TEVA PHARMACEUTICAL INDUSTRIES LTD (TEVA)
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
$36.36-0.71%
Close 2026-09-04 · 1-day change
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
Intact: The reason to own it still holds.
Teva aims for revenue near $16.4-$16.8 billion in 2026. Profit margins are guided around 26.6%. Free cash flow is targeted at $2.0-$2.4 billion. Recent earnings beats show improving execution.
Revenue and cash flow fell sharply in early 2026. Quarterly revenue declined from $4.7B to $4.0B. Operating cash flow was negative in Q1 2026. Guidance is soft, signaling risks to targets.
The price is about 9% above our fair value near $31. Analysts expect 14% revenue growth. Our fair value is 25% below the Street median, reflecting cautious outlook on growth and cash flow.
Breaks if: Free cash flow falls below $2.0 billion in FY26
Breaks if: Earnings misses with guidance cuts in two consecutive quarters
Breaks if: Operating margin falls below 25% in FY25
Breaks if: Annual revenue falls below $16.4 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth through innovative brands and biosimilars. The current thesis state is stable, with management executing on their growth strategy and recent financial performance being strong.
The market appears to have priced in a stretched valuation compared to peers, reflecting a premium. There is a moderate expectations gap, indicating that while some growth is anticipated, it may not fully account for potential risks.
Fundamentals are likely to remain strong, given the management's successful execution of their growth strategy and advancements in their innovative pipeline. However, there is a low probability of missing earnings expectations, which could impact sentiment.
The thesis hinges on the ability of TEVA to maintain its growth trajectory and avoid any credibility issues, especially if guidance changes. Additionally, the performance of sector peers and overall economic conditions will play a crucial role in shaping future outcomes.
In the next 1 to 3 years, TEVA's performance will depend on its execution of growth strategies and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. S&P upgraded Teva's credit rating on pipeline strength. This reflects confidence in its growth strategy. However, the company missed earnings expectations recently. This miss raises concerns about its performance.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.