Teva Adjusts 2026 Profit Outlook Following Emalex Acquisition; Q1 Earnings Beat

Teva Pharmaceutical Industries (TEVA) has revised its 2026 financial projections downward, citing the impact of its acquisition of Emalex. The company now expects non-GAAP operating income to fall between $3.80 billion and $4.0 billion, a decrease from its previous stand-alone outlook of $4.55 billion to $4.8 billion. The adjustment is primarily driven by a $700 million in-process research and development (IPR&D) charge, alongside $75 million in transaction-related and operating expenses associated with the Emalex deal. Consequently, the company lowered its 2026 EPS guidance to a range of $1.91 to $2.11, compared to the previous estimate of $2.57 to $2.77. Adjusted EBITDA for the year is now projected at $4.23 billion to $4.53 billion, down from the previous $5.0 billion to $5.3 billion range. Despite the lowered future guidance, Teva's first-quarter results showed resilience. Net income attributable to the company rose to $369 million, or $0.31 per share, up from $214 million or $0.18 per share in the prior year. Non-GAAP net income also saw a slight increase to $621 million, with adjusted EBITDA reaching $1.055 billion, a 1% year-over-year increase. Revenue for the quarter stood at $3.98 billion, representing a 2% increase in U.S. dollar terms. Investors reacted positively to the results and the news that the Board has instructed management to plan a share repurchase program. Teva further reassured shareholders that it remains on track to meet its long-term financial targets for 2027.