Teva's Q2 results surprise analysts, raising guidance and sparking hopes for growth.

Teva Pharmaceutical Industries reported Q2 results with $4.2 billion in revenue and $0.66 per share profit, beating analysts' predictions. Despite a 1.8% share price increase on the day of the report, the stock has fallen 8.6% in the following days and is down 4.74% on the Tel Aviv Stock Exchange. Investment institutions have an average target price of $24.29, a 57.9% premium on the current share price, with most having positive recommendations. Oppenheimer calls it an "excellent buying opportunity," citing Teva's strategic aims for 2027 and potential growth in sales of branded drugs.

Teva Pharmaceutical Industries (NYSE: TEVA) reported its second-quarter 2025 earnings, with adjusted earnings per share (EPS) of $0.66, beating the Zacks Consensus Estimate of $0.63 [1]. The company's revenue for the quarter was $4.18 billion, which missed the Zacks Consensus Estimate of $4.28 billion but was up 2% year over year in the United States segment [1].

The company's performance was driven by higher revenues from its branded drugs, including Austedo, Ajovy, and Uzedy, which offset lower sales from generic drugs in the U.S. and international markets. The U.S. segment reported $2.15 billion in sales, up 2% year over year, while the Europe segment saw revenues of $1.3 billion, up 7% year over year [1]. However, the International Markets segment experienced a 17% year-over-year decline in sales due to the divestment of Teva's business venture in Japan [1].

Despite the mixed revenue performance, Teva's adjusted gross margin improved to 54.6%, up 170 basis points (bps) year over year, driven by higher Austedo revenues and the sale of certain product rights in Europe [1]. The company expects to achieve an adjusted operating margin of 30% by 2027 through cost savings and the continued growth of its branded drugs [1].

Following the earnings report, Teva's stock price initially increased by 1.8% on July 30, 2025, but subsequently fell by 8.6% in the following days, reaching a 4.74% decline on the Tel Aviv Stock Exchange [2]. Investment institutions have an average target price of $24.29, a 57.9% premium on the current share price, with most having positive recommendations. Oppenheimer called it an "excellent buying opportunity," citing Teva's strategic aims for 2027 and potential growth in sales of branded drugs [2].

References:

[1] https://finance.yahoo.com/news/teva-q2-earnings-beat-revenues-163800069.html

[2] https://www.marketbeat.com/instant-alerts/filing-teva-pharmaceutical-industries-ltd-nyseteva-shares-purchased-by-king-wealth-management-group-2025-07-31/