Teva Pharmaceutical Industries Limited (TEVA) AI Stock Analysis

NYSE: TEVAAI research summary: business, growth, valuation, analysts, bull and bear case.

TEVA AI stock analysis summary

AI Research

Teva Pharmaceutical Industries Limited (TEVA) is a global pharmaceutical company specializing in generic medicines, specialty pharmaceuticals, and biopharmaceuticals. In FY2025, the company generated revenue of $17.26B and returned to profitability with net income of $1.41B. The stock closed at $41.50 on October 16, 2026, having gained 111.4% over the prior year.

Market cap: $48.40B
Revenue (TTM): $17.32B
P/E: 69.2x
1Y return: 111.4%
Avg. target: $47.58

Bull case

Teva returned to profitability in FY2025 with net income of $1.41B and a gross margin of 51.8%.
The stock's forward P/E of 12.5x sits below the US-listed Healthcare peer median of 17.3x.
Analysts maintain a mean price target of $47.58, representing 14.7% upside from the last closing price of $41.50.

Bear case

Total debt stood at $16.87B as of June 30, 2026, resulting in net debt of $13.22B and a debt-to-equity ratio of 2.18.
Current fiscal year EPS is estimated to decline 29.5% to $2.11 on revenue of $16.66B.
Revenue in the quarter ended June 30, 2026 fell 0.8% year-over-year.

What Teva Pharmaceutical Industries does

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty pharmaceuticals, and biopharmaceuticals across North America, Europe, and internationally. Its product portfolio features sterile products, hormones, high-potency drugs, and active pharmaceutical ingredients. Key therapeutic areas include central nervous system disorders, pain management, respiratory ailments, and oncology. Notable commercialized products include Copaxone for multiple sclerosis, AUSTEDO for tardive dyskinesia, AJOVY for migraine prevention, ProAir and QVAR for respiratory conditions, and Bendeka and Trisenox for oncology treatments. Founded in 1901 and headquartered in Tel Aviv-Yafo, Israel, Teva also partners with companies like MedinCell to advance drug delivery technologies.

Growth and profitability

Teva generated revenue of $17.26B in FY2025, up 4.3% from $16.54B in FY2024 and $15.85B in FY2023. Gross margin expanded to 51.8% in FY2025 from 48.7% in FY2024, while operating margin rose to 12.5% compared to -1.8% in FY2024 and -14.7% in FY2022. Net income recovered to $1.41B in FY2025 with an 8.2% net margin, following losses of -$1.64B in FY2024 and -$2.45B in FY2022. Over the trailing twelve months, revenue reached $17.32B with an operating margin of 4.0% and EPS of $0.60. For the quarter ended June 30, 2026, revenue fell 0.8% year-over-year, while quarterly earnings grew 72.2%.

TEVA income statement →

Balance sheet and cash flow

As of June 30, 2026, Teva held $3.65B in cash and short-term investments against total debt of $16.87B, resulting in net debt of $13.22B. Shareholders' equity stood at $7.76B, leading to a debt-to-equity ratio of 2.18, and its current ratio was 0.88. In FY2025, operating cash flow was $1.65B, free cash flow reached $1.15B, and capital expenditures were $501.0M. Share count increased by 7.1% over five years.

TEVA balance sheet →

Valuation and performance

At a market capitalization of $48.40B and an enterprise value of $57.89B, Teva trades at a trailing P/E of 69.2x, above the 24.6x median of its US-listed Healthcare peers. Its forward P/E of 12.5x is lower than the peer median of 17.3x, and its EV/EBITDA of 18.4x is above the peer median of 12.0x. The stock trades at a price-to-sales multiple of 2.8x and a price-to-book ratio of 5.8x. Over the past year, Teva gained 111.4% compared to 16.8% for the S&P 500.

TEVA key metrics →

What analysts expect

Wall Street coverage consists of 8 Strong Buy, 4 Buy, and 1 Hold ratings, with no Sell or Strong Sell ratings. The mean price target of $47.58 implies upside of 14.7% over the October 16, 2026 close of $41.50. For the fiscal year ending December 31, 2026, analysts estimate revenue of $16.66B and EPS of $2.11. Teva has beaten EPS estimates in each of its last 4 quarters. The next earnings date is November 3, 2026.

TEVA forecast and price target →

Key risks and what to watch

The company's current ratio of 0.88 indicates potential short-term liquidity constraints relative to current obligations.
A trailing P/E of 69.2x and EV/EBITDA of 18.4x expose the stock to multiple compression if growth slows.
Net income has shown historical volatility, swinging from -$2.45B in FY2022 and -$1.64B in FY2024 to $1.41B in FY2025.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this TEVA AI stock analysis

This page is an AI-written research summary of Teva Pharmaceutical Industries Limited (TEVA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TEVA income statement, TEVA balance sheet, TEVA key metrics, TEVA analyst forecast, TEVA chart. See the TEVA stock overview for the latest quote and news.

TEVA AI stock analysis FAQ

What were Teva's revenue and earnings in FY2025?

In FY2025, Teva generated revenue of $17.26B, up 4.3% from the prior year. Net income reached $1.41B with diluted EPS of $2.89.

How much debt does Teva carry?

As of June 30, 2026, Teva had total debt of $16.87B and cash and short-term investments of $3.65B, leaving net debt at $13.22B. Its debt-to-equity ratio was 2.18.