v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments
NOTE 15 – Segments:
Teva operates its business and reports its financial results in the following three segments:
 
  (a)
United States segment.
 
  (b)
Europe segment, which includes the European Union, the United Kingdom and certain other European countries.
 
  (c)
International Markets segment, which includes all countries other than the United States and countries included in the Europe segment.
In addition to these three segments,
Teva has other sources of revenues included in
O
ther
A
ctivities, primarily Teva’s distribution business in the United States through Anda, sale of APIs to third parties, an out-licensing platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis and certain contract manufacturing services. 
In alignment with Teva’s Pivot to Growth strategy, commencing January 1, 2026, Anda is no longer reported under Teva’s United States segment. This shift allows the United States segment to continue to manage its entire product portfolio in the region, while strengthening focus on its biopharmaceutical business, growth engines and innovation. As a result, from that date, Anda is reported as part of the Company’s
O
ther
A
ctivities. Prior period amounts were recast to reflect this change. Teva’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the three identified reportable segments, namely the United States, Europe and International Markets, to make decisions about resources to be allocated to the segments and assess their performance.
The key areas of focus by the CODM for allocation of resources are revenues from each reportable segment, as well as operating expenses (cost of sales, R&D expenses, S&M expenses, G&A expenses, and other expenses (income)). While the CODM analyzes each of these categories, the CODM focuses particularly on period-over-period fluctuations and
budget-to-actual
variances to determine the right allocation of resources to be attributed to each segment to ensure profitability is maximized.
Segment profit is comprised of revenues for the segment less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to the segment. Segment profit does not include amortization and certain other items.
Teva manages its assets on a company basis, not by segments, as many of its assets are shared or commingled. Teva’s CODM does not regularly review asset information by reportable segment and, therefore, Teva does not report asset information by reportable segment.
Teva’s CEO may review its strategy and organizational structure from time to time. Based on such review, in May 2023 Teva launched its new Pivot to Growth strategy. Any additional changes in strategy may lead to a reevaluation of the Company’s segments and goodwill allocation to reporting units, as well as fair value attributable to its reporting units. See note 6.
On December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy, and Teva is conducting a sales process for this matter. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or whether a divestiture will be completed at all. See note 2.
 
 
a.
Segment information:
 
    
Three months ended June 30,
  
    
2026
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 1,702      $ 1,263      $ 550  
Cost of sales
      499        559        266  
R&D expenses**
      883        52        26  
S&M expenses
      294        222        128  
G&A expenses
      107        66        38  
Other
      (5 )       (3 )       (8 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit*
    $ (76 )     $ 367      $ 99  
  
 
 
     
 
 
     
 
 
  
 
*
Segment profit includes depreciation expenses of $36 million in the United States, $33 million in Europe and $17 million in International Markets.
**
Mainly related to the acquisition of Emalex and its primary asset ecopipam
(EBS-101)
in the United States segment. See ‘Emalex Biosciences’ included in note 2.
 
    
Three months ended June 30,
  
    
2025
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 1,786      $ 1,298      $ 495  
Cost of sales
      574        581        251  
R&D expenses
      152        59        24  
S&M expenses
      250        228        114  
G&A expenses
      111        66        32  
Other
        §         §       (1 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit*
    $ 699      $ 364      $ 74  
  
 
 
     
 
 
     
 
 
  
 
*
Segment profit includes depreciation expenses of $37 million in the United States, $31 million in Europe and $18 million in International Markets.
§
Represents an amount less than $0.5 million.
 
    
Six months ended June 30,
  
    
2026
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 3,236      $ 2,603      $ 1,074  
Cost of sales
      995        1,165        547  
R&D expenses**
      1,030        97        49  
S&M expenses
      593        437        245  
G&A expenses
      197        139        77  
Other
      (9 )       (3 )       (7 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit*
    $ 431      $ 768      $ 164  
  
 
 
     
 
 
     
 
 
  
 
*
Segment profit includes depreciation expenses of $72 million in the United States, $65 million in Europe and $35 million in International Markets.
**
Mainly related to the acquisition of Emalex and its primary asset ecopipam
(EBS-101)
in the United States segment. See ‘Emalex Biosciences’ included in note 2.
 
 
  
Six months ended June 30,
 
 
  
2025
 
 
  
United
States
 
  
Europe
 
  
International Markets
 
 
  
(U.S. $ in millions)
 
Revenues
    $ 3,322      $ 2,492      $ 1,077  
Cost of sales
      1,097        1,117        556  
R&D expenses
      306        120        49  
S&M expenses
      493        427        232  
G&A expenses
      206        135        72  
Other
      3          §       (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit*
    $ 1,216      $ 693      $ 171  
  
 
 
     
 
 
     
 
 
  
 
*
Segment profit includes depreciation expenses of $73 million in the United States, $61 million in Europe and $35 million in International Markets.
§
Represents an amount less than $0.5 million.
 
The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three and six months ended June 30, 2026 and 2025:
 
    
Three months
ended
     
Six months ended
  
    
June 30,
     
June 30,
  
    
2026
     
2025
     
2026
     
2025
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
United States profit (loss)
    $ (76 )     $ 699      $ 431      $ 1,216  
Europe profit
      367        364        768        693  
International Markets profit
      99        74        164        171  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      391        1,136        1,363        2,080  
Profit (loss) of Other Activities
      (16 )       (3 )       (32 )       (1 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Amounts not allocated to segments:
            
Amortization
      139        148        276        292  
Other assets impairments, restructuring and other items
      147        232        173        210  
Intangible assets impairments
      22        42        30        163  
Legal settlements and loss contingencies
      230        166        302        249  
Other unallocated amounts
      68        91        128        190  
  
 
 
     
 
 
     
 
 
     
 
 
  
Consolidated operating income (loss)
      (231 )      455        421        975  
  
 
 
     
 
 
     
 
 
     
 
 
  
Financial expenses, net
      224        252        440        477  
  
 
 
     
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ (455 )    $ 203      $ (18 )    $ 497  
  
 
 
     
 
 
     
 
 
     
 
 
  

 
b.
Segment revenues by major products and activities:
The following tables present revenues by major products and activities for the three and six months ended June 30, 2026 and 2025:
United States
  
Three months ended

June 30,
 
 
  
2026
 
  
2025
 
 
  
(U.S. $ in millions)
 
Generic products (including biosimilars)
    $ 660      $ 961  
AJOVY
®
      116        63  
AUSTEDO
      676        495  
BENDEKA
®
and TREANDA
®
      28        40  
COPAXONE
      61        62  
UZEDY
      77        54  
Other
      84        111  
  
 
 
     
 
 
  
Total
    $ 1,702      $ 1,786  
  
 
 
     
 
 
  
 
United States   
Six months ended

June 30,
  
    
2026
     
2025
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 1,272      $ 1,809  
AJOVY
      203        117  
AUSTEDO
      1,236        891  
BENDEKA and TREANDA
      55        76  
COPAXONE
      124        116  
UZEDY
      140        93  
Other
      206        220  
  
 
 
     
 
 
  
Total
    $ 3,236      $ 3,322  
  
 
 
     
 
 
  
 
Europe   
Three months ended

June 30,
  
    
2026
     
2025
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 1,024      $ 1,040  
AJOVY
      78        71  
COPAXONE
      49        50  
Respiratory products
      58        55  
Other*
      54        81  
  
 
 
     
 
 
  
Total
    $ 1,263      $ 1,298  
  
 
 
     
 
 
  
 
*
Other revenues in the second quarter of 2025 include the sale of certain product rights.

Europe   
Six months ended

June 30,
  
    
2026
     
2025
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
  
$
2,113
 
  
$
2,029
 
AJOVY
      154        129  
COPAXONE
      89        92  
Respiratory products
      117        110  
Other*
      130        132  
  
 
 
     
 
 
  
Total
  
$
2,603
 
  
$
2,492
 
  
 
 
     
 
 
  
 
*
Other revenues in the first six months of 2026 and 2025 include the sale of certain product rights.
 
International markets
  
Three months ended

June 30,
 
 
  
2026
 
  
2025
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
    $ 419      $ 410  
AJOVY
      49        20  
AUSTEDO
      20        3  
COPAXONE
      8        7  
Other*
      55        55  
  
 
 
     
 
 
  
Total
    $ 550      $ 495  
  
 
 
     
 
 
  
 
*
Other revenues in the second quarter of 2025 include the sale of certain product rights.
 
International markets
  
Six months ended

June 30,
 
 
  
2026
 
  
2025
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
    $ 805      $ 878  
AJOVY
      83        48  
AUSTEDO
      39        18  
COPAXONE
      13        17  
Other*
      134        116  
  
 
 
     
 
 
  
Total
    $ 1,074      $ 1,077  
  
 
 
     
 
 
  
 
*
Other revenues in the first six months of 2026 and 2025 include the sale of certain product rights.