TEVA Q3 Earnings & Revenues Beat, Austedo Sales View Raised, Stock Up

Core Insights - Teva Pharmaceutical Industries reported third-quarter 2025 adjusted earnings of 78 cents per share, exceeding the Zacks Consensus Estimate of 68 cents, with a year-over-year increase of 14% driven by higher operating profits [1][7] - Revenues for the third quarter reached $4.48 billion, surpassing the Zacks Consensus Estimate of $4.35 billion, reflecting a 3% increase from the previous year on a reported basis and a 1% increase on a constant currency basis [1][7] Revenue Breakdown - The top line was supported by strong performance in branded drugs such as Austedo, Ajovy, and Uzedy, alongside increased revenues from generic products in the U.S., including biosimilars, although partially offset by lower revenues in European generics and reduced proceeds from certain product rights [2][5] - U.S. segment sales amounted to $2.48 billion, a 12% year-over-year increase, driven by higher revenues from generic products and the branded drug Austedo, exceeding the Zacks Consensus Estimate of $2.25 billion [5][7] - Generic and biosimilar product revenues in the U.S. rose 7% year over year to $1.18 billion, bolstered by the company's biosimilar portfolio [6][7] Key Product Performance - Austedo sales in the U.S. reached $601 million, up 38% year over year, primarily due to volume growth, and significantly exceeded the Zacks Consensus Estimate of $524 million [7][8] - Ajovy recorded sales of $73 million, a 27% increase year over year, surpassing the Zacks Consensus Estimate of $65 million [8] - Uzedy generated sales of $43 million, up 24% year over year, while Copaxone sales were $62 million, down 9% year over year but still beating the Zacks Consensus Estimate of $41.5 million [9] International Market Performance - The Europe segment reported revenues of $1.24 billion, down 2% year over year, with a 10% decline on a constant currency basis, missing the Zacks Consensus Estimate of $1.30 billion [10] - International Markets segment sales fell 9% year over year to $557 million, with a 10% decrease in constant currency terms, missing the Zacks Consensus Estimate of $593 million [11] Margin and Expense Analysis - Adjusted gross margin for the quarter was 55.3%, an increase of 160 basis points year over year, primarily due to higher Austedo revenues [13] - Adjusted operating income rose 6.6% year over year to $1.29 billion, with an adjusted operating margin of 28.9% [14] Guidance Updates - Teva tightened its total revenue guidance for 2025 to a range of $16.8-$17.0 billion, while raising the guidance for Austedo sales to $2.05-$2.15 billion [15][18] - The company maintained its full-year guidance for Ajovy sales at $630-$640 million and for Uzedy at $190-$200 million [18] - Adjusted EPS guidance for 2025 was raised to a range of $2.55-$2.65 per share [18]