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Teva Q2 2026 results: revenue down 1%, operating income down $686M, shares up 8.6%. All three follow from one subtraction the release never performs.

Witfire Risk Score 5.1 / 10  ·  Moderate  |  Teva (NYSE: TEVA)  |  Reported 29 July 2026

Teva printed both halves of its own story and left them 40 pages apart. US generics fell $301M. Three branded products added roughly $306M. Put those side by side and the quarter explains itself.

Everything below is either a reported figure or a calculation from reported figures, with the working shown.

Waterfall of the components of the $41.8M year-on-year revenue decline. US generics and biosimilars minus 301 million; innovative brands plus 305.8 million; Europe minus 20.9 million; international plus 8.2 million; residual minus 34 million.FIG 1Revenue bridge, Q2 2025 to Q2 20263002001000-100-200-300Change vs Q2 2025 ($M)-301.0USgenerics+305.8Innovativebrands-20.9Europe+8.2Inter-national-34.0ResidualNet −41.8M = −1.0%Witfire Elite · computed
Q2 2025 revenue implied from the reported −1% change. Brand and residual values computed; segment values reported.

01Teva Q2 2026 results: the crossover

101.6%of the US generics decline refilled by branded growth, in the same quarter
Working
Brands Q2’26  $1,017.0M  reported
Growth  +43% local currency  reported
Brands Q2’25  = 1,017.0 / 1.43  =  $711.2M
Delta  =  +$305.8M
US generics  $961M → $660M  =  −$301.0M  reported
305.8 / 301.0 = 101.6%  ·  net +$4.8M

Pivot-to-Growth has been a slide in Teva’s deck since 2023 — this is the quarter it became arithmetic.

AUSTEDOUS $676M, +37% · International $20M, from $3M
$696M+40% LC
AJOVYUS $116M, +83% · Europe $78M, +10% · International $49M, +146%
$244M+56% LC
UZEDYFastest-growing atypical LAI, per IQVIA
$77M+43%
Three brands combined24.6% of company revenue, up from 17.0% · computed
$1,017M+43% LC
Bar chart comparing Q2 2025 adjusted EBITDA of 1,233 million dollars with Q2 2026 reported 474 million plus a 726 million Emalex charge reaching 1,200 million.FIG 2Adjusted EBITDA: reported vs charge added back1,4001,2001,0008006004002000Adjusted EBITDA ($M)1,233474+726 charge1,200Q2 2025Q2 2026reported + chargeReported −61.6% · ex-charge −2.7% · charge = 95.7% of the fall
Teva kept acquired in-process R&D inside adjusted EBITDA. Most issuers exclude it.

02Most of the earnings collapse is one accounting line

95.7%of the $759M adjusted EBITDA decline is the Emalex charge
Working
Adj. EBITDA  $1,233M → $474M  =  −$759M  (−61.6%)  reported
Emalex charge  $726M  reported
726 / 759  =  95.7%
Add it back  474 + 726  =  $1,200M
1,200 vs 1,233  =  −2.7% year on year

Teva left acquired in-process R&D inside its adjusted EBITDA. Most companies strip it out, which is why the headline reads minus 61.6% instead of minus 2.7%. Teva chose the version that looks worse.

Non-GAAP EPS reportedAgainst $0.66 a year ago
$0.02
Charge per share$726M over roughly 1,190M shares · computed
$0.61
EPS with the charge added backOur arithmetic, not a Teva metric
$0.63−4.5% YoY
R&D expense reportedFrom $244M
$970M+297.5%
R&D stripped of acquired IPR&D970 − 724 · computed
$246M+0.8%

Research spending did not move. A 297% jump in the R&D line is one purchase, booked in one quarter.

Scatter plot of guidance changes. Four revenue lines raised by 75, 50, 90 and 15 million dollars with a mean of 57.5 million. Four profit and cash lines unchanged at zero.FIG 3Guidance revised: revenue lines vs profit lines100806040200Change to 2026 guidance ($M)+75+50+90+15mean 57.5mean 0.0Revenue guidance4 lines, +$155M brandsProfit & cash guidance4 lines, unchangedIncremental margin on the raise = 0.0%
Each point is one guidance line. Horizontal bars mark group means. Midpoints computed from the disclosed ranges.

03The guidance raise adds no profit

$0added to operating income, EBITDA, EPS or cash guidance, against +$155M of brand revenue

Four revenue lines went up. Four profit lines did not move at all. Branded medicines carry better margins than generics, so an extra $155M of them should show up somewhere below the top line. It does not.

Three things could be absorbing it: a higher tax rate, sales spending behind the same three brands, and the cost of carrying ecopipam to an FDA decision.

Data gap Teva has not split those three. The 2027 targets of roughly $700M in net savings and a 30% non-GAAP operating margin sit on that unexplained gap.

04Two-thirds of the replacement revenue is one product

68.4%of innovative-brand revenue comes from AUSTEDO alone
AUSTEDO696 / 1,017 · computed
68.4%
AJOVY244 / 1,017 · computed
24.0%
UZEDY77 / 1,017 · computed
7.6%
Brands as share of company revenueUp from 17.0% · computed
24.6%+7.6pp

Teva swapped a portfolio of generics for a portfolio of three — and then two-thirds of that came from one drug. The concentration risk moved rather than disappeared.

05AJOVY’s raise is 36.9% of the quarter behind it

36.9%a $90M annual guidance raise against a $244M quarter

AJOVY took the biggest raise of the three. Its international line grew 146%, and Teva disclosed that a China milestone payment made up a significant part of that.

Milestones do not repeat. So a slice of a $90M annual raise rests on revenue that will not be there next year.

AJOVY US exit prescription shareInjectable anti-CGRP class, from 31.0%
32.5%+1.5pp
International growthIncludes the China milestone
+146%

The 1.5 point share gain is what recurs. Track that number next quarter, not the 146%.

Bar chart of debt maturing within twelve months, rising from about 1,825 million dollars at year-end 2025 to 4,480 million at 30 June 2026, against a dashed reference line marking cash of 3,655 million.FIG 4Debt maturing within 12 months5,0004,0003,0002,0001,0000Short-term debt ($M)1,8254,480cash $3,655M31 Dec 202511% of total debt30 Jun 202627% of total debt+145.5% in six months · exceeds cash by ~$825M
Percentages reported by Teva; dollar values computed against total debt of $16,593M. The year-end 2025 figure assumes comparable total debt.

06Near-term debt more than doubled in six months

~$825Mby which twelve-month maturities now exceed cash on hand
Working
Total debt  $16,593M  ·  Cash  $3,655M  reported, 30 Jun 2026
Short term  27% × 16,593  =  $4,480M
At year-end 2025  11% × 16,593  =  $1,825M
Increase  =  +$2,655M  =  +145.5%
4,480 − 3,655 = $825M short  ·  37.5% of FCF guidance midpoint

Nobody is in trouble here. Free cash flow guidance of $2.0 to $2.4bn covers the gap, and refinancing is the likely route rather than repayment. What it does mean is that a defined share of next year’s cash is spoken for before it can fund anything else.

Worth separating from the ratings story, which has been reported loosely. Fitch upgraded Teva on 18 May, six weeks before this release. Two other agencies still have it below investment grade.

FitchUpgraded 18 May 2026, not part of this release
BBB−stable
S&P
BB+stable
Moody’s
Ba1positive
Net debt16,593 − 3,655 · computed
$12,938M

One agency of three, by exactly one notch.

07Gross profit rose while revenue fell

+170bpsGAAP gross margin, 50.3% to 52.0%, on a smaller top line

Revenue dropped 1.0%. Gross profit climbed 2.4%, from $2,102M to $2,153M. That is the whole argument for the pivot in two numbers: replacing $301M of generic sales with $306M of branded sales changes what a dollar of revenue is worth.

Free cash flowFrom $476M
$622M+30.7%
Operating cash flowFrom $227M
$411M+81.1%
Non-GAAP gross marginFrom 54.6%
55.4%+80bps

08The market did the subtraction too

Revenue against consensus$4,142M vs roughly $4,020M, FactSet
+$122M+3.0% beat
Adjusted EPS against consensus$0.02 vs $0.05
−$0.03−60% miss
Share reactionIntraday, around $34.40
+8.6%+$2.73

A 60% earnings miss produced an 8.6% gain. Investors priced the crossover and ignored the charge, which is the correct reading of the release.

09Witfire Risk Score

Teva Pharmaceutical Industries (NYSE: TEVA)
5.1 / 10
Regulatory Exposure · 30%
4.5
The revenue base is approved and selling, which keeps this moderate. Open items: the ecopipam NDA filed in June on a Phase 3 that hit at p=0.0084, an olanzapine LAI application accepted by the EMA in May with a US launch proposed for the fourth quarter, and duvakitug in Phase 3 with Sanofi. None carries 2026. Ecopipam carries $700M already spent.
Competitive Displacement · 25%
6.5
Lenalidomide took 31.3% out of US generics in three months and has further to run. AUSTEDO is 68.4% of the replacement revenue. AJOVY holds 32.5% of a class with several well-funded competitors. The pivot is working and it has narrowed the number of things that must keep working.
Capital Position · 20%
6.0
Net debt of $12,938M, with roughly $4,480M falling due inside twelve months against $3,655M of cash. Free cash flow covers it, but at 37.5% of the guidance midpoint. Improving, and still the thing that sets how fast the transition can be funded.
Evidence Integrity · 15%
3.0
Low on purpose. Teva kept the acquisition charge inside adjusted EBITDA, published no add-back EPS that would have read $0.63 instead of $0.02, gave brand-level splits, and disclosed the China milestone sitting inside AJOVY’s 146%. Each of those made the quarter look worse than it had to.
Execution & Credibility · 10%
4.5
The crossover landed at 101.6% and three brand forecasts went up on the same day. Held back by the profit guidance that did not move with them, and by 2027 targets with nothing visible yet to support them.

Evidence Integrity at 3.0 against Competitive Displacement at 6.5. Teva told the truth about a portfolio that still has a real problem in it. Both readings hold.

10What to watch, with numbers attached

  • AJOVY international, excluding the milestone. If underlying growth holds, the $90M raise was earned.
    Q3
  • US generics year-on-year decline narrows. The quarter lenalidomide stops being the story.
    <−15%
  • Any profit guidance moves. If revenue rises again and margin guidance stays pinned, absorption is structural.
    >$0
  • AUSTEDO share of brand revenue. Falling concentration means the pivot has depth.
    <65%
  • Refinancing terms on roughly $4.48bn. Shows what a single-agency upgrade is worth in practice.
    12 mo
  • Ecopipam FDA decision. Approval turns $700M into an asset. A complete response letter turns it into a write-down.
    $700M

11Verdict on the Teva Q2 2026 results

Three figures carry the quarter.

Generics hole refilled by brandsSame quarter · computed
101.6%
Earnings fall that is one accounting lineUnderlying decline: 2.7%
95.7%
Profit added by the guidance raise$155M revenue in, nothing out
0.0%

Two of those are settled once you do the arithmetic. The transition arrived, and the loss is bookkeeping.

The third is not settled. Teva added $155M of high-margin revenue to its own forecast and moved no profit line by a single dollar. Until somebody explains where it went, the 2027 margin target is a claim rather than a trend, and that is the only part of this quarter still worth arguing about.

12FAQ

What did Teva report in its Q2 2026 results?

The Teva Q2 2026 results showed revenue of $4,142M, down 1% in dollars and 3% in local currency. AUSTEDO, AJOVY and UZEDY together reached $1,017M, up 43% in local currency. A $726M Emalex charge produced a GAAP net loss of $576M and non-GAAP EPS of $0.02.

Why did Teva post a loss while its brands grew?

Adjusted EBITDA fell $759M, and $726M of that was the Emalex charge, or 95.7%. Add it back and adjusted EBITDA was $1,200M, down 2.7% on the year.

Did the brands really offset the generics decline?

Almost exactly. US generics fell $301M. Brands added about $305.8M, calculated from the reported 43% growth rate. That refills 101.6% of the hole.

Did Teva raise its 2026 guidance?

Revenue and all three brand forecasts went up by $155M combined at midpoint. Operating income, adjusted EBITDA, non-GAAP EPS and free cash flow guidance were all left unchanged.

How much Teva debt is due within a year?

Around $4,480M, being 27% of $16,593M in total debt, against $3,655M of cash. That leaves a gap of roughly $825M.

Related Intelligence
Witfire Elite Pharma News · Every figure here is either reported by Teva or calculated from figures Teva reported, with the working shown. Calculated values are labelled. Where the company has not disclosed something, we mark the gap rather than estimate it.
Teva Pharmaceutical Industries, Q2 2026 results, 29 July 2026, 7:00 a.m. ET. Reported: revenue $4,142M; gross profit $2,153M against $2,102M; GAAP gross margin 52.0% against 50.3%; operating loss $231M against income of $455M; GAAP net loss $576M; GAAP EPS −$0.49; non-GAAP EPS $0.02; adjusted EBITDA $474M against $1,233M; operating cash flow $411M; free cash flow $622M.  ·  Segments: AUSTEDO $696M; AJOVY $244M; UZEDY $77M; US generics and biosimilars $961M to $660M; Europe $1,024M; international $419M.  ·  Emalex closed 10 June 2026, $700M upfront with up to $200M in milestones plus royalties; $726M total expense including $724M of acquired in-process R&D. Ecopipam NDA submitted June 2026; Phase 3 primary endpoint p=0.0084; Orphan Drug and Fast Track designations.  ·  Balance sheet at 30 June 2026: debt $16,593M; cash $3,655M; 27% short term against 11% at year-end 2025.  ·  Ratings: Fitch BBB− stable, 18 May 2026; S&P BB+ stable; Moody’s Ba1 positive.  ·  Consensus and market reaction per FactSet and Barron’s.

Calculated in this brief: implied Q2 2025 revenue; prior-year brand revenue and the $305.8M delta; the 101.6% offset; the revenue-bridge residual; the 95.7% charge share and $1,200M add-back EBITDA; $0.63 add-back EPS and implied share count; $246M R&D excluding acquired IPR&D; all guidance midpoints and the $155M raise; brand concentration shares; short-term debt in dollars and the $825M gap; net debt.

Disclosure: Editorial analysis, not investment advice. The Witfire Risk Score weights Regulatory Exposure 30%, Competitive Displacement 25%, Capital Position 20%, Evidence Integrity 15% and Execution & Credibility 10%.
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