Israeli Pharma Company Teva Beats Expectations and Raises 2026 Revenue Forecast

Teva Pharmaceutical Industries, the Israeli drugmaker, reported better-than-expected financial results for the second quarter of 2026, surprising investors and boosting its stock price by approximately 12% at the opening of trading on Wall Street. Despite a slight decline in total revenues to $4.1 billion compared to the same quarter last year, the figure exceeded analyst forecasts. The revenue drop was mainly due to lower sales of generic drugs in the U.S., particularly after losing exclusivity on the generic version of the cancer drug Revlimid, a major profit driver in recent years.

However, Teva's new growth engines in innovative original drugs compensated for the generic sales decline. The company highlighted strong sales growth in three key proprietary drugs: Austedo, used for movement disorders, increased sales by 40%; Ajovy, a migraine prevention injection, surged 56% and is expected to surpass $1 billion in annual sales; and Uzedy, for schizophrenia treatment, continued rapid growth. Following these results, Teva raised its combined sales forecast for these three drugs to about $3.7 billion in 2026.

Teva also upgraded its full-year revenue guidance, signaling management's confidence in sustained positive momentum. The company reported a net loss of $576 million, primarily due to a one-time accounting charge related to its acquisition of Emalex, a developer of a novel treatment for Tourette syndrome. Excluding this exceptional expense, Teva ended the quarter with a small profit, a key metric for investors and analysts assessing the company’s core operational performance.

After years of crisis, heavy debt, legal challenges, and loss of exclusivity on leading drugs, Teva’s strategic shift towards innovative original pharmaceuticals appears to be paying off, restoring investor optimism and market confidence in the company’s growth trajectory.