The beat was driven by strong innovative brand growth and margin expansion, offsetting generics erosion. The raised brand revenue outlooks and FDA approval of WELTRUZA add near-term growth visibility. Watch for WELTRUZA launch uptake in Q4 2026 and the ecopipam PDUFA date in Q1 2027. The narrowed EPS guidance range suggests management confidence in operational momentum despite the IPR&D headwind.
Price Chart
Executive Summary
Teva reported Q3 2026 non-GAAP diluted EPS of $0.86, beating the $0.72 consensus by 19.4%, and revenue of $4.395B, above the $4.23B consensus. The company raised its 2026 revenue outlook for all three key innovative brands (AUSTEDO, AJOVY, UZEDY) and narrowed its full-year non-GAAP EPS guidance to $1.92-$2.11, while total revenue declined 2% YoY due to continued erosion of lenalidomide generics revenue. Non-GAAP gross margin expanded 345 bps to 58.7%, the highest quarterly level in a decade excluding a prior-year milestone payment.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $4,395M, down 2% YoY, but above consensus of $4.23B.
- Non-GAAP diluted EPS of $0.86, up 10% YoY and above consensus of $0.72.
- Non-GAAP gross margin of 58.7%, up 345 bps YoY, the highest quarterly level in the last decade excluding Q4 2025 milestone payments.
- Key innovative brands (AUSTEDO, AJOVY, UZEDY) collectively grew 33% YoY in local currency to ~$1.1B.
- 2026 revenue outlook raised for all three key brands: AUSTEDO to $2.55B-$2.65B, AJOVY to $930M-$960M, UZEDY to $290M-$310M.
- Full-year 2026 non-GAAP diluted EPS guidance narrowed to $1.92-$2.11 (from $1.91-$2.11).
- GAAP diluted EPS of $0.20, down 47% YoY, impacted by $224M loss on debt extinguishment and $228M impairment of long-lived assets.
- Free cash flow of $495M, down 4% YoY.
- FDA approval of WELTRUZA (olanzapine LAI) in October 2026; peak sales target of $1.5B-$2.0B for combined LAI schizophrenia portfolio.
- Acquired BXCL-501 from BioXcel Therapeutics; FDA accepted ecopipam NDA for Tourette syndrome with action date in Q1 2027.
- Biosimilars revenue expected to exceed $0.8B in 2026, achieving 2027 target one year early.
- Refinanced ~$4.9B of debt during Q3 2026; Moody's and S&P upgraded Teva to investment grade.
- Global generics revenue decreased 16% YoY in local currency, primarily due to lenalidomide competition.
- Discontinued Phase 2 MSA study of emrusolmin (TEV-286) after interim futility analysis.
Financial Impact
Non-GAAP EPS beat consensus by $0.14 (19.4%); revenue beat by $165M (3.9%). Non-GAAP gross margin expanded 345 bps YoY. Full-year EPS guidance midpoint unchanged at $2.015, but brand revenue outlooks raised.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| United States | $1.9B | -11.0% |
| Europe | $1.3B | +7.0% |
| International Markets | $592.0M | +6.0% |
Risk Factors
- Continued erosion of lenalidomide generics revenue from increased competition.
- Execution risk for WELTRUZA launch and pipeline milestones (ecopipam, anti-IL-15).
- High leverage (68% debt-to-capital) and $4.0B in short-term debt maturities.
- Ongoing legal contingencies, including antitrust and opioid litigation provisions totaling $201M in Q3.
- Foreign exchange volatility and geopolitical risks from Middle East conflict and Russia-Ukraine war.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-007054 |
| Document: f8k_110326.htm | 0001171843-26-007054 |
| Document: 0001171843-26-007054-index-headers.html | 0001171843-26-007054 |
| Document: 0001171843-26-007054-index.html | 0001171843-26-007054 |
| Document: 0001171843-26-007054.txt | 0001171843-26-007054 |
| 8-K Data (Synthetic) | 0001171843-26-007054 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 5, 2026 today | 144 | $41.89 | awaiting T+20 | awaiting T+20 | $41.78 (−0.26%) |
Nov 4, 2026 1d ago | 144 | $41.85 | awaiting T+20 | awaiting T+20 | $41.78 (−0.17%) |
Nov 3, 2026 2d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Nov 3, 2026 2d ago | Press Release | $41.91 | awaiting T+20 | awaiting T+20 | $41.78 (−0.31%) |
Nov 3, 2026 2d ago | Press Release | $41.91 | awaiting T+20 | awaiting T+20 | $41.78 (−0.31%) |
Nov 2, 2026 3d ago | Press Release | $40.70 | awaiting T+20 | awaiting T+20 | $41.78 (−2.65%) |
Nov 2, 2026 3d ago | SC 13G/A | $40.70 | awaiting T+20 | awaiting T+20 | $41.78 (+2.65%) |
Oct 29, 2026 7d ago | 8-K | $42.09 | awaiting T+20 | awaiting T+20 | $41.78 (−0.74%) |
Oct 27, 2026 9d ago | Press Release | $40.39 | awaiting T+20 | awaiting T+20 | $41.78 (+3.44%) |
Oct 15, 2026 21d ago | Institutional Cluster | $41.11 | awaiting T+20 | awaiting T+20 | $41.78 (−1.63%) |
US Market Status
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