Teva Pharmaceutical offers attractive valuation with a forward price-to-earnings ratio of 10.9x and a PEG of 0.83, backed by a perfect 4-quarter earnings beat streak averaging 22.4% positive surprise, but the current price leaves only 5.6% upside versus 6.8% downside, making reward-to-risk unfavorable at this entry.
Thesis pillars
- Generic Drug Concentration Risk↓Deteriorating
- Valuation Discount Vs Earnings Power↑Improving
- Earnings Beat Consistency↑Improving
- +1 more pillar — see the Why tab for full reasoning
Teva Pharmaceutical Industries (TEVA) Stock Analysis
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Multiple concerning factors at $30.91: Leverage penalty (D/E 2.1): -1.5; Concentration risk — Product: generic medicines (55.0%).
Teva Pharmaceutical combines a generics business ($9.4 billion in 2025 sales, 55% of total revenues) with an innovative CNS/respiratory/oncology portfolio including AUSTEDO, AJOVY, and UZEDY, operating through U.S., Europe, and International Markets segments with approximately... Read more
Sell if holding. Multiple concerning factors at $30.91: Leverage penalty (D/E 2.1): -1.5; Concentration risk — Product: generic medicines (55.0%). Chart setup: No clear chart pattern; technical signals are mixed. Score 6.3/10, moderate confidence.
Passes 7/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on earnings proximity 4d<=7d. Suitability: moderate.
About Teva Pharmaceutical Industries
About Teva Pharmaceutical Industries
Generic medicines generated $9,421 million in 2025—55% of Teva Pharmaceutical Industries' total revenues—across the United States, Europe, and International Markets segments, while the innovative CNS and migraine portfolio led by AUSTEDO, AJOVY, and UZEDY forms the company's higher-margin segment under its 'Pivot to Growth' strategy. Teva employed approximately 34,000 people across 57 markets at December 31, 2025, and held $16,807 million in consolidated debt at year-end, down from $17,783 million a year earlier.
Teva earns revenue through three business segments each managing generics, biosimilars, OTC, and innovative products in their respective regions. In the United States—the most significant market for innovative medicines—AUSTEDO is one of only two products approved for tardive dyskinesia; AJOVY competes in anti-CGRP migraine prevention against multiple products launched around the same time; UZEDY, launched in May 2023 for schizophrenia and expanded to bipolar 1 disorder in October 2025, entered a market with well-established long-acting injectable competitors. The Anda distribution unit supplies third-party generic and branded products to U.S. pharmacies and hospitals. In Europe, generic and OTC products are sold through branded and pure-generic channels across highly fragmented markets, with Teva holding a top-three position in many European countries. In 2025, Teva launched biosimilars SELARSDI (ustekinumab) and EPYSQLI (eculizumab, in partnership with Samsung Bioepis) in the U.S., and received EMA approval in November 2025 for denosumab biosimilars PONLIMSI and DEGEVMA.
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The Inflation Reduction Act created a direct revenue risk for Teva's key innovative product: in November 2025, the Centers for Medicare and Medicaid Services announced a negotiated maximum fair price for AUSTEDO and AUSTEDO XR, effective January 1, 2027 for eligible Medicare patients. All regulatory exclusivities for AUSTEDO have expired; settlement agreements with Lupin and Aurobindo allow generic entry beginning April 2033, or earlier under certain circumstances. The intersection of government price-setting effective 2027 and a dated generic entry window in 2033 establishes a bounded revenue ceiling for AUSTEDO at current pricing.
See also: Healthcare · Drug Manufacturers - Specialty & Generic
From Teva Pharmaceutical Industries 's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Teva Pharmaceutical Industries
Latest news
- NEWS Earnings call transcript: Teva beats Q1 2026 forecasts, stock surges 7.5% - Investing.com — Investing.com positive
- NEWS Teva Pharmaceutical (TEVA) Reports Strong Q1 Earnings, Beats Exp - GuruFocus — GuruFocus positive
- NEWS Teva Surges As Its New Growth Strategy Hits A Key Inflection Point - Investor's Business Daily — Investor's Business Daily positive
- NEWS Teva Surges As New Strategy Hits An Inflection Point - Investor's Business Daily — Investor's Business Daily positive
- NEWS Teva (TEVA) Announces Acquisition of Emalex Biosciences - GuruFocus — GuruFocus positive
Generated 2026-07-26T06:22:14Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductgeneric medicines55%10-K Item 1A: 'total revenues from sales of our generic medicines in all our business segments were $9,421 million, or 55% of our total revenues'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
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Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $30.91: Leverage penalty (D/E 2.1): -1.5; Concentration risk — Product: generic medicines (55.0%). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $28.75. Score 6.3/10, moderate confidence.
Take-profit target: $35.58 (+15.5% upside). Prior stop was $28.75. Stop-loss: $28.75.
Concentration risk — Product: generic medicines (55.0%); Leverage penalty (D/E 2.1): -1.5; Earnings in 4 days (event risk).
Teva Pharmaceutical Industries trades at a P/E of 23.3 (forward 10.0). TrendMatrix value score: 7.6/10. Verdict: Sell.
7 analysts cover TEVA with a consensus score of 4.1/5. Average price target: $41.
What does Teva Pharmaceutical Industries do?Teva Pharmaceutical combines a generics business ($9.4 billion in 2025 sales, 55% of total revenues) with an innovative...
Teva Pharmaceutical combines a generics business ($9.4 billion in 2025 sales, 55% of total revenues) with an innovative CNS/respiratory/oncology portfolio including AUSTEDO, AJOVY, and UZEDY, operating through U.S., Europe, and International Markets segments with approximately 34,000 employees. Consolidated debt stood at $16.8 billion at December 31, 2025.