Teva Pharmaceutical Industries Limited reported third‑quarter 2025 results that surpassed consensus expectations, with revenue rising to $4.48 billion—an increase of $0.18 billion or 4.2% over the $4.30 billion reported in Q3 2024. Non‑GAAP earnings per share reached $0.78, beating the $0.68 consensus by $0.10 or 14.7%. The beat was driven by a 33% jump in the innovative medicines segment, largely powered by Austedo’s 38% growth to $618 million in local currency.
The company’s revenue mix shifted toward higher‑margin products. U.S. sales grew 12% to $2.10 billion, while European and international markets each fell 10% in local currency, reflecting weaker demand for generics in those regions. The innovative medicines segment, which includes Austedo, contributed 33% of total revenue and delivered a 33% increase in local currency, underscoring the success of Teva’s “Pivot to Growth” strategy.
Operating income margin expanded to 28.9% from 27.3% in Q3 2024, an 86‑basis‑point lift. The margin improvement was largely a result of cost discipline and a favorable product mix that favored higher‑margin innovative drugs over lower‑margin generics. The company also reported a net debt‑to‑EBITDA ratio below 3× for the first time since 2016, indicating stronger financial stability.
Management raised its full‑year outlook, projecting revenue of $16.8 billion to $17.0 billion—up from the prior guidance of $16.5 billion to $16.7 billion. Non‑GAAP EPS guidance was increased to $2.55 to $2.65, compared with the previous $2.45 to $2.55 range. CEO Richard Francis said the company’s “innovation‑led Pivot to Growth” is delivering “the 11th consecutive quarter of growth” and that the firm is “executing on a clear strategy to drive growth and profitability.”
Analysts welcomed the results, citing the strong margin expansion, the robust performance of the innovative portfolio—especially Austedo—and the upward revision of full‑year guidance as key drivers of the positive reception.
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