Teva Pharmaceutical Industries Stock Earnings Reports

Teva reported a solid start to 2026 with Q1 revenue of ~$4.0B (down 1% y/y in LC but +7% excluding Japan divestment and generic REVLIMID), adjusted EBITDA of $1.1B (+2%), non-GAAP EPS of $0.53 (+2%), and materially improved free cash flow (~$188M–$200M, +~76%). The company highlighted continued, strong growth in its innovative portfolio (AUSTEDO, UZEDY, AJOVY), which now represents >20% of revenue versus 9% in 2022, and is central to the Pivot to Growth strategy that targets a >60% gross margin by 2030 and 30% non-GAAP operating margin by 2027. Teva announced the acquisition of Emalex (ecopipam for Tourette syndrome): $700M upfront plus up to $200M milestones, expected to close late Q2/early Q3, with an ~80% gross-margin profile at product level and accretive to non-GAAP EPS beginning 2028. Management reiterated 2026 guidance on an underlying basis (excluding Emalex), confirmed trajectory to deliver ~$700M transformation savings (on track to realize ~2/3 by end-2026), and reaffirmed the 2027 financial targets (mid-single digit revenue growth, 30% operating margin, <2x net debt/EBITDA, cash-to-earnings ~80%). R&D highlighted multiple near-term pipeline catalysts in 2026 (7+ readouts including duvakitug maintenance success, anti–IL-15 vitiligo readout in H1, celiac in H2, DARI Phase III completion, emrusolmin futility analysis), and regulatory submissions/approvals expected this year for olanzapine LAI (EU submission filed; FDA review ongoing). Management signaled continued disciplined capital allocation (potential share buyback planning, limited M&A size expected in near term) and said the Emalex deal does not alter the company’s leverage targets or investor-grade objective.