAAP EPS fell 47% to $0.20. The company raised full-year 2026 revenue guidance to $16.7B–$17.0B and increased outlooks for AUSTEDO ($2.55B–$2.65B), AJOVY ($930M–$960M), and UZEDY ($290M–$310M).
- Q3 revenue of $4.395B, down 2% YoY, driven by a 39% drop in U.S. generic products revenue to $718M.
- Non-GAAP diluted EPS of $0.86, up 10% YoY; GAAP diluted EPS of $0.20, down 47% YoY.
- Key innovative brands (AUSTEDO, AJOVY, UZEDY) collectively grew 33% YoY in local currency to ~$1.1B.
- Non-GAAP gross margin hit 58.7%, the highest quarterly level in a decade (excl. Q4 2025 milestone payments).
- 2026 revenue guidance raised to $16.7B–$17.0B; AUSTEDO, AJOVY, and UZEDY outlooks all increased.
Extended-hours trading shows TEVA at $41.43, up 1.79% vs the regular close of $40.70, suggesting a modestly positive initial reaction to the raised guidance and margin expansion despite the top-line miss. The regular session had already priced in a 3.30% decline pre-filing.
Teva's portfolio transformation is accelerating: innovative brands grew 33% and now drive margin expansion to decade highs, while the WELTRUZA launch and BXCL-501 acquisition build a $1.5B–$2.0B peak-sales psychiatry franchise.
Teva's pivot from generics to branded neuroscience is accelerating — innovative brands now drive margin expansion while legacy generics face Revlimid erosion. The WELTRUZA approval and BXCL-501 acquisition deepen the psychiatry franchise against peers like J&J (Spravato) and AbbVie (Vraylar).
U.S. generics revenue fell 39% YoY driven by lenalidomide competition; the discontinued Phase 2 MSA study for emrusolmin (TEV-'286) after a futility analysis signals pipeline risk. FX volatility flagged as a potential headwind to revenue and income.