Why did revenues decline in the third quarter of 2026?

Revenues fell 2% year-over-year to $4,395 million, mainly because of lower generic product revenues, primarily lenalidomide capsules (a generic version of Revlimid) in the U.S. The decline was partially offset by higher revenues from AUSTEDO, AJOVY and UZEDY. U.S. generic products revenues fell 39% year-over-year.

What drove the improvement in profitability?

Gross profit margin rose to 55.5% from 51.4%, and non-GAAP gross profit margin rose to 58.7% from 55.3%, mainly due to a favorable product mix, primarily higher AUSTEDO revenues. Non-GAAP operating income increased to $1,393 million from $1,294 million. GAAP operating income declined to $714 million from $882 million, mainly due to higher tangible asset impairments and higher legal settlements and loss contingencies.

What changed in Teva's 2026 financial outlook?

Teva raised its 2026 revenue guidance to $16.7–$17.0 billion from $16.5–$16.85 billion and raised non-GAAP operating income to $3.8–$3.9 billion. Non-GAAP diluted EPS guidance is $1.92–$2.11, up from $1.91–$2.11. These figures include acquired IPR&D charges of $0.87 billion for operating income and $0.71 per share for EPS. Revenue outlooks for AUSTEDO, AJOVY and UZEDY were also raised.

What happened with Teva's debt and credit profile?

Teva refinanced about $4.9 billion of debt in Q3 2026, recording a $224 million loss on extinguishment of debt. Total debt was $16,718 million at September 30, 2026, and net debt was $12,633 million. The filing states that Moody's and S&P upgraded Teva to investment grade, following an earlier Fitch upgrade, and that Teva targets two times debt leverage by the end of 2027.

What are the key pipeline and business development developments?

Teva acquired BXCL-501 from BioXcel Therapeutics, which is under FDA review for at-home use in acute agitation associated with schizophrenia or bipolar I or II disorder. The FDA approved WELTRUZA in October 2026, and the ecopipam NDA was accepted for review with an action date expected in Q1 2027. Positive Phase 2a results were reported for anti-IL-15 in celiac disease, and Teva discontinued the Phase 2 MSA study of emrusolmin after an interim futility analysis.

TEVA 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.

Teva Pharmaceutical Industries Limited reported third-quarter 2026 results in a Form 8-K furnished on November 3, 2026 (Exhibit 99.1).

Revenues were $4.4 billion^a ($4,395 million), down 2% year-over-year in both U.S. dollars and local currency, mainly due to lower lenalidomide capsule (generic Revlimid) revenues in the U.S. GAAP operating income was $714 million versus $882 million a year earlier, while non-GAAP operating income rose to $1,393 million from $1,294 million. GAAP diluted EPS was $0.20 and non-GAAP diluted EPS was $0.86, compared with $0.37 and $0.78 in the prior-year quarter. Gross profit margin improved to 55.5% (GAAP) and 58.7% (non-GAAP), driven by a favorable product mix led by AUSTEDO.

Teva highlighted growth in its key innovative brands, which together generated approximately $1.1 billion^b in revenues and grew 33% year-over-year in local currency. The company raised its 2026 revenue outlook for AUSTEDO, AJOVY and UZEDY, and updated its overall 2026 guidance to revenues of $16.7–$17.0 billion and non-GAAP diluted EPS of $1.92–$2.11, including acquired IPR&D charges. The filing also notes the FDA approval of WELTRUZA, the acquisition of BXCL-501, a planned U.S. NYSE direct listing of ordinary shares, the return to investment grade ratings, and the refinancing of approximately $4.9 billion of debt during the quarter.

Cash flow from operations was $241 million^c and free cash flow was $495 million in the quarter. Total debt was $16,718 million at September 30, 2026, against net debt of $12,633 million after $4,085 million of cash. The company also disclosed a $224 million loss on extinguishment of debt, and it discontinued a Phase 2 MSA study of emrusolmin following an interim futility analysis.

02—Key points

Key Highlights

Q3 2026 revenues of $4,395 million, down 2% year-over-year in both U.S. dollars and local currency, driven by lower U.S. lenalidomide capsule sales.
GAAP diluted EPS of $0.20 versus $0.37 a year earlier; non-GAAP diluted EPS of $0.86 versus $0.78.
Gross profit margin of 55.5% (GAAP) and 58.7% (non-GAAP), up from 51.4% and 55.3%, mainly on a favorable product mix led by AUSTEDO.
AUSTEDO, AJOVY and UZEDY collectively generated about $1.1 billion in Q3 revenues, growing 33% in local currency; 2026 revenue outlooks for all three were raised.
2026 guidance updated to revenues of $16.7–$17.0 billion, non-GAAP operating income of $3.8–$3.9 billion and free cash flow of $2.1–$2.4 billion, including $0.87 billion of acquired IPR&D charges.
Cash flow from operating activities of $241 million and free cash flow of $495 million in Q3; $4.9 billion of debt refinanced during the quarter with a $224 million loss on extinguishment.
U.S. FDA approved WELTRUZA (olanzapine LAI) in October 2026, and the FDA accepted the ecopipam NDA with an action date expected in Q1 2027.

03—Questions

Frequently Asked Questions

Why did revenues decline in the third quarter of 2026?
Revenues fell 2% year-over-year to $4,395 million, mainly because of lower generic product revenues, primarily lenalidomide capsules (a generic version of Revlimid) in the U.S. The decline was partially offset by higher revenues from AUSTEDO, AJOVY and UZEDY. U.S. generic products revenues fell 39% year-over-year.
What drove the improvement in profitability?
Gross profit margin rose to 55.5% from 51.4%, and non-GAAP gross profit margin rose to 58.7% from 55.3%, mainly due to a favorable product mix, primarily higher AUSTEDO revenues. Non-GAAP operating income increased to $1,393 million from $1,294 million. GAAP operating income declined to $714 million from $882 million, mainly due to higher tangible asset impairments and higher legal settlements and loss contingencies.
What changed in Teva's 2026 financial outlook?
Teva raised its 2026 revenue guidance to $16.7–$17.0 billion from $16.5–$16.85 billion and raised non-GAAP operating income to $3.8–$3.9 billion. Non-GAAP diluted EPS guidance is $1.92–$2.11, up from $1.91–$2.11. These figures include acquired IPR&D charges of $0.87 billion for operating income and $0.71 per share for EPS. Revenue outlooks for AUSTEDO, AJOVY and UZEDY were also raised.
What happened with Teva's debt and credit profile?
Teva refinanced about $4.9 billion of debt in Q3 2026, recording a $224 million loss on extinguishment of debt. Total debt was $16,718 million at September 30, 2026, and net debt was $12,633 million. The filing states that Moody's and S&P upgraded Teva to investment grade, following an earlier Fitch upgrade, and that Teva targets two times debt leverage by the end of 2027.
What are the key pipeline and business development developments?
Teva acquired BXCL-501 from BioXcel Therapeutics, which is under FDA review for at-home use in acute agitation associated with schizophrenia or bipolar I or II disorder. The FDA approved WELTRUZA in October 2026, and the ecopipam NDA was accepted for review with an action date expected in Q1 2027. Positive Phase 2a results were reported for anti-IL-15 in celiac disease, and Teva discontinued the Phase 2 MSA study of emrusolmin after an interim futility analysis.

04—Continue

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