Upside case
Bull case
$29-8.7%
The bull case prices TEVA at 13x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
Teva Pharmaceutical Industries Limited (TEVA) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
46
analysts
22 bullish · 4 bearish · 46 covering TEVA
Strong Buy
0
Buy
22
Hold
20
Sell
4
Strong Sell
0
Consensus Target
$40
+27.1% vs today
Scenario Range
$14 – $29
Model bear to bull value window
Coverage
46
Published analyst ratings
Valuation Context
14.4x
Forward P/E · Market cap $36.7B
TEVA price targets
Three scenarios for where TEVA stock could go
Current
~$31
Confidence
46 / 100
Updated
Jun 18, 2026
Where we are now
Current · $31
Bear
$14
Base
$22
Bull
$29
Market caseClosest to today
Base case
$22-30.7%
At 10x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$14-56.4%
If investor confidence fades or macro conditions deteriorate, a 8x multiple contraction could push TEVA down roughly 56% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Teva Pharmaceutical Industries Limited
TEVA · NYSEHealthcareDrug Manufacturers - Specialty & GenericDecember year-end
Teva is a global pharmaceutical company that develops, manufactures, and markets generic medicines alongside a portfolio of specialty drugs. It generates revenue primarily from generic pharmaceuticals — which account for roughly half of sales — and specialty medicines like Copaxone for multiple sclerosis and AJOVY for migraines. The company's competitive advantage lies in its massive scale in generic manufacturing, extensive global distribution network, and established portfolio of specialty drugs with patent protection.
Market Cap
$36.7B
Revenue TTM
$17.3B
Net Income TTM
$1.6B
Net Margin
9.0%
TEVA Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+10.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.66/$0.63
Revenue
$4.2B/$4.4B
Q4 2025
EPS
$0.78/$0.68
Revenue
$4.5B/$4.5B
Q1 2026
EPS
$0.96/$0.65
Revenue
$4.7B/$4.3B
Q2 2026
EPS
$0.53/$0.50
Revenue
$4.0B/$3.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.66/$0.63 | +4.8% | $4.2B/$4.4B | -4.3% |
| Q4 2025 | $0.78/$0.68 | +14.7% | $4.5B/$4.5B | +0.6% |
| Q1 2026 | $0.96/$0.65 | +47.7% | $4.7B/$4.3B | +9.1% |
| Q2 2026 | $0.53/$0.50 | +6.0% | $4.0B/$3.8B | +5.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$18.2B
+5.0% YoY
FY2
$18.8B
+3.5% YoY
EPS Outlook
FY1
$0.92
-30.8% YoY
FY2
$0.76
-17.7% YoY
Trailing FCF (TTM)$1.2B
FCF Margin: 6.8%
Next Earnings
July 29, 2026
Expected EPS
$0.53
Expected Revenue
$4.1B
TEVA beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
TEVA Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $17.3B
Product Mix
Latest annual revenue by segment or product family
Product
84.6%
+1.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
United States Segment
56.1%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Product is the largest disclosed segment at 84.6% of FY 2025 revenue, up 1.2% YoY.
United States Segment is the largest reported region at 56.1%, with no year-over-year comparison yet.
TEVA Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $19 — implies -40.5% from today's price.
Premium to Fair Value
40.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
TEVA
26.2x
vs
S&P 500
24.4x
+7% premium
vs Healthcare Trailing P/E
TEVA
26.2x
vs
Healthcare
22.1x
+19% premium
vs TEVA 5Y Avg P/E
Today
26.2x
vs
5Y Average
23.5x
+11% premium
Forward PE
14.4x
S&P 500
18.8x
-23%
Healthcare
18.3x
-21%
5Y Avg
—
—
Trailing PE
26.2x
S&P 500
24.4x
+7%
Healthcare
22.1x
+19%
5Y Avg
23.5x
+11%
PEG Ratio
—
S&P 500
1.66x
—
Healthcare
1.59x
—
5Y Avg
—
—
EV/EBITDA
16.0x
S&P 500
15.2x
+5%
Healthcare
14.2x
+12%
5Y Avg
24.1x
-34%
Price/FCF
31.9x
S&P 500
20.7x
+54%
Healthcare
18.5x
+72%
5Y Avg
25.3x
+26%
Price/Sales
2.1x
S&P 500
3.1x
-31%
Healthcare
2.6x
-19%
5Y Avg
1.1x
+90%
Dividend Yield
—
S&P 500
1.91%
—
Healthcare
1.50%
—
5Y Avg
—
—
| Metric | TEVA | S&P 500 | Healthcare | 5Y Avg TEVA |
|---|---|---|---|---|
| Forward PE | 14.4x | 18.8x-23% | 18.3x-21% | — |
| Trailing PE | 26.2x | 24.4x | 22.1x+19% | 23.5x+11% |
| PEG Ratio | — | 1.66x | 1.59x | — |
| EV/EBITDA | 16.0x | 15.2x | 14.2x+12% | 24.1x-34% |
| Price/FCF | 31.9x | 20.7x+54% | 18.5x+72% | 25.3x+26% |
| Price/Sales | 2.1x | 3.1x-31% | 2.6x-19% | 1.1x+90% |
| Dividend Yield | — | 1.91% | 1.50% | — |
TEVA trades above S&P 500 benchmarks on 1 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolTEVA Financial Health
Verdict
Strong
Key financial metrics for TEVA are shown below.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$17.3B
Revenue Growth
TTM vs prior year
+4.4%
Gross Margin
Gross profit as a share of revenue
52.1%
Operating Margin
Operating income divided by revenue
13.2%
Net Margin
Net income divided by revenue
9.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.33
Free Cash Flow (TTM)
Cash generation after capex
$1.2B
FCF Margin
FCF as share of revenue — the primary cash quality signal
6.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
7.7%
ROA
Return on assets, trailing twelve months
3.9%
Cash & Equivalents
Liquid assets on the balance sheet
$3.6B
Net Debt
Total debt minus cash
$13.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
11.8× FCF
~11.8 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
20.7%
* Elevated by buyback-compressed equity — compare ROIC (7.7%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
1.2B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageTEVA Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Generic Pricing Pressure
Continued generic pricing pressure is compressing margins and negatively impacting valuation.
High Risk
Litigation Risks
Disappointing litigation outcomes could further strain financial performance and investor confidence.
Medium
Margin Recovery
Slower-than-expected margin recovery is contributing to bearish sentiment and valuation concerns.
Medium
Stock Performance
Recent stock pullback and technical weakness indicate investor skepticism and potential downside risk.
Lower
Innovation Challenges
While Teva focuses on innovation, competitive pressures in drug development may limit growth opportunities.
Lower
Regulatory Risks
Operating in a highly regulated industry exposes Teva to potential compliance and approval delays.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why TEVA Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Shift to Innovation
Teva's transition from generics to innovative treatments, driven by products like Austedo, Ajovy, and Uzedy, is a key growth driver.
Strong Product Growth
Products such as Austedo and Ajovy are experiencing strong growth, contributing significantly to Teva's revenue.
Operational Improvements
Under CEO Francis, Teva has implemented operational improvements, enhancing efficiency and profitability.
Pivot to Growth Strategy
Teva's 'Pivot to Growth' strategy emphasizes innovation and quality medications, positioning the company for long-term success.
Stock Appreciation
The stock has appreciated significantly, reflecting investor confidence in Teva's strategic direction and execution.
Innovative Treatments
Teva's focus on innovative treatments and drug development is central to its mission and growth prospects.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
TEVA Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$31.48
52W Range Position
74%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$14.99
+110.0% from the low
52-Week High
$37.35
-15.7% from the high
1 Month
-7.49%
3 Month
+6.32%
YTD
+1.7%
1 Year
+84.5%
3Y CAGR
+61.0%
5Y CAGR
+25.5%
10Y CAGR
-4.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
TEVA vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
14.4x
vs 16.5x median
-13% below peer median
Revenue Growth
+5.0%
vs +6.5% median
-23% below peer median
Net Margin
9.0%
vs -2.0% median
+543% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
TEV TEVA Teva Pharmaceutical Industries Limited | $36.7B | 14.4x | +5.0% | 9.0% | Buy | +27.1% |
VTR VTRS Viatris Inc. | $17.9B | 6.2x | +2.6% | -2.0% | Hold | +13.2% |
PRG PRGO Perrigo Company plc | $1.4B | 4.8x | +1.2% | -43.5% | Hold | +253.2% |
AMR AMRX Amneal Pharmaceuticals, Inc. | $5.1B | 16.5x | +9.2% | 2.4% | Buy | +6.9% |
SUP SUPN Supernus Pharmaceuticals, Inc. | $2.6B | 17.8x | +10.2% | -3.7% | Buy | +35.2% |
LNT LNTH Lantheus Holdings, Inc. | $6.8B | 19.4x | +6.5% | 18.0% | Buy | +4.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
TEVA Dividend and Capital Return
TEVA does not currently return meaningful capital to shareholders.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.0%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
-37.8%
5Y Div CAGR
-19.9%
Ex-Dividend Date
—
Payment Cadence
Quarterly
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.2B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2017 | $0.85 | -37.5% | 0.0% | 4.7% |
| 2016 | $1.36 | 0.0% | 0.0% | 3.7% |
| 2015 | $1.36 | -0.4% | 0.8% | 2.8% |
| 2014 | $1.37 | +6.9% | 1.0% | 3.4% |
| 2013 | $1.28 | +23.6% | 1.5% | 4.7% |
FAQ
7 questionsTEVA Investor Questions
Common questions answered from live analyst data and company financials.
01Is Teva Pharmaceutical Industries Limited (TEVA) stock a buy or sell in 2026?
Teva Pharmaceutical Industries Limited (TEVA) is rated Buy by Wall Street analysts as of 2026. Of 46 analysts covering the stock, 22 rate it Buy or Strong Buy, 20 rate it Hold, and 4 rate it Sell or Strong Sell. The consensus 12-month price target is $40, implying +27.1% from the current price of $31. The bear case scenario is $14 and the bull case is $29.
02What is the TEVA stock price target for 2026?
The Wall Street consensus price target for TEVA is $40 based on 46 analyst estimates. The high-end target is $42 (+33.4% from today), and the low-end target is $36 (+14.4%). The base case model target is $22.
03Is Teva Pharmaceutical Industries Limited (TEVA) stock overvalued in 2026?
TEVA trades at 14.4x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Teva Pharmaceutical Industries Limited (TEVA) stock in 2026?
The primary risks for TEVA in 2026 are: (1) Generic Pricing Pressure — Continued generic pricing pressure is compressing margins and negatively impacting valuation. (2) Litigation Risks — Disappointing litigation outcomes could further strain financial performance and investor confidence. (3) Margin Recovery — Slower-than-expected margin recovery is contributing to bearish sentiment and valuation concerns. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Teva Pharmaceutical Industries Limited's revenue and earnings forecast?
Analyst consensus estimates TEVA will report consensus revenue of $18.2B (+5.0% year-over-year) and EPS of $0.92 (-30.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $18.8B in revenue.
06When does Teva Pharmaceutical Industries Limited (TEVA) report its next earnings?
Teva Pharmaceutical Industries Limited is expected to report its next earnings on approximately 2026-07-29. Consensus expects EPS of $0.53 and revenue of $4.1B. Over recent quarters, TEVA has beaten EPS estimates 83% of the time.
07How much free cash flow does Teva Pharmaceutical Industries Limited generate?
Teva Pharmaceutical Industries Limited (TEVA) generated $1.2B in free cash flow over the trailing twelve months — a free cash flow margin of 6.8%. TEVA returns capital to shareholders through and share repurchases ($0 TTM).