Teva returns to profit in Q2 but misses on revenue
Austedo disappoints, while Uzedy and Ajovy drive upside in brand-name drugs.
Teva concluded the second quarter of 2025 with revenue of $4.17 billion, flat compared to the same quarter last year (or down 1% in local currency terms). Sales of original medicines grew by 26% in local terms, but overall revenue missed analysts’ expectations of $4.29 billion.
Teva slightly improved its gross profit margin to 50.3% of revenue. Adjusted earnings per share came in at $0.66, a 9% increase year over year and above market expectations of $0.63.
Encouragingly, the company returned to operating profitability, posting $455 million in operating income versus a $5 million loss in the same quarter last year, which had been impacted by one-time expenses. The operating margin was 10.9%, compared to a 0.1% loss margin a year ago.
The primary reason for the top-line shortfall was weaker-than-expected sales of Austedo, Teva’s flagship treatment for movement disorders. Austedo generated $498 million, falling short of expectations ($510 million). In contrast, Ajovy, a migraine treatment, outperformed with $155 million in revenue, exceeding the forecast of $143 million.
The standout performer was Uzedy, Teva’s newest brand-name drug for schizophrenia, which delivered 120% growth and reached $54 million in quarterly revenue. Based on this performance, Teva raised its full-year sales forecast for Uzedy to $190–200 million.
Teva reaffirmed its full-year guidance with revenue of $16.8–17.1 billion; free cash flow of $1.6–1.9 billion; and operating profit (excluding one-time items) of $4.3–4.6 billion.
CEO Richard Francis noted, “The rapid progress of our transformation plans is already generating annual savings at a rate of $140 million by 2025, an important milestone toward our target of $700 million by 2027.” This refers to Teva’s recent restructuring plan, including an 8% workforce reduction announced three months ago.
Francis also emphasized momentum in the biosimilars division, calling it a key growth area with the goal of doubling revenue in this segment by 2027.
