We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teva's Q3 adjusted EPS of $0.78 beat estimates, rising 14% year over year on stronger profits.
Quarterly revenues rose 3% to $4.5B, led by branded drugs and U.S. generic and biosimilar sales.
Teva tightened 2025 sales guidance but lifted Austedo and EPS forecasts on sustained momentum.
Teva Pharmaceutical Industries (TEVA - Free Report) reported third-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 68 cents. Adjusted earnings rose 14% year over year, driven by higher operating profits.
Revenues for the third quarter were $4.48 billion, which also beat the Zacks Consensus Estimate of $4.35 billion. Total revenues rose 3% from the year-ago quarter on a reported basis and 1% on a constant currency basis.
TEVA’s top line was driven by continued strong momentum in branded drugs, Austedo, Ajovy and Uzedy, as well as higher revenues from generic products in the United States, including biosimilars, partially offset by lower revenues in European generics as well as lower proceeds from the sale of certain product rights.
TEVA stock has rallied 11.6% so far this year compared with the industry’s rise of 5.3%.
Image Source: Zacks Investment Research
Generics, Austedo Drive TEVA’s Q3 U.S. Unit’s Sales
Sales in the United States segment were $2.48 billion, up 12% year over year, driven by higher revenues from generic products, including biosimilars, as well as the key branded drug, Austedo. The segment’s sales beat the Zacks Consensus Estimate of $2.25 billion as well as our model estimate of $2.24 billion.
Generic/biosimilar product revenues rose 7% from the year-ago period to $1.18 billion in the United States, driven by higher revenues from the company’s portfolio of biosimilar products, including lenalidomide capsules, the generic version of Bristol-Myers’ Revlimid and Truxima and the biosimilar version of Roche’s legacy cancer drug Rituxan, among others.
Huntington's disease drug, Austedo, recorded sales of $601 million in the United States, up 38% year over year. Sales were mainly driven by volume growth as prescription trends continued to grow. Austedo sales comprehensively beat the Zacks Consensus Estimate of $524 million and our model estimate of $510.5 million.
The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026.
Ajovy recorded sales of $73 million in the quarter, up 27% year over year, driven by volume growth. Ajovy sales surpassed the Zacks Consensus Estimate of $65 million as well as our model estimate of $61.4 million.
Uzedy (risperidone), a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia, generated sales of $43 million in the third quarter, up 24% year over year, mainly driven by volume growth.
Copaxone recorded sales of $62 million in the United States, down 9% year over year, mainly due to market share erosion and competition. Copaxone sales, however, beat the Zacks Consensus Estimate of $41.5 million as well as our model estimate of $36.3 million.
Performance of TEVA’s Europe and International Market Units
The Europe segment recorded revenues of $1.24 billion, down 2% year over year on a reported basis. Sales declined 10% on a constant currency basis, mainly due to higher proceeds from the sale of certain product rights in the year-ago quarter, and lower revenues from generic products. Europe revenues lagged the Zacks Consensus Estimate of $1.30 billion as well as our model estimate of $1.31 billion.
In the International Markets segment, sales declined 9% year over year to $557 million. In constant currency terms, sales decreased 10% year over year, mainly due to the divestment of Teva’s business venture in Japan. International Markets revenues missed the Zacks Consensus Estimate of $593 million as well as our model estimate of $662.3 million.
The Other segment (comprising the sales of active pharmaceutical ingredients to third parties and certain contract manufacturing services) recorded revenues of $205 million, down 10% year over year on a reported basis and 13% year over year on a constant currency basis.
TEVA’s Margin Discussion
Adjusted gross margin was 55.3% for the quarter, up 160 basis points (bps) year over year. The rise was mainly driven by higher Austedo revenues.
Adjusted research & development expenses increased 7% year over year to $256 million. Selling and marketing expenditure increased 5% year over year to $656 million. General and administrative expenses increased 6% from the prior-year level to $317 million.
Adjusted operating income rose 6.6% year over year in the third quarter to $1.29 billion. Adjusted operating margin increased 90 bps to 28.9% in the quarter, mainly due to higher gross profit margin, partially offset by an increase in operating expenses as a percentage of revenues.
Teva expects an adjusted operating margin of 30% by 2027 to be achieved through cost savings and the continued growth of its branded drugs.
TEVA Updates Guidance for 2025
Teva tightened its total revenue guidance for 2025. The company now expects total revenues in the range of $16.8-$17.0 billion, compared with the earlier projection of a range of $16.8-$17.2 billion.
Driven by its continued strong performance, Teva raised the guidance for Austedo sales from $2.00-$2.05 billion to $2.05-$2.15 billion.
Along with the latest earnings release, TEVA confirmed that the IRA pricing negotiations have now concluded. Teva said the outcome of the negotiations went as expected and raised its 2025 Austedo sales expectations. It also maintained its 2027 revenue target of more than $2.5 billion in Austedo sales and expects sales to exceed $3 billion by 2030.
With the uncertainty surrounding the impact of IRA pricing negotiations for the Austedo franchisee easing, the stock jumped more than 20% on Nov 5. Teva, however, did not provide any details on the negotiated discounts and final pricing of Austedo.
The company maintained its full-year guidance for Ajovy sales, which is in the range of $630-$640 million. Uzedy guidance too has been maintained in the range of $190-$200 million in 2025. Copaxone guidance was also unchanged at $370 million.
Teva raised the lower end of its adjusted EPS guidance for 2025. The company now expects adjusted EPS to be in the range of $2.55-$2.65 per share compared with the prior expectation of $2.50-$2.65 per share.
The company now expects its adjusted operating income to be in the range of $4.4-$4.6 billion compared to the previous expectation of $4.3-$4.6 billion in 2025. Adjusted EBITDA is now anticipated to be in the range of $4.8-$5 billion versus the prior expectation of $4.7-$5 billion.
Teva Pharmaceutical Industries Ltd. Price, Consensus and EPS Surprise
In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $7.25 to $7.29 for 2025. During the same time, earnings per share estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 67.6%.
ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.
In the past 60 days, estimates for Arcutis Biotherapeutics’ loss per share have narrowed from 44 cents to 24 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 9 cents to 41 cents. Year to date, shares of ARQT have rallied 75%.
Arcutis Biotherapeutics’ earnings beat estimates in each of the trailing four quarters, the average surprise being 64.80%.
In the past 60 days, estimates for Syndax Pharmaceuticals’ loss per share have narrowed from $3.18 to $3.11 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.45 to $1.20. Year to date, shares of SNDX have gained 14.2%.
Syndax Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, the average surprise being 6.58%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TEVA Q3 Earnings & Revenues Beat, Austedo Sales View Raised, Stock Up
Key Takeaways
Teva Pharmaceutical Industries (TEVA - Free Report) reported third-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 68 cents. Adjusted earnings rose 14% year over year, driven by higher operating profits.
Revenues for the third quarter were $4.48 billion, which also beat the Zacks Consensus Estimate of $4.35 billion. Total revenues rose 3% from the year-ago quarter on a reported basis and 1% on a constant currency basis.
TEVA’s top line was driven by continued strong momentum in branded drugs, Austedo, Ajovy and Uzedy, as well as higher revenues from generic products in the United States, including biosimilars, partially offset by lower revenues in European generics as well as lower proceeds from the sale of certain product rights.
TEVA stock has rallied 11.6% so far this year compared with the industry’s rise of 5.3%.
Image Source: Zacks Investment Research
Generics, Austedo Drive TEVA’s Q3 U.S. Unit’s Sales
Sales in the United States segment were $2.48 billion, up 12% year over year, driven by higher revenues from generic products, including biosimilars, as well as the key branded drug, Austedo. The segment’s sales beat the Zacks Consensus Estimate of $2.25 billion as well as our model estimate of $2.24 billion.
Generic/biosimilar product revenues rose 7% from the year-ago period to $1.18 billion in the United States, driven by higher revenues from the company’s portfolio of biosimilar products, including lenalidomide capsules, the generic version of Bristol-Myers’ Revlimid and Truxima and the biosimilar version of Roche’s legacy cancer drug Rituxan, among others.
Huntington's disease drug, Austedo, recorded sales of $601 million in the United States, up 38% year over year. Sales were mainly driven by volume growth as prescription trends continued to grow. Austedo sales comprehensively beat the Zacks Consensus Estimate of $524 million and our model estimate of $510.5 million.
The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026.
Ajovy recorded sales of $73 million in the quarter, up 27% year over year, driven by volume growth. Ajovy sales surpassed the Zacks Consensus Estimate of $65 million as well as our model estimate of $61.4 million.
Uzedy (risperidone), a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia, generated sales of $43 million in the third quarter, up 24% year over year, mainly driven by volume growth.
Copaxone recorded sales of $62 million in the United States, down 9% year over year, mainly due to market share erosion and competition. Copaxone sales, however, beat the Zacks Consensus Estimate of $41.5 million as well as our model estimate of $36.3 million.
Performance of TEVA’s Europe and International Market Units
The Europe segment recorded revenues of $1.24 billion, down 2% year over year on a reported basis. Sales declined 10% on a constant currency basis, mainly due to higher proceeds from the sale of certain product rights in the year-ago quarter, and lower revenues from generic products. Europe revenues lagged the Zacks Consensus Estimate of $1.30 billion as well as our model estimate of $1.31 billion.
In the International Markets segment, sales declined 9% year over year to $557 million. In constant currency terms, sales decreased 10% year over year, mainly due to the divestment of Teva’s business venture in Japan. International Markets revenues missed the Zacks Consensus Estimate of $593 million as well as our model estimate of $662.3 million.
The Other segment (comprising the sales of active pharmaceutical ingredients to third parties and certain contract manufacturing services) recorded revenues of $205 million, down 10% year over year on a reported basis and 13% year over year on a constant currency basis.
TEVA’s Margin Discussion
Adjusted gross margin was 55.3% for the quarter, up 160 basis points (bps) year over year. The rise was mainly driven by higher Austedo revenues.
Adjusted research & development expenses increased 7% year over year to $256 million. Selling and marketing expenditure increased 5% year over year to $656 million. General and administrative expenses increased 6% from the prior-year level to $317 million.
Adjusted operating income rose 6.6% year over year in the third quarter to $1.29 billion. Adjusted operating margin increased 90 bps to 28.9% in the quarter, mainly due to higher gross profit margin, partially offset by an increase in operating expenses as a percentage of revenues.
Teva expects an adjusted operating margin of 30% by 2027 to be achieved through cost savings and the continued growth of its branded drugs.
TEVA Updates Guidance for 2025
Teva tightened its total revenue guidance for 2025. The company now expects total revenues in the range of $16.8-$17.0 billion, compared with the earlier projection of a range of $16.8-$17.2 billion.
Driven by its continued strong performance, Teva raised the guidance for Austedo sales from $2.00-$2.05 billion to $2.05-$2.15 billion.
Along with the latest earnings release, TEVA confirmed that the IRA pricing negotiations have now concluded. Teva said the outcome of the negotiations went as expected and raised its 2025 Austedo sales expectations. It also maintained its 2027 revenue target of more than $2.5 billion in Austedo sales and expects sales to exceed $3 billion by 2030.
With the uncertainty surrounding the impact of IRA pricing negotiations for the Austedo franchisee easing, the stock jumped more than 20% on Nov 5. Teva, however, did not provide any details on the negotiated discounts and final pricing of Austedo.
The company maintained its full-year guidance for Ajovy sales, which is in the range of $630-$640 million. Uzedy guidance too has been maintained in the range of $190-$200 million in 2025. Copaxone guidance was also unchanged at $370 million.
Teva raised the lower end of its adjusted EPS guidance for 2025. The company now expects adjusted EPS to be in the range of $2.55-$2.65 per share compared with the prior expectation of $2.50-$2.65 per share.
The company now expects its adjusted operating income to be in the range of $4.4-$4.6 billion compared to the previous expectation of $4.3-$4.6 billion in 2025. Adjusted EBITDA is now anticipated to be in the range of $4.8-$5 billion versus the prior expectation of $4.7-$5 billion.
Teva Pharmaceutical Industries Ltd. Price, Consensus and EPS Surprise
Teva Pharmaceutical Industries Ltd. price-consensus-eps-surprise-chart | Teva Pharmaceutical Industries Ltd. Quote
TEVA's Zacks Rank & Other Stocks to Consider
Teva currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the biotech sector are ANI Pharmaceuticals (ANIP - Free Report) , Arcutis Biotherapeutics (ARQT - Free Report) and Syndax Pharmaceuticals (SNDX - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $7.25 to $7.29 for 2025. During the same time, earnings per share estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 67.6%.
ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.
In the past 60 days, estimates for Arcutis Biotherapeutics’ loss per share have narrowed from 44 cents to 24 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 9 cents to 41 cents. Year to date, shares of ARQT have rallied 75%.
Arcutis Biotherapeutics’ earnings beat estimates in each of the trailing four quarters, the average surprise being 64.80%.
In the past 60 days, estimates for Syndax Pharmaceuticals’ loss per share have narrowed from $3.18 to $3.11 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.45 to $1.20. Year to date, shares of SNDX have gained 14.2%.
Syndax Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, the average surprise being 6.58%.