A maker of generic medicines, biosimilars, and brand-name drugs, Teva is one of the world's largest generic drugmakers. Its products treat conditions like multiple sclerosis (COPAXONE), migraine (AJOVY), and Huntington's chorea (AUSTEDO), used by patients and health systems worldwide. Founded in 1901 in Jerusalem as a small medicine wholesaler that shipped goods by mule and camel, it took the name "Teva"—the Hebrew word for "nature"—in the 1930s.
Q2 2026 operating income swung to a $231M loss as Emalex acquisition R&D expense hit the U.S. segment
The Emalex acquisition swung Teva to a quarterly operating loss. fell 0.8% to $4,142M and rose 1.6 points to 52.0% as and mix improved, but $970M of R&D — including $700M expensed for Emalex's ecopipam — drove to -$231M from $455M a year earlier. The strategy now carries an acquired-asset cost that pushed the quarter into the red.
Key takeaways
The $700M Emalex Biosciences acquisition was expensed as , driving R&D up 298% to $970M and swinging the U.S. to a $76M loss from a $699M profit a year ago.
Consolidated decreased 1% (3% in local currency) to $4,142M, with U.S. generics — particularly lenalidomide — lower and and growth partially offsetting.
improved to 52.0% from 50.3% on a favorable mix shift toward higher-margin and .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue fell 1% to $4.1B as Emalex acquisition drove R&D to $970M, swinging to a $231M operating loss.
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Consolidated decreased 1% (3% in local currency) to $4,142 million, driven by lower U.S. generic sales, particularly lenalidomide, partially offset by growth in and .
rose to $411M from $227M on lower contingent consideration and tax payments, and reached $622M.
Total debt decreased to $16,593M from $16,807M at year-end 2025, with 27% classified as short-term.
What changed
Q2 2026 International Markets profit after the Japan divestiture: the prior flag followed a 33% Q1 drop to $65M; this quarter International Markets was not separately reported in the narrative but consolidated fell 3% in local currency with the divestiture effect still in the base.
Emalex (ecopipam) acquisition closure: flagged as a $700M Q1 action whose cash impact on was to be watched; the deal closed this quarter with $700M expensed as IPR&D and free cash flow of $622M, up from $131M a year earlier.
Total debt against the $16,807M year-end base and 2026 maturities: debt fell to $16,593M with 27% short-term, continuing the multi-year reduction trend.
Appealed IRA lawsuit: no update this quarter; and remain subject to U.S. price negotiation from 2027 per the FY2025 record.
Quarter over quarter, rose 4.0% from $3,982M and fell to -$231M from $652M as the Emalex charge hit.
What to watch
Q3 2026 U.S. profit to see if it recovers from the $76M loss once Emalex IPR&D is not repeated
International Markets and profit to confirm the Japan divestiture effect has bottomed
trajectory after the $700M Emalex cash outlay and its effect on debt reduction
Outcome of the appealed IRA lawsuit against CMS ahead of 2027 price negotiation
U.S. fell 5% to $1,702 million, with a segment loss of $76 million versus a $699 million profit a year ago, primarily due to $883 million in R&D expenses from the Emalex acquisition.
improved to 52.0% from 50.3%, reflecting a favorable product mix shift toward higher-margin innovative products like and .
R&D expenses surged 298% to $970 million, mainly from the $700 million Emalex acquisition and its Tourette syndrome asset ecopipam, which was expensed as acquired .
rose to $411 million from $227 million, driven by lower and tax payments, while reached $622 million.
Debt decreased to $16,593 million from $16,807 million at year-end 2025, with 27% classified as short-term; the company continues to execute its Pivot to Growth strategy.
Quantitative and Qualitative Disclosures About Market Risk
There has not been any material change in our assessment of market risk as set forth in Part II, Item 7A to our Annual Report on Form 10-K for the year ended December 31, 2025.
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There has not been any material change in our assessment of market risk as set forth in Part II, Item 7A to our Annual Report on Form 10-K for the year ended December 31, 2025.
We are subject to various litigation and other legal proceedings. Information pertaining to legal proceedings can be found in “Item 1 Financial Statements—Note 10 Contingencies” and is incorporated by reference herein.
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We are subject to various litigation and other legal proceedings. Information pertaining to legal proceedings can be found in “Item 1 Financial Statements—Note 10 Contingencies” and is incorporated by reference herein.