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what it is
Teva makes generic and branded medicines, then sells them at huge scale across the U.S. and Europe.
how it gets paid
Last year Teva made $17.3B in revenue.
why it's growing
Revenue grew 4.3% last year. Although teva tightened its 2025 sales target, it lifted its austedo outlook, and raised the lower end of its adr-profit range by $0.05, to $2.55-$2.65.
what just happened
Latest Revenue hit $12.5B and EPS reached $0.80, according to the supplied SEC data.
At a glance
B+ balance sheet — decent shape, but not bulletproof
90/100 earnings predictability — you can trust these numbers
12.9x trailing p/e — the market's not buying it — or you found a deal
17.0% return on capital — nothing to write home about
xvary composite: 72/100 — average
What they do
Teva makes generic and branded medicines, then sells them at huge scale across the U.S. and Europe.
Teva wins on scale. It sells across the two biggest drug markets, with 79% of sales coming from the U.S. and Europe, according to. Generic drugs mean off-patent medicines → cheaper copies after exclusivity ends → so what: if your hospital wants low prices and reliable supply, scale matters.
How they make money
$17.3B
annual revenue · their business grew +4.3% last year
total revenue
$17.3B
+4.3%
The products that matter
manufactures and sells off-patent pharmaceuticals
Generic Medicines
$17.3B revenue base
snapshot data here is thin on segment splits, so the main fact that matters is simple: the business produced $17.3B in revenue and grew 4.2% last year. you are underwriting execution at scale, not one headline drug.
core
Key numbers
12.9x
trailing p/e
P/E means price-to-earnings → how many dollars you pay for $1 of profit → so what: you are not paying a bubble price for a company earning $2.21 a share.
$34
18-month target
The house target sits $5.43 above the $28.57 stock price, which is 19% upside if execution holds.
17.0%
return on capital
Return on capital means profit earned on money invested in the business → business efficiency → so what: 17% says this is no longer a pure cleanup story.
$16.8B
long-term debt
That debt load is 48% of the company's roughly $35B market cap, so leverage still shapes your outcome.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $16.8B (33% of capital)
- net profit margin 19.4% — keeps 19 cents of every dollar in revenue
- return on equity 30% — $0.30 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TEVA 3 years ago → it's now worth $33,630.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Latest Revenue hit $12.5B and EPS reached $0.80, according to the supplied SEC data.
Gross margin was 50.1%. Value Line says strong growth from key branded drugs and cost cuts helped margins.
$4.3B
revenue
$0.80
eps
50.1%
gross margin
the number that mattered
50.1% gross margin matters because margin means how much money is left after making the drugs, before overhead. Higher margin gives Teva more room to pay down $16.8B of debt.
-
third-quarter sales and adjusted earnings per adr topped expectations, on continued strong growth from key branded drugs austedo (for huntington’s disease and tardive dyskinesia), ajovy (migraines), and uzedy (schizophrenia), with the former showing particular strength, mostly in the u.s.the generic side of the business was stable, aided by the launch of a first-ever generic glp-1 weight loss drug.
-
meanwhile, cost-saving efforts lent margins a hand.
-
although teva tightened its 2025 sales target, it lifted its austedo outlook, and raised the lower end of its adr-profit range by $0.05, to $2.55-$2.65, among other things.
-
we upped our top- and bottom-line calls by $50 million and $0.05.
-
the drug maker is counting on its turnaround plan to keep profits recovering in the years ahead.teva aims to build on the momentum seen so far with its ‘‘pivot to growth’’ strategy, now in its second phase (accelerating the transformation to a biopharma). it is focused on bolstering its key portfolio (austedo, ajovy, and uzedy), with recent price negotiations on austedo to be a boon; investing to step up pipeline innovation; expanding biosimilars/complex generics with new drugs; and restructuring operations to boost efficiency.
source: company earnings report, 2026
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What could go wrong
the #1 risk is generic drug pricing pressure while teva is still carrying $16.8B in debt.
med
generic price pressure
this snapshot presents Generic Medicines as the core $17.3B business. if pricing slips, teva does not have much room to hide behind a different segment story.
18.5% net margins look healthy now. if that compresses, the deleveraging story gets weaker fast.
med
debt stops shrinking
$16.8B in long-term debt equals 33% of capital. the stock's recovery case depends on that number moving down, not just staying manageable.
if leverage stalls here, the market can keep valuing teva like a turnaround even with 90/100 earnings predictability.
med
manufacturing or supply disruption
drug manufacturing is unforgiving. the page already flags a past production halt in vincristine as a reminder that one disruption can become a real commercial problem.
with $17.3B in revenue tied to making and shipping medicines reliably, operational issues can hit both sales and investor confidence.
with $16.8B in long-term debt against $17.3B in revenue, teva does not need a collapse to disappoint you. it just needs pricing, manufacturing, or debt reduction to move the wrong way.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
long-term debt
$16.8B is the number that matters most. if that keeps moving lower, the turnaround story stays intact. if it stalls, so can the re-rating.
earnings
next earnings report
watch whether revenue can hold around the $17B level while margins stay healthy. teva does not need hero growth. it needs clean execution.
ownership
institutional buying streak
net buying for 2 straight quarters helped confirm the recovery narrative. a reversal would be an early sign that conviction is getting thinner.
risk
pricing and supply headlines
for a generic drug manufacturer, bad pricing news or production disruption can matter more than a flashy pipeline headline. boring execution is the whole game here.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this stock has stronger near-term upside than almost everything they cover.
risk profile
average
stability score 3 — typical market risk. not a bunker stock, but not an obvious disaster either.
chart momentum
average
technical score 3 — the trend is constructive, but the chart is not flashing a special signal beyond the recovery move already visible.
earnings predictability
90 / 100
management usually delivers numbers close to expectations. that matters more here because leveraged stories get punished hard when the math slips.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 253 buyers vs. 232 sellers in 3q2025. total institutional holdings: 0.6B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$19
$48
$29
current price
$34
target midpoint · +19% from current · 3-5yr high: $35 (+15% · 4% ann'l return)
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