Teva Pharmaceutical Industries reported fourth-quarter revenue of $4.71 billion, exceeding consensus of $4.37 billion and marking an 11% year-over-year rise in U.S. dollars (9% in local currency). The advance reflected milestone payments tied to the initiation of Phase 3 studies for duvakitug (anti-TL1A) and higher sales of innovative products. Adjusted EPS came in at $0.96, surpassing the $0.68 Street estimate and up from $0.71 a year earlier. Performance was partially offset by reduced proceeds from certain product rights sales and a divestiture in the International Markets segment.

For the first time, Teva’s key innovative brands—Austedo, Ajovy and Uzedy—collectively generated approximately $1 billion in quarterly revenues. Austedo sales rose 34% to $2.26 billion, topping guidance of $2.05–2.15 billion. Ajovy achieved $673 million, up 30% in constant currency versus guidance of $630–640 million. Uzedy revenues climbed 63% to $191 million, in line with the mid-point of the $190–200 million expectation. CEO Richard Francis attributed the milestone to the company’s Pivot to Growth strategy and highlighted sustainable momentum from its biopharmaceutical transformation.

Teva forecasts full-year 2026 sales of $16.4–16.8 billion and adjusted EPS of $2.57–2.77, compared with consensus forecasts of $16.89 billion and $2.73, respectively. Management projects Austedo sales of $2.4–2.55 billion, Ajovy revenues of $750–790 million and Uzedy sales of $250–280 million. Operating income is expected in the range of $4.55–4.8 billion, with adjusted EBITDA of $5.0–5.3 billion. The company highlighted multiple late-stage readouts in immunology and neurology, anticipated FDA approval of olanzapine long-acting injectable, and key data for duvakitug and anti-IL-15 programs, which collectively represent a potential addressable market exceeding $10 billion.

During Q4, Teva recognized development milestone revenues linked to the start of Phase 3 trials for duvakitug in inflammatory bowel disease, reinforcing the company’s commitment to expanding its immunology portfolio. These payments contributed materially to total revenue and underscore the advancing late-stage pipeline. Teva also continues to monetize non-core assets selectively, having completed the divestment of a Japanese business venture, to redeploy capital into high-value innovative and biosimilar assets.