Teva Pharmaceutical Industries (TEVA) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues were $4.1–$4.14 billion, down 1% year-over-year, mainly due to lower generics, while innovative brands AUSTEDO, AJOVY, and UZEDY grew 43% and offset declines.

• Emalex acquisition closed, impacting Q2 non-GAAP profit by $724–$775 million, with NDA submitted for ecopipam for Tourette syndrome.

• Raised 2026 revenue guidance for key innovative brands to $3.7 billion, reflecting 17% YoY growth at midpoint.

• Continued execution of Pivot to Growth strategy, focusing on innovation, biosimilars, and disciplined capital allocation.

• Announced direct listing of ordinary shares on NYSE, replacing ADS program in September 2026.

Financial highlights

• Q2 2026 revenues: $4.1–$4.14 billion, down 1% YoY; gross profit margin improved to 52.0% (GAAP), 55.4% (non-GAAP).

• Non-GAAP EPS was $0.02; excluding Emalex, EPS would have been $0.63; GAAP net loss attributable to shareholders was $576 million.

• Adjusted EBITDA was $474 million, down 62% YoY; free cash flow increased 31% to $622 million.

• R&D expenses surged to $970 million, mainly due to Emalex acquisition.

• Net debt as of June 30, 2026, was $12.9 billion; gross debt $16.6 billion; financial leverage at 68%.

Outlook and guidance

• 2026 revenue guidance raised to $16.5–$16.85 billion; innovative brands (AUSTEDO, AJOVY, UZEDY) guidance raised to $3.7 billion.

• Non-GAAP operating income expected at $3.8–$4.0 billion; adjusted EBITDA at $4.23–$4.53 billion; non-GAAP EPS $1.91–$2.11.

• 2027 targets reaffirmed: mid-single digit revenue CAGR, 30% non-GAAP operating margin, net debt/EBITDA at 2.0x.

• Transformation programs to reduce workforce by 8% by end of 2027 and drive cost savings.

• Q4 AUSTEDO revenue expected to decline YoY due to IRA implementation.