TEVA, US8816242098

Teva stock: Q3 revenue slips as 2026 outlook rises

Published on 11/05/2026 at 10:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Teva stock faces a mixed quarter as branded medicines gain ground. Management raised its full-year outlook while generic competition remains a drag.

Teva shifts toward branded growth

Innovative brands grew strongly, but generic-drug competition reduced quarterly revenue.
Management raised the 2026 outlook for revenue and three key products.
WELTRUZA and the pipeline add longer-term growth options in neuroscience.

TEVA, US8816242098, Illustration mit AI erstellt.

Teva Pharmaceutical Industries reported third-quarter 2026 results on Tuesday, November 3, for the period ended September 30. The company raised its full-year revenue outlook as growth in innovative medicines offset weaker generic-drug sales, according to Teva's release.

Branded medicines lead the pivot

Third-quarter revenue fell 2 percent year over year to USD 4.395 billion in both U.S. dollars and local currency. Global generics revenue declined 16 percent in local currency, mainly because of increased U.S. competition for lenalidomide capsules, the generic version of Revlimid.

The three main innovative brands generated approximately USD 1.1 billion and grew 33 percent in local currency. AUSTEDO revenue reached USD 751 million, AJOVY generated USD 269 million and UZEDY contributed USD 85 million. Teva lifted the 2026 revenue ranges for all three products.

Margins improve despite revenue pressure

Gross margin rose to 55.5 percent from 51.4 percent a year earlier. Non-GAAP gross margin increased to 58.7 percent, while non-GAAP diluted earnings per share rose to USD 0.86 from USD 0.78. GAAP diluted earnings per share declined to USD 0.20 from USD 0.37, reflecting lower operating income and higher financial expenses, including debt-extinguishment costs.

Teva's updated 2026 outlook calls for revenue of USD 16.7 billion to USD 17.0 billion, compared with the previous range of USD 16.5 billion to USD 16.85 billion. The company expects non-GAAP operating income of USD 3.8 billion to USD 3.9 billion, adjusted EBITDA of USD 4.23 billion to USD 4.43 billion and free cash flow of USD 2.1 billion to USD 2.4 billion. The outlook includes USD 870 million of acquired in-process research and development charges for operating income and EBITDA, and USD 0.71 per share of such charges in diluted EPS guidance.

Pipeline adds a longer-term test

The FDA approval and U.S. launch of WELTRUZA expand Teva's long-acting injectable schizophrenia portfolio alongside UZEDY. The company also said its biosimilars business is expected to exceed USD 0.8 billion in 2026 revenue, reaching its original 2027 target a year early. Investors will weigh that growth potential against continuing price and volume pressure in generics, execution risks for new products and the costs embedded in the adjusted outlook.