Form 8-K

8-K — TEVA PHARMACEUTICAL INDUSTRIES LTD

Accession: 0001171843-26-004974

Filed: 2026-07-29

Period: 2026-07-29

CIK: 0000818686

SIC: 2834 (PHARMACEUTICAL PREPARATIONS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — f8k_072926.htm (Primary)

EX-99.1 — PRESS RELEASE (exh_991.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

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8-K (Primary)

Filename: f8k_072926.htm · Sequence: 1

Form 8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2026

_______________________________

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

(Exact name of registrant as specified in its charter)

_______________________________

Israel 001-16174 Not Applicable

(State or other jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification Number)

400 Interpace Parkway, #3

Parsippany New Jersey, 07054 USA

(Address of Principal Executive Offices, including Zip Code)

+1-973-658-0301

(Registrant's Telephone Number, including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

American Depositary Shares, each representing one Ordinary Share TEVA New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 29, 2026, Teva Pharmaceutical Industries Ltd. (the “Company) issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and the information contained therein is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description

99.1 Teva Reports 2026 Second Quarter Financial Results

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

Date: July 29, 2026 By: /s/ Eli Kalif

Eli Kalif

Executive Vice President, Chief Financial Officer

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EXHIBIT 99.1

Teva Delivers Strong Q2 Results and Raises Outlook for All Three Key Innovative Brands, Reflecting

Continued Execution of Its Pivot to Growth Strategy

Q2 2026 revenues of $4.1 billion decreased by 1% in U.S. dollars year-over-year (YoY) and by 3% in local currency

(LC) terms, mainly due to lower generics revenues. Our key innovative brands collectively grew 43% YoY in LC, to over $1 billion in revenues,

and we raised our 2026 outlook for all three, highlighting Teva’s continued execution of its Pivot to Growth strategy.

Key Innovative brands continued to drive growth while transforming Teva’s portfolio mix and financial

profile:

AUSTEDO® continued to grow rapidly, with global revenues of $696 million, growing 40% YoY in

LC.

AJOVY® global revenues of $244 million, increasing 56% YoY in LC.

UZEDY® revenues of $77 million, increasing 43% YoY in LC. UZEDY continues to be the fastest

growing LAI amongst atypical LAI’s for schizophrenia, creating a strong foundation for Teva's schizophrenia franchise.1

Teva is raising its 2026 revenue outlook for each of these key innovative brands, and now expects combined 2026 revenue of ~$3.7 billion

reflecting a ~17% YoY growth at the mid-point.

Generics Powerhouse: generics global revenues were lower in Q2 2026 vs. Q2 2025, mainly due to lower revenues from

lenalidomide capsules (a generic version of Revlimid®) in the U.S.; biosimilars portfolio performed strongly and on track

to deliver $800 million in revenues by 2027.

Global generics revenues decreased by 15% YoY in LC, mainly due to lower revenues in our U.S. Segment from lenalidomide capsules (a

generic version of Revlimid®) due to increased generic competition in the U.S.

Biosimilars momentum continues with strategic collaborations and Europe launches:

Teva launched AHZANTIVE® (aflibercept), a biosimilar to Eylea®, in Europe;

Global licensing agreement announced with Polpharma Biologics for a proposed biosimilar to Ocrevus® (ocrelizumab).

Innovative late-stage pipeline progressing at speed, addressing high unmet need:

ecopipam: the acquisition of Emalex Biosciences (Emalex) and its primary asset, ecopipam (EBS-101), a first-in-class

therapy for Tourette syndrome, for approximately $700 million in cash, reflects the acceleration of our late-stage innovative neuroscience

pipeline, in line with Teva's Pivot to Growth Strategy; a New Drug Application for ecopipam was submitted to the U.S. FDA in June 2026,

and expenses of $726 million for this acquisition were recorded in Q2 2026, as further described below.

olanzapine LAI: in May 2026, the European Medicines Agency (EMA) accepted Teva’s Marketing Authorization

Application (MAA) for olanzapine LAI for the treatment of schizophrenia in adults; on track for launch in the U.S. in Q4 2026, subject

to regulatory approval.

TEV-’408 (anti-IL-15): encouraging Phase 1b results in vitiligo for this Teva-discovered antibody designed

for quarterly subcutaneous dosing; initiation of a Phase 2 study expected in Q4 2026.

duvakitug (anti-TL1A, developed in collaboration with Sanofi): announced plans to initiate studies in two additional

indications – hidradenitis suppurativa (HS) and fibrostenotic Crohn’s Disease (FSCD) – demonstrating its pipeline-in-a-product

potential. Recruitment is on track for our Phase 3 studies for duvakitug in ulcerative colitis (UC) and Crohn’s disease (CD).

Continuing to transform and modernize our business through the Teva Transformation programs, which combined with innovative product

growth potential, is expected to support the Company’s objective of achieving a 30% non-GAAP operating income margin by 2027 and

approximately $700 million of net savings by 2027.

Teva announces the replacement of its American Depositary Share (ADS) program with the direct listing of its ordinary shares on the

New York Stock Exchange (NYSE). ADSs will be exchanged on a one-for one-basis for our ordinary shares, which commence trading on the NYSE

on Monday, September 14, 2026 after the ADSs cease trading on the NYSE at the close of trading on Friday, September 11, 2026. The transition

aims to broaden Teva’s shareholder base, support its potential inclusion in leading indices, and optimize cost-of-capital. There

is no impact to Teva’s ordinary shares traded on the Tel Aviv Stock Exchange (TASE). For more information, see our website at ir.tevapharm.com

and Part II, Item 5 of our Quarterly Report on Form 10-Q for the second quarter of 2026 when available.

Q2 2026 Highlights:

Revenues of $4.1 billion

GAAP loss per share of $0.49, of which $726 million of expenses are attributable to Emalex ($724 million of IPR&D and $2 million

of operating expenses), or a loss of $0.61 per share

Non-GAAP diluted EPS of $0.02, that includes a per share impact of ($0.61) from the Emalex acquisition

Cash flow generated from operating activities of $411 million

Free cash flow of $622 million

2026 Business Outlook – key innovative brands revenues outlook increased; earnings and cash flow maintained:

Revenues of $16.5 - $16.85 billion

Non-GAAP operating income of $3.8 - $4.0 billion, including ~$0.77 billion of expected 2026 expenses related to Emalex

Adjusted EBITDA of $4.23 - $4.53 billion, including ~$0.77 billion of expected 2026 expenses related to Emalex

Non-GAAP diluted EPS of $1.91 - $2.11, including ($0.66) per share of 2026 Emalex expenses.

Free cash flow of $2.0 - $2.4 billion

________________

1 Source: IQVIA NPA 2Q26 vs 2Q25 (TRx normalized into patient months of therapy equivalent volume

based on dosing regimen).

TEL AVIV, Israel, July 29, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today reported results

for the quarter ended June 30, 2026.

Mr. Richard Francis, Teva's President and CEO, said: “Our second quarter reflects continued execution of our

Pivot to Growth strategy. During the quarter, and into July, we advanced several value-creating assets, including two additional indications

for duvakitug, demonstrating its pipeline-in-a-product potential, the acquisition and NDA submission of ecopipam (EBS-101), continued

progress for olanzapine LAI, and expansion of our biosimilars pipeline through strategic collaborations."

Mr. Francis added, "Our key Innovative brands collectively generated over $1 billion in revenues, continuing to transform

Teva’s portfolio mix and financial profile. The breadth of these milestones underscores the increasingly diversified nature of Teva’s

growth profile. We are strengthening our neuroscience and immunology pipeline, expanding access through biosimilars, and continuing to

modernize the business to support sustainable, innovation-driven growth and long-term value creation for patients and shareholders.”

Pivot to Growth Strategy

In the second quarter of 2026, we continued to execute on the four key pillars of our “Pivot to Growth” strategy, announced

in May 2023:

Delivering on our growth engines - Teva’s key innovative brands, AUSTEDO, AJOVY and UZEDY, collectively grew

43% YoY in LC in Q2 2026 to over $1 billion in revenues, continuing to transform the Company’s portfolio mix and financial profile.

Each individual brand grew at least 40% YoY in LC in the quarter. Based on year-to-date performance, Teva is raising its outlook for all

three key innovative brands.

Stepping up innovation - We advanced multiple assets in our late-stage innovative pipeline focused on well characterized

compounds and validated disease targets. Teva submitted an NDA for ecopipam (EBS-101), a first-in-class investigational therapy for pediatric

Tourette syndrome, acquired with Emalex. In May 2026, the EMA accepted the MAA for olanzapine LAI (TEV-’749). We announced encouraging

Phase 1b results for TEV-’408 (anti-IL-15) in vitiligo and expect to initiate a vitiligo Phase 2 trial in Q4 2026. For duvakitug

(anti-TL1A, developed in collaboration with Sanofi) we announced plans to initiate studies in two additional indications – hidradenitis

suppurativa (HS) and fibrostenotic Crohn’s Disease (FSCD) – demonstrating its pipeline-in-a-product potential. Recruitment

is on track for our Phase 3 studies for duvakitug in ulcerative colitis (UC) and Crohn’s disease (CD).

Sustaining our generics powerhouse - Teva continues to enhance its biosimilars portfolio, including the launch

of AHZANTIVE® in Europe and the collaboration agreement with Polpharma Biologics for a proposed biosimilar to Ocrevus®

covering both intravenous and subcutaneous formulations. On track with operational readiness for 3 additional biosimilars in 2027, building

a robust portfolio of 18 biosimilars.

Focusing our business - We are actively transforming and modernizing our business through Teva Transformation programs

and expect to realize two-thirds of the targeted savings in 2026, while maintaining disciplined capital allocation. During the quarter,

Fitch Rating Agency raised the Company's corporate credit rating to Investment Grade BBB-, recognizing Teva’s significantly improved

balance sheet and successful execution of its Pivot to Growth strategy.

Second Quarter 2026 Consolidated Results

Revenues in the second quarter of 2026 were $4,142 million, a decrease of 1% in U.S. dollars, or 3% in local currency

terms compared to the second quarter of 2025. This decrease was mainly due to lower revenues from generic products, primarily lenalidomide

capsules (a generic version of Revlimid®) in our U.S. segment, partially offset by higher revenues from our key innovative

products, primarily AUSTEDO and AJOVY.

Exchange rate movements in the second quarter of 2026 including hedging effects, positively impacted revenues by $85

million, compared to the second quarter of 2025.

Gross profit in the second quarter of 2026 was $2,153 million, an increase of 2% compared to $2,102 million in the

second quarter of 2025. Gross profit margin was 52.0% in the second quarter of 2026, compared to 50.3% in the second

quarter of 2025. This increase was mainly due to higher revenues from AUSTEDO, partially offset by lower revenues from generic products

in our United States segment, primarily lenalidomide capsules (a generic version of Revlimid®). Non-GAAP gross

profit was $2,293 million in the second quarter of 2026, an increase of 1% compared to $2,278 million in the second quarter of

2025. Non-GAAP gross profit margin was 55.4% in the second quarter of 2026, compared to 54.6% in the second quarter of

2025. The increase in both gross profit margin and non-GAAP gross profit margin was mainly due to a favorable mix of products, primarily

higher revenues from AUSTEDO and AJOVY, partially offset by lower revenues from generic products, primarily lenalidomide capsules (a generic

version of Revlimid®).

Research and Development (R&D) expenses, net in the second quarter of 2026, were $970 million,

an increase of 298% compared to $244 million in the second quarter of 2025, primarily due to our acquisition of Emalex Biosciences and

its primary asset, ecopipam (EBS-101). This increase was partially offset by a decrease in our expenses related to our generic projects.

Our R&D expenses, net in the second quarters of 2026 and 2025, were also impacted by reimbursements and cost sharing from our strategic

partnerships and collaborations entered into in recent years.

Selling and Marketing (S&M) expenses in the second quarter of 2026 were $717 million, an increase of 10% compared

to the second quarter of 2025. This increase was mainly due to promotional activities related to our key innovative products, primarily

AUSTEDO, as well as a negative impact from exchange rate fluctuations.

General and Administrative (G&A) expenses in the second quarter of 2026 were $317 million, an increase of 4% compared

to the second quarter of 2025.

Operating loss was $231 million in the second quarter of 2026, compared to an operating income of $455 million in

the second quarter of 2025. Operating loss as a percentage of revenues was 5.6% in the second quarter of 2026, compared to operating income

as a percentage of revenues of 10.9% in the second quarter of 2025. This change was mainly due to higher R&D expenses primarily related

to the acquisition of Emalex and its primary asset ecopipam (EBS-101). Non-GAAP operating income in the second quarter

of 2026 was $375 million representing a non-GAAP operating margin of 9.0% compared to $1,133 million representing 27.1%, respectively,

in the second quarter of 2025. This decrease in non-GAAP operating margin in the second quarter of 2026 was mainly due to higher R&D

expenses primarily related to the acquisition of ecopipam (EBS-101), as discussed above.

Exchange rate movements in the second quarter of 2026, net of hedging effects, had a positive impact of $26 million

on our operating loss and non-GAAP operating income compared to the second quarter of 2025.

Financial expenses, net in the second quarter of 2026, were $224 million, mainly comprised of net interest expenses

of $195 million. In the second quarter of 2025, financial expenses, net were $252 million, mainly comprised of net interest expenses of

$203 million.

In the second quarter of 2026, we recognized a tax expense of $121 million, on pre-tax loss of $455 million. In the

second quarter of 2025, we recognized a tax benefit of $78 million, on pre-tax income of $203 million.

Our tax rate in the second quarter of 2026 was negative 26.5%, compared to negative 38.4% in the second quarter of

2025. Non-GAAP tax rate in the second quarter of 2026 was 86.7%, compared to 16.4% in the second quarter of 2025. Our

tax rate and non-GAAP tax rate in the second quarter of 2026 were mainly affected by an unfavorable tax impact of a non-deductible acquired

IPR&D charge related to the acquisition of Emalex and its primary asset ecopipam (EBS-101), the generation of profits in various jurisdictions

in which tax rates are different than the Israeli tax rate and other infrequent or non-recurring items. Our tax rate and non-GAAP tax

rate in the second quarter of 2025 were mainly affected by releases of uncertain tax positions, foreign exchange impact on deferred tax

positions and interest and inflation adjustments related to the agreement with the Israeli Tax Authorities.

Considering the above, we expect our annual non-GAAP tax rate for 2026 to be between 20%-23%, higher than our non-GAAP tax rate for

2025, which was 15.8%.

Net loss attributable to Teva and loss per share in the second quarter of 2026 were $576 million

and $0.49, respectively, compared to net income attributable to Teva and earning per share of $282 million and $0.24, respectively, in

the second quarter of 2025. This change was mainly due to the change in operating loss as well as higher income taxes, primarily due to

the acquisition of Emalex and its primary asset, ecopipam (EBS-101), as discussed above. Non-GAAP net income attributable

to Teva and non-GAAP diluted earnings per share in the second quarter of 2026 were $21 million and $0.02, respectively,

compared to $769 million and $0.66, respectively, in the second quarter of 2025.

Adjusted EBITDA was $474 million in the second quarter of 2026, a decrease of 62%, compared to $1,233 million in the

second quarter of 2025.

As of June 30, 2026 and 2025, the fully diluted share count for purposes of calculating our market capitalization

was approximately 1,191 million shares and 1,179 million shares, respectively.

Non-GAAP information: non-GAAP adjustments in the second quarter of 2026 were $597 million. Non-GAAP net income attributable

to Teva and non-GAAP diluted EPS for the second quarter of 2026 were adjusted to exclude the following items:

Amortization of purchased intangible assets of $139 million, of which $129 million is included in cost of sales and the remaining

$9 million in S&M expenses;

Legal settlements and loss contingencies of $230 million;

Restructuring expenses of $38 million;

Impairment of long-lived assets of $113 million;

Contingent consideration expenses of $17 million;

Equity compensation expenses of $40 million;

Financial expenses of $8 million;

Other non-GAAP items of $29 million; and

Corresponding tax effects and unusual tax items of $17 million.

We believe that excluding such items facilitates investors’ understanding of our business including underlying trends, thereby

improving the comparability of our business performance results between reporting periods.

For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below

and the information included under “Non-GAAP Financial Measures.” Investors should consider non-GAAP financial measures in

addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.

Cash flow generated from operating activities during the second quarter of 2026 was $411 million compared to $227

million in the second quarter of 2025. The higher cash flow generated from operating activities in the second quarter of 2026 was mainly

due to lower contingent consideration payments and lower tax payments, partially offset by higher legal settlement payments.

During the second quarter of 2026, we generated free cash flow of $622 million, which we define as comprising: $411

million in cash flow generated from operating activities, $311 million in beneficial interest collected in exchange for securitized accounts

receivables (under our EU securitization program) and $4 million of proceeds from the sale of businesses and long-lived assets, partially

offset by $104 million in cash used for capital investments. During the second quarter of 2025, we generated free cash flow of $476 million,

which we define as comprising $227 million in cash flow generated from operating activities, $336 million in beneficial interest collected

in exchange for securitized accounts receivables (under our EU securitization program) and $9 million of proceeds from the sale of businesses

and long-lived assets, partially offset by $96 million in cash used for capital investments. The increase in the second quarter of 2026

resulted mainly from higher cash flow generated from operating activities, as discussed above.

As of June 30, 2026, our debt was $16,593 million, compared to $16,807 million as of December 31, 2025. This decrease

was mainly due to $201 million of exchange rate fluctuations. The portion of total debt classified as short-term as of June 30, 2026,

was 27% compared to 11% as of December 31, 2025. Our financial leverage, which is the ratio between our debt and the sum of our debt and

equity, was 68% as of June 30, 2026 and December 31, 2025. Our average debt maturity was approximately 5.1 years as of June 30, 2026,

compared to 5.6 years as of December 31, 2025.

Segment Results for the second quarter of 2026

United States Segment

In alignment with our Pivot to Growth strategy, commencing January 1, 2026, Anda is no longer reported under our 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 this change.

The following table presents revenues, expenses and profit for our United States segment for the three months ended June 30, 2026 and

2025:

Three

months ended June 30,

2026

2025

(U.S. $ in millions / % of Segment Revenues)

Revenues

1,702

100

1,786

100

Cost of sales

499

29.3

574

32.2

Gross profit

1,203

70.7

1,211

67.8

R&D expenses*

883

51.9

152

8.5

S&M expenses

294

17.3

250

14.0

G&A expenses

107

6.3

111

6.2

Other

)

Segment profit (loss)**

(76

)

(4.5

699

39.1

* Mainly related to the acquisition of Emalex and its primary asset ecopipam (EBS-101)

in the United States segment.

** Segment profit does not include amortization and certain other items.

Represents an amount less than $0.5 million or 0.5%, as applicable.

Revenues from our United States segment in the second quarter of 2026 were $1,702 million, a decrease of 5% compared

to the second quarter of 2025, mainly due to lower revenues from generic products, primarily lenalidomide capsules (a generic version

of Revlimid®), partially offset by higher revenues from our key innovative products, primarily AUSTEDO.

Revenues by Major Products and Activities

The following table presents revenues for our United States segment by major products and activities for the three months ended June

30, 2026 and 2025:

Three

months ended

June 30,

Percentage

Change

2026

2025

2026-2025

(U.S.

$ in millions)

Generic products (including biosimilars)

660

961

(31%)

AJOVY®

116

83%

AUSTEDO

676

495

37%

BENDEKA® and TREANDA®

(30%)

COPAXONE®

(2%)

UZEDY

43%

Other

111

(25%)

Total

1,702

1,786

(5%)

Generic products (including biosimilar products) revenues in our United States segment in the second quarter of 2026

were $660 million, a decrease of 31% compared to the second quarter of 2025. This decrease was mainly driven by lower revenues from lenalidomide

capsules (a generic version of Revlimid®) due to increased generic competition in the U.S., partially offset by higher

revenues from our portfolio of biosimilar products.

Among the most significant generic products we sold in the United States in the second quarter of 2026 were Truxima®

(a biosimilar to Rituxan®), epinephrine injectable solution (a generic equivalent of EpiPen® and EpiPen

Jr®) and SIMLANDI® (a biosimilar to Humira®). In the second quarter of 2026, our total

prescriptions were approximately 237 million (based on trailing twelve months), representing 6.1% of total U.S. generic prescriptions,

compared to approximately 266 million (based on trailing twelve months), representing 6.9% of total U.S. generic prescriptions in the

second quarter of 2025, all according to IQVIA data.

AJOVY revenues in our United States segment in the second quarter of 2026 were $116 million, an increase of 83% compared

to the second quarter of 2025, mainly due to a reduction in sales allowance as well as growth in volume. In the second quarter of 2026,

AJOVY’s exit market share in the United States in terms of total number of prescriptions was 32.5% out of the subcutaneous injectable

anti-CGRP class, compared to 31.0% in the second quarter of 2025.

AUSTEDO revenues (which include AUSTEDO XR®) in our United States segment in the second quarter of

2026 were $676 million, an increase of 37%, compared to the second quarter of 2025. This increase was mainly due to growth in volume and

a favorable business mix including improved net-price realization.

AUSTEDO XR (deutetrabenazine) extended-release tablets was approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24

mg, and became commercially available in the U.S. in May 2023. The FDA approved AUSTEDO XR as a one pill, once-daily treatment option

in doses of 30, 36, 42, and 48 mg in May 2024 and in 18 mg in July 2024. AUSTEDO XR is a once-daily formulation indicated in adults for

tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the twice-daily AUSTEDO.

UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the second quarter

of 2026 were $77 million, an increase of 43% compared to the second quarter of 2025, mainly due to growth in volume, partially offset

by higher sales allowances.

BENDEKA and TREANDA combined revenues in our United States segment in the second quarter of 2026

were $28 million, a decrease of 30% compared to the second quarter of 2025, mainly due to competition from alternative therapies, as well

as from branded and generic bendamustine products.

COPAXONE revenues in our United States segment in the second quarter of 2026 were $61 million, a decrease of 2% compared

to the second quarter of 2025, mainly due to lower volumes, partially offset by a reduction in sales allowance.

United States Gross Profit

Gross profit from our United States segment in the second quarter of 2026 was $1,203 million, a decrease of 1%, compared

to the second quarter of 2025.

Gross profit margin for our United States segment in the second quarter of 2026 increased to 70.7%, compared to 67.8%

in the second quarter of 2025. This increase was mainly due to a favorable mix of products, primarily due to higher revenues from our

key innovative products, largely AUSTEDO, partially offset by lower revenues from lenalidomide capsules (a generic version of Revlimid®).

United States Profit

Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses

and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.

Loss from our United States segment in the second quarter of 2026 was $76 million, compared to a profit of $699 million

in the second quarter of 2025. This change was mainly due to higher R&D expenses, primarily related to the acquisition of Emalex and

its primary asset ecopipam (EBS-101).

Europe Segment

Our Europe segment includes the European Union, the United Kingdom and certain other European countries.

The following table presents revenues, expenses and profit for our Europe segment for the three months ended June 30, 2026 and 2025:

Three months ended June 30,

2026

2025

(U.S. $ in millions / % of Segment

Revenues)

Revenues

1,263

100

1,298

100

Cost of sales

559

44.3

581

44.8

Gross profit

704

55.7

717

55.2

R&D expenses

4.1

4.6

S&M expenses

222

17.6

228

17.5

G&A expenses

5.2

5.1

Other*

)

Segment profit*

367

29.1

364

28.0

* Segment profit does not include amortization and certain other items.

§ Represents

an amount less than $0.5 million or 0.5%, as applicable.

Revenues from our Europe segment in the second quarter of 2026 were $1,263 million, a decrease of 3% compared

to the second quarter of 2025. In local currency terms, revenues decreased by 8% compared to the second quarter of 2025, mainly due to

lower proceeds from the sale of certain product rights, and lower revenues from generic products. In the second quarter of 2026, revenues

were positively impacted by exchange rate fluctuations of $63 million, including hedging effects, compared to the second quarter of 2025.

Revenues in the second quarter of 2026, included $3 million from a positive hedging impact, while revenues in the second quarter of 2025

included $25 million from a negative hedging impact, which is included in “Other” in the table below.

Revenues by Major Products and Activities

The following table presents revenues for our Europe segment by major products and activities for the three months ended June 30, 2026

and 2025:

Three

months ended

June 30,

Percentage

Change

2026

2025

2026-2025

(U.S.

$ in millions)

Generic products (including OTC and biosimilars)

1,024

1,040

(2%)

AJOVY

10%

COPAXONE

(2%)

Respiratory products

Other*

(34%)

Total

1,263

1,298

(3%)

* Other revenues in the second quarter of 2025 include the sale of certain product rights.

Generic products revenues (including OTC and biosimilar products) in our Europe segment in the second quarter

of 2026, were $1,024 million, a decrease of 2% compared to the second quarter of 2025. In local currency terms, revenues decreased by

4%, mainly due to lower sales of generic products and seasonal OTC products, partially offset by higher revenues from recently launched

products.

AJOVY revenues in our Europe segment in the second quarter of 2026 were $78 million, an increase of 10%, compared

to the second quarter of 2025. In local currency terms revenues increased by 7% due to growth in volume. COPAXONE revenues

in our Europe segment in the second quarter of 2026 were $49 million, a decrease of 2% compared to the second quarter of 2025. In local

currency terms revenues decreased by 5%, mainly due to price reductions and lower volumes resulting from the availability of alternative

therapies, partially offset by a decrease in sales allowance due to a non-recurring item. Respiratory products revenues

in our Europe segment in the second quarter of 2026 were $58 million, an increase of 6% compared to the second quarter of 2025. In local

currency terms, revenues increased by 3%, mainly due to higher volumes as a result of increased supply.

Europe Gross Profit

Gross profit from our Europe segment in the second quarter of 2026 was $704 million, a decrease of 2% compared to

the second quarter of 2025. Gross profit margin for our Europe segment in the second quarter of 2026 increased to 55.7%,

compared to 55.2% in the second quarter of 2025. This increase was mainly due to a positive impact from hedging activities, partially

offset by lower proceeds from the sale of certain product rights in the second quarter of 2026.

Europe Profit

Profit from our Europe segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other

expenses (income) related to this segment. Segment profit does not include amortization and certain other items.

Profit from our Europe segment in the second quarter of 2026 was $367 million, an increase of 1%, compared to the

second quarter of 2025.

International Markets Segment

Our International Markets segment includes all countries in which we operate other than the United States and the countries included

in our Europe segment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including

more than 35 countries. The countries in our International Markets segment include highly regulated, mainly generic markets, such as Canada

and Israel, and branded generics-oriented markets, such as Russia and certain Latin America markets. The following table presents revenues,

expenses and profit for our International Markets segment for the three months ended June 30, 2026 and 2025:

Three months ended June 30,

2026

2025

(U.S. $ in millions / % of Segment Revenues)

Revenues

550

100

495

100

Cost of sales

266

48.3

251

50.8

Gross profit

284

51.7

243

49.2

R&D expenses

4.8

4.9

S&M expenses

128

23.3

114

23.0

G&A expenses

6.9

6.6

Other

)

(1.4

)

Segment profit*

18.0

14.9

* Segment profit does not include amortization and certain other items.

Represents an amount less than $0.5 million or 0.5%, as applicable.

Revenues from our International Markets segment in the second quarter of 2026 were $550 million, an increase

of 11% compared to the second quarter of 2025. In local currency terms, revenues increased by 7% compared to the second quarter of 2025,

mainly due to higher revenues from our key innovative products AJOVY and AUSTEDO, primarily in China.

In the second quarter of 2026, revenues were positively impacted by exchange rate fluctuations of $19 million, net of hedging effects,

compared to the second quarter of 2025. Revenues in the second quarter of 2026 included $11 million from a negative hedging impact, compared

to a negative hedging impact of $8 million in the second quarter of 2025, which are included in “Other” in the table below.

The following table presents revenues for our International Markets segment by major products and activities for the three months ended

June 30, 2026 and 2025:

Three

months ended

June 30,

Percentage

Change

2026

2025

2026-2025

(U.S.

$ in millions)

Generic products (including OTC and biosimilars)

419

410

AJOVY

146%

AUSTEDO

571%

COPAXONE

Other*

(1%)

Total

550

495

11%

*Other revenues in the second quarter of 2025 include the sale of certain product rights.

Generic products revenues (including OTC and biosimilar products) in our International Markets segment in the

second quarter of 2026 were $419 million, an increase of 2% compared to the second quarter of 2025. In local currency terms, revenues

decreased by 1%.

AJOVY revenues in our International Markets segment in the second quarter of 2026 were $49 million, an increase of

146% compared to the second quarter of 2025. In local currency terms, revenues increased by 141%, mainly due to milestone payments received

in China, as well as growth in other markets. In April 2026, we announced a strategic partnership for the marketing and distribution of

AJOVY in China with Nuerogen (Zhuhai) Pharmaceutical Company Ltd.

AUSTEDO revenues in our International Markets segment in the second quarter of 2026 were $20 million, compared to

$3 million in the second quarter of 2025. This increase was mainly due to timing of shipments, as well as growth in China.

COPAXONE revenues in our International Markets segment in the second quarter of 2026 were $8 million, an increase

of 7% compared to the second quarter of 2025.

International Markets Gross Profit

Gross profit from our International Markets segment in the second quarter of 2026 was $284 million, an increase of

17% compared to the second quarter of 2025.

Gross profit margin for our International Markets segment in the second quarter of 2026 increased to 51.7%, compared

to 49.2% in the second quarter of 2025. This increase was mainly due to higher revenues from AJOVY and AUSTEDO as discussed above.

International Markets Profit

Profit from our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A

expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.

Profit from our International Markets segment in the second quarter of 2026 was $99 million, an increase of 34%, compared

to the second quarter of 2025. This increase was mainly due to higher revenues, as discussed above.

Other Activities

We have other sources of revenues, primarily our 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 our affiliate Medis and

certain contract manufacturing services. Our Other Activities are not included in our United States, Europe or International Markets segments

described above.

In alignment with our Pivot to Growth strategy, commencing January 1, 2026, Anda is no longer reported under our United States segment.

As a result, from that date, Anda is reported as part of our Other Activities. Prior period amounts were recast to reflect this change.

In 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through

a sale. The intention to divest is in alignment with our 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 that a divestiture will be

completed at all.

Our revenues from Other Activities in the second quarter of 2026 were $627 million, an increase of 5% in both U.S.

dollars and local currency terms, compared to the second quarter of 2025.

Anda revenues from third-party products in the second quarter of 2026 were $413 million, an increase of 13%, compared to the second

quarter of 2025, mainly due to higher volumes. Anda, our distribution business in the United States, operates independently and distributes

generic and innovative medicines and OTC pharmaceutical products from various manufacturers to independent retail pharmacies, pharmacy

retail chains, hospitals and physician offices in the United States. Anda competes in the distribution market by maintaining a broad portfolio

of products, competitive pricing and delivery throughout the United States.

API sales to third parties in the second quarter of 2026 were $118 million, a decrease of 12% in both U.S. dollars and local currency

terms, compared to the second quarter of 2025. This decrease was mainly due to lower demand resulting from market dynamics and price reductions.

Revenues from additional other activities, mainly from Medis and certain contract manufacturing services, in the second quarter of

2026 were $95 million, a decrease of 3% in U.S. dollars, or 5% in local currency terms compared to the second quarter of 2025.

2026 Financial Outlook

billions, except diluted EPS or as noted

April

2026

(Including Emalex)

July

29 Outlook

(Including Emalex)

Emalex

impact

Revenues

16.4 - 16.8

$16.5 - $16.85B

AUSTEDO ($m)

2,400 - 2,550

2,450 - 2,600

AJOVY ($m)

750 - 790

850 – 870

UZEDY ($m)

250 - 280

270 – 290

Operating Income*

3.8 - 4.0

(0.77)

Adjusted EBITDA*

4.23 – 4.53

(0.77)

Finance Expenses*

~$0.8B

Tax Rate*

20% - 23%

(+400 bps to ETR)

Diluted EPS* ($)

1.91 - 2.11

(0.66)

Free Cash Flow*

2.0 - 2.4

CAPEX

0.5

Foreign Exchange

Volatile swings in FX can negatively impact revenue

and income

*Certain items above are non-GAAP financial measures. For more information, see “Non-GAAP

Financial Measures” below. Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and

deferred purchase price cash component collected for securitized trade receivables.

Conference Call

Teva will host a conference call and live webcast along with a slide presentation on Wednesday, July 29, 2026 at 8:00

a.m. ET to discuss its second quarter 2026 financial results and overall business environment.

A question & answer session will

follow.

In order to participate, please register in advance here to obtain a local or toll‐free phone number and your personal pin.

live webcast of the call will be available on Teva's website at: www.tevapharm.com

Following the conclusion of the call, a

replay of the webcast will be available within 24 hours on Teva's website.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical

company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered.

From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide,

Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more

about how, visit www.tevapharm.com.

Some amounts in this press release may not add up due to rounding. All percentages have been calculated using unrounded amounts

Non-GAAP Financial Measures

This press release contains certain financial information that differs from what is reported under accounting principles generally

accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP operating income, non-GAAP

operating margin, non-GAAP gross profit, non-GAAP gross profit margin, Adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net

income (loss) attributable to Teva and non-GAAP diluted EPS, are presented in order to facilitate investors' understanding of our business.

We utilize certain non-GAAP financial measures to evaluate performance in conjunction with other performance metrics. The following are

examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational

performance and, to compare our results against work plans and budgets, and ultimately to evaluate the performance of management; our

annual budgets are prepared on a non-GAAP basis; and senior management’s annual compensation is derived, in part, using these non-GAAP

measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP measures. Investors should consider

non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in

accordance with GAAP. We are not providing the most comparable forward-looking GAAP measures for non-GAAP metrics included in our financial

outlook or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures

because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items including, but not limited

to, the amortization of purchased intangible assets, legal settlements and loss contingencies, impairment of long-lived assets and goodwill

impairment, without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed

in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform

Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties,

both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or

implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,”

"will", “expect,” "aim", “anticipate,” “estimate,” “target,” “may,” “project,”

“guidance,” “intend,” “plan,” “believe”, "outlook", "transition" and other words and terms

of similar meaning and expression in connection with any discussion of future operating financial performance or development. Important

factors that could cause or contribute to such differences include risks relating to:

our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration

of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical

companies and changes in regulatory policy that may result in costs and delays; delays in launches of new generic products; our ability

to develop and commercialize additional pharmaceutical products in a timely manner; intense competition for our innovative medicines;

our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute on our Pivot to

Growth strategy, including to expand our innovative and biosimilar medicines pipeline and to profitably commercialize our innovative medicines

and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics medicines,

and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness of our patents and other

measures to protect our intellectual property rights;

our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make

new investments; and our potential need to raise additional funds in the future, which may not be available on acceptable terms or at

all;

our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and

the governmental and societal responses thereto, and our exposure to changes in international trade policies, including the imposition

of tariffs in the jurisdictions in which we operate, and any effects of such developments on sales of our products and the pricing and

availability of raw materials; effectiveness of our optimization efforts; significant disruptions of information technology systems, including

cybersecurity attacks, as well as risks and uncertainties related to the adoption of artificial intelligence technologies, and breaches

of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; challenges associated

with conducting business globally, including political or economic instability, prolonged government shutdowns, widespread outbreaks of

major diseases and major hostilities or acts of terrorism, such as the ongoing conflict in the Middle East and the war involving Iran,

and the war between Russia and Ukraine; our ability to attract, hire, integrate and retain highly skilled personnel; our ability to successfully

bid for suitable acquisition targets or licensing opportunities, or to consummate and/or integrate acquisitions successfully and cost-effectively;

and our prospects and opportunities for growth if we sell or plan to sell assets or business units and close or divest plants and facilities,

as well as our ability to successfully and cost-effectively effectuate and consummate such sales and divestitures, including our planned

divestiture of our API business;

compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory requirements, the effects

of regulatory uncertainty and changes and the results of increased regulatory oversight, including expenditures required to ensure compliance

with research, production and quality control regulations and remedial actions taken to address product issues, such as delayed product

launches, product recalls, and facility shutdowns; the effects of governmental, regulatory and civil proceedings and litigation which

we are, or in the future become, party to; the effects of reforms in healthcare regulation and related reductions in pharmaceutical pricing,

reimbursement and coverage, including as a result of the One Big Beautiful Bill signed into law in the U.S. in July 2025 (“OBBBA”),

which will likely reduce the number of insured in Medicaid and Health Insurance Exchange markets, potentially altering utilization patterns

and shifting negotiating leverage among payors, U.S. Executive Orders issued in April and May 2025 intended to reduce the prices paid

for prescription medicines, including Most-Favored-Nation pricing; legal and regulatory actions in connection with public concern over

the abuse of opioid medications; our ability to timely make payments required under our nationwide opioids settlement agreement and provide

our generic version of Narcan® (naloxone hydrochloride nasal spray) in the amounts and at the times required under the

terms of such agreement; scrutiny from competition and pricing authorities around the world, including our ability to comply with and

operate under our deferred prosecution agreement (“DPA”) with the U.S. Department of Justice (“DOJ”); potential

liability for intellectual property right infringement; significant product liability claims; claims brought by regulatory agencies; failure

to comply with complex Medicare, Medicaid and other governmental programs’ reporting and payment obligations; compliance with sanctions

and trade control laws; environmental risks; and the impact of sustainability issues;

financial, economic and other risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; impairments

of our long-lived assets; potential significant increases in tax liabilities; the effect on our overall effective tax rate of the termination

or expiration of governmental programs or tax benefits, or of a change in our business; the impact of any failure to maintain effective

internal control over our financial reporting; our ability to successfully implement the process for terminating our ADS program and directly

listing our ordinary shares in lieu of the ADSs (the “Conversion”) and achieve our aims as a result of such Conversion, as

further described in Part II, Item 5 our Quarterly Report on Form 10-Q and on our website at ir.tevapharm.com; and

other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the second quarter of 2026 and in our Annual

Report on Form 10-K for the year ended December 31, 2025, including in the section captioned “Risk Factors,” “Other

Information” and “Cautionary Note Regarding Forward-Looking Statements.“ Forward-looking statements speak only as of

the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained

herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking

statements.

Consolidated

Statements of Income

(U.S.

dollars in millions, except share and per share data)

(Unaudited)

Three months ended

Six

months ended

June

30,

June

30,

2026

2025

2026

2025

Net revenues

4,142

4,176

8,124

8,067

Cost of sales

1,989

2,074

4,000

4,088

Gross profit

2,153

2,102

4,124

3,979

Research and development expenses

970

244

1,191

490

Selling and marketing expenses

717

654

1,413

1,276

General and administrative expenses

317

305

621

603

Intangible assets impairments

163

Other asset impairments, restructuring and other items

147

232

173

210

Legal settlements and loss contingencies

230

166

303

252

Other loss (income)

(19)

(28)

Operating income (loss)

(231)

455

421

975

Financial expenses, net

224

252

440

477

Income (loss) before income taxes

(455)

203

(18)

497

Income taxes (benefit)

121

(78)

188

(4)

Share in (profits) losses of associated companies, net

(1)

Net income (loss)

(575)

283

(206)

503

Net income (loss) attributable to redeemable

and non-redeemable non-controlling interests

Net income (loss) attributable to Teva

(576)

282

(207)

497

Earnings

(loss) per share attributable to Teva:

Basic ($)

(0.49)

0.25

(0.18)

0.43

Diluted ($)

(0.49)

0.24

(0.18)

0.43

Weighted average number of

shares (in millions):

Basic

1,165

1,147

1,160

1142

Diluted

1,165

1,161

1,160

1,159

Non-GAAP

net income attributable to Teva for diluted earnings per share:*

769

642

1,371

Non-GAAP earnings per share

attributable to Teva:*

Diluted ($)

0.02

0.66

0.54

1.18

Non-GAAP

average number of shares (in millions):

Diluted

1,181

1,161

1,179

1,159

Amounts

may not add up due to rounding.

§ Represents an amount less than $0.5 million.

* See reconciliation attached.

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in millions, except for share

data)

(Unaudited)

June 30,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

3,655

3,556

Accounts receivables, net of allowance for credit losses

of $75 million and $81 million as of June 30, 2026 and December 31, 2025, respectively.

3,493

3,709

Inventories

3,221

3,179

Prepaid expenses

1,034

1,122

Other current assets

563

539

Assets held for sale

1,794

1,842

Total current assets

13,760

13,946

Deferred income taxes

2,162

2,191

Other non-current assets

387

405

Property, plant and equipment, net

3,928

4,080

Operating lease right-of-use assets, net

333

345

Identifiable intangible assets, net

3,447

3,781

Goodwill

15,839

16,000

Total assets

39,857

40,748

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

4,500

1,820

Sales reserves and allowances

3,899

4,143

Accounts payables

2,721

2,531

Employee-related obligations

488

739

Accrued expenses

2,738

2,687

Other current liabilities

987

1,182

Liabilities held for sale

313

354

Total current liabilities

15,646

13,456

Long-term liabilities:

Deferred income taxes

289

296

Other taxes and long-term liabilities

3,791

3,808

Senior notes and loans

12,092

14,986

Operating lease liabilities

282

288

Total long-term liabilities

16,454

19,379

Equity:

Teva shareholders’ equity:

7,753

7,910

Non-controlling interests

Total equity

7,757

7,914

Total liabilities and equity

39,857

40,748

Amounts may not add up due to rounding.

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in millions)

(Unaudited)

Three months ended

Six months ended

June

30,

June

30,

2026

2025

2026

2025

Operating activities:

Net income (loss)

(575)

283

(206)

503

Adjustments to reconcile net income (loss) to net cash provided

by operations:

Depreciation and amortization

241

251

480

494

Impairment of long-lived assets and assets held for sale

113

122

177

Acquired IPR&D related to Emalex Biosciences

724

Net change in operating assets and liabilities

(164)

(336)

(780)

(1,035)

Deferred income taxes – net and uncertain tax positions

(211)

(183)

Stock-based compensation

Other items

105

(36)

Net loss (gain) from sale of business and long-lived assets

(12)

(2)

(20)

Net cash provided by (used in) operating activities

411

227

371

122

Investing activities:

Beneficial interest collected in exchange for securitized

trade receivables

311

336

665

658

Purchases of property, plant and equipment and intangible

assets

(104)

(96)

(273)

(223)

Proceeds from sale of business and long-lived assets, net

Purchase of Emalex Biosciences outstanding shares

(696)

Purchases of investments and other assets .

(1)

(16)

(1)

(27)

Other investing activities

(4)

(3)

Net cash provided by (used in) investing activities

(491)

236

(263)

437

Financing activities:

Repayment of senior notes and loans and other long-term liabilities

(2,300)

(23)

(3,668)

Repayment of convertible debentures

2,305

Purchase of shares from redeemable and non-redeemable

non-controlling interests

(38)

Dividends paid to redeemable and non-redeemable non-controlling

interests

(340)

Other financing activities

(1)

Net cash provided by (used in) financing activities

(1)

(1,738)

Effect of exchange rate changes on cash and cash

equivalents

(5)

(22)

Net change in cash and cash equivalents

(86)

464

(1,139)

Balance of cash and cash equivalents at beginning

of period

3,741

1,697

3,556

3,300

Balance of cash and cash equivalents at end of period

3,655

2,161

3,655

2,161

Non-cash financing and investing activities:

Beneficial interest obtained in exchange for securitized

accounts receivables

295

329

606

641

Amounts may not add up due to rounding.

The accompanying notes are an integral

part of the financial statements.

Reconciliation of net income (loss)

attributable to Teva

to Non-GAAP net income (loss) attributable

to Teva

(Unaudited)

Three months ended

Six months ended

June 30,

($ in millions except per share amounts)

2026

2025

2026

2025

Net income (Loss) attributable to Teva

($)

(576)

282

($)

(207)

497

Increase (decrease) for excluded items:

Amortization

of purchased intangible assets

139

148

276

292

Legal settlements and loss contingencies(1)

230

166

302

249

Impairment of long-lived assets(2)

113

122

177

Restructuring costs(3)

154

168

Equity compensation

Contingent consideration

Financial expenses

Other non-GAAP items(4)

118

Corresponding tax effects and unusual

tax items(5)

(17)

(228)

(82)

(283)

Non-GAAP net income attributable to Teva

($)

769

($)

642

1,371

Non-GAAP tax rate(6)

86.7%

16.4%

29.6%

16.9%

GAAP diluted earnings (loss) per share attributable

to Teva

($)

(0.49)

0.24

($)

(0.18)

0.43

EPS difference(7)

0.51

0.42

0.72

0.75

Non-GAAP diluted EPS attributable to Teva(7)

($)

0.02

0.66

($)

0.54

1.18

Non-GAAP average number of shares (in millions)(7)

1,181

1,161

1,179

1,159

(1)

For the three and six months

ended June 30, 2026, adjustments for legal settlements and loss contingencies mainly consisted of (a) an estimated provision recorded

in connection with one of the Company's ongoing antitrust litigations in the amount of $117 million, and (b) an update to the estimated

settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments)

in the amount of $49 million and $97 million, respectively. For the three and six months ended June 30, 2025, adjustments of legal settlements

and loss contingencies mainly consisted of (a) an update to the estimated settlement provision for the opioid cases (mainly the effect

of the passage of time on the net present value of the discounted payments) in the amount of $47 million and $97 million, respectively,

and (b) an update to the estimated provision recorded for the claims brought by attorneys general representing states and territories

throughout the United States in the generic drug antitrust litigation in the amount of $55 million.

(2)

The expense for the three

and six months ended June 30, 2026, was mainly related to an impairment charge of $70 million in connection with a manufacturing facility

in Europe. For the three months ended June 30, 2025, the adjustment for impairment of long-lived assets consisted of (a) impairment of

long-lived assets of $42 million mainly related to products in the U.S. and Europe, and (b) $55 million related to the held for sale measurement

of the API business (including its R&D, manufacturing and commercial activities), which includes a favorable impact related to the

expected gain from the reclassification of currency translation adjustments. For the six months ended June 30, 2025, the adjustment for

impairment of long-lived assets was mainly related to products in the U.S. and Europe.

(3)

In the three and six months

ended June 30, 2025, Teva recorded $154 million and $168 million, respectively, of restructuring expenses primarily related to optimization

activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations mainly through

headcount reduction.

(4)

Other non-GAAP items include

other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends

in our financial results, primarily related to the rationalization of our plants, accelerated depreciation, material litigation fees and

other unusual events.

(5)

Adjustments for corresponding

tax effects and unusual tax items exclusively consisted of the tax impact directly attributable to the pre-tax items that are excluded

from non-GAAP net income included in the other adjustments to this table.

(6)

Non-GAAP tax rate is tax expenses

(benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding

the impact of non-GAAP adjustments presented above. Our non-GAAP tax rate in the second quarter of 2026 was mainly affected by an unfavorable

tax impact of a non-deductible acquired IPR&D charge related to the acquisition of Emalex and its primary asset ecopipam (EBS-101),

the generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate and other infrequent or

non-recurring items.

(7)

EPS difference and diluted

non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of

shares.

Reconciliation of gross profit to Non-GAAP

gross profit

(Unaudited)

Three months ended

Six months ended

June 30,

($ in millions)

2026

2025

2026

2025

Gross profit

2,153

2,102

4,124

3,979

Gross profit margin

52.0%

50.3%

50.8%

49.3%

Increase (decrease) for excluded items: (1)

Amortization of purchased intangible assets

129

138

257

273

Equity compensation

Other non-GAAP items

Non-GAAP gross profit

2,293

2,278

4,401

4,332

Non-GAAP gross profit margin (2)

55.4%

54.6%

54.2%

53.7%

(1) For further explanations, refer to the footnotes

under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

(2) Non-GAAP gross profit margin is non-GAAP

gross profit as a percentage of revenue.

Reconciliation of operating income

(loss) to Non-GAAP operating income (loss)

(Unaudited)

Three months ended

Six months ended

June 30,

($ in millions)

2026

2025

2026

2025

Operating income (loss)

($)

(231)

455

($)

421

975

Operating margin

(5.6%)

10.9%

5.2%

12.1%

Increase (decrease) for excluded items: (1)

Amortization of purchased intangible assets

139

148

276

292

Legal settlements and loss contingencies

230

166

302

249

Impairment of long-lived assets

113

122

177

Restructuring costs

154

168

Equity compensation

Contingent consideration

Loss (gain) on sale of business

(4)

Other non-GAAP items

103

Non-GAAP operating income (loss)

($)

375

1,133

($)

1,331

2,079

Non-GAAP operating margin(2)

($)

9.0%

27.1%

($)

16.4%

25.8%

(1) For further explanations, refer to the footnotes

under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

(2) Non-GAAP operating margin is Non-GAAP operating

income as a percentage of revenues.

Reconciliation of net income (loss)

to adjusted EBITDA

(Unaudited)

Three months ended

Six months ended

June 30,

($ in millions)

2026

2025

2026

2025

Net income (loss)

(575)

283

(206)

503

Increase (decrease) for excluded items:(1)

Financial expenses

224

252

440

477

Income taxes

121

(78)

188

(4)

Share in profits (losses) of associated companies –net

(1)

Depreciation

102

103

205

201

Amortization

139

148

276

292

EBITDA

705

902

1,468

Legal settlements and loss contingencies

230

166

302

249

Impairment of long lived assets

113

122

177

Restructuring costs

154

168

Equity compensation

Contingent consideration

Loss (Gain) on sale of Business

(4)

Other non-GAAP items

Adjusted EBITDA

474

1,233

1,529

2,274

(1) For further explanations, refer to the footnotes

under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

§ Represents an amount of less than $0.5

million.

Segment Information

(Unaudited)

United

States

Europe

International

Markets

Three

months ended June30,

Three

months ended June 30,

Three

months ended June 30,

2026

2025

2026

2025

2026

2025

(U.S. $ in millions)

Revenues

1,702

1,786

1,263

1,298

550

495

Cost of sales

499

574

559

581

266

251

Gross profit

1,203

1,211

704

717

284

243

R&D expenses

883

152

S&M expenses

294

250

222

228

128

114

G&A expenses

107

111

Other

(5)

(3)

(8)

(1)

Segment profit*

(76)

699

367

364

* Segment profit does not include amortization

and certain other items.

§ Represents an amount less than $0.5 million.

Segment Information

(Unaudited)

United

States

Europe

International

Markets

Six

months ended June 30,

Six

months ended June 30,

Six

months ended June 30,

2026

2025

2026

2025

2026

2025

(U.S. $ in millions)

Revenues

3,236

3,322

2,603

2,492

1,074

1,077

Cost of sales

995

1,097

1,165

1,117

547

556

Gross profit

2,241

2,225

1,438

1,374

527

521

R&D expenses

1,030

306

120

S&M expenses

593

493

437

427

245

232

G&A expenses

197

206

139

135

Other

(9)

(3)

(7)

(2)

Segment profit

431

1,216

768

693

164

171

§ Represents an amount

less than $0.5 million.

Reconciliation of our segment profit

to consolidated income (loss) before

income taxes

(Unaudited)

Three months ended

June

30,

2026

2025

(U.S.$ in millions)

United States profit

(76)

699

Europe profit

367

364

International Markets profit

Total reportable segment profit

391

1,136

Profit (loss) of other activities

(16)

(3)

Amounts not allocated to segments:

Amortization

139

148

Other asset impairments, restructuring

and other items

147

232

Intangible asset impairments

Legal settlements and loss contingencies

230

166

Other unallocated amounts

Consolidated operating income (loss)

(231)

455

Financial expenses - net

224

252

Consolidated income (loss) before income taxes

(455)

203

Reconciliation of our segment profit

to consolidated income (loss) before

income taxes

(Unaudited)

Six months ended

June

30,

2026

2025

(U.S.$ in millions)

United States profit

431

1,216

Europe profit

768

693

International Markets profit

164

171

Total reportable segment profit

1,363

2,080

Profit (loss) of other activities

(32)

(1)

Amounts not allocated to segments:

Amortization

276

292

Other asset impairments, restructuring

and other items

173

210

Intangible asset impairments

163

Legal settlements and loss contingencies

302

249

Other unallocated amounts

128

190

Consolidated operating income (loss)

421

975

Financial expenses - net

440

477

Consolidated income (loss) before income taxes

(18)

497

Segment revenues by major products

and activities

(Unaudited)

Three

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

United States segment

Generic products (including biosimilars)

660

961

(31%)

AJOVY®

116

83%

AUSTEDO

676

495

37%

BENDEKA® and TREANDA®

(30%)

COPAXONE

(2%)

UZEDY

43%

Other*

111

(25%)

Total

1,702

1,786

(5%)

*Other revenues in the first quarter of 2026

include the sale of certain product rights.

Three

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

Europe segment

Generic products (including OTC and biosimilars)

1,024

1,040

(2%)

AJOVY

10%

COPAXONE

(2%)

Respiratory products

Other*

(34%)

Total

1,263

1,298

(3%)

*Other revenues in the first quarter of 2026

and 2025 include the sale of certain product rights.

Three

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

International Markets segment

Generic products (including OTC and biosimilars)

419

410

AJOVY

146%

AUSTEDO

571%

COPAXONE

Other*

(1%)

Total

550

495

11%

*Other revenues in the first quarter of 2026

and 2025 include the sale of certain product rights.

Segment revenues by major products

and activities

(Unaudited)

Six

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

United States segment

Generic products

1,272

1,809

(30%)

AJOVY

203

117

74%

AUSTEDO

1,236

891

39%

BENDEKA / TREANDA

(28%)

COPAXONE

124

116

UZEDY

140

51%

Other

206

220

(6%)

Total

3,236

3,322

(3%)

Six

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

Europe segment

Generic products

2,113

2,029

AJOVY

154

129

19%

COPAXONE

(3%)

Respiratory products

117

110

Other*

130

132

(1%)

Total

2,603

2,492

*Other revenues in the first six months of 2026

and 2025 include the sale of certain product rights.

Six

months ended

Percentage

June

30,

Change

2026

2025

2026-2025

(U.S.$ in millions)

International Markets segment

Generic products

805

878

(8%)

AJOVY

72%

AUSTEDO

120%

COPAXONE

(23%)

Other*

134

116

15%

Total

1,074

1,077

*Other revenues in the first six months of 2026

and 2025 include the sale of certain product rights.

§ Represents an amount less than 0.5

Free cash flow reconciliation

(Unaudited)

Three

months ended June 30,

2026

2025

(U.S. $ in millions)

Net cash provided by (used in) operating activities

411

227

Beneficial interest collected in exchange for securitized

accounts receivables

311

336

Capital investment

(104)

(96)

Proceeds from divestitures of businesses and other assets,

net

Free cash flow

622

476

Free cash flow reconciliation

(Unaudited)

Six

months ended June 30,

2026

2025

(U.S. $ in millions)

Net cash provided by (used in) operating activities

371

122

Beneficial interest collected in exchange for securitized

trade receivables

665

658

Capital investment

(273)

(223)

Proceeds from divestitures of businesses and other assets,

net

Free cash flow

810

583

Net debt reconciliation

unaudited

June

30,

2026

Short-term debt

4,500

Senior notes and loans

12,092

Total debt

16,593

Net of cash and cash equivalents

3,655

Net debt

12,938

Teva Media Inquiries

TevaCommunicationsNorthAmerica@tevapharm.com

Teva Investor Relations Inquiries

TevaIR@Tevapharm.com

A PDF accompanying this announcement is available at http://ml-eu.globenewswire.com/Resource/Download/8da3902c-3e69-4f58-a12c-bbf2290f6301

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