Teva’s third quarter 2026 revenue of $4.4B and $0.86 EPS beat estimates with brand growth

Teva reported third quarter 2026 results that exceeded expectations, driven by a 33% surge in innovative brand revenues which successfully offset a sharp decline in generic Revlimid sales. Despite a 2% year-over-year decline in total revenue, the company achieved its highest non-GAAP gross margin in a decade and raised its full-year 2026 outlook for its primary growth drivers.

Key Highlights

• Global revenues for key innovative brands AUSTEDO, AJOVY, and UZEDY collectively reached $1.1 billion, with AJOVY sales growing 61% in local currency.
• Non-GAAP gross profit margin expanded significantly to 58.7%, up 345 basis points year-over-year, supported by a favorable product mix shifting toward higher-margin branded medicines.
• U.S. generic revenues fell 39% to $718 million, primarily impacted by increased competition for lenalidomide (generic Revlimid) capsules.
• The company strengthened its balance sheet by refinancing $4.9 billion in debt and returning to an investment-grade credit rating during the quarter.