Teva Pharmaceutical Industries on Wednesday reported higher revenue and earnings for 2025, but its stock slid on both the Tel Aviv and U.S. markets after the company offered disappointing guidance for 2026.
Teva said revenue for last year rose 4% to $17.3 billion, and net income per share came in at $2.83, topping analysts’ expectations. The company reported annual net profit of $3.4 billion, up 19.3% from the year before.
Despite the solid performance — especially in the fourth quarter — investors were left disappointed by Teva’s forecast for 2026. The company expects revenue of $16.4 billion to $16.8 billion and earnings per share of $2.57 to $2.77, about 10 cents below analyst projections. As a result, Teva’s shares fell about 3% on the Tel Aviv Stock Exchange and were down about 5% in premarket trading on Wall Street.
Over the past two years, Teva’s stock has jumped about 130%, restoring its position as the largest company on the Tel Aviv bourse. However, analysts are now questioning whether it can maintain that dominance. “The financial report released is expected to be a critical test point — whether Teva will remain at the top or be overtaken by Elbit and Bezeq,” said a note from the Tel Aviv Stock Exchange research division.
Teva recently signaled that sales in 2026 would be flat or slightly lower than in 2025. Its latest guidance confirms those concerns. The company anticipates single‑digit revenue growth this year and broader growth across key metrics in 2027.
In the fourth quarter of 2025, Teva posted profit of $1.1 billion, or 96 cents per share, boosted in part by a $500 million payment from Sanofi tied to progress in clinical trials for an original treatment targeting autoimmune gastrointestinal diseases including Crohn’s and ulcerative colitis. That drug has now entered Phase 2 trials.
Fourth‑quarter revenue climbed 11% from the year‑ago period to $4.7 billion, about 9% above analyst estimates. Original medicines that contributed to the sales surge included Osteldo for movement disorders, Ajovy for migraines and Yuzaadi for schizophrenia.
Teva Chief Executive Richard Francis said the company’s growth strategy delivered a third consecutive year of revenue increases and helped cement Teva’s position as a leading biopharma company. “Our innovative products contributed significantly to revenue growth and reached more than $1 billion in cumulative revenue in the fourth quarter of 2025, becoming a growth engine,” Francis said. He added that Teva expects late‑stage clinical trial results in immunology and neurology in 2026 that could generate $10 billion in potential sales.