January 28, 2026
Finance

Teva Pharmaceutical Surpasses $1 Billion Revenue from Key Brands in Q4 2025, Sets 2026 Guidance

Strong fourth-quarter performance driven by innovative drugs supports optimistic outlook for next year

Summary

Teva Pharmaceutical Industries Ltd. posted robust fourth-quarter 2025 results with revenues exceeding $4.7 billion, buoyed by milestone payments and leading innovative products crossing the $1 billion revenue mark in Q4. The company projects continued growth into fiscal 2026, expecting adjusted earnings between $2.57 and $2.77 per share and revenues up to $16.8 billion, underscoring confidence in their late-stage pipeline and key drug sales.

Key Points

Teva’s Q4 2025 revenue reached $4.71 billion, surpassing analyst expectations by approximately $340 million.
Combined revenue from Teva’s main innovative drugs crossed the $1 billion mark for the first time in Q4 2025.
Key drugs Austedo, Ajovy, and Uzedy all posted strong sales growth exceeding management guidance ranges.
Adjusted earnings per share rose to 96 cents in Q4 2025, beating the consensus estimate of 68 cents and increasing from 71 cents a year prior.

Teva Pharmaceutical Industries Ltd. reported its financial results for the fourth quarter of 2025 on Wednesday, revealing total revenues of $4.71 billion. This figure surpassed analysts’ consensus expectations, which had been set at $4.37 billion. The year-over-year revenue increase translated to an 11% rise in U.S. dollar terms or 9% when considered in local currencies.

The revenue growth was primarily attributable to milestone payments earned following the initiation of Phase 3 clinical trials for duvakitug, an anti-TL1A agent, coupled with elevated sales of Teva’s core innovative drug portfolio. However, these gains were partially offset by decreased income from certain product rights sales and declining revenues in the International Markets segment, reflecting the recent divestiture of a business venture in Japan.

Significantly, the company announced that the fourth quarter represented the first period during which its key branded products collectively generated close to $1 billion in revenues, signaling their increasing commercial importance.

Notably, Austedo, indicated for Huntington's disease, recorded a 34% increase in 2025 sales, amounting to $2.26 billion. This performance exceeded the company’s earlier management guidance range of $2.05 billion to $2.15 billion. Similarly, Ajovy, a treatment for migraine, achieved revenues of $673 million in 2025, representing a 30% increase in local currency terms year-over-year and outperforming the guidance estimate of $630 million to $640 million. Additionally, Uzedy, prescribed for schizophrenia, posted revenues of $191 million, marking a 63% growth rate and slightly surpassing the management’s forecast range of $190 million to $200 million.

On the profitability front, Teva reported adjusted earnings of 96 cents per share for the quarter, outperforming the consensus estimate of 68 cents and improving from 71 cents in the prior-year period.

Richard Francis, President and CEO of Teva Pharmaceutical Industries, highlighted the company’s strategic momentum: “In 2025, our Pivot to Growth strategy drove Teva’s third consecutive year of revenue growth, solidifying our transformation into a leading biopharmaceutical company. Our key innovative brands spearheaded this growth, collectively achieving $1 billion in revenues during the fourth quarter, establishing them as a reliable growth engine.”

Looking ahead to fiscal 2026, Teva laid out its financial guidance, projecting adjusted earnings per share of $2.57 to $2.77. This forecast is in line with, though slightly below, the Wall Street consensus estimate of $2.73 per share. The company anticipates total sales ranging from $16.4 billion to $16.8 billion, marginally under the analyst consensus of $16.89 billion.

Within this outlook, Austedo sales are expected to reach between $2.4 billion and $2.55 billion, Ajovy revenues between $750 million and $790 million, and Uzedy sales in the range of $250 million to $280 million. The operating income forecast stands at $4.55 billion to $4.8 billion, with adjusted EBITDA anticipated between $5.0 billion and $5.3 billion.

Mr. Francis underscored the promising pipeline events anticipated in 2026: “The upcoming year will be milestone-rich, featuring multiple late-stage clinical data readouts across immunology and neurology. We expect FDA approval for olanzapine long-acting injectable (LAI) and important data releases for our anti-TL1A agent duvakitug and our anti-IL-15 programs. Collectively, these pipeline candidates represent a potential exceeding $10 billion, reinforcing our confidence in future growth.”

On market reaction, shares of Teva Pharmaceutical Industries experienced a slight decline following the earnings release, trading down by 0.81% at $31.11 according to Benzinga Pro at the time of reporting.

Risks
  • Revenue growth tempered by divestitures and reductions in the International Markets segment, notably following the sale of a Japanese business venture.
  • 2026 sales guidance slightly below market consensus, indicating possible investor concerns about growth sustainability.
  • Regulatory approvals remain pending for key pipeline products, including olanzapine LAI and duvakitug, which could impact future revenue projections.
  • Dependence on milestone payments tied to advancing clinical trials introduces variability to earnings.
Disclosure
Education only / not financial advice
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