Teva Beats Profit Expectations in Q3 as Branded Drug Sales Jump

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Teva Pharmaceutical Industries beat profit expectations in the third quarter of 2026, even though its total revenue fell slightly. Strong sales of three branded medicines, Austedo, Ajovy and Uzedy, more than offset a sharp fall in generic drug sales, and the company raised its full year revenue outlook.

What happened

Teva reported results on November 3, 2026, for the quarter ended September 30, 2026. Reuters reported that adjusted earnings were 86 cents per share, up from 78 cents a year earlier and above the 72 cents analysts had forecast, according to LSEG data.

Total revenue edged down 2 percent to 4.4 billion dollars, but that was still above the 4.22 billion dollars analysts had expected. The fall came from generic drugs, where revenue fell 16 percent, mainly because of stronger competition in the United States for lenalidomide capsules, the generic version of Revlimid.

The brighter part of the story was the branded portfolio. Austedo, Ajovy and Uzedy together generated about 1.1 billion dollars in revenue, up 33 percent in local currency terms. Austedo sales rose 21 percent to 751 million dollars. Ajovy sales jumped 61 percent to 269 million dollars. Uzedy sales climbed 96 percent to 85 million dollars.

Teva also raised its outlook. It now expects full year 2026 revenue of 16.7 billion to 17.0 billion dollars, up from 16.5 billion to 16.85 billion dollars. It sees adjusted earnings per share of 1.92 to 2.11 dollars for the year. Chief Executive Richard Francis said he expects continued growth in 2027, led by the branded drugs.

For the three brands, Teva raised their individual 2026 forecasts as well. Austedo is now expected to reach 2.55 billion to 2.65 billion dollars. Ajovy is expected to reach 930 million to 960 million dollars. Uzedy is expected to reach 290 million to 310 million dollars.

Why it matters for beginners

This result is a useful lesson in reading earnings reports. A headline can look mixed, with revenue down and profit up, and both facts can be true at the same time. Here, the older generic business shrank, while the newer branded business grew fast enough to lift profit per share above expectations.

It also shows why companies sometimes shift their focus. Generic drugs face heavy price competition once other firms can sell the same medicine. Branded drugs, by contrast, can keep stronger pricing while they are protected, which is why Teva is leaning on Austedo, Ajovy and Uzedy for future growth.

For a related drug company result from the same earnings season, see our post on Pfizer Raises 2026 Outlook as Non-COVID Sales Grow 7 percent.

What to watch next

Watch whether the three branded drugs keep growing at a similar pace in the fourth quarter, and whether generic competition eases or gets worse. Also watch the full year results, to see if Teva lands inside its new revenue range of 16.7 billion to 17.0 billion dollars, and what it says about growth in 2027.

FAQ

Did Teva beat expectations?

Yes, on profit. Adjusted earnings of 86 cents per share beat the forecast of 72 cents, and revenue of 4.4 billion dollars also came in above the expected 4.22 billion dollars, even though revenue was down 2 percent from a year earlier.

Why did revenue fall if profit beat expectations?

Generic drug sales fell 16 percent on stronger competition, pulling total revenue lower. Branded drug sales grew strongly, and that mix helped profit per share rise to 86 cents from 78 cents a year earlier.

What are Austedo, Ajovy and Uzedy?

They are three of Teva’s branded medicines. Austedo treats Huntington’s disease, Ajovy is a migraine drug, and Uzedy is part of the same branded portfolio. Together they brought in about 1.1 billion dollars in the quarter.

Did Teva raise its outlook?

Yes. Teva raised its 2026 revenue forecast to 16.7 billion to 17.0 billion dollars, from 16.5 billion to 16.85 billion dollars, and raised the forecasts for all three branded drugs.