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↓Deteriorating
- Earnings Beat Consistency→Stable
- +1 more pillar — see the Why tab for full reasoning
Teva Pharmaceutical Industries (TEVA) Stock Analysis
Healthcare · Drug Manufacturers - Specialty & Generic
Hold if already holding. Not a fresh buy at $36.77, but acceptable to hold if already in. Reasons: Concentration risk — Product: generic medicines (55.0%); Analyst target reached - limited upside remaining.
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
Hold if already holding. Not a fresh buy at $36.77, but acceptable to hold if already in. Reasons: Concentration risk — Product: generic medicines (55.0%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 4.9/10, high confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.50, earnings proximity 81d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. 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 2026-08-15Recent Developments — Teva Pharmaceutical Industries
Latest news
- NEWS Teva Stock Rises After Earnings as Revenue Guidance Exceeds Expectations - Barron's — Barron's positive
- NEWS Teva Pharmaceutical Industries Sees Unusually High Options Volume (NYSE:TEVA) - MarketBeat — MarketBeat neutral
- NEWS Teva Stock Rises After Earnings as Revenue Guidance Exceeds Expectations - barrons.com — barrons.com positive
- NEWS Teva Pharmaceutical Industries (TEVA) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates - Yahoo Finance — Yahoo Finance neutral
- NEWS Teva Pharmaceutical Industries (NYSE:TEVA) Issues FY 2026 Earnings Guidance - MarketBeat — MarketBeat neutral
Generated 2026-08-15T13:12:18Z.
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
2 floor-breakers
Revenue shrinking — -0.8% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $36.77, but acceptable to hold if already in. Reasons: Concentration risk — Product: generic medicines (55.0%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $42.29 (+15.0%), stop $34.41 (−6.9%), A.R:R -0.2:1. Score 4.9/10, high confidence.
Take-profit target: $42.29 (-2.5% upside). Target $42.29 (+15.0%), stop $34.41 (−6.9%), A.R:R -0.2:1. Stop-loss: $34.41.
Concentration risk — Product: generic medicines (55.0%); Analyst target reached - limited upside remaining; Near 52-week high (1.7% away).
Teva Pharmaceutical Industries trades at a P/E of 61.3 (forward 12.0). TrendMatrix value score: 6.0/10. Verdict: Hold.
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.