The Investor
03 Nov 2026, 14:52
Teva Rises 4.5% as Innovative Brands Surge and 2026 Outlook Improves
Teva Pharmaceutical Industries (NYSE: TEVA) shares rose about 4.5% after the company reported strong growth across its key innovative medicines, substantial margin expansion and higher 2026 product guidance.
Third-quarter revenue was $4.4 billion, down 2% year over year as global generics revenue declined 16%, primarily because of increased competition for lenalidomide in the U.S. However, Teva’s three key innovative brands generated approximately $1.1 billion of revenue and grew 33% in local currency.
AUSTEDO revenue increased 21% to $751 million, AJOVY surged 61% to $269 million and UZEDY nearly doubled, rising 96% to $85 million. Teva raised its 2026 revenue outlook for all three products, including AUSTEDO to $2.55 billion-$2.65 billion and AJOVY to $930 million-$960 million.
Profitability improved sharply despite the lower top line. Non-GAAP gross margin expanded 345 basis points to 58.7%, its highest quarterly level in a decade on the company’s stated comparison basis. Non-GAAP operating income rose to $1.39 billion and adjusted EBITDA increased 7% to nearly $1.5 billion. Non-GAAP EPS increased 10% to $0.86.
Teva also continued expanding its neuroscience portfolio. The FDA approved WELTRUZA in October, while the company acquired BXCL-501 and advanced ecopipam toward a potential regulatory decision in the first quarter of 2027. The company continues to target $1.5 billion-$2.0 billion of peak sales for its UZEDY and WELTRUZA schizophrenia franchise.
The 4.5% gain appears to reflect the accelerating shift toward higher-margin innovative medicines, strong margin expansion and raised product forecasts. Weakness in traditional generics remains a drag, but investors appear to be giving greater weight to the improving product mix, growing neuroscience franchise and Teva’s stronger financial position following its return to investment-grade credit ratings.
Teva Pharmaceutical Industries (NYSE: TEVA) shares rose about 4.5% after the company reported strong growth across its key innovative medicines, substantial margin expansion and higher 2026 product guidance.
Third-quarter revenue was $4.4 billion, down 2% year over year as global generics revenue declined 16%, primarily because of increased competition for lenalidomide in the U.S. However, Teva’s three key innovative brands generated approximately $1.1 billion of revenue and grew 33% in local currency.
AUSTEDO revenue increased 21% to $751 million, AJOVY surged 61% to $269 million and UZEDY nearly doubled, rising 96% to $85 million. Teva raised its 2026 revenue outlook for all three products, including AUSTEDO to $2.55 billion-$2.65 billion and AJOVY to $930 million-$960 million.
Profitability improved sharply despite the lower top line. Non-GAAP gross margin expanded 345 basis points to 58.7%, its highest quarterly level in a decade on the company’s stated comparison basis. Non-GAAP operating income rose to $1.39 billion and adjusted EBITDA increased 7% to nearly $1.5 billion. Non-GAAP EPS increased 10% to $0.86.
Teva also continued expanding its neuroscience portfolio. The FDA approved WELTRUZA in October, while the company acquired BXCL-501 and advanced ecopipam toward a potential regulatory decision in the first quarter of 2027. The company continues to target $1.5 billion-$2.0 billion of peak sales for its UZEDY and WELTRUZA schizophrenia franchise.
The 4.5% gain appears to reflect the accelerating shift toward higher-margin innovative medicines, strong margin expansion and raised product forecasts. Weakness in traditional generics remains a drag, but investors appear to be giving greater weight to the improving product mix, growing neuroscience franchise and Teva’s stronger financial position following its return to investment-grade credit ratings.
