Teva Pharmaceutical Industries (TEVA) Q3 2025 earnings summary

Executive summary

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

• Innovative brands AUSTEDO (+38% YoY), UZEDY (+24%), and AJOVY (+19%) drove growth, with innovative product sales up 33% to over $800 million.

• Transformation programs and the Pivot to Growth strategy are on track, targeting $700 million in net savings and a 30% non-GAAP operating margin by 2027.

• Net income attributable to shareholders was $433 million, compared to a net loss of $437 million in Q3 2024; diluted EPS was $0.37 (GAAP) and $0.78 (non-GAAP), up 14% YoY.

• Net debt/EBITDA fell below 3x for the first time since 2016, with total debt reduced to $16.8 billion.

Financial highlights

• Q3 2025 revenue: $4.5 billion, up 3% YoY; adjusted EBITDA $1.4 billion (+6% YoY); non-GAAP EPS $0.78 (+14% YoY); free cash flow $515 million.

• Non-GAAP gross margin increased to 55.3%; GAAP gross margin 51.4%; non-GAAP operating margin 28.9%; GAAP operating margin 19.7%.

• Net income for Q3 2025 was $433 million; diluted EPS $0.37 (GAAP), $0.78 (non-GAAP).

• Free cash flow was $515 million, down from $922 million in Q3 2024 due to timing and legal settlements.

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

Outlook and guidance

• 2025 revenue guidance tightened to $16.8–$17.0 billion; AUSTEDO outlook raised to $2.05–$2.15 billion; AJOVY and UZEDY reaffirmed at $630–$640 million and $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 EPS $2.55–$2.65.

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

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

• Transformation programs target an 8% workforce reduction by end of 2027 and ongoing cost savings.