Teva Pharmaceutical Industries Limited research snapshot
TEVA AI stock analysis reads Teva Pharmaceutical Industries as a global generics, biosimilar, and specialty medicines company that is shifting its mix toward higher-margin innovative products. At the August 2, 2026 data cutoff, TEVA closed near $35.01 on July 31, 2026 with an implied market capitalization of about $40.80 billion. Q2 2026 revenue was about $4.1 billion, AUSTEDO, AJOVY, and UZEDY all grew sharply, guidance was raised, and Fitch upgraded Teva to investment grade. Generic Revlimid erosion, an AUSTEDO Q4 revenue dip tied to IRA-driven purchasing changes, roughly $16.9 billion of total debt, and the pending olanzapine and ecopipam launches remain the key swing factors. This page is informational research, not investment advice.
Current price
$35.01 close
Market cap
$40.80 billion
AI score
70 / 100
Rating
Improving biopharma transition with accelerating innovative growth and balance-sheet repair
Trend status
Constructive trend above the 50-day and 200-day moving averages after the Q2 2026 earnings rally
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Teva sells generics, biosimilars, specialty medicines, innovative CNS and respiratory drugs, APIs, and distribution services across the United States, Europe, and international markets. The innovative portfolio was up 43% in Q2 2026. | Medium-high |
| Moat | Scale manufacturing, regulatory know-how, broad distribution, biosimilar breadth, and CNS commercial capabilities matter, but generic products still face persistent price competition and the loss of high-value generic Revlimid. | Medium |
| Management | President and CEO Richard Francis is executing Pivot to Growth. Fitch upgraded Teva to investment grade, the Emalex acquisition closed, and ordinary shares are scheduled to list directly on the NYSE in September 2026. | Medium-high |
| Financial trend | FY2025 revenue was $17.258 billion and net income was about $1.388 billion. Q2 2026 revenue was about $4.1 billion with a GAAP net loss of $576 million and non-GAAP EPS of $0.02 including a $0.61 Emalex impact. | High |
| Valuation | At $35.01, TTM inputs imply about 58.2x GAAP EPS, 5.26x book value, and 30.2x free cash flow per share. The forward non-GAAP multiple near 12.5x is lower but depends on guidance delivery. | Medium-high |
| Technical trend | The July 31 snapshot showed price above the 50-day average near $33.30 and the 200-day average near $30.72. RSI near 61 was positive, ADX was weak, and SwingTradeBot leaned bullish. | Medium |
| Risk level | Risks include generic price erosion and Revlimid loss, AUSTEDO IRA and channel-inventory dynamics, debt and interest expense, acquisition integration, FDA and EMA decisions, litigation, tariffs, supply disruption, and foreign exchange. | Medium-high |
| AI confidence | Reported data and arithmetic have high confidence. Exact return forecasts have lower confidence because drug, earnings, IRA, and regulatory events can reprice TEVA quickly. | High data confidence |
| Investment certainty | Medium certainty. The recovery has strong evidence, but the valuation already assumes execution and AUSTEDO faces a guided Q4 2026 revenue decline before 2027 pricing clarity. | Medium |
TEVA AI stock forecast
The TEVA AI stock forecast uses audited scenario math around the $35.01 July 31, 2026 close and the midpoint of Teva's $2.57 to $2.77 stand-alone 2026 non-GAAP EPS outlook. Pineify financial_rigor.py modeled three years with EPS growth of 16%, 10%, and 2% and target PE ratios of 18x, 16x, and 13x, producing $75.00, $56.90, and $36.80. The ranges below widen those outputs to reflect execution and multiple uncertainty. These are scenarios, not price targets.
$68 to $80
More likely if AUSTEDO, AJOVY, and UZEDY keep growing through 2027, olanzapine LAI and ecopipam launch well, biosimilars exceed the $800 million target, margins approach the 30% non-GAAP target, and investors hold a high-teens earnings multiple.
$52 to $62
More likely if Teva meets the raised 2026 revenue guidance and 2027 targets while innovative growth offsets generic and Revlimid pressure and the market applies a mid-teens multiple to normalized earnings.
$33 to $40
More likely if AUSTEDO loses more revenue than guided under IRA changes, generic erosion, FX, tariffs, acquisition costs, weak launches, or regulatory setbacks keep earnings growth close to 2% and the multiple near 13x.
TEVA AI technical analysis
TEVA AI technical analysis is constructive on the August 2, 2026 cutoff. StockAnalysis listed a $35.01 close on July 31, 2026, a 50-day moving average near $33.30, a 200-day moving average near $30.72, RSI near 61.04, and 20-day average volume near 5.55 million shares. SwingTradeBot listed support at $34.49, $33.98, and $33.39 and resistance at $35.59, $36.18, and $36.69, with a leaning-bullish buy-sell-hold count.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $35.01 | StockAnalysis close on July 31, 2026, used for market-cap and valuation math. |
| Near support | $34.49 to $33.98 | SwingTradeBot listed these as nearby support levels at the data cutoff. |
| Secondary support | $33.39 to $30.72 | The lower listed support and the 200-day moving average form a deeper support zone. |
| Near resistance | $35.59 to $36.69 | These resistance levels must be reclaimed with volume to extend the post-earnings trend. |
| 50-day moving average | $33.30 | Price was above this average on the July 31 snapshot. |
| 200-day moving average | $30.72 | Price remained above the long-term average, supporting the larger recovery trend. |
| Momentum | RSI 61.04 | Momentum was positive to neutral, not an extreme overbought reading. |
| Volume | 20-day average 5.55 million shares | Watch volume around earnings, drug data, IRA updates, regulatory decisions, and the NYSE direct listing. |
| Volatility | 52-week range $14.99 to $37.35, ATR $1.24 | The wide range shows that healthcare and execution news can cause large moves despite a beta near 0.86. |
| Invalidation | Close below $33.39, then $30.72 | A break below the secondary support and 200-day average would weaken the recovery trend. |
TEVA AI trading strategy
This TEVA AI trading strategy is a rules-based research framework, not personal advice. It connects price levels with reported revenue, innovative-product growth, generic erosion, guidance, free cash flow, debt, IRA dynamics, regulatory events, and portfolio-level risk limits.
Watch for TEVA to reclaim and hold the $35.59 to $36.69 range with volume while quarterly innovative-product growth, EBITDA, free cash flow, and deleveraging remain on track.
A close below $33.39, especially with lower AUSTEDO guidance, weaker AJOVY or UZEDY growth, a missed olanzapine launch, or a regulatory problem, should weaken the setup.
If TEVA pulls back toward $33.98 to $33.39 without a new fundamental break, compare the valuation with normalized non-GAAP EPS, free cash flow, debt maturity needs, and the durability of AUSTEDO and biosimilar growth.
Do not treat a lower price as sufficient evidence of value if AUSTEDO IRA dynamics, generic pricing, leverage, pipeline, litigation, or cash conversion deteriorates.
Track AUSTEDO, AJOVY, and UZEDY revenue, AUSTEDO channel inventory and IRA effects, generics ex-Revlimid, biosimilars, 2026 revenue and EPS outlook, adjusted EBITDA, free cash flow, gross and net debt, net debt to EBITDA, olanzapine LAI launch timing, ecopipam and duvakitug milestones, credit rating actions, and the NYSE direct listing.
Position sizing should account for pharmaceutical and pricing event risk and should not rely on AI or consensus forecasts as certainty.
Investment research summary
Teva gets paid when pharmacies, hospitals, payers, and patients need reliable, regulated access to generic, biosimilar, and innovative medicines, and increasingly for CNS and respiratory treatments such as AUSTEDO, AJOVY, and UZEDY.
The moat rests on scale manufacturing, regulatory filings, biosimilar breadth, complex-product know-how, supply reliability, global distribution, and prescriber and payer access. It is strongest in differentiated innovative products and weaker in commoditized generics.
The thesis fails if AUSTEDO suffers more than guided IRA-related revenue loss, innovative growth cannot offset Revlimid and generic erosion, debt stays restrictive, olanzapine or ecopipam disappoints, a pipeline program fails, or tariffs and integration absorb capital.
Richard Francis and the board need to show that Pivot to Growth converts product growth and transformation savings into cash flow, deleveraging toward the 2x net debt to EBITDA target, investment-grade ratings, and disciplined reinvestment rather than only adjusted earnings.
Demand for affordable medicines, biosimilars, and neuroscience treatments is a long-term tailwind. Offsets include price pressure, IRA reimbursement changes, tariff uncertainty, patent litigation, and manufacturing complexity.
The forward non-GAAP multiple appears more moderate than trailing GAAP and cash-flow measures, but margin of safety depends on the 2027 targets of a 30% non-GAAP operating margin and 80% cash conversion, plus AUSTEDO durability after 2027 pricing resets.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| TEVA quote reference | $35.01 close on July 31, 2026 | StockAnalysis market cap page | August 2, 2026 |
| Market capitalization verification | $40.80 billion reported and $40.96 billion calculated from $35.01 x 1.17 billion shares, a 0.40% variance | Pineify financial_rigor.py and StockAnalysis | August 2, 2026 |
| Q2 2026 operating results | About $4.1 billion revenue (down about 1% year over year), GAAP net loss of $576 million, GAAP loss per share of $0.49, non-GAAP EPS of $0.02 including a $0.61 Emalex impact, and $622 million free cash flow up 31% | Teva Q2 2026 results and earnings call | August 2, 2026 |
| Q2 2026 innovative performance | AUSTEDO U.S. revenue $676 million up 33%, AJOVY global revenue $244 million up 56%, and UZEDY revenue $77 million up 43%; innovative portfolio up 43% | Teva Q2 2026 earnings call | August 2, 2026 |
| 2026 outlook | Revenue guidance midpoint raised by $75 million to $16.5 billion to $16.85 billion, $4.23 billion to $4.53 billion adjusted EBITDA, $1.91 to $2.11 reported outlook EPS after Emalex effects, $2.57 to $2.77 stand-alone non-GAAP EPS, and $2.0 billion to $2.4 billion free cash flow | Teva Q2 2026 results and earnings call | August 2, 2026 |
| Cash and debt | $3.655 billion cash, $16.874 billion total debt, and negative $13.219 billion net cash at June 30, 2026; net debt about $12.9 billion with net debt to EBITDA near 2.8x | StockAnalysis balance sheet and Teva Q2 2026 earnings call | August 2, 2026 |
| TTM financials | Revenue $17.32 billion, net income $681 million, EPS $0.60, free cash flow $1.35 billion, gross margin 52.47%, and operating margin 9.26% | StockAnalysis financials | August 2, 2026 |
| Technical snapshot | 50-day average $33.30, 200-day average $30.72, RSI 61.04, 20-day average volume 5.55 million shares, and 52-week range $14.99 to $37.35 | StockAnalysis statistics | August 2, 2026 |
| Analyst consensus | Strong Buy from 12 analysts with an average price target of $41.20 and a range of $33 to $50 | StockAnalysis forecast | August 2, 2026 |
This TEVA AI stock analysis is an informational research tool only. It is not investment advice, not a recommendation to buy or sell Teva Pharmaceutical Industries Limited, and not a promise of future returns. Forecasts are scenario-based estimates from available public data as of August 2, 2026 and can be wrong.
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