Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) beat the analysts on profit in the second quarter of 2025 but missed on revenue. Non-GAAP earnings per share was $0.66, above the analysts' forecast of $0.62 and the company has raised its annual net profit guidance for 2025 for the second time this year. Teva expects annual earnings per share of $2.50-2.65, up from the bottom range of $2.45. There is no change in the revenue guidance of $16.8-17.2 billion, up 3% from 2024. Revenue in the second quarter was $4.2 billion, unchanged from the corresponding quarter last year.
GAAP net profit in the second quarter was $282 million compared with a loss in the corresponding quarter. Non-GAAP net profit was $769 million in the second quarter, up 10.3% from the corresponding quarter.
During the second quarter international ratings agencies Moody's and Fitch raised Teva's credit rating, not yet top investment level, but close to it. Teva recycled debt by raising a $2.3 billion bond and using it to buy back bonds due for repayment between 2026 and 2029. At the end of the second quarter, Teva's debt was $17.2 billion, down fr4om 2024 but up from the end of the first quarter.
Teva CEO Richard Francis said, "Teva’s performance this quarter stands as a testament to the exceptional strength of our innovative portfolio, which remains the primary engine driving our revenue growth. Our key innovative products delivered a 26% increase in local currency, demonstrating their impact on our financial trajectory and value to patients. As we execute our Pivot to Growth strategy, our focus on innovation is unwavering, placing us firmly on track to achieve a 30% operating profit margin by 2027. The rapid advancement of our transformation programs is already unlocking ~$140 million in annual run-rate savings in 2025, a critical milestone toward our overall ~$700 million net savings target by 2027."
He added, "While our relentless commitment to advancing our innovative portfolio now truly sets Teva apart, our generics business continues to provide a stable foundation despite headwinds. The momentum behind our OTC products and biosimilars, together with our current portfolio and pipeline, reinforce our ambition to double biosimilars’ revenues by 2027."
Published by Globes, Israel business news - en.globes.co.il - on July 30, 2025.
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