These results were published on Wednesday, 29 July 2026, before the US open. We cover them here to complete the picture of the Israeli earnings season.
Teva booked a net loss of $576 million - and the stock jumped roughly 11.5% to $35.32.
That gap is the whole story.
What was reported
| Quarter | Year ago | Change | |
|---|---|---|---|
| Revenue | 4,142 | 4,176 | -1% |
| GAAP operating income | -231 | +455 | to a loss |
| Non-GAAP operating income | 375 | 1,133 | -67% |
| Adjusted EBITDA | 474 | 1,233 | -62% |
| GAAP net income | -576 | +282 | to a loss |
| GAAP EPS | -$0.49 | +$0.24 | - |
In millions of dollars
Why the market ignored the loss
The entire loss comes from one line: a $724 million acquired research and development write-off, following the acquisition of Emalex Biosciences in a deal of roughly $700 million.
What an acquired IPR&D write-off is
When a pharmaceutical company buys another whose principal asset is a molecule in development, accounting rules require the full amount to be written off immediately - because there is no certainty the development reaches market.
So Teva booked a $724 million loss on the decision to buy something. That is not a deterioration in the business, and not cash lost beyond the deal price - it is how accounting presents an acquisition of this kind.
And this is exactly the pattern that has followed us all earnings season, in the opposite direction from Amazon: there a one-off revaluation inflated the headline upward, here a one-off write-off compresses it downward.
The figure the market did buy
Teva's three innovative brands together crossed $1 billion in a quarter - for the first time in history.
| Brand | Quarter | Year ago | Change |
|---|---|---|---|
| AUSTEDO | 696 | 496 | +40% |
| AJOVY | 244 | 157 | +56% |
| UZEDY | 77 | 54 | +43% |
| Total | 1,017 | 707 | +43% |
In millions of dollars
That is roughly 25% of group revenue - and it is revenue at far higher margin than generics.
And inside the detail sits the sharpest figure: AJOVY in the United States jumped 83% to $116 million. AUSTEDO in the US rose 37% to $676 million.
This is the metric that validates or breaks the company's "Pivot to Growth" strategy - the shift from generics to originator drugs - and this quarter it validated it.
And the side that keeps eroding
Generics fell 15% in local currency.
| Region | Quarter | Change |
|---|---|---|
| United States | 660 | -31% |
| Europe | 1,024 | -2% |
| International Markets | 419 | +2% |
In millions of dollars
The 31% US collapse comes from one factor: rising competition in lenalidomide - the generic version of Revlimid, which for years was a central profit engine for Teva.
And management said so explicitly on the call: "If you exclude generic Revlimid, our generic business remains stable."
The geographic map
| Segment | Quarter | Change |
|---|---|---|
| United States | 1,702 | -5% |
| Europe | 1,263 | -3% |
| International Markets | 550 | +11% |
In millions of dollars
International Markets is the only growing geography - and also the smallest of the three.
And Teva raised guidance for all three innovative brands - a sign management itself sees the transition running ahead of expectation.
My Angle
A personal opinion of Ilan Abramov - not advice, not a recommendation
This is a report almost impossible to read correctly from the headline.
A $576 million loss, negative EPS, EBITDA cut 62% - and an 11.5% jump in the stock. Anyone seeing only those numbers thinks the market lost its mind.
It did not. It simply looked below the line. A $724 million write-off on an acquisition is an accounting charge on a decision, not on performance, and the market knows the difference.
And what it did buy is the other number: the three brands crossed a billion in a quarter and grew 43%. This is the first time Teva's pivot strategy is represented by a figure you can point at.
And what I file under questions: US generics fell 31%. Management says that excluding Revlimid the business is stable, which is probably true - but Revlimid is not coming back. The question is whether the innovative brands grow fast enough to cover an erosion that will continue.
