The Motley Fool·1d ago
Teva's 3 Key Branded Drugs Grew Sales 33% Last Quarter. Is This Turnaround Stock a Buy Right Now?Teva improved margins significantly. The pharmaceutical company has paid down net debt.
Teva's gross margin has expanded from 48.6% in Q2 2024 to 55.5% in Q3 2026, suggesting improving product-level economics, yet operating margin of 16.2% in that quarter rests on a single strong period against repeated losses and a $576M net loss in Q2 2026.
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Gross margin expanded to 55.5% in Q3 2026 from 48.6% in Q2 2024, but operating margin remained volatile, ranging from -1.2% to 19.7%, suggesting earnings quality is highly sensitive to timing and one-time items.
Teva's transition from generics to innovative treatments, driven by products like Austedo, Ajovy, and Uzedy, is a key growth driver.
Products such as Austedo and Ajovy are experiencing strong growth, contributing significantly to Teva's revenue.
Under CEO Francis, Teva has implemented operational improvements, enhancing efficiency and profitability.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
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| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 3, 2026 | $0.86+19.4% vs $0.72 | $4.4B+3.8% vs $4.2B |
Q3 2026 Jul 29, 2026 | $0.02-75.0% vs $0.08 | $4.1B+1.5% vs $4.1B |
Q2 2026 Apr 29, 2026 | $0.53+6.0% vs $0.50 | $4.0B+5.1% vs $3.8B |
Q1 2026 Jan 28, 2026 | $0.96+47.7% vs $0.65 | $4.7B+9.1% vs $4.3B |
Teva improved margins significantly. The pharmaceutical company has paid down net debt.
Teva Pharmaceutical Industries (NYSE: TEVA) reported third-quarter 2026 revenue of approximately $4.4 billion, down 2% from a year earlier, as growth in its innovative medicines portfolio was offset by lower generic-drug sales, particularly generic REVLIMID. Chief Executive Officer Richard Francis said the company's innovative portfolio grew 32% year over year, led by AUSTEDO, AJOVY and UZEDY.
Teva's Q3 earnings beat estimates as strong branded drug sales fueled growth, prompting higher 2026 revenue and product sales guidance.
Teva Pharmaceutical Industries Limited ( TEVA ) Q3 2026 Earnings Call November 3, 2026 8:00 AM EST Company Participants Christopher Stevo - Senior Vice President of Investor Relations & Competitive Intelligence Richard Francis - President, CEO & Director Eric Hughes - Executive VP of Global R&D and Chief Medical Officer Eliyahu Kalif - Executive VP & CFO Conference Call Participants Umer Raffat - Evercore ISI Institutional Equities, Research Division Douglas Tsao - H.C. Wainwright & Co, LLC, Research Division Glen Santangelo - Barclays Bank PLC, Research Division David Amsellem - Piper Sandler & Co., Research Division Jason Gerberry - BofA Securities, Research Division Louise Chen - Scotiabank Global Banking and Markets, Research Division Dennis Ding Daniel Christopher Clark - Leerink Partners LLC, Research Division Joseph Thome - TD Cowen, Research Division Christopher Schott - JPMorgan Chase & Co, Research Division Presentation Operator Hello, everybody, and welcome to the Q3 2026 Teva Pharmaceutical Industries Earnings Conference Call.
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Key metrics vs top competitors for Teva Pharmaceutical Industries Limited (TEVA)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $42.61 | $50.41B | 35.51 | 4.31% | 8.17% | 20.68% | — | |
| $19.91 | $23.19B | -6.64 | -2.98% | -2.79% | -2.79% | 2.41% | |
| $15.85 | $2.19B | -1.54 | -2.75% | -41.85% | -55.97% | 7.26% | |
| $20.14 | $6.43B | 91.55 | 8.05% | 4.62% | 82.23% | — | |
| $26.16 | $1.52B | -38.47 | 8.63% | 7.26% | 9.29% | — | |
| $100.61 | $6.55B | 29.50 | 0.5% | 17.69% | 23.27% | — |
Teva Pharmaceutical Industries Limited (TEVA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Teva Pharmaceutical Industries Limited (TEVA) SEC filings — annual & quarterly reports (10-K, 10-Q)
Nov 3, 2026·SEC
Oct 29, 2026·SEC
Jul 29, 2026·SEC
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Teva Pharmaceutical Industries Limited (TEVA) stock FAQ — growth, dividends, profitability & financials explained
Teva Pharmaceutical Industries Limited (TEVA) reported $17.26B in revenue in fiscal year 2025, which is also its trailing twelve months. That is 1709% more than the $953.8M of fiscal year 1996.
Teva Pharmaceutical Industries Limited (TEVA) grew revenue by 4.3% in fiscal year 2025, compared with the prior fiscal year.
Yes. Teva Pharmaceutical Industries Limited (TEVA) earned $506.0M in net income over the trailing twelve months (a 2.9% net margin).
Teva Pharmaceutical Industries Limited (TEVA) had a return on equity (ROE) of 20.7% in fiscal year 2025. That is well above the market's typical 10-15%.
Teva Pharmaceutical Industries Limited (TEVA) generated $1.24B in free cash flow over the trailing twelve months.
