Teva Pharmaceutical Reports Revenue Increase and Net Income Turnaround in Q2 2025

Teva Pharmaceutical Industries Ltd. reported a slight increase in net revenues for the second quarter of 2025, totaling $4.176 billion, compared to $4.164 billion in the same period last year. The company’s gross profit rose to $2.102 billion, reflecting a gross profit margin of 50.3%, up from 48.6% in the prior year. This improvement was attributed to a favorable product mix, particularly driven by increased sales of innovative products such as AUSTEDO, AJOVY, and UZEDY, which partially offset declines in revenues from generic products and COPAXONE.

In terms of profitability, Teva reported a net income of $282 million for the second quarter of 2025, a significant recovery from a net loss of $846 million in the same quarter of 2024. This turnaround was supported by a reduction in legal settlements and loss contingencies, which amounted to $166 million in the latest quarter, compared to $83 million a year earlier. The company also experienced a decrease in research and development expenses, which fell to $244 million from $269 million, reflecting a strategic focus on cost management.

Teva's operational performance varied across its segments. The U.S. segment generated revenues of $2.151 billion, a 2% increase year-over-year, with segment profit rising 12% to $706 million. The Europe segment saw revenues increase by 7% to $1.298 billion, while the International Markets segment experienced a 17% decline in revenues to $495 million, primarily due to the divestment of its business venture in Japan. The company’s overall cash flow from operating activities improved to $227 million, up from $103 million in the previous year, contributing to a free cash flow of $476 million.

Strategically, Teva is advancing its "Pivot to Growth" initiative, which aims to optimize its operations and enhance its innovative product pipeline. The company has also announced plans to divest its active pharmaceutical ingredient (API) business, aligning with its strategy to focus on higher-value activities. As of June 30, 2025, Teva's total debt was reported at $17.227 billion, a decrease from $17.783 billion at the end of 2024, reflecting ongoing efforts to manage its financial obligations effectively.

Looking ahead, Teva remains cautious about macroeconomic conditions, including inflation and geopolitical tensions, which could impact its operations. The company is actively monitoring these factors while continuing to execute its growth strategy, with expectations for further improvements in its innovative product offerings and operational efficiencies.