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 Pharmaceutical Industries Limited (TEVA) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 17.23B | 17.26B | 16.54B | 15.85B | 14.93B | 15.88B | 16.66B | 16.89B | 18.85B | 22.39B | 21.9B | 19.65B | 20.27B | 20.31B | 20.32B | 18.31B | 16.12B | 13.9B | 11.09B | 9.41B | 8.41B | 5.25B | 4.8B | 3.28B | 2.52B | 2.08B | 1.75B | 1.28B | 1.12B | 1.12B | 953.8M |
| Revenue Growth % | 2.7% | 4.31% | 4.41% | 6.16% | -6% | -4.69% | -1.35% | -10.43% | -15.77% | 2.2% | 11.45% | -3.06% | -0.21% | -0.01% | 10.95% | 13.59% | 15.99% | 25.39% | 17.83% | 11.89% | 60.14% | 9.41% | 46.47% | 30.09% | 21.24% | 18.72% | 36.45% | 14.92% | -0.09% | 17.1% | 42.85% |
| Cost of Goods Sold | 8.01B | 8.32B | 8.48B | 8.2B | 7.95B | 8.28B | 8.93B | 9.35B | 10.56B | 11.56B | 10.04B | 8.3B | 9.22B | 9.61B | 9.66B | 8.8B | 7.06B | 6.53B | 5.12B | 4.53B | 4.15B | 2.77B | 2.56B | 1.76B | 1.42B | 1.23B | 962.99M | 699.2M | 636.1M | 628.9M | 550.4M |
| COGS % of Revenue | - | 48.21% | 51.26% | 51.75% | 53.28% | 52.17% | 53.62% | 55.37% | 56% | 51.64% | 45.86% | 42.21% | 45.46% | 47.29% | 47.57% | 48.04% | 43.77% | 47% | 46.16% | 48.16% | 49.35% | 52.75% | 53.34% | 53.64% | 56.51% | 59.21% | 55.03% | 54.52% | 57% | 56.31% | 57.71% |
| Gross Profit | 9.22B | 8.94B | 8.06B | 7.64B | 6.97B | 7.59B | 7.73B | 7.54B | 8.3B | 10.82B | 11.86B | 11.36B | 11.06B | 10.71B | 10.65B | 9.52B | 9.06B | 7.37B | 5.97B | 4.88B | 4.26B | 2.48B | 2.24B | 1.52B | 1.1B | 847.29M | 786.86M | 583.2M | 479.8M | 488M | 403.4M |
| Gross Margin % | 53.52% | 51.79% | 48.74% | 48.25% | 46.72% | 47.83% | 46.38% | 44.63% | 44% | 48.36% | 54.14% | 57.79% | 54.54% | 52.71% | 52.43% | 51.96% | 56.23% | 53% | 53.84% | 51.84% | 50.65% | 47.25% | 46.66% | 46.36% | 43.49% | 40.79% | 44.97% | 45.48% | 43% | 43.69% | 42.29% |
| Gross Profit Growth % | - | 10.85% | 5.47% | 9.64% | -8.18% | -1.71% | 2.52% | -9.16% | -23.36% | -8.72% | 4.43% | 2.71% | 3.26% | 0.52% | 11.95% | 4.96% | 23.05% | 23.44% | 22.37% | 14.51% | 71.69% | 10.78% | 47.43% | 38.66% | 29.28% | 7.68% | 34.92% | 21.55% | -1.68% | 20.97% | 32.87% |
| Operating Expenses | 7.4B | 6.78B | 8.37B | 7.21B | 9.17B | 5.88B | 11.3B | 7.98B | 5.43B | 6.83B | 7.21B | 6.24B | 6.57B | 6.75B | 6.47B | 5.5B | 4.77B | 4.3B | 4.82B | 2.48B | 2.16B | 1.17B | 1.06B | 634.1M | 571.4M | 470.84M | 411.65M | 384.16M | 334.8M | 314.2M | 274.1M |
| OpEx % of Revenue | - | 39.29% | 50.57% | 45.52% | 61.44% | 37.02% | 67.82% | 47.25% | 28.78% | 30.53% | 32.9% | 31.76% | 32.39% | 33.21% | 31.86% | 30.06% | 29.56% | 30.94% | 43.51% | 26.38% | 25.73% | 22.24% | 22.19% | 19.35% | 22.69% | 22.67% | 23.52% | 29.96% | 30% | 28.13% | 28.74% |
| Selling, General & Admin | 4.16B | 3.97B | 3.7B | 3.5B | 3.44B | 3.53B | 3.67B | 3.81B | 4.21B | 4.99B | 5.1B | 4.72B | 5.08B | 5.32B | 5.12B | 4.41B | 3.83B | 3.5B | 2.51B | 1.9B | 1.57B | 798.8M | 696.5M | 520.6M | 406.4M | 363.56M | 307.08M | 233.89M | 208M | 197M | 167.6M |
| SG&A % of Revenue | - | 23.02% | 22.38% | 22.08% | 23.08% | 22.22% | 22.04% | 22.54% | 22.35% | 22.27% | 23.27% | 24% | 25.05% | 26.18% | 25.19% | 24.08% | 23.78% | 25.17% | 22.65% | 20.21% | 18.7% | 15.21% | 14.51% | 15.89% | 16.14% | 17.5% | 17.55% | 18.24% | 18.64% | 17.64% | 17.57% |
| Research & Development | 1.04B | 1.01B | 1.05B | 953M | 838M | 1.09B | 1.79B | 1.01B | 1.21B | 1.85B | 2.11B | 1.52B | 1.49B | 1.43B | 1.36B | 1.09B | 933M | 802M | 786M | 581M | 495M | 368.9M | 338.4M | 213.5M | 165M | 107.27M | 104.58M | 81.84M | 68.1M | 65.2M | 62.8M |
| R&D % of Revenue | - | 5.87% | 6.38% | 6.01% | 5.61% | 6.89% | 10.77% | 5.98% | 6.43% | 8.26% | 9.64% | 7.76% | 7.34% | 7.02% | 6.67% | 5.98% | 5.79% | 5.77% | 7.09% | 6.18% | 5.89% | 7.03% | 7.05% | 6.52% | 6.55% | 5.16% | 5.98% | 6.38% | 6.1% | 5.84% | 6.58% |
| Other Operating Expenses | 4M | 1.79B | 3.61B | 2.76B | 4.89B | 1.26B | 5.83B | 3.16B | 0 | 0 | 0 | 23M | -17M | -36M | 40M | 0 | 0 | 0 | 0 | 0 | 96M | 0 | 30M | -100M | 0 | 0 | 0 | 68.42M | 58.7M | 52M | 43.7M |
| Operating Income | 1.81B | 2.16B | -303M | 433M | -2.2B | 1.72B | -3.57B | -443M | -1.64B | -17.48B | 2.15B | 3.35B | 3.95B | 1.65B | 2.21B | 3.11B | 3.87B | 2.4B | 1.15B | 2.4B | 801M | 1.31B | 577.8M | 877.4M | 524M | 360.79M | 244.53M | 199.05M | 145M | 173.8M | 129.3M |
| Operating Margin % | 10.53% | 12.5% | -1.83% | 2.73% | -14.72% | 10.81% | -21.44% | -2.62% | -8.68% | -78.11% | 9.83% | 17.06% | 19.49% | 8.12% | 10.85% | 16.98% | 24.01% | 17.3% | 10.33% | 25.46% | 9.53% | 25.01% | 12.04% | 26.78% | 20.81% | 17.37% | 13.97% | 15.52% | 12.99% | 15.56% | 13.56% |
| Operating Income Growth % | - | 811.88% | -169.98% | 119.71% | -228.03% | 148.04% | -706.32% | 72.94% | 90.64% | -911.7% | -35.74% | -15.16% | 139.6% | -25.22% | -29.08% | -19.68% | 60.96% | 110.04% | -52.19% | 199% | -38.99% | 127.22% | -34.15% | 67.44% | 45.24% | 47.55% | 22.85% | 37.27% | -16.57% | 34.42% | 12.24% |
| EBITDA | 2.8B | 3.16B | 756M | 1.59B | -889M | 3.05B | -2.02B | 1.28B | 205M | -15.41B | 3.65B | 4.66B | 5.46B | 3.29B | 3.91B | 4.18B | 4.85B | 3.31B | 1.64B | 2.92B | 1.23B | 1.56B | 798.2M | 1.01B | 620.9M | 469.92M | 339.51M | 267.47M | 203.7M | 225.8M | 173M |
| EBITDA Margin % | 16.25% | 18.31% | 4.57% | 10.01% | -5.96% | 19.18% | -12.1% | 7.57% | 1.09% | -68.83% | 16.66% | 23.71% | 26.93% | 16.2% | 19.26% | 22.82% | 30.07% | 23.84% | 14.78% | 30.99% | 14.65% | 29.62% | 16.63% | 30.68% | 24.65% | 22.62% | 19.4% | 20.86% | 18.25% | 20.22% | 18.14% |
| EBITDA Growth % | -1.41% | 317.86% | -52.33% | 278.4% | -129.19% | 251.17% | -257.55% | 523.9% | 101.33% | -522.37% | -21.72% | -14.64% | 65.88% | -15.9% | -6.34% | -13.82% | 46.33% | 102.26% | -43.83% | 136.69% | -20.79% | 94.86% | -20.59% | 61.88% | 32.13% | 38.41% | 26.93% | 31.31% | -9.79% | 30.52% | 23.04% |
| D&A (Non-Cash Add-back) | 985M | 1B | 1.06B | 1.15B | 1.31B | 1.33B | 1.56B | 1.72B | 1.84B | 2.08B | 1.49B | 1.31B | 1.51B | 1.64B | 1.71B | 1.07B | 977M | 908M | 493M | 521M | 431M | 242.5M | 220.4M | 127.7M | 96.9M | 109.13M | 94.98M | 68.42M | 58.7M | 52M | 43.7M |
| EBIT | 1.05B | 2.14B | 3.37B | 405M | -2.23B | 3.08B | 3.06B | 2.72B | -1.66B | -17.59B | 1.37B | 2.62B | 3.94B | 1.56B | 2.17B | 3.19B | 3.85B | 2.4B | 1.15B | 2.4B | 2.1B | 1.31B | 1.18B | 884.8M | 524M | 376.46M | 375.21M | 267.47M | 203.73M | 173.8M | 129.3M |
| Net Interest Income | -693M | -916M | -941M | -961M | -930M | -891M | -731M | -916M | -881M | -872M | -548M | -431M | -276M | -282M | 329M | -234M | -202M | -202M | -318M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 68M | 0 | 0 | 24M | 41M | 0 | 3M | 0 | 34M | 0 | 0 | 329M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 693M | 916M | 941M | 1.03B | 930M | 891M | 755M | 957M | 881M | 895M | 1.33B | 465M | 276M | 282M | 0 | 153M | 225M | 230M | 318M | 0 | 2.7B | 4.4M | 1.2B | 0 | 16.8M | 43.13M | 193.07M | 44.35M | 67.3M | 42.9M | 46M |
| Other Income/Expense | -1.44B | -919M | -980M | -1.05B | -945M | -1.05B | -359M | -280M | -959M | -895M | -1.33B | -1B | -313M | -399M | -386M | -153M | -225M | -202M | -318M | -42M | -95M | -3.9M | -588.27M | -5M | -24.6M | -18.93M | -36.54M | -36.88M | -45.28M | -33.6M | -35M |
| Pretax Income | 372M | 1.24B | -1.28B | -622M | -3.14B | 667M | -3.93B | -723M | -2.6B | -18.38B | 824M | 2.35B | 3.64B | 1.25B | 1.82B | 2.96B | 3.65B | 2.2B | 827M | 2.35B | 706M | 1.31B | 603.7M | 872.4M | 499.4M | 341.86M | 207.99M | 162.17M | 99.7M | 140.2M | 94.3M |
| Pretax Margin % | 2.16% | 7.17% | -7.76% | -3.93% | -21.05% | 4.2% | -23.6% | -4.28% | -13.77% | -82.1% | 3.76% | 11.97% | 17.95% | 6.15% | 8.95% | 16.14% | 22.62% | 15.85% | 7.46% | 25.01% | 8.4% | 24.92% | 12.58% | 26.63% | 19.83% | 16.46% | 11.89% | 12.65% | 8.93% | 12.55% | 9.89% |
| Income Tax | -136M | -180M | 676M | -7M | -643M | 211M | 168M | 278M | -195M | -1.93B | 521M | 634M | 591M | -43M | -137M | 127M | 283M | 166M | 185M | 397M | 155M | 236.2M | 267.2M | 181.5M | 84.8M | 63.65M | 59.57M | 44.34M | 30.9M | 38.7M | 20.9M |
| Effective Tax Rate % | -36.56% | -14.54% | -52.69% | 1.13% | 20.46% | 31.63% | -4.27% | -38.45% | 7.51% | 10.52% | 63.23% | 26.96% | 16.25% | -3.44% | -7.53% | 4.3% | 7.76% | 7.54% | 22.37% | 16.87% | 21.95% | 18.05% | 44.26% | 20.8% | 16.98% | 18.62% | 28.64% | 27.34% | 30.99% | 27.6% | 22.16% |
| Net Income | 506M | 1.41B | -1.64B | -559M | -2.45B | 417M | -3.99B | -999M | -2.15B | -16.27B | 329M | 1.59B | 3.06B | 1.27B | 1.96B | 2.76B | 3.33B | 2B | 635M | 1.95B | 546M | 1.07B | 331.8M | 691M | 410.3M | 278.21M | 148.42M | 117.83M | 68.8M | 101.5M | 73.4M |
| Net Margin % | 2.94% | 8.17% | -9.91% | -3.53% | -16.39% | 2.63% | -23.95% | -5.92% | -11.4% | -72.66% | 1.5% | 8.08% | 15.07% | 6.25% | 9.66% | 15.07% | 20.66% | 14.39% | 5.73% | 20.75% | 6.49% | 20.42% | 6.91% | 21.09% | 16.29% | 13.39% | 8.48% | 9.19% | 6.17% | 9.09% | 7.7% |
| Net Income Growth % | -28.93% | 186.03% | -193.2% | 77.15% | -686.57% | 110.45% | -299.4% | 53.53% | 86.78% | -5043.77% | -79.28% | -48.02% | 140.74% | -35.35% | -28.85% | -17.17% | 66.55% | 214.96% | -67.47% | 257.51% | -49.08% | 223.18% | -51.98% | 68.41% | 47.48% | 87.45% | 25.96% | 71.27% | -32.22% | 38.28% | -8.02% |
| Net Income (Continuing) | 508M | 1.42B | -1.96B | -615M | -2.5B | 456M | -4.1B | -1B | -2.47B | -16.45B | 311M | 1.6B | 3.04B | 1.29B | 1.95B | 2.81B | 3.36B | 2.03B | 641M | 1.95B | 546M | 1.07B | 336.66M | 691M | 410.3M | 278.21M | 148.42M | 116.78M | 70.8M | 101.5M | 73.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.68M | -4.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5M | 4M | 347M | 620M | 794M | 966M | 1.03B | 1.09B | 1.09B | 1.39B | 1.66B | 158M | 42M | 71M | 99M | 148M | 55M | 37M | 60M | 36M | 35M | 8M | 10.9M | 6.7M | 4.9M | 2.16M | 1.64M | 17K | 800K | 800K | 1M |
| EPS (Diluted) | 0.43 | 1.20 | -1.45 | -0.50 | -2.20 | 0.38 | -3.64 | -0.92 | -2.11 | -16.01 | 0.07 | 1.82 | 3.56 | 1.49 | 2.25 | 3.09 | 3.67 | 2.23 | 0.78 | 2.38 | 0.69 | 1.59 | 0.50 | 1.20 | 0.76 | 0.51 | 0.28 | 0.24 | 0.14 | 0.21 | 0.15 |
| EPS Growth % | -28.33% | 182.76% | -190% | 77.27% | -678.95% | 110.44% | -295.65% | 56.4% | 86.82% | -22971.43% | -96.15% | -48.88% | 138.93% | -33.78% | -27.18% | -15.8% | 64.57% | 185.9% | -67.23% | 244.93% | -56.6% | 218% | -58.33% | 57.89% | 49.02% | 82.14% | 16.67% | 71.43% | -33.33% | 40% | 7.14% |
| EPS (Basic) | - | 1.23 | -1.45 | -0.50 | -2.20 | 0.38 | -3.64 | -0.92 | -2.11 | -16.01 | 0.07 | 1.84 | 3.58 | 1.49 | 2.25 | 3.10 | 3.72 | 2.29 | 0.81 | 2.54 | 0.72 | 1.73 | 0.54 | 1.29 | 0.78 | 0.53 | 0.29 | 0.24 | 0.14 | 0.21 | 0.15 |
| Diluted Shares Outstanding | 1.18B | 1.17B | 1.13B | 1.12B | 1.11B | 1.11B | 1.09B | 1.09B | 1.02B | 1.02B | 961M | 864M | 858M | 850M | 873M | 893M | 921M | 896M | 820M | 830M | 805M | 681M | 688M | 590M | 561.6M | 545.51M | 520.76M | 491.7M | 488.3M | 489.16M | 489.33M |
| Basic Shares Outstanding | 1.17B | 1.15B | 1.13B | 1.12B | 1.11B | 1.1B | 1.09B | 1.09B | 1.02B | 1.02B | 955M | 855M | 853M | 849M | 872M | 890M | 896M | 872M | 780M | 768M | 756M | 618M | 612.7M | 536.8M | 529M | 529.93M | 516.23M | 491.7M | 488.3M | 489.16M | 489.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 396.05% | 72.73% | 37.84% | 85.82% | 43.56% | 29% | 20.05% | 26.35% | 60.78% | 15.22% | 41.73% | 15.15% | 36.39% | 11.04% | 11.36% | 11.78% | 18.63% | 15.08% | 29.27% | 21.38% | 19.89% |
Quick answers to the most common questions about buying TEVA stock.
For fiscal year 2025, Teva Pharmaceutical Industries Limited (TEVA) reported total revenue of $17.26B. This represents a 1709.3% increase compared to $953.8M in 1996.
Teva Pharmaceutical Industries Limited (TEVA) is profitable, generating $1.41B in net income for the fiscal year ending 2025 with a net profit margin of 8.2%.
Teva Pharmaceutical Industries Limited (TEVA) reported an operating income of $2.16B, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Teva Pharmaceutical Industries Limited (TEVA) generated $8.94B in gross profit for the year, representing a gross profit margin of 51.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile Quarterly Net Income
Metrics are mathematically derived from official filings.
Flat Top Line With Recent Softening
Based on reported quarterly figures, Teva's revenue has held a narrow $3.9B to $4.7B band over ten quarters, with the latest quarter showing a year-over-year decline of 1.9 percent, pointing to a plateauing rather than expanding top line.
The revenue series shows no sustained acceleration, and the Q4 2025 peak of $4.7B did not carry into 2026, suggesting growth has stalled rather than compounded. The year-over-year reading of 11.4 percent in Q4 2025 appears to reflect a favorable comparison against a weak prior period rather than durable momentum. Investors should monitor whether the 2026 quarters reflect a structural floor or a temporary pause in volumes and pricing, since the data do not isolate the drivers between the two.
Gross Margin Recovery Outpaces Operating Results
As reported in the income statements, Teva's gross margin expanded from 48.6 percent in Q2 2024 to 55.5 percent in Q3 2026, a meaningful structural improvement that has not translated proportionally into operating margin.
The gross margin trend suggests improving product mix or pricing relative to the 2024 trough, consistent with a shift toward higher-value products. However, operating margin remains volatile between roughly 0 and 20 percent, indicating that below-gross-line costs absorb much of the gain. Relative to peers such as Amneal at 37.6 percent gross margin, Teva's reported gross margin is substantially higher, which may reflect a differentiated branded and specialty mix, though this should be verified against product-level disclosures.
Operating Leverage Remains Inconsistent
Based on Teva's reported figures, SG&A has stayed near $1.0B per quarter while operating income swung from negative to $714M, indicating that operating leverage is highly sensitive to gross profit timing and one-time items.
Because SG&A is largely fixed at roughly $1.0B quarterly, incremental gross profit should translate into disproportionate operating income, and the Q3 2026 result of $714M supports that interpretation. The prior negative operating quarters in 2024, however, show that the cost base is not flexible enough to absorb revenue softness. The pattern suggests operating leverage works in both directions and warrants further investigation into the non-recurring items embedded in the swings.
Net Income Diverges Sharply From Operations
According to reported figures, Teva posted a net loss of $576M in Q2 2026 despite positive operating income of $149M, a divergence that implies large non-operating charges or tax effects warranting scrutiny.
The gap between operating income and net income in several quarters, including Q2 2026 and Q2 2024, suggests that non-operating items such as financing costs, impairments, or litigation provisions are material. Stock-based compensation remains modest at $34M to $51M per quarter, so it does not explain these divergences. Quality of earnings therefore depends heavily on classifying these charges, and the data alone do not establish whether they are recurring.
R&D Spend Stable Relative to Revenue
Based on reported figures, R&D expense has remained between $222M and $297M per quarter, or roughly 5 to 7 percent of revenue, indicating a steady but not expanding investment in pipeline development.
The stability of R&D spend across the period suggests management is maintaining rather than accelerating investment, which may be prudent given the balance sheet pressures visible elsewhere. SG&A consistently near $1.0B represents the largest controllable cost line, and its flatness despite revenue variation points to limited cost discipline in response to top-line movement. Investors should monitor whether this cost base can be reduced without impairing the product pipeline.
Margin Gains May Not Be Durable
The strongest challenge is that Teva's 16.2 percent operating margin in Q3 2026 rests on a single strong quarter, and the surrounding volatility suggests this level may not be sustainable against the reported negative results in 2024 and Q2 2026.
Short-sellers would likely point to the sequence of negative net income quarters as evidence that reported profitability is episodic rather than structural. The sharp year-over-year EPS decline of 45.9 percent in Q3 2026 further undermines the narrative of consistent improvement. Based on the supplied data, the earnings base appears more fragile than the gross margin trend alone would imply.