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Analysts See Pipeline Catalysts Driving Teva Pharmaceutical Industries Limited (TEVA)’s 2026 Growth Despite Revenue Headwinds

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best healthcare stocks to buy for 2026. On January 28, Truist Securities raised its price target on Teva Pharma (NYSE:TEVA) to $38 from $36 while keeping a Buy rating, following Q4 2025 results that included a $500 million milestone payment. Although normalized revenue missed estimates by about 1%, Truist sees Teva’s growth story as intact, pointing to pipeline catalysts in 2026 such as a potential FDA decision on Olanzapine LAI, which could unlock a $3B sales opportunity.

The firm also expects biosimilars to support the generics business despite headwinds from gRevlimid sales and tougher Austedo comparisons, noting Teva’s PEG ratio of 0.3 suggests attractive value relative to growth.

The same day Teva Pharmaceutical Industries reported strong Q4 2025 results, beating expectations with EPS of $0.96 versus $0.65 forecast and revenue of $4.71 billion against $4.33 billion expected, aided by a $500 million milestone payment from Sanofi. Despite this, shares slipped as Teva projected lower 2026 revenue of $16.4–$16.8 billion and adjusted EPS of $2.57–$2.77, reflecting a more than $1 billion hit from lost sales of its generic Revlimid due to rising competition.

The company’s innovative portfolio continues to drive growth, with Austedo generating $725 million in U.S. sales in Q4, up 40% year-over-year, alongside contributions from Ajovy and Uzedy. Together, these three drugs delivered $3.1 billion in 2025 revenue and are expected to reach up to $3.6 billion in 2026, underscoring Teva’s transition from a generics-focused firm to a biopharma player. While near-term headwinds weigh on guidance, core earnings are projected to rise, supported by expanding branded medicines and pipeline momentum.

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a global leader in generic and specialty medicines, specializing in developing, manufacturing, and marketing drugs across various therapeutic areas, including central nervous system, respiratory, and oncology.

While we acknowledge the potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEVA and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.

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