Teva Pharmaceutical Industries reported significantly stronger-than-expected quarterly earnings, driven by improved generics performance and cost discipline. Meanwhile, Pfizer continues to face challenges in replacing the $20 billion in annual revenue lost from its discontinued COVID-19 vaccine and treatment portfolio.
- Teva reported adjusted EPS of $0.43, exceeding estimates of $0.38.
- Teva's revenue grew 5.2% YoY to $4.8 billion in Q3 2025.
- Pfizer's non-COVID revenue declined 13% YoY to $8.1 billion.
- Pfizer faces a persistent $20 billion annual revenue gap from discontinued pandemic products.
- Teva’s operating margin improved by 17% due to cost restructuring.
- TEVA stock rose 9% post-earnings; PFE fell 3.6% despite new pipeline updates.
Teva Pharmaceutical Industries delivered a notable earnings beat, reporting adjusted earnings per share of $0.43 for the third quarter of 2025, surpassing analyst forecasts of $0.38. Revenue rose 5.2% year-over-year to $4.8 billion, fueled by increased market share in key generic drug categories and successful international expansion. The company also reduced operating expenses by 8% through restructuring initiatives, contributing to a 17% improvement in operating margin. Pfizer, in contrast, reported a 13% decline in revenue from its core pharmaceutical segment, which now stands at $8.1 billion for the quarter. This marks the third consecutive quarter of year-over-year contraction in non-COVID revenue, despite the launch of new treatments in oncology and rare diseases. The company had previously projected a $20 billion annual revenue gap following the phasing out of its authorized COVID-19 vaccines and antiviral therapies. The divergence in performance underscores growing investor scrutiny over pharmaceutical firms’ ability to maintain growth post-pandemic. While Teva has leveraged operational efficiency and a diversified generics pipeline to stabilize results, Pfizer’s reliance on a shrinking legacy portfolio has exposed vulnerabilities in its innovation and commercialization strategy. Market reaction reflected the contrast: TEVA shares rose nearly 9% in after-hours trading, while PFE declined 3.6% despite a modest uptick in its R&D pipeline announcement. Analysts suggest that firms with resilient generic or specialty drug franchises are better positioned for sustained profitability in the current environment.