Teva Pharmaceutical Industries Ltd. Reports Q2 2025 Results: Revenue Falls Short, Austedo, Ajovy, Uzedy Sales Boosted

Teva Pharmaceutical Industries reported Q2 2025 revenue of $4.2 billion, slightly below analyst expectations, due to weaker sales in its generic drug portfolio. However, its innovative drug offerings, including Austedo, Uzedy, and Ajovy, showed strong growth, with Austedo sales increasing 19% to $498 million. Teva reaffirmed its 2025 sales outlook and boosted its guidance for Austedo, Ajovy, and Uzedy.

Teva Pharmaceutical Industries Limited (TEVA) reported its Q2 2025 revenue at approximately $4.2 billion, slightly below analyst expectations due to weaker sales in its generic drug portfolio [2]. However, the company's innovative drug offerings, including Austedo, Uzedy, and Ajovy, showed strong growth. Austedo sales increased by 19% to $498 million, Uzedy sales surged by 120% to $54 million, and Ajovy sales grew by 31% to $155 million [3].

Despite the generic drug portfolio's decline, Teva reaffirmed its 2025 sales outlook, with a range of $16.8 billion to $17.2 billion [3]. The company also boosted its guidance for Austedo, Ajovy, and Uzedy, with the combined revenue outlook for these products increasing to around $2.9 billion from $2.3 billion in 2024 [3]. This growth is expected to be driven by the company's innovative portfolio, with a pipeline that could generate peak sales of over $10 billion [3].

Teva's management highlighted the company's cost savings initiatives, with a modernization program expected to generate $700 million in net savings [3]. The company also reported a strong balance sheet, with reduced working capital days and leverage, and a leading credit rating agency recognizing these improvements [3].

In terms of financial results, Teva reported GAAP net income of $282 million and non-GAAP EPS of $0.66 for Q2 2025, an increase of 10% year-over-year [3]. Free cash flow grew by 47% to $476 million [3]. The company's non-GAAP gross margin increased to 54.6% year-over-year, and the non-GAAP operating margin rose to 27.1% [3].

Teva's management expressed confidence in achieving its 2025 and 2027 financial targets, backed by robust growth from its innovative portfolio and significant cost savings initiatives [3]. The company continues to actively manage regulatory and macroeconomic risks, with existing mitigation plans in place for tariff impacts [3].

References:
[1] https://ir.tevapharm.com/news-and-events/press-releases/press-release-details/2025/Tevas-Innovative-Portfolio-Fuels-10th-Consecutive-Quarter-of-Growth-in-Q2-2025-Increases-2025-Revenue-Outlook-for-Key-Innovative-Products-and-EPS-and-Reaffirms-All-Other-Components/default.aspx
[2] https://www.marketscreener.com/news/teva-pharmaceutical-industries-limited-reports-earnings-results-for-the-second-quarter-and-six-month-ce7c5fdfde8ffe24
[3] https://seekingalpha.com/news/4474465-teva-raises-2025-eps-outlook-and-innovative-product-guidance-as-company-targets-700m-in-cost