On January 29, 2026, Scotiabank reiterated its Outperform rating for Teva Pharmaceutical Industries, boosting its price target from $35 to $40. This adjustment reflects the bank’s confidence in Teva’s strategic focus on specialty medicines and generics, as well as its ability to generate steady cash flow from branded products and milestone payments. Scotiabank analysts highlighted Teva’s accelerating growth trajectory and pipeline potential as key drivers for the upgraded outlook.

Teva reported a significant jump in fourth-quarter profit, driven primarily by robust performance of its key branded drugs and a development milestone payment related to late-stage studies in ulcerative colitis and Crohn’s disease. The company’s earnings before interest, taxes, depreciation and amortization rose by double digits year over year, underscoring the impact of its Pivot to Growth strategy and ongoing investments in specialty assets.

In the quarter ended December 2025, Teva delivered total revenue of $4.71 billion, surpassing analyst consensus of $4.37 billion and representing an 11% increase year over year in U.S. dollars. The company’s flagship products—Austedo, Ajovy and Uzedy—collectively generated approximately $1 billion in quarterly revenues for the first time. Austedo sales climbed 34% to $2.26 billion, Ajovy grew 30% to $673 million and Uzedy rose 63% to $191 million, each outperforming management guidance ranges.

Looking ahead to fiscal 2026, Teva expects full-year sales between $16.4 billion and $16.8 billion, with adjusted earnings per share projected at $2.57 to $2.77. The company anticipates operating income of $4.55 billion to $4.8 billion and adjusted EBITDA of $5.0 billion to $5.3 billion. Management cited multiple late-stage readouts in immunology and neurology, including potential FDA approval of an olanzapine long-acting injection and data for its anti-TL1A and anti-IL-15 programs, collectively representing a potential $10 billion in future annual revenues.