Teva Stock Rises After Earnings as Revenue Guidance Exceeds Expectations -- Barrons.com

By Catherine Dunn and Kit Norton

Shares of Teva Pharmaceutical Industries rose Wednesday as investors looked past mixed second-quarter earnings and focused on the company's updated full-year revenue guidance.

Teva posted adjusted earnings of 2 cents a share, down from 66 cents a year ago and and missing Wall Street's expectation of 5 cents. Revenue declined about 1% to $4.14 billion but slightly beat the analyst consensus call for $4.02 billion, according to FactSet.

Wall Street, however, was focused on guidance. Teva raised its full-year revenue outlook to $16.5 billion to $16.85 billion from its previous $16.4 billion to $16.8 billion forecast. The company also reaffirmed its full-year profit outlook of $1.91 to $2.11 a share. The new revenue guidance at the midpoint exceeds Wall Street's $16.52 billion expectation, according to FactSet.

Teva stock jumped more than 11% after the market opened Wednesday and was changing hands at 1o% in midafternoon trading. Shares have continued to rebound from a tariff threat last week on generic drugs.

Teva's portfolio of branded drugs -- such as Austedo for symptoms of Huntington's disease, and Ajovy for migraines -- has sparked interest on Wall Street. The stock has an average Buy rating, according to FactSet.

In the company's U.S. segment, Austedo revenue grew to $676 million in the second quarter, up 37% from the same period in 2025. U.S. sales of Ajovy reached $116 million in the quarter, up 83% from a year prior.

Teva's new revenue guidance announced Wednesday was driven by higher sales forecasts for Austedo, Ajovy, and schizophrenia treatment Uzedy.

Those types of innovative medicines make up an increasing share of Teva's total sales. That will help Teva increase gross margin from 54% in 2022 to over 60% by 2030 and beyond, the company says.

"The direction of travel is clear," CEO Richard Francis told Barron's in an interview Wednesday. "We're going to grow the top line and we're going to grow the bottom line, for over a long time, so get on board."

The company's pipeline of treatments yet to hit the market is also a prime focus. Executives have touted up to eight milestones in 2026 for Teva's pipeline, including the anticipated FDA approval and launch of olanzapine long-acting injectable, another medication for schizophrenia.

Francis told Barron's that he wants Teva to become known for approaching R&D at a brisk pace: "We will have a biotech-like speed around how quickly we bring things through," he says.

On Wednesday's earnings call, Francis said Teva has the potential to launch one new product a year for the next five years, "transforming Teva into a leading biopharma company." Additional indications for medicines could provide further upside through 2035, Francis said.

"TEVA this year is not as much an earnings story as it is a pipeline story," Jefferies analyst Dennis Ding wrote recently.

Earlier this year, Ding notes, Teva reported good maintenance data for a treatment of ulcerative colitis and Chron's disease -- a drug known as duvakitug that targets TL1A.

On July 7, Teva reported early study data on an antibody to treat vitiligo, an autoimmune disease that causes skin discoloration. That data, for anti-IL-15, "looked positive too," Ding writes.

Teva is also studying that antibody in celiac disease, and plans to release more data later in the year.

Other potential therapies from Teva are aimed at treating asthma, Tourette syndrome, and multiple system atrophy, a neurodegenerative disorder.

Teva isn't losing sight of generics in its growth plans and Francis says the company will "seek to understand" the Trump administration's goals for tariffs. President Donald Trump said last week that imported generic drugs could be subjected to 100% tariffs in two years.

"We already have six manufacturing sites in the U.S. that manufacture generics, which is one of the biggest footprints in our sector," Francis says, alongside being a "major contributor" to the healthcare system through prescriptions. One in 17 generic prescriptions in the U.S. is filled with a Teva product, according to the company.

Write to Catherine Dunn at catherine.dunn@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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July 29, 2026 15:10 ET (19:10 GMT)