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Teva Pharmaceutical Industries (TEVA) investor relations material

Teva Pharmaceutical Industries Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary5 Nov, 2025

Executive summary

  • Achieved 11th consecutive quarter of revenue growth, with Q3 2025 revenues up 3% year-over-year to $4.5 billion, driven by innovative products and US generics, and an 8% CAGR from Q3 2023 to Q3 2025.

  • Innovative brands (AUSTEDO, UZEDY, AJOVY) delivered up to 38% year-over-year growth, with the innovative portfolio exceeding $800 million in quarterly revenue.

  • Transformation and cost-saving programs are on track, targeting $700 million in savings by 2027 and a 30% non-GAAP operating margin.

  • Net income attributable to shareholders was $433 million, compared to a net loss of $437 million in Q3 2024.

  • Free cash flow for Q3 was $515 million, down from $922 million in Q3 2024, mainly due to lower operating cash flow and divestiture proceeds.

Financial highlights

  • Adjusted EBITDA increased 5–6% year-over-year to $1.4 billion; non-GAAP EPS up 14% to $0.78.

  • Non-GAAP gross margin rose to 55.3%, and non-GAAP operating margin improved to 28.9%.

  • GAAP gross margin was 51.4%, with GAAP operating margin at 19.7%.

  • Net debt reduced to $14.6–$16.8 billion, with net debt/EBITDA at 2.95x.

  • YTD 2025 revenues reached $12.5 billion (+2% YoY), with YTD non-GAAP operating income up 7%.

Outlook and guidance

  • 2025 revenue guidance narrowed to $16.8–$17.0 billion; AUSTEDO outlook raised to $2.05–$2.15 billion, AJOVY/UZEDY reaffirmed at $630–$640 million/$190–$200 million.

  • Non-GAAP operating income guidance raised to $4.4–$4.6 billion; adjusted EBITDA to $4.8–$5.0 billion.

  • Non-GAAP diluted EPS guidance increased to $2.55–$2.65.

  • Free cash flow guidance unchanged at $1.6–$1.9 billion for 2025.

  • 2027 targets reaffirmed: mid-single-digit revenue growth, 30% operating margin, net debt/EBITDA of 2x.

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Frequently asked questions

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets and distributes generic medicines and a portfolio of specialty medicines worldwide. It operates in two segments, Generic Medicines and Specialty Medicines. The company offers various APIs and molecules for the treatment of various disorders in a range of therapeutic areas, including CNS, oncology, respiratory, cardiology and other specialty areas. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.

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