Teva beats estimates but cuts profit outlook after Emalex deal
Strong Austedo growth offsets generics weakness as margins face acquisition-related pressure.
Alongside the announcement of its surprise acquisition of Emalex, Teva reported its financial results for the first quarter of 2026 on Wednesday, which came in ahead of expectations. The company posted revenue of $4 billion and earnings per share of $0.53, compared with forecasts of approximately $3.8 billion in revenue and $0.46 per share.
Despite the beat, growth remained modest at 2% in dollar terms, largely reflecting weakness in the generics business. Teva stopped consolidating sales of lenalidomide (Revlimid) in its reports and also divested its Japanese operations in 2025, contributing to a 16% decline in generics revenue.
The impact of this decline was partly offset by strong performance from Austedo, Teva’s branded treatment for involuntary movements, whose revenue rose 41% to $578 million.
Uzedy, Teva’s newer drug for schizophrenia, also posted rapid growth, although from a relatively small base. Revenue reached $63 million, up 62% year over year.
Teva also provided its first outlook for its biosimilars business, more complex generic versions of established biologic drugs, forecasting total revenue of $800 million from this segment by 2027.
The acquisition of Emalex further expands Teva’s portfolio of innovative treatments in neurological diseases, an area in which it has longstanding expertise dating back to Copaxone, its multiple sclerosis therapy. Emalex’s lead drug is currently in late-stage clinical trials and does not yet generate revenue, a factor that contributed to Teva lowering its profitability outlook for later this year.
Teva maintained its 2026 revenue guidance at $16.4 billion to $16.8 billion but reduced its operating profit forecast to $3.8 billion-$4 billion. This includes approximately $700 million in expenses related to acquired in-process research and development, as well as $75 million in operating costs associated with Emalex.
Excluding these items, adjusted operating profit is expected to reach $4.55 billion-$4.8 billion, with projected cash flow of $2 billion-$2.4 billion.
The company also noted that its board has instructed management to examine the possibility of launching a share buyback program.
In the first quarter, Teva reported operating profit of $652 million, up from $519 million in the same period last year. Operating margin improved to 16.4% of revenue, compared with 13.3% a year earlier, driven by a more favorable mix of higher-margin branded drugs and a reduction in write-downs that have weighed on the company since its $40 billion acquisition of Allergan.
