v3.26.1
Segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segments
NOTE 19 – Segments:
Teva operates its business and reports its financial results in three segments:
 
 
(a)
United States segment.
 
 
 
(b)
Europe segment, which includes the European Union, the United Kingdom and c
ert
ain 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 Other Activities, consisting primarily Teva’s distribution business in the United States through Anda, the 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.
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 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 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 CODM analyzes these categories, the area of focus is period over period fluxes and
budget-to-actual
variances to determine the right allocation of resources is attributed to each segment in order 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 7.
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 Other Activities. Prior period amounts were recast to reflect the change to the composition of the Company’s reportable segments.

In conjunction with a shift in executive management responsibilities and in alignment with Teva’s Pivot to Growth strategy, Teva decided that Canada is no longer included as part of Teva’s North America segment as of January 1, 2024. From that date Canada is reported as part of the Company’s International Markets segment and Teva’s North America segment has been renamed the United States segment. Teva aligned its internal financial and segment reporting and its reporting units in accordance with this change effective January 1, 2024. Prior period amounts for the year ended December 31, 2023 have been recast to conform to the reporting structure.
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. On November 5, 2025, Teva announced that exclusive discussions with a selected buyer on the sale have terminated. Teva has initiated a renewed sales process, maintaining its strategic intention to divest its API business. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or whether a divestiture will be agreed or completed at all. See note 2.
 
 
 
a.
Segment information:
 
    
Year ended December 31,
  
    
2025
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,690      $ 5,040      $ 2,162  
Cost of sales
      2,236        2,293        1,116  
R&D expenses
      633        247        103  
S&M expenses
      1,051        902        475  
G&A expenses
      456        295        147  
Other
     
1
        1        (14 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 3,313      $ 1,303      $ 336  
  
 
 
     
 
 
     
 
 
  

    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 6,498      $ 5,103      $ 2,463  
Cost of sales
      2,312        2,197        1,229  
R&D expenses
      633        229        112  
S&M expenses
      925        826        534  
G&A expenses
      407        272        150  
Other
     
2
        3        (2 ) 
Segment profit
    $ 2,219      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 

    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 6,154      $ 4,837      $ 2,351  
Cost of sales
      2,051        2,111        1,191  
R&D expenses
      604        220        104  
S&M expenses
      813        767        487  
G&A expenses
      373        263        142  
Other
      (2 )      (2 )       (39 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,315      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
United States profit
    $ 3,313      $ 2,219      $ 2,315  
Europe profit
      1,303        1,575        1,478  
International Markets profit
      336        440        465  
Total reportable segments profit
      4,952        4,234        4,258  
Profit (loss) of Other Activities
      (47 )      96        103  
Amounts not allocated to segments:
         
Amortization
      581        588        616  
Other assets impairments, restructuring and other items
      1,050        1,388        718  
Goodwill impairment
      —         1,280        700  
Intangible asset impairments
      259        251        350  
Legal settlements and loss contingencies
      473        761        1,043  
Other unallocated amounts
      384        364        502  
Consolidated operating income (lo
ss
)
      2,157        (303 )      433  
Financial expenses, net
      934        981        1,057  
Consolidated income (loss) before income taxes
    $ 1,223      $ (1,284 )    $ (624 )
  
 
 
     
 
 
     
 
 
  
 
 
b.
Segment revenues by major products and activities:
The following tables present revenues by major products and activities for each segment for the year ended December 31, 2025, 2024 and 2023:
United States segment:

 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Generic products (including biosimilars)
    $ 3,657      $ 3,599      $ 3,138  
AJOVY
      295        207        211  
AUSTEDO
      2,217        1,642        1,225  
BENDEKA and TREANDA
      147        168        237  
COPAXONE
      255        242        297  
UZEDY
      191        117        23  
Other*
      929        523        1,024  
  
 
 
     
 
 
     
 
 
  
Total
    $ 7,690      $ 6,498      $ 6,154  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues in 2025 were mainly comprised of
development
 
milestone payments of $500 million received in the fourth quarter of 2025, in connection with the initiation of Phase 3 studies for duvakitug (anti-TL1A) (see note
2
). Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s duvakitug (anti-TL1A)
asset.

Europe segment:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
    $ 4,044      $ 3,926      $ 3,664  
AJOVY
      270        216        160  
COPAXONE
      181        213        231  
Respiratory products
      227        244        265  
Other*
      319        504        516  
  
 
 
     
 
 
     
 
 
  
Total
    $ 5,040      $ 5,103      $ 4,837  
  
 
 
     
 
 
     
 
 
  

*
Other revenues in 2025, 2024 and 2023 include the sale of certain product rights.
 
International Markets segment:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
    $ 1,721      $ 1,937      $ 1,932  
AJOVY
      108        84        63  
AUSTEDO
      43        46        15  
COPAXONE
      32        48        63  
Other*
      259        349        278  
  
 
 
     
 
 
     
 
 
  
Total
    $ 2,162      $ 2,463      $ 2,351  
  
 
 
     
 
 
     
 
 
  
 
*
Other revenues in 2025 and 2024 include the sale of certain product rights.
Revenues are attributable to countries based on sales to third parties in such countries. Revenues within the United States constituted 53% for the year ended December 31, 2025 and 49% of Teva’s consolidated revenues for both the years ended December 31, 2024 and 2023. Revenues within the Company’s country of domicile (Israel) constituted 2% of Teva’s consolidated revenues for each of the years ended December 31, 2025, 2024 and 2023.
 
c.
Supplemental data—major customers:
The following table represents the percentage of consolidated third party net sales to Teva’s major customers during the years ended December 31, 2025, 2024 and 2023.
 
    
Percentage of Third Party Net Sales
  
    
2025
    
2024
    
2023
  
McKesson Corporation
      13 %      12 %      9 % 
AmerisourceBergen Corporation
      11 %      9 %      9 % 
Most of Teva’s revenues from these customers were in the United States segment.
 
d.
Property, plant and equipment—by geographical location were as follows:
 
 
  
December 31,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Israel
    $ 1,033      $ 1,066  
Germany
      704        1,262  
United States
      529        561  
Croatia
      312        277  
Czech Republic
      199        206  
Hungary
      86        83  
Ireland
      244        261  
Other
      973        865  
  
 
 
     
 
 
  
Total property, plant and equipment
    $ 4,080      $ 4,581