01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited reported third-quarter 2025 net revenues of $4,480 milliona, up from $4,332 million a year earlier, with gross profit of $2,304 million and operating income of $882 million versus an operating loss of $51 million in the prior-year quarter.
Net income attributable to Teva was $433 millionb, or $0.37 per diluted share, compared with a net loss of $437 million, or $0.39 per diluted share, in the third quarter of 2024. The prior-year quarter included a $600 million goodwill impairment and $450 million of legal settlements and loss contingencies, which drove the swing. For the nine months ended September 30, 2025, net revenues were $12,547 million, net income attributable to Teva was $930 million, and diluted EPS was $0.80.
Cash flow and balance sheet activity were mixed. Operating cash flow in the third quarter was $369 millionc, down from $693 million, which the filing attributes mainly to timing of sales and collections and higher legal settlement payments. Free cash flow as defined by the company was $515 million.
Cash and cash equivalents fell to $2,203 milliond from $3,300 million at December 31, 2024, while total debt declined to $16,790 million from $17,783 million, reflecting maturities repaid and a May 2025 senior notes issuance of $2,298 million net, partly offset by a June 2025 tender offer. Total equity rose to $7,254 million from $5,380 million.
The filing states that the company is initiating a renewed sales process for its API business after exclusive discussions with a selected buyer terminated, and that its Transformation programs are expected to reduce the workforce by approximately 8% by the end of 2027. Opioid, antitrust, and other litigation remain significant ongoing exposures, with a provision for legal settlements and loss contingencies of $4,668 million as of September 30, 2025.
02—Key points
Key Highlights
- Net revenues of $4,480 million in Q3 2025, up 3% in U.S. dollars and 1% in local currency versus Q3 2024, led by the United States segment, where revenues rose 12% to $2,483 million.
- Operating income of $882 million in Q3 2025, compared with an operating loss of $51 million in Q3 2024, which included a $600 million goodwill impairment and $450 million of legal settlement charges.
- Net income attributable to Teva of $433 million, or $0.37 diluted EPS, in Q3 2025, versus a net loss of $437 million, or $(0.39) per share, a year earlier.
- U.S. segment profit rose 25% to $937 million, with gross margin improving to 59.9% from 56.9%, mainly due to higher AUSTEDO revenues; AUSTEDO revenues grew 38% to $601 million.
- Operating cash flow was $369 million in Q3 2025 versus $693 million in Q3 2024; free cash flow was $515 million, which the company attributes to timing of collections and higher legal settlement payments.
- Total debt fell to $16,790 million from $17,783 million at December 31, 2024, after senior note repayments and a May 2025 issuance, and total equity increased to $7,254 million from $5,380 million.
- The API business sale process was restarted after exclusive discussions with a selected buyer terminated, and no assurance is given on the timing or completion of a divestiture.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Teva Pharmaceutical Industries kept $0.10.
- Revenue$4.48B100.0%
- Cost of revenue−$2.18B48.6%
- Gross profit$2.30B51.4%
- Operating costs−$1.42B31.7%
- Operating income$882.0M19.7%
- Interest, other & tax−$449.0M10.0%
- Net income$433.0M9.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.48B$4.33B | +3.4% |
| Cost of Revenue | $2.18B$2.18B | −0.3% |
| Gross Profit | $2.30B$2.15B | +7.3% |
| Operating Income | $882.00M-$51.00M | +1829.4% |
| Net Income | $433.00M-$437.00M | +199.1% |
| EPS (Basic) | $0.38$-0.39 | +197.4% |
| EPS (Diluted) | $0.37$-0.39 | +194.9% |
| Shares Outstanding (Basic) | 1.15B1.13B | +1.2% |
| Shares Outstanding (Diluted) | 1.16B1.13B | +2.7% |
05—Questions
Frequently Asked Questions
How did Teva's profitability change in the third quarter of 2025 compared with the prior year?
Teva swung to operating income of $882 million from an operating loss of $51 million, and net income attributable to Teva was $433 million versus a net loss of $437 million. The prior-year quarter included a $600 million goodwill impairment and $450 million in legal settlements and loss contingencies, while Q3 2025 recorded $60 million in legal settlements and loss contingencies and no goodwill impairment.
What drove growth in Teva's U.S. segment?
The filing says U.S. revenues increased to $2,483 million, up $257 million or 12%, mainly due to higher revenues from key innovative products, primarily AUSTEDO, and generic products including biosimilars. AUSTEDO revenues were $601 million, up 38%, mainly from volume growth.
Why did operating cash flow decline in the third quarter?
Operating cash flow was $369 million compared with $693 million in Q3 2024. The filing attributes the decline mainly to timing of sales and collections and higher legal settlement payments, partially offset by lower tax payments and higher profit.
What is the status of the planned divestiture of Teva's API business?
Teva classified its API business as held for sale on December 31, 2024. Exclusive discussions with a selected buyer have terminated, and Teva is initiating a renewed sales process while maintaining its intention to divest. The filing states there can be no assurance regarding the timing, structure, or completion of a divestiture.
What are the main ongoing legal exposures disclosed?
Teva's provision for legal settlements and loss contingencies was $4,668 million as of September 30, 2025. Disclosed matters include opioid claims, numerous generic drug antitrust cases, the COPAXONE European Commission fine of euro 462.6 million under appeal, and the GSK carvedilol patent judgment. The filing notes that a reasonable upper end of loss cannot be determined for the remaining opioid cases.
06—Continue