01—Abstract
Summary
Summary of the 10-Q filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited's third-quarter 2026 results show revenues of $4,395 milliona, down from $4,480 million a year earlier, driven mainly by lower lenalidomide capsule (generic Revlimid) sales in the U.S. segment.
Gross profit rose to $2,440 millionb, with gross margin of 55.5% versus 51.4%, helped by innovative products such as AUSTEDO. Operating income fell to $714 million from $882 million, weighed down by $264 million in other asset impairments, restructuring and other items, $202 million in legal settlements and loss contingencies, and $297 million in R&D expenses. Net income attributable to Teva was $233 million, or $0.20 per diluted share, compared with $433 million, or $0.37, in the prior-year quarter.
Financial expenses rose to $414 millionc, including a $224 million loss on debt extinguishment tied to an early redemption of senior notes in September 2026, which was funded by new notes issued the same month. Total debt was $16,718 million at September 30, 2026, against $16,807 million at year-end 2025. Cash and cash equivalents increased to $4,085 million from $3,556 million, while operating cash flow in the quarter was $241 million, down from $369 million.
The company recorded an 8% reduction in its workforce plan under its Transformation Programs and continues to pursue a sale of its API business, which is classified as held for sale. Nine-month results were weaker, with net income attributable to Teva of $26 milliond, or $0.02 per diluted share, versus $930 million in the prior year, reflecting $1,489 million of R&D expense that includes the Emalex acquisition and its primary asset ecopipam, expensed as IPR&D. Subsequent events include the BioXcel neuroscience asset acquisition, the Samsung Bioepis biosimilar agreements, and the FDA approval of WELTRUZA on October 9, 2026.
02—Key points
Key Highlights
- Third-quarter 2026 revenues were $4,395 million, down from $4,480 million, mainly due to lower lenalidomide capsule sales in the U.S. segment, partly offset by AUSTEDO, AJOVY and UZEDY growth.
- Gross profit margin was 55.5% in the third quarter of 2026, compared to 51.4% a year earlier, reflecting a favorable product mix.
- Operating income was $714 million, compared to $882 million, with higher other asset impairments, restructuring and other items ($264 million) and legal settlements and loss contingencies ($202 million).
- Net income attributable to Teva was $233 million ($0.20 diluted EPS) in the third quarter, versus $433 million ($0.37) a year earlier; nine-month net income was $26 million ($0.02 diluted EPS) versus $930 million ($0.80).
- Financial expenses rose to $414 million, including a $224 million loss on extinguishment of debt from the early redemption of $4,678 million of senior notes, which was refinanced with $4,837 million of new senior notes.
- Cash and cash equivalents were $4,085 million at September 30, 2026, up from $3,556 million at December 31, 2025, while third-quarter operating cash flow was $241 million versus $369 million.
- Nine-month R&D expenses reached $1,489 million, up from $746 million, primarily due to the Emalex acquisition and its ecopipam (EBS-101) asset, which was expensed as acquired IPR&D; the FDA accepted the NDA with Priority Review.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Teva Pharmaceutical Industries kept $0.05.
- Revenue$4.39B100.0%
- Cost of revenue−$1.96B44.5%
- Gross profit$2.44B55.5%
- Operating costs−$1.73B39.3%
- Operating income$714.0M16.2%
- Interest, other & tax−$481.0M10.9%
- Net income$233.0M5.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 3, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $4.39B$4.48B | −1.9% |
| Cost of Revenue | $1.96B$2.18B | −10.2% |
| Gross Profit | $2.44B$2.30B | +5.9% |
| Operating Income | $714.00M$882.00M | −19.0% |
| Net Income | $233.00M$433.00M | −46.2% |
| EPS (Basic) | $0.20$0.38 | −47.4% |
| EPS (Diluted) | $0.20$0.37 | −45.9% |
| Shares Outstanding (Basic) | 1.17B1.15B | +1.7% |
| Shares Outstanding (Diluted) | 1.18B1.16B | +1.6% |
05—Questions
Frequently Asked Questions
Why did Teva's net income fall so sharply in the third quarter and first nine months of 2026?
Third-quarter net income attributable to Teva fell to $233 million from $433 million, mainly due to lower operating income, which declined to $714 million from $882 million. Higher other asset impairments, restructuring and other items and higher legal settlements and loss contingencies offset an increase in gross profit. For the nine months, the decline to $26 million from $930 million reflected the large R&D expense for the Emalex acquisition and a $224 million loss on debt extinguishment in financial expenses.
What drove the decline in U.S. segment revenue and profit?
U.S. segment revenues were $1,870 million in the third quarter, down from $2,090 million, mainly due to lower lenalidomide capsule (generic Revlimid) sales from increased generic competition. Generic product revenues fell to $718 million from $1,175 million. Partly offsetting this, AUSTEDO revenues rose to $727 million from $601 million and AJOVY revenues rose to $138 million from $73 million. U.S. segment profit fell to $791 million from $927 million, mainly due to higher S&M expenses and lower gross profit.
What is happening with Teva's debt and liquidity?
Total debt was $16,718 million at September 30, 2026, versus $16,807 million at year-end 2025. In September 2026 Teva redeemed $4,678 million of senior notes early and issued $4,837 million of new senior notes, and in October 2026 it repaid $1,798 million of 3.15% senior notes at maturity. Short-term debt rose to $4,038 million. Cash and cash equivalents were $4,085 million, and the $1.8 billion revolving credit facility had no amounts outstanding. Teva has achieved investment grade status, so the RCF's financial covenant does not apply while that status is maintained.
What are the key pipeline and business development developments disclosed in the filing?
Teva acquired Emalex Biosciences in June 2026 for approximately $700 million, including ecopipam (EBS-101) for Tourette syndrome; the FDA accepted the NDA with Priority Review in August 2026. Teva completed the acquisition of BioXcel's neuroscience assets, including BXCL-501 and IGALMI, for an upfront payment of $58 million and up to $68 million in contingent payments. The FDA approved WELTRUZA (olanzapine LAI) on October 9, 2026. The company also entered a Samsung Bioepis biosimilar agreement and discontinued the Phase 2 emrusolmin study in MSA on November 2, 2026, following an interim futility analysis.
What is the status of the API business divestiture and restructuring?
Teva's API business, including its R&D, manufacturing and commercial activities, is classified as held for sale, with assets of $1,836 million and liabilities of $296 million at September 30, 2026. The filing states there can be no assurance on the timing, structure or completion of a divestiture. Restructuring expenses were $58 million in the third quarter and $121 million for the nine months, primarily related to the Transformation Programs, which are expected to reduce the workforce by approximately 8% of the December 31, 2024 total by the end of 2027.
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