NEW YORK, July 26, 2026, 11:46 a.m. EDT.
- U.S. markets will remain shut on Sunday. Teva ADRs closed Friday at $30.81, falling 3.8% over the week.
- Consensus for pre-Emalex Q2 stands at $4.058 billion in revenue and non-GAAP EPS of $0.59.
- Emalex’s $700 million charge is expected to affect Q2 results by approximately $0.59 per share.
Teva Pharmaceutical Industries NYSE:TEVA is set to release its second-quarter results on Wednesday, featuring an atypical split in earnings. Underlying business performance could strengthen, but reported non-GAAP earnings are expected to approach zero.
Teva’s June memo indicated a pre-Emalex consensus of $0.59 per share. It also attributed $0.59 per share to the acquisition’s impact in Q2. These figures nearly offset each other.
The latest consensus forecast is $0.05 per share. Projections span from a loss of three cents to a profit of 13 cents. Investors are watching revenue, margins, and cash flow as clearer markers of performance.
The benchmark continues to indicate progress on a sequential basis:
| Metric | Q1 2026 actual | Q2 consensus before Emalex | Sequential change |
|---|---|---|---|
| Revenue | $3.982 billion | $4.058 billion | +1.9% |
| Austedo sales | $578 million | $588 million | +1.7% |
| Ajovy sales | $196 million | $187 million | -4.6% |
| Uzedy sales | $63 million | $68 million | +7.9% |
| Free cash flow | $188 million | $367 million | +95.2% |
| Non-GAAP EPS | $0.53 | $0.59 | +11.3% |
Virtua Research consensus estimates as of June 17 were used for Q2 figures. Sequential comparisons are based on Teva’s published first-quarter results.
Revenue is projected to increase 1.9% from the previous quarter, with free cash flow set to almost double. This aligns with Teva’s previously announced strategy of incremental quarterly progress.
The three growth brands reported $837 million in revenue for Q1. For Q2, the consensus estimate is $843 million, marking an increase of only 0.7%. Performance is stable rather than impressive.
The midpoint for the full year for those brands stands at $3.51 billion. Based on calculations, the average for H2 would need to reach roughly $915 million per quarter. This figure is 8.5% ahead of the Q2 consensus.
The bulk of the increase came from Austedo, with Q1 sales climbing to $578 million, a 41% rise in local currency. Ajovy advanced 35%, and Uzedy jumped 62%.
Chris Schott, an analyst at JPMorgan Chase NYSE:JPM, described the core assets as “growing nicely” following the first quarter. Schott also noted an “attractive setup for shares” as growth is expected to strengthen after 2026. Reuters
Branded growth is required to offset a significant drop in generics. Global generics sales declined 16% in constant currency in Q1. Teva projects a loss of over $1 billion in lenalidomide revenue this year.
A new policy risk surfaced last week. President Donald Trump announced that imported generics will not face tariffs for the next two years. Tariff rates will climb to 100% in 2028, and to 200% after that.
Sandoz Group SWX:SDZ stated the proposal is still insufficiently detailed to evaluate. Teva earlier indicated its operations in the U.S., Israel, and Europe provided stronger safeguards. The updated tariff list is more extensive.
Which earnings metric investors select also affects the valuation. On Friday, the share price represented 15.3 times the midpoint of the reported 2026 forecast. Based on Teva’s independent outlook, the ratio drops to 11.5 times.
Wall Street sentiment stays upbeat. Thirteen analysts have rated Teva as Buy or Overweight, with none assigning a neutral stance. The consensus price target is $41.75, representing a 35.5% premium to Friday’s closing price.
Cash conversion will also be key. Teva faces $1.798 billion in notes maturing on October 1. Additionally, the company anticipates $379 million in opioid settlement payments in 2026.
Risks: The Emalex expense may conceal an actual operational shortfall. Lower Austedo sales, susceptibility to tariffs, or weak cash generation would weigh on shares. Debt and settlement payments limit flexibility.
Teva is scheduled to report results at 7:00 a.m. ET on Wednesday, with a conference call set to begin at 8:00 a.m. ET. Analysts are watching for combined branded sales, expected at $843 million, which could be more significant than EPS.
