Teva’s 2026 forecast disappoints despite strong finish to 2025
Lower revenue guidance overshadows rapid growth in branded drugs.
Teva delivered a disappointing outlook for 2026, forecasting significantly lower revenue than in 2025. The company expects revenue of $16.4-$16.8 billion, net income of $2.57-$2.77 per share, and operating cash flow of $2.0-$2.4 billion.
On the earnings line, this represents a clear deterioration from 2025, when Teva posted profit of $2.93 per share, even after the implementation of its efficiency program. Cash flow, by contrast, is expected to remain broadly flat compared with 2025, when the company generated $2.39 billion.
The weak forward guidance stands in contrast to a relatively strong finish to 2025. Teva ended the year with revenue of $17.3 billion, slightly above its previous forecast and representing 4% growth compared with 2024. More importantly, the growth was driven by branded, originator drugs, which continued to offset ongoing erosion in the generics business.
Teva’s core branded drugs generated approximately $3 billion in revenue in 2025, reflecting growth of 35%. In the fourth quarter, these products collectively surpassed $1 billion in quarterly revenue for the first time.
Sales of Teva’s flagship drug Austedo rose 34% to $2.24 billion for the year, once again exceeding the company’s own expectations. Other key drugs also recorded strong growth: Ajovy, used to treat migraines, increased annual revenue by 30% to $673 million, while Uzedy also posted rapid gains.
In the fourth quarter of 2025, Teva significantly exceeded market expectations, reporting revenue of $4.7 billion compared with forecasts of $4.3 billion. Profitability was even stronger than anticipated, with adjusted net income of 96 cents per share, well above analysts’ expectations of 64 cents.
“In 2025, our Pivot to Growth strategy drove Teva's third year of consecutive growth, solidifying our transformation into a leading biopharmaceutical company,” said Teva's President and CEO, Richard Francis. “Our key innovative brands led our growth, reaching $1 billion in revenues in the fourth quarter of 2025 for the first time, and becoming a true engine of sustainable growth.
“Looking ahead, 2026 will be a milestone-rich year with multiple late-stage pipeline readouts across immunology and neurology; the anticipated FDA approval of olanzapine LAI, and important data expected for duvakitug, our anti-TL1A, and for our anti-IL-15 programs. Together, these pipeline assets represent a potential of over $10 billion, reinforcing our confidence in Teva’s ability to deliver durable, innovation-driven growth, creating real value for patients and shareholders alike.”
