Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin's lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington's disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

Teva appears to be a company with improving profitability, but it still carries a noticeable valuation premium and elevated leverage. Revenue over recent periods has remained at a high level and has generally been growing, which supports the underlying resilience of the business. Gross profit and EBITDA remain positive and fairly substantial, while gross margin is gradually improving, indicating sustained pricing power and cost control. At the same time, operating margin and net margin are still below industry benchmarks, and operating profit in the latest period declined compared with stronger quarters, which limits re-rating potential. ROE looks acceptable, but ROA is noticeably weaker than the median, while ROI and return on tangible equity do not really confirm high capital efficiency. The balance sheet remains strained: debt/equity is significantly above the industry level, debt is large, and liquidity as measured by quick ratio and current ratio is below a comfortable level. This means that even with growth in cash on hand, the company does not yet look financially flexible, and the market is justified in demanding a discount for risk. The valuation picture is mixed: P/E, P/B, and P/FCF are notably above industry medians, indicating an expensive valuation relative to fundamental returns. The only softer signal is that P/S is below the median, but this does not offset the premium on earnings, capital, and free cash flow. Dividend yield is low and is not a strong argument in favor of revaluation. Overall, the fundamentals support a cautious view: the business is stable and profitable, but the balance sheet quality and expensive multiples limit upside. For an investor, this means the target price should be adjusted moderately downward, without an aggressive revision, since the operating base does not look weak, but there is also no clear buffer to justify a higher valuation yet.

Teva Pharmaceutical Industries Limited

Teva is showing growth in revenue and profit, but high valuation multiples, weak liquidity, and heavy debt are weighing on its valuation.

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Teva Pharmaceutical Industries Q2 26 Earnings Conference Call At 8:00 AM ET

Key Points
Teva's pivot toward branded drugs is benefiting the company's underlying performance and its stock price.
While shares have pulled back recently, another big catalyst could play out in the years ahead.
With high potential to become a blockbuster drug, duvakitug could help send Teva shares higher.
Year to date, Teva Pharmaceutical Industries (NYSE: TEVA) shares have continued to recover. Thanks to the company's shifting focus from generic to branded drugs, this pharmaceutical stock has surged by around 85% over the past 12 months.
Although Teva may be pulling back lately, don't assume the turnaround rally is over. In addition to success with its initial round of commercially successful branded pharmaceuticals, the company has one key candidate in the pipeline that could be on the verge of becoming a blockbuster drug.
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Teva's branded drug transformation
As seen in Teva's first-quarter 2026 financials, generic drugs now barely make up a majority of the company's overall sales. Meanwhile, branded drugs, particularly recent hits like Austedo, Ajovy, and Uzedy, are experiencing mid-double-digit annual sales growth.
Management expects a drop in earnings per share (EPS), from $2.65 in 2025 to between $1.91 and $2.11 in 2026. However, much of this stems from the initial dilutive effect of Teva's recent acquisition of Emalex Biosciences. Starting next year, the anticipated launch of biosimilars, along with other factors, should contribute to a 30% increase in operating profit and adjusted EBITDA.. Furthermore, another emerging catalyst for Teva could drive the next big leap for shares.
The duvakitug catalyst
Next year, key drivers for the growth rebound include biosimilars, plus incremental sales growth for Teva's aforementioned flagship drugs. However, next year and beyond, duvakitug could be key to the company's further turnaround. The drug, which Teva co-developed with Sanofi, is currently in clinical trials as a treatment for ulcerative colitis and Crohn's disease.
If phase 3 clinical trial results prove as promising as recently released phase 2b findings, this drug could be on the fast track toward commercialization. Management has previously guided for duvakitug to reach between $2 billion and $5 billion in peak annual sales. Considering this, any progress with duvakitug could drive yet another massive rally, especially as the stock sells for less than 10 times estimated 2027 earnings. This strongly suggests taking advantage of near-term weakness by making this stock a long-term buy.
Should you buy stock in Teva Pharmaceutical Industries right now?
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Teva's Turnaround Is Working. Here's the 1 Thing That Could Send It Soaring Another 50%.

Key Points
Teva's business is shifting away from generic drugs toward branded drugs.
Operating margins could soar through next year, boosting earnings potential.
The stock has plenty of upside, justifying Wall Street's optimistic price targets.
Companies must evolve to stay relevant in the pharmaceutical industry. Teva Pharmaceutical Industries (NYSE: TEVA) is in the midst of its own transformation, from making generic drugs and biosimilars to novel drugs that are beginning to deliver growth and profits that are catching Wall Street's eye.
Every single Wall Street analyst polled by CNN Business currently has a buy rating on the pharmaceutical stock. Based on 12-month price targets, Teva could have anywhere from 28% to 60% upside from its current price, according to the analysts.
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It seems like a bold call, considering the broader stock market has left the stock in the dust. Teva is down 40% over the past decade. But sometimes, these comeback stories produce the biggest returns. Here's why Wall Street analysts are right to be bullish about the stock right now.
Teva is pivoting from generics to boost growth
For a while, Teva had specialized in generics and biosimilars. Generic drugs are often simple formulations that typically sell at low margins. CEO Richard Francis took over in January 2023. He has helped guide the company further into developing novel drugs. This is a riskier path because drug development is expensive and many drugs fail to reach the market. However, a successful drug enjoys years of patent protection and can generate millions, even billions, of high-margin dollars in sales.
Revenue from generic drugs and biosimilars was $612 million in the first quarter of 2026, down 28% from a year ago on weaker generic sales. Generics and biosimilars accounted for 40% of Teva's total sales in Q1, and management expects biosimilars to continue growing and drive this group as generics become a smaller part of the business.
But branded drugs are moving the needle in the right direction. Teva's top-selling drug, Austedo, grew 41% to $559 million. Austedo is a treatment for tardive dyskinesia, a condition that causes involuntary facial movements. Management anticipates Austedo hitting $2.4 billion to $2.55 billion in sales for the full year, up from $2.26 billion in 2025.
Nearly all of Teva's other branded products are much smaller right now, but are growing at double-digit rates.
Name
Sales in Q1 2026
Year-Over-Year Growth in Q1 2026
Ajovy
$87 million
64%
Copaxone
$62 million
16%
Uzedy
$63 million
62%
Source: Table created by author. Data from Teva Pharmaceutical Industries Q1 2026 earnings.
Becoming a better business for the long term
Revenue growth might not jump off the page right away. Despite the impressive growth in these branded sales, Teva expects total revenue to fall from $17.3 billion in 2025 to $16.4 billion to $16.8 billion this year. The key difference here is that these are higher-quality dollars. Management is guiding for 30% operating margins in 2027 as branded sales continue to grow, up from only 12.5% last year.
Teva's biosimilars portfolio is gaining momentum, with sales expected to reach $800 million in 2027, more than offsetting lower generic sales. Additionally, Teva is bolstering its pipeline through acquisition. It recently bought Emalex Biosciences for $700 million, adding ecopipam, a developmental treatment for Tourette's syndrome in children, to its portfolio. Teva filed a New Drug Application with the U.S. Food & Drug Administration for ecopipam last month, following positive data from its Phase 3 clinical trial.
Teva's price targets are attainable
At roughly $31 per share, Teva is trading at 14 times Wall Street's 2026 earnings estimates, and only 10 times 2027 estimates. The leap in earnings from this year to next is likely due to the expectation of those 30% operating margins, as reiterated by management on the company's Q1earnings call
That's a pretty inexpensive valuation for a company that suddenly has a lot going for it. Assuming ecopipam hits the market and branded and biosimilar sales continue to grow, Teva should be able to sustain solid earnings growth beyond next year. The low valuation leaves tons of room for that to translate to tangible investment returns.
If Teva delivers results that boost the market's sentiment toward the stock, even trading at just 15 times 2027 earnings estimates puts the share price above Wall Street's median price target of $40. So, these targets are certainly possible if Teva's business continues to perform well.
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Wall Street Thinks Teva Can Soar Over 60%. Here's Why Analysts Are Right.

Johnson & Johnson’s JNJ second-quarter 2026 earnings came in at $2.90 per share, which beat the Zacks Consensus Estimate of $2.84. Earnings rose 4.7% from the year-ago period.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.27 per share, down 0.9% year over year.
Sales of this drug and medical devices giant came in at $25.3 billion, which marginally beat the Zacks Consensus Estimate of $25.2 billion.
Sales rose 6.6% from the year-ago quarter, reflecting an operational increase of 5.6% and a positive currency impact of 1.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 5.7% on an operational basis.
Second-quarter sales in the domestic market rose 7.3% to $14.53 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 7.4% in the quarter.
International sales rose 5.7% on a reported basis to $10.8 billion, reflecting an operational increase of 3.4% and a positive currency impact of 2.3%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 3.5% in the quarter.
JNJ’s Innovative Medicine Sales Maintain Momentum
Innovative Medicine sales rose 7.8% year over year to $16.38 billion. Operational sales increased 6.8%, while adjusted operational growth was 6.9%. U.S. sales advanced 8.9%, and international sales increased 6% on a reported basis. Innovative Medicines sales slightly beat the Zacks Consensus Estimate of $16.16 billion.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Zytiga.
J&J’s Oncology Portfolio Delivers Strong Growth
Worldwide oncology sales increased 17.3% to $7.41 billion.
Sales of blockbuster multiple myeloma medicine Darzalex rose 18.9% to $4.21 billion in the quarter. Sales beat the Zacks Consensus Estimate of $4.16 billion.
Imbruvica sales declined 18.6% to $599 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales missed the Zacks Consensus Estimate of $630.0 million.
Erleada sales increased 9.5% to $995 million. Erleada sales missed the Zacks Consensus Estimate of $1.06 billion.
Among the newer cancer drugs, Carvykti sales surged 49.4% to $657 million, while Tecvayli sales jumped 56.5% to $260 million.
Talvey sales advanced 63.3% to $174 million. Rybrevant/Lazcluze sales climbed 60.8% to $289 million.
JNJ’s Tremfya and Neuroscience Drugs Offset Stelara
Worldwide immunology sales declined 3.7% to $3.84 billion as biosimilar competition continued to put pressure on Stelara, whose sales fell 55.2% to $740 million. However, Stelara sales beat the Zacks Consensus Estimate of $654.0 million.
Several biosimilar versions of J&J’s multi-billion-dollar immunology drug, Stelara, were launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz, and some other companies have launched Stelara biosimilars.
Tremfya remained the key growth driver, with sales rising 72.5% to $2.05 billion. Tremfya sales beat the Zacks Consensus Estimate of $1.85 billion.
Remicade revenues decreased 25.8% to $338 million. Simponi and Simponi Aria sales declined 10.5% to $618 million.
Neuroscience sales increased 14% to $2.34 billion. Spravato revenues grew 40.8% to $584 million.
Caplyta, added from last year’s acquisition of Intra-Cellular Therapies, generated $361 million, up 70.9% year over year.
Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 2.3% to $1.02 billion in the quarter.
JNJ’s PAH and Other Drugs’ Performance
Pulmonary hypertension drug Uptravi recorded second-quarter 2026 sales of $494 million, up 3.8% year over year. Opsumit/Opsynvi sales increased 3.4% to $602 million.
Xarelto sales rose 7.1% to $664 million. Sales of Prezista/Prezcobix/Rezolsta/Symtuza declined 6.3% to $372 million.
J&J’s MedTech Business Posts Broad-Based Gains
MedTech sales increased 4.5% to $8.93 billion, including operational growth of 3.6%. However, MedTech segment sales slightly missed the Zacks Consensus Estimate of $8.96 billion.
Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 3.7%.
The MedTech business has improved in the past few quarters, driven by strong performance in three focus areas: Cardiovascular, Surgery and Vision.
Cardiovascular sales rose 4% to $2.40 billion. Shockwave revenues advanced 14.6% to $335 million, while electrophysiology sales increased 4.4% to $1.53 billion.
Surgery sales grew 3.9% to $2.65 billion, supported by wound-closure and biosurgery products. Vision revenues increased 6% to $1.45 billion, led by contact lenses. Orthopaedics sales rose 4.9% to $2.42 billion, with trauma revenues increasing 7.6%.
JNJ Slightly Ups 2026 Guidance
J&J raised its 2026 reported sales guidance to $100.8-$101.4 billion from $100.3-$101.3 billion. The sales projection indicates growth in the range of 7.0%-7.6% versus the prior expectation of 6.5%-7.5%. Operational sales growth is expected in the range of 6.5%-7.1% versus the prior expectation of 5.9%-6.9%.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 6.2%-6.8% versus the prior expectation of 5.6%-6.6%.
Adjusted earnings per share guidance was raised from a range of $11.45-$11.65 to $11.60- $11.75 per share. Adjusted earnings per share growth is expected in the range of 7.5%-8.9% versus the prior expectation of 6.1%-8.1%.
Our Take on JNJ’s Q2 Results
Johnson & Johnson delivered a solid second-quarter performance, with adjusted earnings and sales topping expectations. Sales of key therapies — Darzalex and Tremfya — surpassed expectations, while Erleada fell short. Stelara sales were also better than expected. MedTech segment sales came in slightly below expectations.
Stelara’s loss of exclusivity (LOE) negatively impacted the Innovative Medicines segment’s growth by 760 basis points in the quarter. Despite Stelara's LOE, the Innovative Medicines unit once again outperformed estimates, driven primarily by strong momentum in oncology. Newer therapies and recent launches made a meaningful contribution to overall sales growth, helping offset biosimilar pressure. Encouraged by the quarter’s performance, J&J raised its 2026 financial guidance for the second time this year.
However, despite the beat and raise quarter, J&J’s shares declined more than 2% in pre-market trading on Tuesday, probably due to the MedTech miss and only a modest beat on overall sales.
J&J’s shares have risen 24% year to date compared with 12.1% appreciation of the industry.
Image Source: Zacks Investment Research
Nonetheless, J&J expects 2026 to be a year of accelerated growth. The company expects both its Innovative Medicines and MedTech segments to deliver stronger growth this year. The company is confident that it can achieve its target of generating more than $100 billion in revenues in 2026. Earlier, it had said that it expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. An update is expected on the conference call.
J&J’s Zacks Rank & Stock to Consider
J&J currently has a Zacks Rank #3 (Hold).
Johnson & Johnson Price and Consensus
A better-ranked drugmaker is Exelixis EXEL, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Exelixis’s shares have risen 27.2% so far this year. Estimates for its 2026 earnings per share have increased from $3.49 to $3.54 over the past 60 days.
Exelixis’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 17.04%.
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J&J Q2 Earnings Beat on Darzalex, Tremfya Growth, 2026 Outlook Raised

Johnson & Johnson JNJ will begin the earnings season for the drug & biotech sector when it reports its second-quarter 2026 results on July 15. The Zacks Consensus Estimate for second-quarter sales and earnings is pegged at $25.18 billion and $2.85 per share, respectively.
The Zacks Consensus Estimate for 2026 earnings has risen from $11.57 per share to $11.58 over the past 60 days, while that for 2027 earnings has gone up from $12.58 per share to $12.63 over the same time frame.
JNJ Estimate Movement
Image Source: Zacks Investment Research
JNJ’s Earnings Surprise History
The healthcare bellwether’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 1.89%, on average. In the last reported quarter, the company delivered an earnings surprise of 1.12%.
JNJ’s EPS Surprise
J&J has an Earnings ESP of +2.08% and a Zacks Rank #3 (Hold), indicating a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping JNJ’s Upcoming Results
Sales in J&J’s Innovative Medicine segment are expected to have been driven by higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains.
The Zacks Consensus Estimate for Darzalex, Tremfya and Erleada is pegged at $4.16 billion, $1.85 billion and $1.05 billion, respectively.
Other products like Uptravi and Opsumit are likely to have witnessed continued growth. The rapid adoption of new drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato is likely to have contributed to top-line growth. However, sales of Xarelto, Simponi/Simponi Aria and Remicade declined in the first quarter, a trend likely to have continued in the second quarter.
J&J’s newly launched therapy, Inlexzo, for certain types of bladder cancer, generated sales of slightly above $30 million in the first quarter. J&J received a permanent J-code for Inlexzo reimbursement in April that should have boosted patient access and sales for the therapy in the second quarter. Investors will also look out for initial sales numbers of its newly launched oral pill for plaque psoriasis, Icotyde.
Sales of its key drug Stelara are likely to have declined due to the impact of biosimilar competition.
Several biosimilar versions of Stelara were launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 9.2% in the first quarter. We expect the negative impact to be steeper in the second quarter of 2026.
The Zacks Consensus Estimate for Stelara sales is pegged at $654 million.
Imbruvica sales are likely to have declined due to rising competitive pressure in the United States due to new oral competition. The Zacks Consensus Estimate for Imbruvica stands at $630.0 million.
The Zacks Consensus Estimate for J&J’s Innovative Medicine unit is pegged at $16.16 billion.
J&J’s MedTech business is expected to continue seeing strong momentum in three focus areas: Cardiovascular, Surgery and Vision in the second quarter, backed by increased adoption of newly launched products.
J&J’s MedTech business has been facing continued headwinds in China, where sales are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. In the second quarter, sales in China are likely to have been hurt by the impact of the VBP program once again.
The Zacks Consensus Estimate for J&J’s MedTech segment stands at $8.96 billion.
Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold J&J stock ahead of earnings.
JNJ’s Stock Price Performance & Valuation
J&J’s shares have outperformed the industry so far this year. The stock has risen 25.6% year to date compared with 12.1% appreciation of the industry.
JNJ Stock Outperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.17 forward earnings, higher than 18.49 for the industry. The stock is also trading above its five-year mean of 15.65.
JNJ Stock Valuation
Image Source: Zacks Investment Research
Investment Thesis on JNJ
J&J’s biggest strength is its diversified business model, as it not only has pharmaceuticals but also medical devices, which help it withstand economic cycles more effectively.
J&J’s Innovative Medicine unit is showing a growth trend despite Stelara LOE, driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth. The company’s MedTech business has improved in the past four quarters.
J&J also rapidly advanced its pipeline in the past year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. Backed by regular pipeline success, J&J expects a more pronounced impact from new products in 2026 than in 2025.
J&J expects 2026 to be a year of accelerated growth. The company expects both its Innovative Medicines and MedTech segments to deliver stronger growth this year. The company is confident that it can achieve its target of generating around $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade.
However, J&J faces its share of headwinds like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech China.
Stay Invested in J&J Stock
J&J has shown steady revenue and EPS growth for years and expects further growth in 2026. Despite headwinds like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi and softness in MedTech China, J&J looks quite confident that it will be able to navigate these challenges.
No matter how the second-quarter’s results play out, one should stay invested in JNJ, considering its price appreciation, rising estimates, consistent earnings and sales growth, important new launches, and pipeline depth.
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Is JNJ Stock a Buy, Sell or Hold Ahead of Q2 Earnings Release?

Key Points
Novartis AG maintains a highly profitable portfolio of innovative medicines with significant net margins.
Teva Pharmaceutical Industries is executing a turnaround focused on biosimilars and high-growth innovative assets.
Which of these pharmaceutical giants is the better choice for your investment strategy in 2026?
Choosing between Novartis AG (NYSE:NVS) and Teva Pharmaceutical Industries (NYSE:TEVA) requires weighing the stability of an established innovator against the potential of a generic specialist undergoing a significant turnaround.
Novartis is a powerhouse in the drug development world, prioritizing high-margin innovative treatments for complex diseases. In contrast, Teva is a leader in the generic market and is currently pivoting toward biosimilars and specific innovative drugs to rebuild its profitability and reduce its heavy debt load.
The case for Novartis AG
Novartis is an innovative medicines company focused on researching and marketing prescription treatments for complex diseases. The business prioritizes key therapeutic areas such as oncology, neuroscience, and cardiovascular health across 118 countries. With a workforce of approximately 77,000 employees, it targets global health needs through high-value medicine development.
As one of the prominent pharmaceutical stocks, Novartis saw revenue reach nearly $56.7 billion in FY 2025. This represented a revenue growth rate of nearly 10% compared to the previous year. The company reported net income of nearly $14 billion.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This ratio compares total debt to shareholder equity, helping investors understand how much a company relies on borrowed money. The company generated free cash flow of nearly $17.7 billion, the cash remaining after paying for operating costs and capital expenditures. The current ratio is about 1.1x, indicating the ability to cover short-term obligations with assets such as cash and inventory.
The case for Teva Pharmaceutical
Teva Pharmaceutical Industries is a global leader in both generic and innovative medicines, operating across 57 different markets. The company maintains a concentrated customer base, relying on a small group of large wholesalers and retail chains for a significant portion of its sales. Customer concentration like this adds a layer of risk to the business, as these buyers possess substantial bargaining power.
In FY 2025, revenue reached nearly $17.3 billion, reflecting a revenue growth rate of approximately 4.9%. After several years of reporting net losses, the company achieved a net income of $1.4 billion for the year.
Based on its December 2025 balance sheet, the debt-to-equity ratio is roughly 2.2x. This indicates a higher level of debt relative to shareholders’ equity than many industry peers. The current ratio is about 2x. Free cash flow for the year was approximately $1.2 billion, providing the company with some liquidity to fund its ongoing operations and debt obligations.
Risk profile comparison
Novartis AG faces the constant challenge of patent expirations, which allow cheaper versions of its drugs to enter the market. The company must also navigate the inherent uncertainty of clinical trials, in which failing to demonstrate a drug's safety or efficacy can lead to significant financial losses. Additionally, competition from other large innovators like Roche Holding creates pressure to maintain a high pace of research and development.
Teva faces material pricing pressures from the U.S. Inflation Reduction Act, which could impact the pricing of its key innovative assets. The company also remains involved in ongoing legal and compliance matters, including antitrust actions and financial obligations arising from past opioid litigation. Furthermore, executing its strategy to divest its active pharmaceutical ingredient business while competing with rivals such as Viatris (NASDAQ:VTRS) creates significant operational complexity.
Valuation comparison
Teva Pharmaceutical Industries appears more attractive for value seekers due to its lower P/S ratio, while the higher Forward P/E of Novartis AG reflects its superior profitability.
Forward P/E
17.6x
17.0x
389.1x
P/S ratio
5.3x
2.9x
Sector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Teva reported first-quarter 2026 results that bested expectations, with revenue of almost $4 billion and net income of $369 million. Teva has some very well-selling generics, including Ajovy, a treatment for migraines; Uzedy, a schizophrenia treatment; and Austedo, which treats Huntington’s disease. As a group, they grew more than 40% in local currencies in the first quarter of 2026. Still, Wall Street sees Teva’s sales declining to $16.6 billion in 2026, while net income is projected to grow to $1.54 billion. Teva has a strong drug pipeline — it has had its own generic GLP-1 approved, similar to Novo’s Saxenda, and soon that will be joined by olanzapine, which treats schizophrenia. Those and other drugs are expected to get Teva back to top-line growth for 2027.
Novartis saw its first-quarter volume rise 14% to $13.5 billion with net income of almost $3.2 billion. Generics are clipping growth a little, but Novartis has a strong development pipeline, led by remibrutinib, a treatment for certain autoimmune disorders that could launch in late 2026 or early 2027. Remibrutinib is expected to be a blockbuster, with lifetime sales of perhaps $4 billion.
Each business is on the right track, but Teva is more attractive for long-term investors given its better price-to-sales and forward P/E ratios.
Should you buy stock in Novartis right now?
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Novartis vs. Teva: Which Pharmaceutical Stock Is a Better Buy in 2026?

(RTTNews) - Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd (TEVA), and Polpharma Biologics International AG announced on Thursday that they have entered into a global licensing agreement for Polpharma's biosimilar candidate to Ocrevus (ocrelizumab) in Multiple sclerosis upon regulatory approval.
Teva secures exclusive global rights to commercialise both intravenous and subcutaneous formulations of Polpharma's biosimilar candidate to Ocrevus (ocrelizumab), upon regulatory approval.
Ocrelizumab is a humanised monoclonal antibody that targets CD20-positive B cells, which play a key role in the progression of multiple sclerosis. Ocrevus (ocrelizumab) is indicated for the treatment of relapsing forms of multiple sclerosis and primary progressive multiple sclerosis.
In the U.S., the intravenous formulation is marketed as Ocrevus, while the subcutaneous formulation is marketed separately as Ocrevus Zunovo (ocrelizumab and hyaluronidase-ocsq).
As per the terms of the agreement, Polpharma Biologics retains responsibility for the development and manufacturing of the biosimilar candidate.
Teva will be responsible for regulatory submissions and, upon approval, commercialisation of the intravenous and subcutaneous formulations in the United States, Europe, Brazil, Canada, Australia, New Zealand, Israel and Turkey.
TEVA has traded between $14.99 and $37.35 over the last year. The stock closed Wednesday's trade at $33.24.
As of writing, TEVA shares were down 0.63% at $33.03.
For more biotechstock news visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva And Polpharma Enter Licensing Agreement For Ocrevus Biosimilar Candidate In Multiple Sclerosis

(RTTNews) - On Thursday, Teva Pharmaceutical Industries Ltd. (TEVA) and Samsung Bioepis Co., Ltd., a unit of Samsung Epis Holdings Co. Ltd. (0126Z0.KS), announced that they have entered into a license and commercialization agreement for OPUVIZ in Canada.
OPUVIZ is a biosimilar referencing Regeneron Pharmaceuticals, Inc.'s (REGN) Eylea, an FDA-approved, anti-VEGF, administered intravitreal injection to treat certain serious retinal diseases.
Under the agreement, Samsung Bioepis will take charge of registration and manufacture of the products, while Teva Canada will lead the commercialization.
OPUVIZ received Health Canada approval in October 2025. The drug is indicated to treat serious retinal conditions, including neovascular (wet) age-related macular degeneration (AMD), and visual impairment resulting from macular edema secondary to central retinal vein occlusion (CRVO) or branch retinal vein occlusion (BRVO), among others.
Samsung Bioepis' aflibercept biosimilar is also available in Europe and in Republic of Korea.
Kwang Ryu, Vice President and Team Leader of Business Development at Samsung Bioepis, stated, "This agreement represents an important step in advancing our growth strategy in North America and expanding access of ophthalmic biologic medicines in Canada. Through our collaboration with Teva we are committed to expanding access to high-quality treatment options in Canada and helping more patients benefit from timely and sustainable care."
In the pre-market activity on the NYSE, the shares for Teva were trading 0.09 percent lower at $33.20, after closing Thursday's trading 4.07 percent down.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva And Samsung Bioepis Enter Commercialization Agreement For OPUVIZ In Canada

(RTTNews) - Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Ltd (TEVA) and Polpharma Biologics International AG announced Thursday a global licensing agreement granting Teva exclusive rights to commercialize both formulations of Polpharma Biologics' proposed biosimilar to Ocrevus (ocrelizumab), upon regulatory approval.
This strategic agreement is expected to combine Polpharma Biologics' proven biosimilar development expertise with Teva's commercial footprint and capabilities.
Under the terms of the agreement, Polpharma Biologics retains full responsibility for the development and manufacturing of the biosimilar candidate.
Meanwhile, Teva will be responsible for regulatory submissions and, upon approval, commercialization of the intravenous and subcutaneous formulations in the United States, Europe, Brazil, Canada, Australia, New Zealand, Israel and Turkey.
The deal will also advance Teva's Pivot to Growth strategy by expanding its biosimilars pipeline through strategic collaborations.
This strategic agreement reinforces Teva's and Polpharma's commitment to broadening access to biologic medicines while promoting the long-term sustainability of healthcare systems.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva And Polpharma Biologics Ink Global Licensing Deal For Ocrevus Biosimilar

Key Points
Eli Lilly and dominance in weight loss and diabetes treatments continues to fuel massive revenue growth.
Teva Pharmaceutical Industries offers a value-oriented play as it moves past legal hurdles and expands its biosimilar portfolio.
Which pharmaceutical stock deserves a spot in your portfolio in 2026?
Can high-flying growth justify a premium valuation, or is a recovered value play the safer bet for 2026? Investors are weighing Eli Lilly and (NYSE:LLY) against Teva Pharmaceutical Industries (NYSE:TEVA) today.
Eli Lilly dominates the innovative brand-name drug market with blockbusters in metabolic health and oncology. Conversely, Teva focuses on generic medicines and biosimilars, looking to stabilize its business after years of legal and debt-related challenges. Both companies operate in the essential healthcare space but appeal to very different investor profiles.
The case for Eli Lilly
Eli Lilly discovers and manufactures medicines globally, focusing on areas like diabetes, obesity, and oncology. The company relies on major wholesale distributors such as McKesson Corp (NYSE:MCK), Cencora Inc. (NYSE:COR), and Cardinal Health (NYSE:CAH) for the majority of its U.S. distribution, meaning customer concentration adds a layer of risk. These partnerships are essential for getting products to patients within the pharmaceutical stocks category.
In FY 2025, revenue reached nearly $65.2 billion, representing a significant 44% increase over the previous year. This surge helped the company generate a net income of roughly $20.6 billion, about double that of 2024.
As of the December 2025 balance sheet, the debt-to-equity ratio is roughly 1.6x. This ratio, which compares total debt (including both short- and long-term obligations) to shareholders’ equity, indicates how much debt is used to fund assets. Free cash flow reached close to $9 billion.
The case for Teva Pharmaceutical
Teva focuses on a mix of generic medicines, biosimilars, and innovative biopharmaceuticals across 57 international markets. Its business depends on a concentrated customer base of retail drug chains and large wholesalers, which adds a layer of risk. The company is actively moving toward biosimilars and innovative new drugs to offset the competitive pressures of the generic market.
For FY 2025, the company reported revenue of nearly $17.3 billion, an increase of roughly 4% year over year. Unlike previous years of losses, the company achieved a net income of approximately $1.4 billion. This resulted in a net margin of close to 8.2% for the fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 2.2x. This indicates that total debt exceeds shareholder equity, reflecting significant leverage on the books. Free cash flow for the year was roughly $1.2 billion.
Risk profile comparison
Eli Lilly faces regulatory hurdles from the Inflation Reduction Act, which mandates price discounts on top sellers like Jardiance and Trulicity. Competition is intense from rivals like Novo Nordisk (NYSE:NVO), and the company also deals with the threat of generic versions of its drugs. Litigation involving a $200 million drug rebate fraud scheme and reliance on suppliers in China create additional financial and supply risks.
Teva is managing significant debt that limits its financial flexibility and requires high interest payments. The generic market is prone to price erosion and heavy competition from firms like Viatris (NASDAQ:VTRS), while legal risks remain regarding past opioid-related litigation. Finally, its complex global manufacturing network is vulnerable to geopolitical tensions and regulatory compliance issues.
Valuation comparison
Teva Pharmaceutical Industries appears significantly cheaper based on the Forward P/E, which compares the stock price to future earnings estimates.
Forward P/E
33.1x
16.4x
389.1x
P/S ratio
15.2x
2.3x
n/a
Sector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Eli Lilly and Teva operate in different parts of the pharmaceutical business, with Eli Lilly focused on developing treatments that can command a premium under patent protection, while Teva plays a crucial role in producing generics that make health care more affordable for many patients.
Eli Lilly is riding a wave of success with its GLP-1 drugs Zepbound for weight loss and Mounjaro, which is the same drug for diabetes control. There is still plenty of growth left in the treatment, and that is expected to power revenue up as high as 30% in 2026, to $85.2 billion, with close to $31 billion in net income. Its next weight-loss drug, Retatrutide, is hotly anticipated for its triple-agonist approach that exceeds the weight-loss results of Zepbound. The company is also targeting less affluent customers with a cheaper GLP pill called Foundayo, which it is selling directly to consumers.
Besides GLP-1s, Lilly is working on a small interfering RNA therapeutic targeting lipoprotein(a) for the prevention of atherosclerotic cardiovascular disease in patients with elevated lipoprotein(a) levels. Analysts believe it will be a blockbuster ($1 billion or more lifetime revenue) if approved.
Teva, meanwhile, has had its own generic GLP-1 approved, similar to Novo’s Saxenda. Still, that isn’t expected to generate enough sales to push Teva to growth this year. Wall Street sees Teva’s sales declining to $16.6 billion in 2026, while net income is projected to grow to $1.54 billion. Still, Teva has some very well-selling generics, including Ajovy, Uzedy, and Austedo, which will be joined by olanzapine, which treats schizophrenia. The pipeline of new drugs will get Teva back to growth for 2027.
Still, even while Eli Lilly trades at a premium compared to Teva in terms of price-to-earnings and price-to-sales, Lilly is the easy choice here, given it is still in the midst of a GLP-1-driven growth spurt.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $418,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!*
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends McKesson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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