On January 29, 2026, Scotiabank upheld its Outperform rating for Teva Pharmaceutical Industries, citing the company’s robust generics pipeline and accelerating specialty drug franchise. The firm highlighted Teva’s leading market share in multiple therapeutic classes and its ability to drive margin expansion through cost synergies. This endorsement reinforces Teva’s appeal against peers such as Pfizer and Novartis, particularly given its strong balance sheet and disciplined capital allocation strategy.

Teva reported Q4 revenue of $4.71 billion, surpassing analyst consensus of $4.37 billion and reflecting 11% year-over-year growth in U.S. dollars (9% in local currency). Adjusted earnings reached $0.96 per share, well above Street estimates of $0.68, driven by a milestone payment related to a late-stage ulcerative colitis and Crohn’s disease study and higher sales of key branded products. Profitability benefited from operational efficiencies and lower generic price erosion compared to prior quarters.

For the first time, Teva’s three flagship specialty medicines—Austedo, Ajovy and Uzedy—collectively generated over $1 billion in quarterly revenues. Austedo sales rose 34% to $2.26 billion, surpassing management guidance; Ajovy grew 30% to $673 million; and Uzedy climbed 63% to $191 million. These growth rates underscore Teva’s successful shift toward higher-value therapies and its ability to capture market share in neurology and movement-disorder indications.

Teva issued 2026 sales guidance of $16.4 billion to $16.8 billion, with adjusted EPS projected between $2.57 and $2.77. The company anticipates operating income of $4.55 billion to $4.80 billion and adjusted EBITDA of $5.0 billion to $5.3 billion. Management flagged a series of late-stage readouts across immunology and neurology, including the potential FDA approval of an olanzapine long-acting injection and Phase 3 results for its anti-TL1A asset, collectively representing a potential $10 billion peak‐year opportunity.