Teva Pharmaceutical Industries Ltd stock is trading higher on Wednesday after the company’s first-quarter 2025 financial results. Here are the details.

Teva reported revenue of $3.89 billion, up 5% year-over-year, missing analyst estimates of $4.00 billion, according to Benzinga Pro.

The increase was driven by higher revenues from Austedo in the U.S. segment. Austedo’s worldwide revenues were $411 million in Q1 2025, an increase of 39% in local currency terms compared to Q1 2024.

U.S. Austedo revenues increased by 40% to $396 million, mainly due to volume growth, including the approval of Austedo XR, a once-daily pill, in May 2024.

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Ajovy’s global revenues were $139 million in Q1 2025, an increase of 26% in local currency terms compared to Q1 2024.

US Ajovy revenues were $53 million, an increase of 18% compared to the first quarter of 2024, mainly due to volume growth.

Uzedy’s global revenues are $39 million in Q1 2025.

The generics business grew across all regions—it increased by 5% in the U.S., 1% in Europe, and 2% in International Markets, all in local currency terms, compared to Q1 2024.

The company reported first-quarter adjusted earnings of 52 cents per share, beating estimates of 48 cents per share.

Gross profit margin was 48.2% in the first quarter of 2025, compared to 46.4% a year ago, and adjusted gross profit margin was 52.8% compared to 51.4% in the first quarter of 2024.

The increase in both gross profit margin and non-GAAP gross profit margin was mainly due to a favorable mix of products, primarily driven by higher revenues from Austedo, partially offset by a negative impact from foreign exchange rate movements, including hedging effects.

Richard Francis, Teva’s president and CEO, said, “Now entering the Acceleration Phase of our Pivot to Growth Strategy, we have a clear roadmap to continue Teva’s transformation into a leading biopharmaceutical company with an expected 30% operating margin, and today have announced ~$700 million net savings by 2027. We’re accelerating innovative growth and strengthening our generics business, while streamlining our operations, sharpening our business, and optimizing processes. With these results, we are revising our 2025 outlook and reaffirming our 2027 targets.”

Guidance: Teva Pharmaceutical raises fiscal 2025 adjusted earnings per share from $2.35-$2.65 to $2.45-$2.65 versus the consensus of $2.55.

The generics player narrows 2025 sales guidance from $16.8 billion-$17.4 billion to $16.8 billion-$17.2 billion compared to the consensus of $17.24 billion.

The company said the outlook is based on the existing tariff and trade environment, and does not reflect any policy shifts, including pharmaceutical sector tariffs, that could impact business.

The company increased the Austedo 2025 sales outlook from ~$1.9-2.05 billion to $1.95-2.05 billion.

Teva reaffirmed sales forecasts of $600 million for Ajovy, about $160 million for Uzedy, and approximately $370 million for Copaxone.

Teva also raised operating income guidance from $4.1 billion-$4.6 billion to $4.3 billion-$4.6 billion, with adjusted EBITDA of $4.7 billion-$5.0 billion from $4.5 billion-$5.0 billion.

Price Action: TEVA stock is up 8.2% at $17.48 at the last check Wednesday.

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