Teva Pharmaceutical Industries (TEVA) Financials

Teva Pharmaceutical Industries (NYSE: TEVA) has shown a clear turnaround over the last four years, with much stronger profitability and cash generation in 2025 and early 2026 compared with the weak results seen in 2022 and early 2023. Revenue has been fairly stable in the $3.8 billion to $4.7 billion quarterly range, but the bigger story is that operating margins, cash flow, and balance-sheet flexibility have improved meaningfully. That said, Teva still carries a heavy debt load and continues to record restructuring and special charges, so the recovery is not without risk.

On the income statement, the trend is positive: after periods of losses in 2022 and early 2024, the company returned to solid profitability. Q1 2026 revenue was $4.0 billion, with operating income of $652 million and net income of $369 million. That compares favorably with Q1 2025, when net income was $220 million, and Q4 2024, when Teva reported a net loss. Gross profit and operating income have generally strengthened as cost discipline improved and the company moved away from the deeper losses of the prior year.

Cash flow has also improved, but it remains somewhat uneven quarter to quarter. In Q1 2026, Teva posted negative operating cash flow of $40 million, which is weaker than the strong $1.16 billion in Q4 2025 and the $369 million in Q3 2025. Still, the company has repeatedly generated positive cash flow in recent periods, and its ability to produce large non-cash adjustments and asset-sale proceeds has helped support liquidity. This suggests the business is capable of throwing off cash, but working-capital swings can still create volatility.

The balance sheet shows both progress and caution flags. Cash and equivalents were $3.74 billion at the end of Q1 2026, up sharply from $2.20 billion in Q3 2025 and well above early-2025 levels. Total equity also improved to $8.23 billion in Q1 2026 from $6.27 billion in Q1 2025. However, total liabilities remained high at $31.81 billion, and long-term debt was still $14.02 billion. In other words, Teva is in better shape than it was a year or two ago, but leverage is still a central part of the investment story.

Here are the most important takeaways for investors:

• Profitability has recovered. Teva moved from losses in several 2022–2024 quarters to solid net income in 2025 and Q1 2026.
• Revenue has held up well. Quarterly sales have generally stayed in a fairly steady range, suggesting the core business remains resilient.
• Cash balance improved meaningfully. Cash and equivalents reached $3.74 billion in Q1 2026, giving the company more liquidity cushion.
• Equity has grown. Total common equity rose from $6.27 billion in Q1 2025 to $8.23 billion in Q1 2026.
• Operating income improved sharply versus prior weak periods. Q1 2026 operating income of $652 million is a major improvement over loss-making quarters in 2024.
• Cash flow remains lumpy. Operating cash flow swung from strong positive levels in late 2025 to negative in Q1 2026, showing working-capital volatility.
• Special charges are still significant. Restructuring, impairment, and other special charges continue to affect reported earnings.
• Non-core items still matter. Other income/expense and asset-sale proceeds continue to play a noticeable role in results.
• Debt remains elevated. Total debt is still substantial, with $14.0 billion of long-term debt and $2.6 billion of short-term debt in Q1 2026.
• Liabilities are still heavy. Total liabilities of $31.8 billion remain much larger than equity, which keeps financial risk elevated.

Bottom line: Teva’s financial statements suggest a company that has clearly stabilized and improved from its weaker period, with better earnings and a stronger cash position. Investors should view the latest results as evidence of a turnaround, but one that still depends on disciplined execution, continued cash generation, and progress in reducing debt and one-time charges.