Basic earnings and loss per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding, net of treasury shares.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	(U.S. $ in millions except share and per share data)
	2026		2025		2026		2025
Basic earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
Net income (loss) attributable to Teva’s ordinary shareholders	$	233	$	433	$	26	$	930
Shares (denominator):
Weighted average shares outstanding	1,166		1,147		1,162		1,144
Basic earnings (loss) attributable to Teva’s ordinary shareholders	$	0.20	$	0.38	$	0.02	$	0.81

Diluted earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
Net income (loss) attributable to Teva’s ordinary shareholders	$	233	$	433	$	26	$	930
Shares (denominator):
Weighted average shares outstanding	1,166		1,147		1,162		1,144
Diluted effect of stock options, RSUs and PSUs	17		17		18		16
Total dilutive shares outstanding	1,183		1,164		1,180		1,160
Diluted earnings (loss) attributable to Teva’s ordinary shareholders	$	0.20	$	0.37	$	0.02	$	0.80

In computing diluted earnings per share for the three and nine months ended September 30, 2026, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and non-vested RSUs and PSUs granted under employee stock compensation plans. No account was taken of the potential dilution that could occur upon the exercise of convertible senior debentures, since they had an anti-dilutive effect on earnings per share. Additionally, an amount of 11.6 million and 10.7 million dilutive shares of ordinary shares from the conversion of outstanding stock options, RSUs and PSUs were excluded from the computation of diluted earnings per share attributable to Teva’s ordinary shareholders for the three and nine months ended September 30, 2026, respectively.

In computing diluted earnings per share for the three and nine months ended September 30, 2025, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and non-vested RSUs and PSUs granted under employee stock compensation plans. No account was taken of the potential dilution that could occur upon the exercise of convertible senior debentures, since they had an anti-dilutive effect on earnings per share. Additionally, an amount of 27.6 million and 28.6 million dilutive shares of ordinary shares from the conversion of outstanding stock options, RSUs and PSUs were excluded from the computation of diluted earnings per share attributable to Teva’s ordinary shareholders for the three and nine months ended September 30, 2025, respectively.