TEVA PHARMACEUTICAL INDUSTRIES LTD, 10-K filed on 2/3/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Jun. 30, 2025
Cover [Abstract]    
Document Type 10-K  
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Transition Report false  
Document Period End Date Dec. 31, 2025  
Document Fiscal Period Focus FY  
Document Annual Report true  
Entity Registrant Name TEVA PHARMACEUTICAL INDUSTRIES LIMITED  
Entity Central Index Key 0000818686  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding 1,149,812,898  
Title of 12(b) Security American Depositary Shares, each representing one Ordinary Share  
Trading Symbol TEVA  
Security Exchange Name NYSE  
Entity File Number 001-16174  
Entity Incorporation, State or Country Code L3  
Entity Tax Identification Number 00-0000000  
Entity Address, Address Line One 124 Dvora HaNevi’a St.  
Entity Address, City or Town Tel Aviv  
Entity Address, Postal Zip Code 6944020  
Entity Address, Country IL  
City Area Code +972(3)  
Local Phone Number 914-8213  
Entity Filer Category Large Accelerated Filer  
Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Public Float   $ 18,160
ICFR Auditor Attestation Flag true  
Auditor Name Kesselman & Kesselman  
Auditor Firm ID 1309  
Auditor Location Israel  
Document Financial Statement Error Correction [Flag] false  
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 3,556 $ 3,300
Accounts receivables, net of allowance for credit losses of $81 million and $78 million as of December 31, 2025 and December 31, 2024, respectively 3,709 3,059
Inventories 3,179 3,007
Prepaid expenses 1,122 1,006
Other current assets 539 409
Assets held for sale 1,842 1,771
Total current assets 13,946 12,552
Deferred income taxes 2,191 1,799
Other non-current assets 405 462
Property, plant and equipment, net 4,080 4,581
Operating lease right-of-use assets 345 367
Identifiable intangible assets, net 3,781 4,418
Goodwill [1] 16,000 15,147
Total assets 40,748 39,326
Current liabilities:    
Short-term debt 1,820 1,781
Sales reserves and allowances 4,143 3,678
Accounts payables 2,531 2,203
Employee-related obligations 739 624
Accrued expenses 2,687 2,792
Other current liabilities 1,182 1,020
Liabilities held for sale 354 698
Total current liabilities 13,456 12,796
Long-term liabilities:    
Deferred income taxes 296 483
Other taxes and long-term liabilities 3,808 4,028
Senior notes and loans 14,986 16,002
Operating lease liabilities 288 296
Total long-term liabilities 19,379 20,809
Commitments and contingencies, see note 12
Total liabilities 32,834 33,606
Redeemable non-controlling interests 0 340
Teva shareholders' equity:    
Ordinary shares of NIS 0.10 par value per share; December 31, 2025 and December 31, 2024: authorized 2,495 million shares; issued 1,257 million shares and 1,240 million shares, respectively 58 58
Additional paid-in capital 28,133 27,764
Accumulated deficit (13,762) (15,173)
Accumulated other comprehensive loss (2,391) (3,148)
Treasury shares as of December 31, 2025 and December 31, 2024: 107 million ordinary shares (4,128) (4,128)
Stockholders' equity attributable to Teva shareholders 7,910 5,373
Non-controlling interests 4 7
Total equity 7,914 5,380
Total liabilities, redeemable non-controlling interests and equity $ 40,748 $ 39,326
[1] Cumulative goodwill impairment as of December 31, 2025, 2024 and 2023, was approximately $29.6 billion, $29.6 billion and $28.3 billion, respectively.
v3.25.4
Consolidated Balance Sheets (Parenthetical)
shares in Millions, $ in Millions
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2025
₪ / shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2024
₪ / shares
Allowance for credit losses | $ $ 81   $ 78  
Common stock, par or stated value per share | ₪ / shares   ₪ 0.1   ₪ 0.1
Ordinary shares, authorized 2,495   2,495  
Ordinary shares, issued 1,257   1,240  
Treasury shares 107   107  
v3.25.4
Consolidated Statements of Income (Loss) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net revenues $ 17,258 $ 16,544 $ 15,846
Cost of sales 8,320 8,481 8,200
Gross profit 8,938 8,064 7,645
Research and development expenses, net 1,013 998 953
Selling and marketing expenses 2,686 2,541 2,336
General and administrative expenses 1,287 1,161 1,162
Intangible assets impairments 259 251 350
Goodwill impairment 0 1,280 700
Other asset impairments, restructuring and other items 1,050 1,388 718
Legal settlements and loss contingencies 467 761 1,043
Other loss (income) 18 (14) (49)
Operating income (loss) 2,157 (303) 433
Financial expenses – net 934 981 1,057
Income (loss) before income taxes 1,223 (1,284) (624)
Income taxes (benefit) (180) 676 (7)
Share in (profits) losses of associated companies – net (15) (1) (2)
Net income (loss) 1,418 (1,959) (615)
Net income (loss) attributable to redeemable and non-redeemable non-controlling interests 7 (320) (56)
Net income (loss) attributable to Teva $ 1,410 $ (1,639) $ (559)
Earnings (loss) per share attributable to ordinary shareholders:      
Basic $ 1.23 $ (1.45) $ (0.5)
Diluted $ 1.21 $ (1.45) $ (0.5)
Weighted average number of shares (in millions):      
Basic 1,145 1,131 1,119
Diluted 1,163 1,131 1,119
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net income (loss) $ 1,418 $ (1,959) $ (615)
Other comprehensive income (loss), net of tax:      
Currency translation adjustment 732 (530) 80
Unrealized gain (loss) on derivative financial instruments, net 39 28 29
Unrealized gain (loss) on defined benefit plans, net 13 (6) (18)
Total other comprehensive income (loss) 784 (508) 91
Total comprehensive income (loss) 2,202 (2,467) (524)
Comprehensive income (loss) attributable to redeemable and non-redeemable non-controlling interests 34 (381) (106)
Comprehensive income (loss) attributable to Teva $ 2,168 $ (2,086) $ (418)
v3.25.4
Consolidated Statements of Changes in Equity - USD ($)
shares in Millions, $ in Millions
Total
Ordinary Shares [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Shares [Member]
Total Teva Shareholders' Equity [Member]
Non-controlling Interests [Member]
Beginning balance at Dec. 31, 2022 $ 8,598 $ 57 $ 27,688 $ (12,975) $ (2,838) $ (4,128) $ 7,804 $ 794
Beginning balance, shares at Dec. 31, 2022   1,217            
Net income (loss) (615)     (559)       (56)
Net income (loss) (559)           (559)  
Other comprehensive income (loss) 91       141   141 (50)
Other comprehensive income (loss) [1]         141      
Issuance of shares, shares   10            
Stock-based compensation expense 121   121       121  
Dividend to non-controlling interests [2] (68)             (68)
Ending balance at Dec. 31, 2023 8,126 $ 57 27,807 (13,534) (2,697) (4,128) 7,506 620
Ending balance, shares at Dec. 31, 2023   1,227            
Net income (loss) (1,959)     (1,639)       (320)
Net income (loss) (1,639)           (1,639)  
Other comprehensive income (loss) (508)       (447)   (447) (61)
Other comprehensive income (loss) [1]         (450)      
Issuance of shares, value 1 $ 1         1  
Issuance of shares, shares   13            
Stock-based compensation expense 123   123       123  
Dividend to non-controlling interests [2] (18)             (18)
Proceeds from exercise of options 19   19       19  
Purchase of shares from non-controlling interests [3] (64)   (45)   (3)   (48) (16)
Reclassification to redeemable non-controlling interests [4] (340)   (142)       (142) (198)
Ending balance at Dec. 31, 2024 5,380 $ 58 27,764 (15,173) (3,148) (4,128) 5,373 7
Ending balance, shares at Dec. 31, 2024   1,240            
Net income (loss) 1,411     1,410       1
Net income (loss) 1,410           1,410  
Other comprehensive income (loss) 784              
Other comprehensive income (loss) 757       757 [1]   757  
Issuance of shares, value 1           1  
Issuance of shares, shares   16            
Stock-based compensation expense 157   157       157  
Dividend to non-controlling interests [5] (4)             (4)
Proceeds from exercise of options 47   47       47  
Purchase of shares from non-controlling interests (38)              
Purchase of shares from redeemable non-controlling interests [4] 165   165       165  
Ending balance at Dec. 31, 2025 $ 7,914 $ 58 $ 28,133 $ (13,762) $ (2,391) $ (4,128) $ 7,910 $ 4
Ending balance, shares at Dec. 31, 2025   1,256            
[1] Amounts do not include $27 million gain in 2025, $61 million loss in 2024 and $50 million loss in 2023 from foreign currency translation adjustments attributable to redeemable and non-redeemable non-controlling interests.
[2] Mainly in connection with a declaration of dividends to non-controlling interests in Teva’s business venture in Japan.
[3] Purchase of shares from non-controlling interests in a Teva’s subsidiary in Switzerland.
[4] In connection with the sale of Teva’s business venture in Japan. See note 22.
[5] In connection with a declaration of dividends to non-controlling interests in Teva’s subsidiary in Bulgaria.
v3.25.4
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Maximum [Member] | Ordinary Shares [Member]      
Exercise of options by employees and vested RSUs $ 0.5 $ 0.5 $ 0.5
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities:      
Net income (loss) $ 1,418 $ (1,959) $ (615)
Adjustments to reconcile net income (loss) to net cash provided by operations:      
Impairment of goodwill 0 1,280 700
Impairment of long-lived assets and assets held for sale 1,028 1,275 378
Depreciation and amortization 1,002 1,059 1,153
Net change in operating assets and liabilities (1,366) (435) (72)
Deferred income taxes — net and uncertain tax positions (671) (634) (317)
Stock-based compensation 157 123 121
Net loss (gain) from sale of business and long-lived assets 0 (22) (41)
Other items, net [1] 81 560 61
Net cash provided by (used in) operating activities 1,649 1,247 1,368
Investing activities:      
Beneficial interest collected in exchange for securitized trade receivables 1,214 1,291 1,477
Purchases of property, plant and equipment and intangible assets (501) (498) (526)
Proceeds from sale of business and long lived assets 34 43 68
Purchases of investments and other assets (57) (71) (46)
Proceeds from sale of investments 42 40 0
Acquisitions of businesses, net of cash acquired 0 (15) 0
Other investing activities 5 2 (5)
Net cash provided by (used in) investing activities 737 792 968
Financing activities:      
Repayment of senior notes and loans and other long term liabilities (4,112) (1,641) (4,152)
Proceeds from senior notes, net of issuance costs 2,298 0 2,451
Proceeds from short term debt 0 0 700
Repayment of short term debt 0 0 (700)
Purchase of shares from redeemable and non-redeemable non-controlling interests (38) (64) 0
Dividends paid to redeemable and non-redeemable non-controlling interests (340) (78) 0
Other financing activities 41 (8) (212)
Net cash provided by (used in) financing activities (2,151) (1,791) (1,913)
Translation adjustment on cash, cash equivalents and restricted cash 21 (174) (30)
Net change in cash, cash equivalents and restricted cash 256 74 393
Balance of cash, cash equivalents and restricted cash at beginning of year 3,300 3,227 2,834
Balance of cash, cash equivalents and restricted cash at end of year 3,556 3,300 3,227
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets:      
Cash and cash equivalents 3,556 3,300 3,226
Restricted cash included in other current assets 0 0 1
Total cash, cash equivalents and restricted cash shown in the statement of cash flows 3,556 3,300 3,227
Non-cash financing and investing activities:      
Beneficial interest obtained in exchange for securitized trade receivables 1,278 1,286 1,446
Dividend declared to non-controlling interests 0 0 67
Cash paid during the year for:      
Interest 950 1,004 1,078
Net change in operating assets and liabilities:      
Other assets (1,330) (1,104) (1,525)
Trade payables, accrued expenses, employee-related obligations and other liabilities (15) 258 1,588
Trade receivables net of sales reserves and allowances (173) 245 12
Inventories 152 166 (147)
Net Change In Items Comprising Supplemental Disclosure Of Cash Flow Information $ (1,366) $ (435) $ (72)
[1] “Other items, net” in the year ended December 31, 2024 includes mainly amounts related to an agreement with the Israeli Tax Authorities.
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 1,410 $ (1,639) $ (559)
v3.25.4
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2025
shares
Evan Lippman, EVP, Business Development [Member]  
Trading Arrangements, by Individual  
Name Evan Lippman, EVP
Title Business Development
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date May 15, 2026
Aggregate Available 85,849
Richard Daniell, EVP, Head of European Commercial [Member]  
Trading Arrangements, by Individual  
Name Richard Daniell, EVP
Title Head of European Commercial
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date March 6, 2026
Aggregate Available 244,186
Dr. Eric Hughes, EVP, Global RD and Chief Medical Officer [Member]  
Trading Arrangements, by Individual  
Name Dr. Eric Hughes, EVP
Title Global R&D and Chief Medical Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date August 4, 2026
Aggregate Available 231,217
Placid Jover, EVP, Chief Human Resources Officer [Member]  
Trading Arrangements, by Individual  
Name Placid Jover, EVP
Title Chief Human Resources Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date August 4, 2026
Aggregate Available 26,977
Matthew Shields, EVP, Teva Global Operations [Member]  
Trading Arrangements, by Individual  
Name Matthew Shields, EVP
Title Teva Global Operations
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date June 4, 2026
Aggregate Available 33,490
David R. McAvoy, EVP, Chief Legal Officer [Member]  
Trading Arrangements, by Individual  
Name David R. McAvoy, EVP
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 10, 2025
Expiration Date March 6, 2026
Aggregate Available 30,891
Richard D. Francis, President and CEO [Member]  
Trading Arrangements, by Individual  
Name Richard D. Francis
Title President and CEO
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 14, 2025
Expiration Date June 8, 2026
Aggregate Available 1,570,667
Eli Kalif, EVP, Chief Financial Officer [Member]  
Trading Arrangements, by Individual  
Name Eli Kalif, EVP
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 26, 2025
Expiration Date June 12, 2026
Aggregate Available 605,624
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Risk Management Program Overview
As cybersecurity threats rapidly evolve in sophistication and become more prevalent, especially with the increasing use of artificial intelligence (“AI”) technology, we have implemented a cybersecurity risk management program as part of our oversight, evaluation and mitigation of enterprise-level risks. Our cybersecurity risk management program leverages a combination of processes, technologies and personnel with expertise in cybersecurity to comply with applicable regulations and detect and respond to cyber-attacks, data breaches, security incidents, and compromises of personal information, as well as to regularly and promptly inform management and our Board of Directors of any significant cybersecurity risks and developments.
Our cybersecurity risk management program is led by our global Chief Information Security Officer (“CISO”), who is directly responsible for establishing cybersecurity strategies and structures and managing ongoing cybersecurity risk management activities through our cybersecurity organization, which is responsible for the
day-to-day
identification, monitoring and management of cybersecurity risks. Our CISO reports directly to our global Chief Information Officer (“CIO”). Our CISO has significant experience in managing cybersecurity risks at major global companies in the pharmaceutical and defense industries. Our CISO regularly meets with the CIO to provide updates on cybersecurity matters, and both update our executive management on a regular basis to share cybersecurity related matters and discuss strategies to proactively manage cybersecurity threats. Our CISO and CIO brief our Audit Committee on our cybersecurity and risk management programs.
Our cybersecurity organization is supported by a team consisting of personnel with experience and expertise in cybersecurity risk management strategies, execution and operations, with domain expertise in cloud services security, infrastructure and operational technology security, cybersecurity incident response, and tactical governance risk compliance.
Our CISO is also a member of our information and security governance group, led by our CIO, which is comprised of executive and senior leadership from a variety of functions, including information security, legal, finance, human resources, internal audit and compliance, as well as members of Teva’s global situation room (“GSR”) referred to below. Additionally, our CISO, CIO and other members of our cybersecurity organization may, from time to time, consult and coordinate with other Teva departments and members of management to manage cybersecurity risks, promote cybersecurity awareness and implement cybersecurity incident responses.
In addition, management has worked, and expects to continue to work, with third-party service providers, as appropriate, to assess, identify and manage cybersecurity risks. We also conduct periodic and
on-demand
assessments of our cybersecurity risk management program with expert service providers to assess compliance with ISO 27001 standards. As part of our cybersecurity program, we conduct numerous periodic tabletop exercises to assess our cybersecurity incident response process.
As part of its overall risk oversight function, the Audit Committee, which is comprised entirely of independent directors, oversees cybersecurity risks in connection with our overall enterprise risk management system. Management, including our CISO and CIO, provide updates on our cybersecurity risk management program and cybersecurity matters to the Audit Committee, and also report to the Board of Directors as necessary. These updates and reports include updates on Teva’s cybersecurity risks and threats, the status of projects intended to strengthen its information systems, assessments of the cybersecurity program, and the emerging threat landscape.
As part of our cybersecurity risk management program, we maintain industry standard procedures and policies, which are reviewed and revised periodically, and certified to comply with ISO 27001 standards, to
 
proactively assess, identify and manage potential cybersecurity risks and respond to any actual cybersecurity threats and incidents, including those related to the use of AI. Such procedures and policies include: actively monitoring our information technology systems to oversee compliance with applicable legal and regulatory requirements; engaging third-party consultants and other service providers to monitor and, as appropriate, respond to cybersecurity risks; requiring our service providers and our business partners who connect directly to our information technology systems to comply with our cybersecurity standards and due diligence processes and be subject to our
non-disclosure
and other confidentiality agreements that include cybersecurity-related terms; providing and analyzing specialized industry sector intelligence on cybersecurity threats; regularly testing our cybersecurity systems and disaster preparedness, including our
back-up
information technology systems; developing, testing and updating incident response plans to address potential cybersecurity threats; and maintaining and training our personnel on cybersecurity incident reporting procedures. We engage with key vendors, and intelligence and law enforcement communities as part of our continuing efforts to obtain current threat intelligence, collaborate on security enhancements, and evaluate and improve the effectiveness of our cyber security program. Additionally, as part of our cybersecurity risk management program, we have developed awareness and protection procedures related to AI adoption and use.
Cyber Threats and Incident Response
In the ordinary course of our business, we collect and store confidential data, including intellectual property, proprietary business information and personally identifiable information (including of our employees, customers, clinical trial participants, suppliers and business partners). We rely extensively on information technology systems, including some systems that are managed by third-party service providers, to securely process, store and transmit such confidential data in order to conduct our business. These systems include programs and processes relating to internal and external communications, ordering and managing materials from suppliers, collecting, processing and storing data produced by our clinical trials and other research and development initiatives, converting materials to finished products, shipping products to customers, processing transactions, processing payments to employees and vendors, calculating sales receivables, generating our financial results for each reporting period, summarizing and reporting results of operations, and complying with information technology security compliance and other regulatory, legal or tax requirements. In addition, as cybersecurity attacks may become increasingly complex as they are enhanced or facilitated by the emergence of new technologies such as AI used to identify and target new vulnerabilities in our information technology systems or those of our customers, third-party vendors and other business partners, we are taking measures to manage these risks by utilizing new tools and capabilities, including AI.
We have not been materially impacted by risks from cybersecurity incidents and, as of the date of this Annual Report on Form
10-K,
we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, there can be no assurance that Teva will not be materially affected by such risks in the future. Our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats. For more information, see “Item 1A, Risk Factors—Risks related to our general business and operations—Significant disruptions of our information technology systems could adversely affect our business” and “Item 1A, Risk Factors—Risks related to our general business and operations—A data security breach could adversely affect our business and reputation.”
In the event that we experience a cybersecurity incident, we have a response playbook that sets forth the applicable processes, roles, engagements, escalations and notifications to be executed in order to promptly respond to such threats. Depending on its nature and scale, a cybersecurity threat may be managed within our cybersecurity organization, escalated to our CISO and CIO, management, and Audit Committee and Board of Directors, as appropriate. In certain instances, our GSR may be initiated and will collectively manage Teva’s response to a crisis on a corporate level. The GSR is comprised of members from our various business units and regions, including senior leadership from a variety of functions, such as information security, legal, finance, human resources, communications and compliance.
 
We carry insurance that provides protection against the potential losses arising from a cybersecurity incident. However, there is no assurance that our insurance coverage will cover or be sufficient to cover all losses or claims that may result from a cybersecurity incident.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] We have not been materially impacted by risks from cybersecurity incidents and, as of the date of this Annual Report on Form
10-K,
we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, there can be no assurance that Teva will not be materially affected by such risks in the future. Our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats. For more information, see “Item 1A, Risk Factors—Risks related to our general business and operations—Significant disruptions of our information technology systems could adversely affect our business” and “Item 1A, Risk Factors—Risks related to our general business and operations—A data security breach could adversely affect our business and reputation.”
Cybersecurity Risk Role of Management [Text Block] As part of its overall risk oversight function, the Audit Committee, which is comprised entirely of independent directors, oversees cybersecurity risks in connection with our overall enterprise risk management system.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Management, including our CISO and CIO, provide updates on our cybersecurity risk management program and cybersecurity matters to the Audit Committee, and also report to the Board of Directors as necessary. These updates and reports include updates on Teva’s cybersecurity risks and threats, the status of projects intended to strengthen its information systems, assessments of the cybersecurity program, and the emerging threat landscape.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our cybersecurity risk management program is led by our global Chief Information Security Officer (“CISO”), who is directly responsible for establishing cybersecurity strategies and structures and managing ongoing cybersecurity risk management activities through our cybersecurity organization, which is responsible for the
day-to-day
identification, monitoring and management of cybersecurity risks.
v3.25.4
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Significant Accounting Policies
NOTE 1 — Significant accounting policies:
 
a.
General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity and disclosure of contingent liabilities and assets at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates.
In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation expectations on its critical and significant accounting estimates. Actions taken to address macroeconomic developments such as decisions regarding interest rates in the countries in which Teva operates, as well as their economic impact on Teva’s third-party manufacturers and suppliers, customers and markets, could also impact such estimates and may change in future periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to: determining the valuation and recoverability of IPR&D and long-lived assets, marketed product rights and goodwill, assessing sales reserves and allowances in the United States, uncertain tax positions, valuation allowances and contingencies. Some of these estimates could be impacted by higher costs and the ability to pass on such higher costs to customers, which is highly uncertain.
In preparing the Company’s consolidated financial statements, management also considered the impact of geopolitical conflicts and developments, including in the Middle East and in Russia and Ukraine. Other than the impact on the goodwill impairment charge in its International Markets reporting unit recorded in the second quarter of 2023 resulted from the sustained conflict between Russia and Ukraine, the impact of these conflicts on Teva’s results of operation and financial condition continued to be immaterial as of December 31, 2025.
Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
 
 
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as
non-controlling
interests
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on an equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
 
b.
New accounting pronouncements
Recently adopted accounting pronouncements
In September 2025, the FASB issued ASU
No. 2025-07
(“ASU
2025-07”),
Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The guidance refines the scope of Topic 815 by clarifying which contracts are subject to derivative accounting and expands the scope exception for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU
2025-07
are effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Effective January 1, 2025, the company early adopted ASU
2025-07
on a modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU
2025-05,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient when estimating credit losses on accounts receivable and contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Effective January 1, 2025, the company early adopted ASU
2025-05
on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU
2023-09
is effective for the Company’s annual reporting period beginning January 1, 2025. The Company has adopted this update on a prospective basis. The adoption of this guidance resulted in expanded disclosures in its consolidated financial statements.
 
 
Recently issued accounting pronouncements, not yet adopted
In December 2025, the FASB issued ASU
2025-12
“Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In December 2025, the FASB issued ASU
2025-11,
“Interim Reporting (Topic 270) Narrow-Scope Improvements.” The amendments in this Update clarify interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this ASU are required to be adopted for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09 to amend the guidance in “Derivatives and Hedging” (Topic 815). The update provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Topic 350-40): Targeted Improvements.” This ASU 2025-06 provides updated guidance clarifying the capitalization of costs related to internal-use software, including enhanced guidance on cloud computing arrangements. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In May 2025, the FASB issued ASU
2025-03
“Business Combinations and Consolidation: Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which amends the guidance for determining the accounting acquirer in certain transactions. The guidance should be applied prospectively. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The adoption of this guidance will affect acquisition transactions of variable interest entities that occur after the initial application date.
In November 2024, the FASB issued ASU
2024-03
“Income Statement: Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. ASU
2024-03
is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The
 
 
Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those
 
entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation
S-X
or Regulation
S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. For all entities within the scope of the affected Codification subtopics, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation
S-X
or Regulation
S-K,
the pending content of the associated amendment will be removed from the Codification and will not become effective for any entities. The Company does not expect ASU
2023-06
to have a material impact on its consolidated financial statements
 
c.
Acquisitions:
The Company makes a determination whether a transaction should be accounted for as a business combination or as an asset acquisition in accordance with ASC 805, Business Combinations.
In a business combination, the acquisition method of accounting generally requires that the assets acquired and liabilities assumed be recorded as of the date of the acquisition at their respective fair values. Amounts allocated to acquired
in-process
research and development are capitalized as indefinite-lived intangible assets. Any excess of the purchase price (consideration transferred), including the fair value of any contingent consideration and
any non-controlling interest
in the acquire, over the fair values of net assets acquired is recorded as goodwill. Contingent consideration obligations that are classified as liabilities, are recorded at fair value as of the acquisition date and remeasured each subsequent reporting period until the contingencies have been resolved, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items. Transaction costs are expensed as incurred.
If it is determined that the assets acquired do not meet the definition of a business, or if substantially all of the fair value of the assets acquired are concentrated in a single identifiable asset, then the transaction is accounted for as an asset acquisition rather than a business combination. In an asset acquisition, assets acquired are recorded at cost which is generally allocated to the assets on a relative fair value basis. Goodwill is not recognized, and acquired
in-process
research and development with no alternative future use is charged to expense.
The fair value of contingent consideration liabilities acquired as part of business combination is determined at the acquisition date using unobservable inputs in accordance with ASC 805, Business Combinations. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value with changes (either expense or income) recorded in earnings under other asset impairments, restructuring and other items. Significant events that increase or decrease the probability of achieving development and regulatory milestones or that increase or decrease projected cash flows will result in corresponding increases or decreases in the fair values of the related contingent consideration obligations.
 
 
d.
Collaborative arrangements:
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development.
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements on a gross or net basis. When the Company is the principal in sales transactions with third parties, the Company recognizes sales, cost of sales and selling, general and administrative expenses on a gross basis. Profit sharing amounts it pays to its collaborative partners are recorded within cost of sales. When the collaborative partner is the principal on sales transactions with third parties, the Company records profit sharing amounts received from its collaborative partners on a net basis.
Research and development costs the Company incurs related to collaborations are recorded within research and development expenses. Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaboration agreements are recorded as increases or decreases to research and development expenses.
In addition, the terms of the collaboration agreements may require the Company to make payments based upon the achievement of certain developmental, regulatory approval or commercial milestones. Upfront and milestone payments payable by the Company to collaborative partners prior to regulatory approval are expensed as incurred and included in Research and development expenses. Payments due to collaborative partners upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to Cost of sales over the estimated useful life of the corresponding intangible asset, provided that future cash flows support the amounts capitalized. Sales-based milestones payable by the Company to collaborative partners are accrued and capitalized, subject to cumulative amortization
catch-up,
when determined to be probable of being achieved by the Company and when reasonably estimable. The amortization
catch-up
is calculated either from the time of the first regulatory approval for indications that were unapproved at the time the collaboration was formed, or from the time of the formation of the collaboration for approved products. The related intangible asset that is recognized is amortized to Cost of sales over its remaining useful life, subject to impairment testing.
 
e.
Equity securities:
The Company measures equity securities at fair value, with changes in fair value recognized in net income, in accordance with ASC 321, Investments—Equity Securities. For equity investments that do not have a readily determinable fair value and are not accounted for under the equity method or consolidated, the Company elects the measurement alternative. Under this approach, such investments are carried at cost, less any impairment, and adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Impairment assessments are performed each reporting period when indicators of impairment exist. Dividend income is recognized as earned, to the extent it represents a distribution of the investee’s accumulated earnings; other distributions are treated as a return of investment and reduce the carrying amount of the investment.
 
f.
Fair value measurement:
The Company measures certain assets and liabilities in accordance with ASC 820, Fair Value Measurement.. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 
 
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
The Company’s valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs whenever possible and considers factors such market conditions and counterparty credit risk.
 
g.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
 
h.
Restricted cash:
Restricted cash represents amounts which are legally
restricted
to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
 
i.
Accounts Receivables:
Accounts receivables are recorded net of allowance for credit losses. The Company maintains the allowance for estimated credit losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable based on current conditions as of the balance sheet date in accordance with
ASC 326-20-30-10C
and ASC
326-20-30-10D.
The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses and economic and market conditions.
Write-off
activity and recoveries for the periods presented were not material.
The Company elected to apply the practical expedient provided in ASU
2025-05
as described above.
 
j.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, on December 31, 2025 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of money market funds investments and cash deposits.
The U.S. market constituted approximately 53%
of Teva’s consolidated revenues in 2025. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. From time to time, the Company may choose to purchase trade credit insurance.
 
 
k.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are
 
determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold or written off.
 
l.
Long-lived assets, other indefinite-lived intangible assets and goodwill:
Long-lived assets
Teva’s long-lived,
non-current
assets are comprised mainly of identifiable intangible assets that are subject to amortization, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets with finite lives are monitored for impairment indicators throughout the year in accordance with
ASC 360-10,
Impairment or Disposal of Long-Lived Assets, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the assets (or asset group). If such evaluation indicates that the carrying amount of the asset (or asset group) is not recoverable, the assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets (such as computer equipment, internal-used software, and assets under constructions) between 5 to 10 years.
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1dd for further discussion.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite and indefinite life intangible assets.
Definite life intangible assets primarily include acquired product rights and other rights related to products approved by the FDA or the equivalent regulatory agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life or based on economic benefit models when they better reflect the expected cash flow patterns. Amortization of acquired product rights is recorded
 
 
under cost of sales, while amortization of marketing and distribution rights, if separable, is recorded under selling and marketing expenses (“S&M”).
Indefinite life intangible assets, primarily IPR&D assets, are monitored for research and development progress, clinical trial outcomes, and regulatory approvals to identify any triggering events for impairment.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired. Acquired IPR&D, not in a business combination, is expensed on its acquisition date unless it has an alternative future use.
Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. Whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva tests for impairment on an annual basis, in the second quarter of the fiscal year, or more frequently if facts and circumstances indicate an asset is more likely than not impaired, as required by ASC 350, intangibles–Goodwill and Other. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its carrying value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. Teva’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired as part of a business combination. Goodwill is not amortized and is assigned to reporting units and tested for impairment on an annual basis in the second quarter of the fiscal year, or more frequently, if facts and circumstances indicate an asset is more likely than not impaired, as required by ASC 350, intangibles–Goodwill and Other.
The goodwill impairment test is performed according to the following principles:
 
 
1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 

 
2.
If Teva concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in Teva’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, Teva considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Assets and liabilities held for sale
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount or fair value, less costs to sell.
Non-current
assets included in assets held for sale are not subject to depreciation or amortization while classified as held for sale. These assets and liabilities are presented separately within current assets and current liabilities on the Consolidated Balance Sheets.
 
m.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected, subject to a limitation that such anticipated recoveries do not exceed the related loss recognized. When applicable, the Company classifies the effects of the passage of time on the net present value of discounted legal accruals as legal expense. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
 
n.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.

o.
Stock-based compensation:
Teva accounts for grants of equity awards to employees in accordance with ASC 718, Compensation—Stock Compensation. Teva recognizes stock-based compensation expense for equity grants under the Teva’s long-term incentive plans (including stock options, restricted share units (“RSUs”) and performance share units (“PSUs”). The grant-date fair value of an award is primarily recognized as compensation expense using a straight-line attribution method over the award’s requisite service period.
 
 
Teva uses the Black-Scholes model to compute the estimated fair value of stock option awards. Additionally, Teva uses a Monte Carlo simulation to compute the estimated fair value of PSUs that are subject to vesting based on the Company’s attainment of
pre-established
criteria that include a market condition. The fair value of the RSUs is based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable.
For performance-based restricted stock units that contain a performance condition, Teva recognizes
stock-based
compensation expense if and when the Company determines that it is probable the performance condition will be achieved. If Teva subsequently determines that the performance criteria are not met or are not expected to be met, any amounts previously recognized as compensation expense are reversed in the period when such determination is made.
Teva accounts for forfeitures of share-based awards, RSUs and PSUs, at the time they occur.
 
p.
Deferred income taxes:
Teva accounts for deferred income taxes using the “asset and liability” method in accordance with ASC 740, Income taxes, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. Under ASC 740, a valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally Teva’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
 
q.
Uncertain tax positions:
Teva records uncertain tax positions in accordance with ASC 740, Income taxes, on the basis of a
two-step
approach in which (1) Teva determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the
more-likely-than-not
recognition threshold, Teva recognize the largest amount of tax benefit or expense that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, Teva classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
 

r.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
All derivatives are recognized on the Consolidated Balance Sheet at fair value in accordance with ASC 815, Derivatives and Hedging.
Fair value hedges: For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
Cash-flow hedges: For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
Net-investment
hedges: For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective portion is determined by looking into changes in the spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value. Gains and losses on foreign exchange contracts related to balance sheet items are recognized in earnings within “Financial expenses, net,” offsetting the revaluation of the underlying items. For economic hedges of projected revenues and expenses, changes in fair value are recognized in the same line item as the underlying exposure, typically within “Revenues”. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
s.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
 
 
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. Variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses. Shipping and handling costs to end customers, were $107 million, $119 million and $124 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms with customers typically range from thirty to ninety days.
Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (e.g., sales tax and other indirect taxes).
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.
Nature of revenue streams
Revenue from sales of goods, including sales to distributors, is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer.
Revenue from sales-based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the
sales-based
royalty has been allocated is satisfied.
 
 
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2025 and 2024.
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and
 
 
“best price” for innovative products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler and retail inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. In certain cases, the wholesalers may enter into agreements with customers that establish the pricing of specific products, provided that Teva approves such agreements. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by indirect buyers with varying contract prices and wholesaler inventory levels. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of
 
 
revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
 
t.
Research and development:
Research and development (R&D) costs are expensed as incurred in accordance with ASC 730, Research and Development Arrangements.
Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
When the Company enters into an arrangement with another party to fund its R&D costs, the Company assesses whether the funding represents a liability or a contract to perform R&D services for others. If repayment is required regardless of the outcome, the Company recognizes a liability. If repayment is contingent on successful results or not required, the funding is accounted for as a contract to perform R&D services, and a reduction of R&D expense is recognized as related costs are incurred.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
 
u.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2025, 2024 and 2023 were $309 million, $259 million and $162 million, respectively.

v.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made, in accordance with ASC 420, Exit or Disposal Cost Obligations.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
 
 
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
 
w.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
  (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 in which Teva operates other than those in the United States and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. See also note 19.
 
x.
Earnings per share:
Basic earnings (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 during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to by giving effect to all potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weight
ed
average number of shares issuable upon assumed conversion of the debentures.
 
y.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
 
z.
Supplier finance program
When the Company enters into a supplier finance arrangement, it assesses whether the obligation should be classified as accounts payable or as debt, based on the substance of the arrangement and any changes in terms or conditions in accordance with ASC
405-50,
Supplier Finance Programs. If the original trade payable terms
 
remain unchanged and the Company’s obligation is not legally modified, the liability continues to be classified as accounts payable. If the arrangement results in a substantive change in terms or creates a financing component, the obligation is classified as debt.
Under each program, participating suppliers may elect to receive early payment on their invoices from a third-party financial institution under terms agreed between the supplier and the financial institution. Amounts outstanding under such programs are presented within trade payables in the Consolidated Balance Sheet and payments are reflected in operating cash flows, when classification as accounts payable is appropriate.
 
aa.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business under ASC 805, Business Combinations, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
 
bb.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. The debt instruments are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
 
cc.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
 
 
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 74 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.25.4
Certain transactions
 12 Months Ended
Dec. 31, 2025
Certain transactions
NOTE 2 – Certain transactions:
The Company has entered into alliances and other arrangements with third parties to acquire rights to products it does not have, to access markets it does not operate in and to otherwise share development costs or business risks. The Company’s most significant agreements of this nature are summarized below.
mAbxience
In April 2024, Teva announced it entered into a strategic licensing agreement with mAbxience for
TEV-‘316,
a biosimilar candidate currently in development for the treatment of multiple oncology indications. Under the terms of the licensing agreement, mAbxience will develop and produce the biosimilar product and Teva will lead the regulatory processes and commercialization in multiple global markets, including Europe and the U.S. In September 2024, Teva and mAbxience entered into an amendment to the licensing agreement whereby, similar to the initial licensing agreement, mAbxience will lead the development and production of
TEV-‘333,
an
anti-PD-1
oncology biosimilar candidate and Teva will manage regulatory approvals and oversee commercialization in the designated markets.
In
2024
, Teva paid mAbxience upfront and milestone payments of $
20
 million under the initial agreement, and $
15
 million under the amendment to the licensing agreement, which were recorded as R&D expenses. In
2025
, Teva paid milestone payments in the amount of $
29
 million, which were recorded as R&D expenses. mAbxience may be eligible for additional future development, regulatory and commercial milestone payments, in an aggregate amount of up to $
291
 million.
 
 
 
Launch Therapeutics and Abingworth
On March 28, 2024, Teva and Launch Therapeutics, Inc. (“Launch Therapeutics”) entered into a clinical collaboration agreement to further accelerate the clinical research program of Teva’s Dual-Action Asthma Rescue Inhaler (“DARI”)
(ICS-SABA;
TEV-‘248).
As part of this clinical collaboration agreement Teva also entered into a development funding agreement with funds affiliated with Abingworth LLP (“Abingworth”). Under the clinical collaboration agreement, Launch Therapeutics, a clinical development company backed by Abingworth and Carlyle, the global investment firm, will have the lead role in the operational execution and management of the planned clinical trials. Teva will retain primary responsibility for manufacturing, regulatory interactions in the U.S., and commercialization. DARI
(ICS-SABA)
is currently in Phase 3 for the treatment of asthma symptoms addressing both immediate symptoms and long-term inflammation.
Under the development funding agreement, Abingworth will provide Teva up to $150 
million to fund ongoing development costs for DARI
(ICS-SABA).
In exchange and subject to regulatory approval, Teva will pay Abingworth a milestone payment in the amount actually funded by Abingworth, as well as success payments based on DARI
(ICS-SABA)
sales. In January 2026, Teva and Abingworth signed an amendment to the development funding agreement to increase the total development funding by an additional $50 million. During 2025 and 2024, Teva recorded
$98 million and $42 million, respectively, as reimbursement for R&D expenses incurred in connection with this agreement. 
Biolojic Design
On November 26, 2023, Teva entered into a license agreement with Biolojic Design Ltd. (“Biolojic”), pursuant to which Teva received exclusive rights to develop, manufacture and globally commercialize a BD9 multibody with potential indications including atopic dermatitis and asthma. In exchange, Teva paid an upfront payment of $10 
million in January 2024, which was recorded as R&D expenses in the fourth quarter of 2023. In 2025, Teva paid a milestone payment of $
5
 
million, which was recorded as R&D expenses. Biolojic may be eligible to receive additional development and commercial milestone payments of approximately
$
500
 million, over the next several years, based on the achievement of certain
pre-clinical,
clinical and regulatory milestones, with the majority of payments based on future sales achievements. On May 
27
,
2025
, investigational new drug (IND)-enabling studies of BD
9
were initiated for this program.
Royalty Pharma
(TEV-‘749)
On November 9, 2023, Teva entered into a funding agreement with Royalty Pharma plc. (“Royalty Pharma”) to further accelerate the clinical research program for Teva’s olanzapine LAI
(TEV-’749).
Under the terms of the funding agreement, Royalty Pharma will provide Teva up to $100 million to fund ongoing development costs for olanzapine LAI
(TEV-‘749).
In exchange and subject to regulatory approval, Teva will pay Royalty Pharma a milestone payment in the amount actually funded by Royalty Pharma, paid over 5 years, in addition to royalties upon commercialization. Teva will continue to lead the development and commercialization of the product globally. During 2023 and 2024, Teva recorded $100 million as reimbursement for R&D expenses incurred in connection with this agreement, which collectively amounted to the total funding by Royalty Pharma. On December 9, 2025, Teva submitted a New Drug Application (“NDA”) to the FDA for olanzapine LAI
(TEV-’749),
based on the results from the Phase 3 trial.
Royalty Pharma
(TEV-’408)
On January 11, 2026, Teva entered into an additional funding agreement with Royalty Pharma to further accelerate the clinical research program for Teva’s
anti-IL-15
antibody
(TEV-’408).
Under the terms of the
 
 
agreement, Royalty Pharma will provide Teva up to
$500 
million to fund ongoing development costs for
TEV-’408
in vitiligo. This is comprised of
$75 
million as R&D funding to conduct a Phase 2b study, which is
 
expected to begin in 2026. Based on the future results from Phase 2b in vitiligo, Royalty Pharma will have an option to provide an additional
$425 
million to fund the Phase 3 development program. In exchange and subject to regulatory approval, Teva will pay Royalty Pharma a milestone payment in the amount actually funded by Royalty Pharma, which could reach up to
 
130
%, subject to certain conditions, in addition to royalties upon commercialization of the product. The funding agreement with Royalty Pharma did not have any impact on Teva’s consolidated financial statements as of the date of this Annual Report on Form
10-K.
Sanofi
On October 3, 2023, Teva entered into an exclusive collaboration with Sanofi to
co-develop
and
co- commercialize
Teva’s duvakitug (anti-TL1A,
TEV-’574),
a novel anti-TL1A medicine for the potential treatment of Crohn’s disease and ulcerative colitis, two types of inflammatory bowel disease. Under the terms of the collaboration agreement, in partial consideration of the licenses granted to Sanofi, Teva received an upfront payment of $
500 
million in the fourth quarter of 2023, which was recognized as revenue. In October 2025, Sanofi and Teva initiated Phase 3 studies for duvakitug for Crohn’s disease and ulcerative colitis. Consequently, in the fourth quarter of 2025, Teva received two development milestone payments of
$250 
million for each indication, which were recognized as revenue. Additionally, Teva may receive up to
$500 
million in development and launch milestones. Under the terms of the collaboration agreement, each company equally shares the remaining development costs globally and net profits and losses in major markets, with other markets subject to a royalty arrangement, and Sanofi leads the development of the Phase 3 program. Teva will lead commercialization of the product in Europe, Israel and specified other countries, and Sanofi leads commercialization in North America, Japan, other parts of Asia and the rest of the world.
MODAG
In October 2021, Teva announced a license agreement with MODAG GmbH (“Modag”) providing Teva with an exclusive global license to develop, manufacture and commercialize Modag’s lead compound, emrusolmin
(TEV-’286)
and a related compound
(TEV-’287).
Teva paid an upfront payment of $10 
million to Modag in the fourth quarter of 2021, recorded as R&D expenses. Emrusolmin
(TEV-’286)
was developed for the treatment of Multiple System Atrophy (“MSA”) and Parkinson’s disease. In the third quarter of 2024, Teva initiated a Phase 2 clinical trial for emrusolmin
(TEV-’286).
On September 9, 2025, Teva announced it received Fast Track designation from the FDA for emrusolmin
(TEV-’286).
In the second quarter of 2025, Teva initiated a Phase 1 clinical trial for
TEV-‘287,
which is being developed for the treatment of Parkinson’s disease, and consequently paid a milestone payment of $10 million, which was recorded as R&D expenses. Modag may be eligible for additional future development milestone payments in an aggregate amount of up to $20 million, as well as future commercial milestones and royalties.
Alvotech
In August 2020, Teva entered into an agreement with biopharmaceutical company Alvotech for the exclusive commercialization in the U.S. of five biosimilar product candidates. The initial pipeline for this collaboration included biosimilar candidates addressing multiple therapeutic areas, including the then proposed biosimilars to Humira
®
(adalimumab) and Stelara
®
(ustekinumab). Under the terms of the agreement, Alvotech is responsible for the development, registration and supply of the biosimilar product candidates and Teva will exclusively commercialize the products in the U.S. In July 2023, Alvotech and Teva amended their collaboration agreement, adding two new biosimilar candidates as well as line extensions of two current biosimilar candidates to their collaboration.
 
 
Teva made upfront and milestone payments in an aggregate amount of $124 million between the years 2020 and 2024. In the first quarter of 2025, Teva made an additional milestone payment of $5 million, which was
 
recognized as R&D expense in the fourth quarter of
2024
. In the fourth quarter of
2025
, Teva recognized an additional milestone payment of $
20 
million. Additional development and commercial milestone payments of up to approximately $
345
 million, in addition to royalty and milestone payments related to the amendment of the collaboration agreement entered into in
July 2023
, may be payable by Teva over the next few years. Teva and Alvotech will share revenue from the commercialization of these biosimilars.
The amendment of the collaboration agreement entered into in July 2023 includes increased involvement by Teva regarding manufacturing and quality at Alvotech’s manufacturing facility. Additionally, pursuant to another amendment to the collaboration agreement entered into on September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech, which were redeemed and paid by Alvotech to Teva for $44 million, including accrued interest, in July 2024.
On February 24, 2024, Alvotech and Teva announced that the FDA approved SIMLANDI
®
(adalimumab-ryvk) injection, as an interchangeable biosimilar to Humira
®
, for the treatment of adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing spondylitis, Crohn’s disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradenitis suppurativa and adult uveitis. On April 17, 2024, Alvotech and Teva amended their collaboration agreement to enable the purchase by Quallent of a private label adalimumab-ryvk injection from Alvotech for the U.S. market, with Alvotech sharing profits with Teva on the private label sales. On May 20, 2024, Alvotech and Teva announced that SIMLANDI is available in the United States.
On April 16, 2024, the FDA approved SELARSDI (ustekinumab-aekn) injection for subcutaneous use, as a biosimilar to Stelara
®
, for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients six years and older. On October 22, 2024, the FDA approved SELARSDI in a new presentation, 130 mg/26 mL (5 mg/mL) solution in a single-dose vial for intravenous infusion, expanding its label to include the treatment of adults with Crohn’s disease and ulcerative colitis. On February 21, 2025, Alvotech and Teva announced that SELARSDI was available in the United States, and on May 5, 2025, the FDA approved SELARSDI (ustekinumab-aekn) injection as interchangeable with the reference biologic Stelara
®
(ustekinumab) in all presentations matching the reference product, effective as of April 30, 2025.
In January 2025, the FDA accepted for review Biologic License Applications (“BLA”) for Alvotech’s proposed biosimilars to Simponi
®
and Simponi Aria
®
(golimumab) and in February 2025, the FDA accepted for review a BLA for Alvotech’s proposed biosimilar to Eylea
®
(aflibercept). In the fourth quarter of 2025, Alvotech announced that the FDA issued complete response letters (“CRLs”) for the BLA of Alvotech’s proposed biosimilars to Simponi
®
and Simponi Aria
®
(golimumab), in a prefilled syringe and autoinjector presentations, and for the BLA of its proposed biosimilar to Eylea
®
(aflibercept). On December 19, 2025, Alvotech and Teva announced that they have reached a settlement and license agreement with Regeneron Pharmaceuticals Inc., concerning the launch of Alvotech’s proposed biosimilar to Eylea
®
(aflibercept) in the United States, granting it a license entry date in the fourth quarter of 2026, or earlier, under certain circumstances.
Takeda
In December 2016, Teva entered into a license agreement with a subsidiary of Takeda Pharmaceutical Company Ltd. (“Takeda”), for the research, development, manufacture and commercialization of ATTENUKINE
TM
technology. In 2017, Teva received an upfront payment of $30 million and a milestone payment of $20 million. During the second quarter of 2022, Takeda initiated its Phase 2 study of modakafusp alfa (formerly
TAK-573
or TEV ’573) and as a result paid Teva a milestone payment of $25 
million, which was
 
 
recognized as revenue in the second quarter of 2022. In April 2024, Takeda informed Teva of its intent to terminate the agreement with respect to such product candidate, and its product rights were reverted back to Teva in the first quarter of 2025. In December 2024, Takeda informed Teva of its intent to terminate the license agreement in its entirety, which termination became effective on May 31, 2025, with all remaining rights to the ATTENUKINE technology reverting back to Teva.
MedinCell
In November 2013, Teva entered into an agreement with MedinCell for the development and commercialization of multiple long-acting injectable (“LAI”) products. Teva leads the clinical development and regulatory process and is responsible for the commercialization of these products. The lead product is risperidone LAI (formerly known as
TV-46000).
On April 28, 2023, the FDA approved UZEDY (risperidone) extended-release injectable suspension for the treatment of schizophrenia in adults, which was launched in the U.S. in May 2023. On October 10, 2025, Teva and MedinCell announced that the FDA approved UZEDY as a once-monthly extended-release injectable suspension as monotherapy or as adjunctive therapy to lithium or valproate for the maintenance treatment of bipolar 1 disorder
(BD-1)
in adults. MedinCell may be eligible for future sales-based milestone payments of up to $
105
 million with respect to UZEDY. Teva also pays MedinCell royalties on net sales.
The second selected product candidate is olanzapine LAI
(TEV-’749)
for the treatment of schizophrenia. In the third quarter of 2022, Teva decided to progress development of the product candidate to Phase 3 and, as a result, paid a milestone payment of $3 million to MedinCell, which was recognized as R&D expenses. On May 8, 2024, Teva and MedinCell announced positive Phase 3 efficacy results from a trial evaluating olanzapine LAI as a once-monthly subcutaneous long-acting injectable in adults with schizophrenia, and on March 31, 2025, Teva announced survey results demonstrating patient and healthcare satisfaction with olanzapine LAI. Additional safety and efficacy results were presented during the third quarter of 2025, showing no incidence of post-injection delirium/sedation syndrome (PDSS) in study participants taking olanzapine LAI
(TEV-‘749).
On December 9, 2025, Teva submitted an NDA to the FDA for olanzapine LAI
(TEV-‘749)
based on the results from the Phase 3 trial. Teva paid a $5 million milestone payment to MedinCell in the first quarter of 2025, which was recognized as R&D expenses. MedinCell may become eligible for further development and commercial milestones of up to $112 million, as well as royalties on sales of olanzapine LAI
(TEV-’749).
Assets and Liabilities Held for Sale:
General
Assets and liabilities held for sale as of December 31, 2025, mainly included Teva’s API business. Assets held for sale as of December 31, 2024, included mainly Teva’s API business and Teva’s business venture in Japan.
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.
In connection with the
held for sale classification of Teva’s API business, in
2025
 Teva recorded expenses of $
8
 
million in other assets impairments, restructuring and other items. See note 15.
 
 
On March 31, 2025, Teva divested its business venture in Japan, for which Teva recorded a marginal gain in the first quarter of 2025.
 
Teva has elected the accounting policy to include the currency translation adjustment related to the disposal group as part of the asset carrying amount.
The Company has determined that the intended divestiture of its businesses does not represent a strategic shift that would have a major effect on the Company’s operations and financial results and therefore it did not meet the criteria for discontinued operations classification.
The table below summarizes all of Teva’s assets and liabilities included as held for sale as of December 31, 2025 and December 31, 2024:
 
    
December 31,
     
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Accounts receivables
    $ 86        222  
Inventories
      506      $ 647  
Property, plant and equipment, net
      1,020        913  
Identifiable intangible assets, net
      29        83  
Goodwill
      213        255  
Other current assets
      87        99  
Other
non-current
assets
      184        236  
Expected loss on sale*
      (283 )       (684 ) 
  
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 1,842      $ 1,771  
  
 
 
     
 
 
  
Accounts payables
      (261 )       (283 ) 
Other current liabilities
      (16 )       (49 ) 
Other
non-current
liabilities
      (77 )       (85 ) 
Expected loss on sale*
      —         (281 ) 
  
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets
    $ (354 )     $ (698 ) 
  
 
 
     
 
 
  
 
*
Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale.
v3.25.4
Revenue from contracts with customers
 12 Months Ended
Dec. 31, 2025
Revenue from contracts with customers
NOTE 3 – Revenue from contracts with customers:
Disaggregation of revenue
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
 
 
In conjunction with a recent 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. Amounts for the year ended December 31, 2023 have been recast to conform to the reporting structure.
 
 
  
Year ended December 31, 2025
 
 
  
United
States
 
  
Europe
 
  
International
Markets
 
  
Other
Activities
 
  
Total
 
 
  
(U.S.$ in millions)
 
Sale of goods
      7,081        4,959        2,039        526        14,605  
Licensing arrangements*
      607        39        28        4        678  
Distribution
      1,496        1        54        —         1,551  
Other**
      2        41        41        339        423  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 9,186      $ 5,040      $ 2,162      $ 870      $ 17,258  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in United States segment 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 Europe and International Markets segments include revenues related to sales of certain product rights.
 
    
Year ended December 31, 2024
  
    
United
States
     
Europe
     
International
Markets
     
Other
Activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,327        4,891        2,280        553        14,050  
Licensing arrangements
      103        35        24        11        173  
Distribution
      1,536        1        39        —         1,576  
Other*
      68        176        121        380        745  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 8,034      $ 5,103      $ 2,463      $ 944      $ 16,544  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
“Other” revenues in United States, Europe and International Markets segments include revenues related to sales of certain product rights.
 
    
Year ended December 31, 2023
  
    
United
States
     
Europe
     
International
Markets
     
Other
Activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,554        4,631        2,229        565        12,979  
Licensing arrangements*
      597        51        28        5        681  
Distribution
      1,577      §          38        —         1,615  
Other**
      2        155        57        357        570  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,731      $ 4,837      $ 2,351      $ 926      $ 15,846  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in United States segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $0.5 million.
 
 
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.

The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. For description of the nature of each deduction and how provisions are estimated see note 1.
SR&A to U.S. customers comprised approximately 70% of the Company’s total SR&A as of December 31, 2025, with the remaining balance primarily in Canada and Germany. The changes in SR&A for third-party sales for the years ended December 31, 2025 and 2024 were as follows:
 
 
 
Sales Reserves and Allowances
 
 
 
Reserves
included in
Accounts
Receivable,
net
 
 
Rebates
 
 
Medicaid and
other
governmental
allowances
 
 
Chargebacks
 
 
Returns
 
 
Other
 
 
Total
reserves
included in
Sales
Reserves
and
Allowances
 
 
Total
 
 
 
(U.S.$ in millions)
 
Balance at January 1, 2025
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
Provisions related to sales made in current year period
   412   5,129   1,050   8,005   289   124     14,597       15,009  
Provisions related to sales made in prior periods
   —    (46 )    44   (29 )    (15 )    (12 )      (58 )      (58 )
Credits and payments
   (405 )    (4,869 )    (970 )    (7,995 )    (233 )    (131 )      (14,198 )     (14,603 ) 
Translation differences
   —    66   16   20   5   17   124     124  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2025
   $ 63     $ 1,954     $ 701     $ 937     $ 445     $ 106     $ 4,143     $ 4,206  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable,
net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2024
   $ 61       1,603       540       859       436       97     $ 3,535     $ 3,596  
Provisions related to sales made in current year period
     390       4,640       787       7,952       276       149       13,804       14,194  
Provisions related to sales made in prior periods
     —        5       22       (11 )      (22 )      (3 )      (9 )      (9 ) 
Credits and payments
     (395 )      (4,531 )      (781 )      (7,851 )      (286 )      (126 )      (13,575 )      (13,970 ) 
Translation differences
     —        (43 )      (7 )      (13 )      (5 )      (9 )      (77 )      (77 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2024
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.25.4
Inventories
 12 Months Ended
Dec. 31, 2025
Inventories
NOTE 4 —Inventories:
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2025 
     
 2024 
  
    
(U.S. $ in millions)
  
Finished products
    $ 1,904      $ 1,783  
Raw and packaging materials
      745        671  
Products in process
      364        353  
Materials in transit and payments on account
      166        199  
  
 
 
     
 
 
  
   $ 3,179      $ 3,007  
  
 
 
     
 
 
  
v3.25.4
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment
NOTE 5 —Property, plant and equipment:
Property, plant and equipment, net, consisted of the following:


    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 3,332      $ 3,092  
Buildings
      2,327        1,968  
Internal-use software, computer equipment and other assets
      2,514        2,388  
Assets under construction and payments on account
      377        1,330  
Land
      258        213  
  
 
 
     
 
 
  
     8,807        8,991  
Less- accumulated depreciation
      (4,728 )       (4,410 ) 
  
 
 
     
 
 
  
   $ 4,080      $ 4,581  
  
 
 
     
 
 
  
Depreciation expenses
 were $
421
 million, $
471
 million and $
537
 million in the years ended December 31, 2025, 2024 and 2023, respectively. During the years ended December 31, 2025, 2024 and 2023, Teva recorded impairments of property, plant and equipment in the amount of $
755
 million, $
61
 million and $
28
 million, respectively. See note 15. 
v3.25.4
Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2025
Identifiable Intangible Assets
NOTE 6—Identifiable intangible assets:
Identifiable intangible assets consisted of the following:

 
 
  
Gross carrying
amount net of
impairment
 
  
Accumulated
amortization
 
  
Net carrying amount
 
 
  
December 31,
 
 
  
 2025 
 
  
 2024 
 
  
 2025 
 
  
 2024 
 
  
 2025 
 
  
 2024 
 
 
  
(U.S. $ in millions)
 
Product rights
    $ 16,308      $ 15,915      $ 12,990      $ 11,998      $ 3,318      $ 3,917  
Trade names
      597        568        340        300        257        268  
In-process
research and development (IPR&D)
      206        233        —         —         206        233  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 17,111      $ 16,716      $ 13,330      $ 12,298      $ 3,781      $ 4,418  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
Product rights and trade names
Product rights and trade names are assets presented at amortized cost. Product rights and trade names represent a portfolio of pharmaceutical products from various categories with a weighted average life of approximately
 
seven
years
. Amortization of intangible assets was $
581
 million, $
588
 million and $
616
 million in the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, the estimated aggregate amortization of intangible assets for the years 2026 to 2030 is as follows: 2026—$484 million; 2027—$497 million; 2028—$446 million; 2029—$397 million and 2030—$390 million. These estimates do not include the impact of IPR&D that is expected to be successfully completed and reclassified to product rights.
IPR&D
Teva’s IPR&D are assets that have not yet been approved in major markets. IPR&D carries intrinsic risks that the asset might not succeed in advanced phases and may be impaired in future periods.
Intangible assets impairment
Impairments of identifiable intangible assets
were $259 million, $251 million and $350 million in the years ended December 31, 2025, 2024 and 2023, respectively. These amounts are recorded in the statement of income (loss) under intangible assets impairments.
Impairments in 2025 consisted of:
 
  (a)
Identifiable product rights of $242 million due to: (i) $155 million mainly related to updated market assumptions regarding price and volume of products in Europe and in the U.S., and (ii) $87 million mainly related to a change in Teva’s commercial plan regarding certain products as part of its optimization efforts mainly in the U.S.; and
 
  (b)
IPR&D assets of $18 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
Impairments in 2024 consisted of:
 
  (a)
Identifiable product rights of $194 million, mainly due to updated market assumptions regarding price and volume of products mainly in the U.S.; and
 
  (b)
IPR&D assets of $57 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
Impairments in 2023 consisted of:
 
  (a)
Identifiable product rights of $260 million due to: (i) $148 million related to updated market assumptions regarding price and volume of products; and (ii) $112 million in Japan, mainly related to regulatory pricing reductions; and
 
  (b)
IPR&D assets of $90 million, mainly related to generic pipeline products resulting from development progress and changes in other key valuation indications (e.g., market size, competition assumptions, legal landscape and launch date).
 
 
 
The fair value measurement of the impaired intangible assets in 2025 is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The discount rate applied ranged from 8.25% to 9.25%. A probability of success factor of 90% was used in the fair value calculation to reflect inherent regulatory and commercial risk of IPR&D.
v3.25.4
Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill
NOTE 7 – Goodwill:
Changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows:
 
 
  
North
America
 
 
United
States
 
 
Europe
 
 
International
Markets
 
 
Other
 
 
Total
 
 
 
Teva’s API
 
 
Medis
 
 
  
(U.S. $ in millions)
 
 
 
 
 
 
 
Balance as of December 31, 2023 (1)
    $ 6,459     $ —      $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
Goodwill allocation related to the shift of Canada to International Markets
      (6,459 )      5,813       —        646       —        —        —   
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of January 1, 2024
    $ —      $ 5,813     $ 8,466     $ 1,321     $ 1,313     $ 265     $ 17,177  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other changes during the period:
               
Goodwill impairment
      —        —        —        —        (1,280 )      —        (1,280 ) 
Goodwill reclassified as assets held for sale
      —        (81 )      (98 )      (50 )      —        (7 )      (236 ) 
Translation differences and other
      —        —        (293 )      (161 )      (33 )      (26 )      (513 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024 (1)
    $ —      $ 5,732     $ 8,075     $ 1,110     $ —      $ 232     $ 15,147  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill reclassified as assets held for sale
      —        —        —        (6 )      —        —        (6 ) 
Translation differences and other
      —        —        737       62       —        60       859  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2025 (1)
    $ —      $ 5,732     $ 8,812     $ 1,166     $ —      $ 292     $ 16,000  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Cumulative goodwill impairment as of December 31, 2025, 2024 and 2023, was approximately $29.6 billion, $29.6 billion and $28.3 billion, respectively.
Teva operates its business through three reporting segments: United States, Europe and International Markets. Each of these business segments is a reporting unit. Additional reporting units include Teva’s production and sale of APIs to third parties (“Teva API”) and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. Teva’s API and Medis reporting units are included under “Other” in the table above. See note 19 for additional segment information.
Teva determines the fair value of its reporting units using the income approach. The income approach is a forward-looking approach for estimating fair value. Within the income approach, the method used is the discounted cash flow method. Teva begins with a forecast of all the expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then applies a discount rate to arrive at a net present value amount. Cash flow projections are based on Teva’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted average cost of capital (“WACC”), adjusted for the relevant risk associated with country-specific
 

 
and business-specific characteristics. If any of these expectations were to vary materially from Teva’s assumptions, Teva may record an impairment of goodwill allocated to these reporting units in the future.
First Quarter Developments
During the first quarter of 2025, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of March 31, 2025. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
Second Quarter Developments
Pursuant to the Company’s policy, Teva conducted its annual goodwill impairment test for all reporting units during the second quarter of 2025. Management considered all information available, including information gathered from its latest long-range planning (“LRP”) and annual operating plan (“AOP”) processes, which are parts of Teva’s internal financial planning and budgeting processes, as well as the recently announced “Accelerate Growth” phase under Teva’s Pivot to Growth strategy (“Teva’s Strategy”). The LRP, AOP and Teva’s Strategy were discussed and reviewed by Teva’s management and its Board of Directors.
Additionally, Teva conducted a quantitative analysis of all of its reporting units as part of its annual goodwill impairment test with the assistance of an independent valuation expert.
Based on this quantitative analysis, no goodwill impairment charge was recorded in the second quarter of 2025.
As of June 30, 2025, Teva’s United States, Europe, International Markets and Medis reporting units each had fair values in excess of 10% over their book values.
In the second quarter of 2024, Teva recorded a goodwill impairment charge of $400 million related to Teva’s API reporting unit.
Third Quarter Developments
During the third quarter of 2025, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of September 30, 2025. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
In the third quarter of 2024, Teva recorded a goodwill impairment charge of $600 million related to Teva’s API reporting unit.
Fourth Quarter Developments
During the fourth quarter of 2025, management evaluated whether there were any developments that occurred during the quarter to determine if it was more likely than not that the fair value of any of its reporting units was below its carrying amount as of December 31, 2025. Management concluded that no triggering event had occurred and, therefore, no quantitative assessment was performed.
In the fourth quarter of 2024, Teva recorded a goodwill impairment charge of $280 million related to Teva’s API reporting unit.
 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases

NOTE 8 – Leases:
The components of operating lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
      116        123        132  
Variable lease payments not included in the lease liability
      16        16        5  
Short-term lease cost
      4        3        3  
  
 
 
     
 
 
     
 
 
  
   $ 136      $ 142      $ 139  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 136      $ 143      $ 141  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 65      $ 137      $ 121  
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 345      $ 367  
  
 
 
     
 
 
  
Other current liabilities
      94        87  
Operating lease liabilities
      288        296  
  
 
 
     
 
 
  
Total operating
lease
liabilities
    $ 382      $ 383  
  
 
 
     
 
 
  


    
December 31,
    
December 31,
  
    
2025
    
2024
  
Weighted average remaining lease term
     
Operating leases
      5.7 years       6.1 years  
Weighted average discount rate
     
Operating leases
      6.9 %      6.5 % 
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2025
  
    
(U.S. $ in millions)
  
2026
      116  
2027
      97  
2028
      71  
2029
      50  
2030 and thereafter
      105  
  
 
 
  
Total operating lease payments
    $ 439  
  
 
 
  
Less: imputed interest
      57  
  
 
 
  
Present value of lease liabilities
    $ 382  
  
 
 
  
As of December 31, 2025, Teva’s
total finance lease assets
and
finance lease liabilities
were $43 million and $37 million, respectively. As of December 31, 2024,
total finance lease assets
and
finance lease liabilities
were $23 million and $18 million, respectively. The difference between those amounts is mainly due to amortization and short term liabilities.
v3.25.4
Debt obligations
 12 Months Ended
Dec. 31, 2025
Debt obligations
NOTE 9 —Debt obligations:
 
a.
Short-term debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Weighted average
interest rate as of
December 31, 2025
 
 
 
 
  
December 31,
 
 
 
Maturity
 
  
2025
 
  
2024
 
 
  
 
 
 
 
 
  
(U.S. $ in millions)
 
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,798        1,758  
       
 
 
     
 
 
  
Total short-term debt
 
    $ 1,820      $ 1,781  
Convertible senior debentures
The principal amount of Teva’s 0.25% convertible senior debentures due 2026 was $23 
million as of December 31, 2025 and December 31, 2024. These convertible senior debentures include a “net share settlement” feature according to which the principal amount will be paid in cash and in case of conversion, only the residual conversion value above the principal amount will be paid in Teva shares. In February 2026, Teva repaid $23 million of the 0.25% convertible senior debentures at maturity.
 
 
b.
Long-term debt:
 
   
Interest rate as of
December 31, 2025
    
Maturity
    
December 31,
2025
    
December 31,
2024
  
               
(U.S. $ in millions)
  
Senior notes EUR 1,000 million (4)
     6.00 %      2025       —        429  
Senior notes USD 1,000 million (5)
     7.13 %      2025       —        427  
Senior notes EUR 900 million (6)
     4.50 %      2025       —        515  
Senior notes CHF 350 million (12)
     1.00 %      2025       —        387  
Senior notes USD 3,500 million (10)
     3.15 %      2026       1,798       3,374  
Senior notes EUR 700 million
     1.88 %      2027       823       730  
Sustainability-linked senior notes USD 1,000 million (1)(*)(10)
     4.75 %      2027       649       1,000  
Sustainability-linked senior notes EUR 1,100 million (1)(*)
     3.75 %      2027       1,292       1,144  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes EUR 750 million
     1.63 %      2028       880       778  
Sustainability-linked senior notes USD 1,000 million (2)(*)
     5.13 %      2029       1,000       1,000  
Sustainability-linked senior notes USD 600 million (3)(*)(10)
     7.88 %      2029       398       600  
Sustainability-linked senior notes EUR 800 million (3)(*)(10)
     7.38 %      2029       779       835  
Sustainability-linked senior notes EUR 1,500 million (2)(*)
     4.38 %      2030       1,762       1,562  
Senior notes USD 700 million (7)
     5.75 %      2030       696       —   
Sustainability-linked senior notes USD 500 million (3)(*)
     8.13 %      2031       500       500  
Sustainability-linked senior notes EUR 500 million (3)(*)
     7.88 %      2031       587       521  
Senior notes EUR 1,000 million (8)
     4.13 %      2031       1,168       —   
Senior notes USD 500 million (9)
     6.00 %      2032       496       —   
Senior notes USD 789 million
     6.15 %      2036       784       783  
Senior notes USD 2,000 million
     4.10 %      2046       1,988       1,986  
 
 
 
    
 
 
  
Total senior notes
 
     16,850       17,821  
Less current maturities
 
     (1,798 )      (1,758 ) 
Less debt issuance costs (11)
 
     (66 )      (61 ) 
     
 
 
    
 
 
  
Total senior notes and loans
 
   $ 14,986     $ 16,002  
     
 
 
    
 
 
  
 
(1)
If Teva fails to achieve certain sustainability performance targets, a
one-time
premium payment of
0.15%
-
0.45%
out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after
May 9, 2026
.
(2)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.125%
-
0.375%
per annum, from and including May 9, 2026.
(3)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%
-
0.300%
per annum, from and including September 15, 2026.
(4)
In January 2025, Teva repaid $
426
 million of
th
e
 
6.00
% senior notes due 2025 at maturity.
(5)
In January 2025, Teva repaid $
427
 million of
the
 
7.13
% senior notes due 2025 at maturity.
(6)
In March 2025, Teva repaid $
515
 million of
the
 
4.50
% senior notes due 2025 at maturity.
(7)
In May 2025, Teva issued senior notes in an aggregate principal amount of $
700
 million bearing
5.75
% annual interest and due
December 2030
.
(8)
In May 2025, Teva issued senior notes in an aggregate principal amount of €
1,000
 million bearing
4.125
% annual interest and due
June 2031
.
(9)
In May 2025, Teva issued senior notes in an aggregate principal amount of $
500
 million bearing
6.00
% annual interest and due
December 2032
.
(10)
In June 2025, Teva consummated a cash tender offer and extinguished $
1,579
 million aggregate principal amount of its
3.15
% senior notes due 2026; $
351
 million aggregate principal amount of its
4.75
% senior notes due 2027; $
202
 million aggregate principal amount of its
7.88
% senior notes due in 2029; and $
157
 million aggregate principal amount of its
7.38
% senior notes due in 2029. The extinguishment resulted in a loss of $
10
 million which was recorded under financial expenses, net.
(11)
Debt issuance costs as of December 31, 2025 include $
20
 million in connection with the issuance of the senior notes in May 2025, partially offset by $
6
 million acceleration of issuance costs related to the cash tender offer.
(12)
In July 2025, Teva repaid $
444
 million of the
1
% senior notes due 2025 at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
 
 
Long-term debt was issued by several indirect wholly-owned subsidiaries of the Company and is fully and unconditionally guaranteed by the Company as to payment of all principal, interest, discount and additional amounts, if any. The long-term debt outlined in the above table is generally redeemable at any time at varying redemption
prices
plus accrued and unpaid interest.
Teva’s debt as of December 31, 2025 was
57
% denominated in U.S. dollars, with the remainder denominated in euro.
Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily its $1.8 
billion unsecured syndicated sustainability-linked revolving credit facility entered into in April 2022, as most recently amended in December 2025 (“RCF”).
The RCF had an initial maturity date of
April 2026
with two
one-year
extension options. In April 2024, an extension option was exercised and the RCF maturity date was extended to April 2027. 
On December 10, 2025, the terms of the RCF were amended to extend the maturity from April 2027 to April 2028, using the second extension option and to update the Company’s maximum permitted leverage ratio under the RCF for certain periods. Under the terms of the RCF, as amended, the Company’s leverage ratio shall not exceed
4.25
x
in the fourth quarter of 2025 and thereafter. The RCF contains certain covenants, including certain limitations on incurring liens and indebtedness and maintenance of certain financial ratios, including a maximum leverage ratio, which becomes more restrictive over time. The RCF permits the Company to increase the maximum leverage ratio if it consummates or commences certain material transactions.
Under the RCF, as amended, the applicable margin used to calculate the interest rate under the RCF is linked to one sustainability performance target, the number of new regulatory submissions in low and middle-income countries. Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of December 31, 2025, and as of the date of this Annual Report on Form
10-K,
no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.
Under specified circumstances, including
non-compliance
with any of the covenants described above and the unavailability of any waiver, amendment or other modification thereto, the Company will not be able to borrow under the RCF. Additionally, violations of the covenants, under the circumstances referred to above, would result in an event of default in all borrowings under the RCF and, when greater than a specified threshold amount as set forth in each series of senior notes and sustainability-linked senior notes is outstanding, could lead to an event of default under the Company’s senior notes and sustainability-linked senior notes due to cross-acceleration provisions.
Teva expects that it will continue to have sufficient cash resources to support its debt service payments and all other financial obligations within one year from the date that the financial statements are issued.
v3.25.4
Derivative instruments and hedging activities
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
NOTE 10 – Derivative instruments and hedging activities:
 
a.
Foreign exchange risk management:
In 2025
, approximately
43
% of Teva’s revenues were denominated in currencies other than the U.S. dollar. As a result, Teva is subject to significant foreign currency risks.

 
The Company enters into forward exchange contracts and purchases and writes options in order to hedge the currency exposure on balance sheet items, revenues and expenses. In addition, the Company takes measures to reduce its exposure by using natural hedging. The Company also acts to offset risks in opposite directions among the subsidiaries within Teva. The currency hedged items are usually denominated in the following main currencies: euro, Swiss franc, British pound, Russian ruble, Canadian dollar, Polish złoty, Japanese yen, new Israeli shekel, Indian rupee and other currencies. Depending on market conditions, foreign currency risk is also managed through the use of foreign currency debt.
The Company may choose to hedge against possible fluctuations in foreign subsidiaries net assets (“net investment hedge”) and has entered into cross currency swaps and forward contracts in the past in order to hedge such an exposure.
Most of the counterparties to the derivatives are major banks and the Company is monitoring the associated inherent credit risks. The Company does not enter into derivative transactions for trading purposes.
 
b.
Interest risk management:
The Company raises capital through various debt instruments, including senior notes, sustainability-linked senior notes, bank loans and convertible debentures that bear fixed or variable interest rates, as well as a syndicated sustainability-linked revolving credit facility and securitization programs that bear a variable interest rate. In some cases, the Company has swapped from a fixed to a variable interest rate (“fair value hedge”) and from a fixed to a fixed interest rate with an exchange from a currency other than the functional currency (“cash flow hedge”), thereby reducing overall interest expenses or hedging risks associated with interest rate fluctuations. As of December 31, 2025, all outstanding senior notes, sustainability-linked senior notes and convertible debentures bear a fixed interest rate.

c.
Bifurcated embedded derivatives:
Upon issuance of sustainability-linked senior notes, Teva recognized embedded derivatives related to interest rate adjustments and a potential
one-time
premium payment upon failure to achieve certain sustainability performance targets, such as access to medicines in
low-to-middle-income
countries and absolute greenhouse gas emissions reduction, which were bifurcated and are accounted for separately as derivative financial instruments. Following the adoption of ASU
2025-07,
the sustainability-linked senior notes (with interest rate adjustments and a potential one-time premium tied to sustainability targets) are no longer subject to bifurcation, and these features are now accounted for as part of the host debt instrument per the amended guidance. As of December 31, 2025, no separate derivative instruments are recognized for these notes.
 

d.
Derivative instrument outstanding:
The following table summarizes the classification and fair values of derivative instruments:
 
    
Fair value
  
    
Designated as hedging
instruments
     
Not designated as hedging

instruments
  
    
December 31,

2025
    
December 31,

2024
     
December 31,

2025
    
December 31,

2024
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
          
Other current assets:
          
Option and forward contracts
    $ —      $ —       $ 86     $ 71  
Liability derivatives:
          
Other current liabilities:
          
Option and forward contracts
    $ —      $ —       $ (38 )    $ (24 ) 
Other
non-current
liabilities:
          
Cross-currency interest rate swap-cash flow hedge (1)
      (19 )      —         —        —   
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
  
Financial expenses, net
 
 
Other comprehensive income
(loss)
 
 
  
Year ended December 31,
 
 
Year ended December 31,
 
 
  
 2025 
 
  
 2024 
 
 
 2023 
 
 
 2025 
 
 
 2024 
 
 
 2023 
 
 
  
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
    $ 934      $ 981     $ 1,057     $ 784     $ (508 )    $ 91  
Cross-currency swaps-cash flow hedge (1)
      11        (8 )      (11 )      (3 )      1       1  
 
 
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives not designated as hedging instruments:


Reported under
  
Financial expenses, net
 
 
Net revenues
 
 
  
Year ended December 31,
 
 
Year ended December 31,
 
 
  
2025
 
 
2024
 
 
2023
 
 
2025
 
 
2024
 
 
2023
 
 
  
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
    $ 934     $ 981     $ 1,057     $ (17,258 )    $ (16,544 )    $ (15,846 ) 
Option and forward contracts (2)
      (24 )      (109 )      (54 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        65       (34 )      2  
 
(1)
On May 2025, Teva entered into a $500 million notional amount of fixed to fixed cross-currency interest rate swaps relating to its 5.75% senior notes due 2030 to hedge the foreign currency exchange risk of future
 
principal and interest payments associated with the USD denominated notes. The cross-currency swaps synthetically convert part of the USD debt into CHF, aligning debt servicing costs with Teva’s inflows and reducing economic volatility. These swaps have been designated as cash flow hedges and the gain or loss on these swaps will be reported as a component of other comprehensive income and reclassified into earnings in each period during which the swaps affect earnings in the same line item associated with the USD denominated bonds. 
(2)
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
(3)
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, British pound, Russian ruble, Canadian dollar, Polish złoty, new Israeli shekel, Indian rupee and some other currencies to protect its projected operating results for 2025 and 2026. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions of future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
 
e.
Amortizations due to terminated derivative instruments:
Forward starting interest rate swaps and treasury lock agreements
In 2015, Teva entered into forward starting interest rate swaps and treasury lock agreements to protect the Company from interest rate fluctuations in connection with a future debt issuance the Company was planning. These forward starting interest rate swaps and treasury lock agreements were terminated in July 2016 upon the debt issuance. The termination of these transactions resulted in a loss position of $493 million, which was recorded in other comprehensive income (loss) and is amortized under financial expenses, net over the life of the debt.
 
 
With respect to these forward starting interest rate swaps and treasury lock agreements, losses of $
35
 million, $
28
 million and $
31
 million were recognized under financial expenses, net for the years ended December 31, 2025, 2024 and 2023, respectively.
 
f.
Securitization:
U.S. securitization program
On November 7, 2022, Teva and a bankruptcy-remote special purpose vehicle (“SPV”) entered into an accounts receivable securitization facility (“AR Facility”) with PNC Bank, National Association (“PNC”) with a three-year term. The AR Facility initially provided for purchases of accounts receivable by PNC in an amount of up to $1 billion was later adjusted through amendments to reflect changes in receivables purchaser participation and commitment amounts totaling up to $950 million. In November 2025, the AR facility
was extended 
for an additional three-year term. The commitment amount remained $950 million.
Under the AR Facility, Teva’s subsidiaries continuously sell their accounts receivables, originated in the U.S., to the SPV and the SPV
on-sells
them to the receivables purchasers.
The SPV is a variable interest entity (“VIE”) for which Teva is considered to be the primary beneficiary. The SPV’s sole business consists of the purchase of receivables from Teva’s subsidiaries and the subsequent transfer of such receivables to the receivables purchasers.
Although the SPV is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The assets of the SPV are not available to pay creditors of Teva or its subsidiaries.
Upon the transfer of ownership and control of the receivables to the SPV, Teva and its subsidiaries have no retained interests in the receivables sold, and they become unavailable to Teva’s creditors should the relevant seller become insolvent.
Teva has collection and administrative responsibilities for the receivables sold to the SPV. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The Company accounts for receivables sold from the SPV to the receivables purchasers as a sale of financial assets under ASC 860 and derecognizes the trade receivables from the Company’s Consolidated Balance Sheet.
The outstanding amount of receivables sold to the receivables purchasers and derecognized by the SPV, as of December 31, 2025 and 2024, was $
794 million and $895 million, respectively. In addition to the accounts receivables sold, as of December 31, 2025 and 2024, an amount of $799 million and $558 million of the SPV’s accounts receivables was pledged by the SPV as a seller guarantee, and is included under “Accounts receivables, net,” in the Consolidated Balance Sheet.
EU securitization program
Teva maintains a trade receivables securitization program (the “EU securitization program”) to sell accounts receivables, mainly originated in Europe, to BNP Paribas Bank (“BNP”), originally established in April 2011 and extended through August 2026. Under the EU securitization program, Teva, on a consolidated basis through its participating subsidiaries, receives an initial cash purchase price and the right to a deferred purchase price (“DPP”), according to the purchase price for the receivables sold by it.
On an individual seller basis, each Teva subsidiary participating in the EU securitization program sells receivables to BNP at their nominal amount. BNP then immediately
on-sells
such receivables at their nominal
 
 
amount to a bankruptcy-remote special-purpose entity (“SPE”), which in turn sells such receivables to a conduit sponsored by BNP (“the conduit”) for an initial cash purchase price (equal to the nominal amount of such receivables less a discount) and the right to receive a DPP.
The SPE is a VIE for which Teva is considered to be the primary beneficiary. The SPE’s sole business consists of the purchase of receivables from Teva subsidiaries and the subsequent sale of such receivables to the conduit.
Although the SPE is included in Teva’s consolidated financial statements, it is a separate legal entity with separate creditors. The conduit and other designated creditors of the SPE are entitled, both before and upon the SPE’s liquidation, to be paid out of the SPE’s assets prior to the DPP payable to Teva. The SPE’s assets are not available to pay Teva’s or its subsidiaries’ creditors.
Once a Teva subsidiary sells receivables to BNP, such subsidiary does not retain any interests in the receivables sold and does not have access to such receivables upon its insolvency. The conduit has all the rights in the securitized trade receivables, including the right to pledge or dispose such receivables. Consequently, receivables sold under this agreement are
de-recognized
from Teva’s Consolidated Balance Sheet.
The portion of the purchase price for the receivables which is not paid in cash by the conduit is a DPP asset. The conduit pays the SPE the DPP from collections received by the conduit from the securitized trade receivables (after paying senior costs and expenses, including the conduit’s debt service obligations), which the SPE then pays to Teva. The DPP asset represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The DPP asset is included in other current assets on Teva’s Consolidated Balance Sheet.
Teva has collection and administrative responsibilities for the sold receivables. The fair value of these servicing arrangements as well as the fees earned was immaterial.
The DPP asset as of December 31, 2025 and 2024 was $326 million and $231 million, respectively.
As of December 31, 2025 and 2024, the outstanding principal amount of receivables sold, net of DPP, was $677 million and $626 million, respectively.
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
 
  
As of and for the year
ended December 31,
 
 
  
 2025 
 
  
 2024 
 
 
  
(U.S. $ in millions)
 
Sold receivables at the beginning of the year
    $ 626      $ 686  
Proceeds from sale of receivables
      4,505        4,737  
Cash collections (remitted to the owner of the receivables)
      (4,513 )       (4,768 ) 
Effect of currency exchange rate changes
      59        (29 ) 
  
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 677      $ 626  
  
 
 
     
 
 
  
 
g.
Supplier Finance Program Obligation
Teva maintains supply chain finance agreements with participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Teva to these
 

financial institutions. Teva’s suppliers negotiate their financing agreements directly with the respective financial institutions and Teva is not a party to these agreements. Teva has no economic interest in its suppliers’ decisions to participate in the program and Teva pays the financial institutions the stated amount of confirmed invoices on the maturity dates, which is generally within 120 days from the date the invoice was received. The agreements with the financial institutions do not require Teva to provide assets pledged as security or other forms of guarantees for the supplier finance program. All outstanding amounts related to suppliers participating in the supplier finance program are recorded under accounts payable in Teva’s consolidated balance sheets. As of December 31, 2025 and December 31, 2024, the outstanding
accounts payable to suppliers
participating in these supplier finance programs were $
225
 million and $
158
 million, respectively.
The following table summarizes the change in the outstanding accounts payables under the program:
 
 
  
As of and for the year ended
December 31,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Confirmed obligations outstanding at the beginning of the year
    $ 158        108  
Invoices confirmed during the year
      786        533  
Confirmed invoices paid during the year
      (719 )       (483 ) 
  
 
 
     
 
 
  
Confirmed obligations outstanding at the end of the year
    $ 225        158  
  
 
 
     
 
 
  
v3.25.4
Legal Settlements and Loss Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Legal Settlements and Loss Contingencies
NOTE 11—Legal settlements and loss contingencies:
Legal settlements and loss contingencies expenses in 2025 were $467 million, compared to expenses of $761 million in 2024 and expenses of $1,043 million in 2023.
Legal settlements and loss contingencies in 2025 were mainly related to 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), an update to the provision recorded for the carvedilol patent litigation, 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, as well as a provision recorded for the antitrust litigation related to QVAR.
Legal settlements and loss contingencies in 2024 were mainly related to a decision by the European Commission in its antitrust investigation into COPAXONE, and an update to the estimated settlement provision for the opioid cases (mainly the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore).
Legal settlements and loss contingencies in 2023 were mainly related to an estimated provision for the U.S. DOJ patient assistance program litigation, an update to the estimated settlement provision of the opioid cases, the provision for the settlement of the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products, as well as the provision for the settlement of the reverse-payment antitrust litigation over certain HIV medicines.
As of December 31, 2025 and 2024, Teva’s provision for legal settlements and loss contingencies recorded under accrued expenses and other taxes and long-term liabilities was $4,753 million and $4,881 million, respectively.
v3.25.4
Commitments and contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies
NOTE 12—Commitments and contingencies:
 
a.
Commitments:
Royalty commitments:
The Company is committed to pay royalties to owners of
know-how,
partners in alliances and other certain arrangements and to parties that financed research and development, at a wide range of rates as a percentage of sales or of the gross margin of certain products, as defined in the underlying agreements.
Royalty expenses in each of the years ended December 31, 2025, 2024 and 2023 were $740 million, $719 million and $543 million, respectively.
Milestone commitments:
Teva has committed to make potential future milestone payments to third parties under various agreements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, Teva may be required to pay such amounts. As of December 31, 2025, if all development milestones and targets, for compounds in Phase 2 and more advanced stages of development, are achieved, the total contingent payments could reach an aggregate amount of up to $
104
 
million. Additional contingent payments are owed upon achievement of product approval or launch milestones.
 
b.
Contingencies
General
From time to time, Teva and/or its subsidiaries are subject to claims for damages and/or equitable relief arising in the ordinary course of business. In addition, as described below, in large part as a result of the nature of its business, Teva is frequently subject to litigation. Teva generally believes that it has meritorious defenses to the actions brought against it and vigorously pursues the defense or settlement of each such action.
Teva records a provision in its consolidated financial statements to the extent that it concludes that a contingent liability is probable and the amount thereof is reasonably estimable. Based upon the status of the cases described below, management’s assessments of the likelihood of damages, and the advice of legal counsel, no material provision has been made regarding any matter disclosed in this note, except as noted below. Litigation outcomes and contingencies are unpredictable, and substantial damages or other relief may be awarded. Accordingly, management’s assessments involve complex judgments about future events and often rely heavily on estimates and assumptions. Teva continuously reviews the matters described below and may, from time to time, remove previously disclosed matters where the exposures were fully resolved in the prior year, or determined to no longer meet the materiality threshold for disclosure, or were substantially resolved.
If one or more of such proceedings described below were to result in final judgments against Teva, such judgments could be material to its results of operations and cash flows in a given period. In addition, Teva incurs significant legal fees and related expenses in the course of defending its positions even if the facts and circumstances of a particular litigation do not give rise to a provision in the consolidated financial statements.
In connection with third-party agreements, Teva may, under certain circumstances, be required to indemnify, and may be indemnified by, in unspecified amounts, the parties to such agreements against third-party claims. Among other things, Teva’s agreements with third parties may require Teva to indemnify them, or require them to indemnify Teva, for the costs and damages incurred in connection with product liability claims.
 
 
Except as otherwise noted, all of the litigation matters disclosed below involve claims arising in the United States. Except as otherwise noted, all third-party sales figures given below are based on IQVIA data.
Intellectual Property Litigation
From time to time, Teva seeks to develop generic and biosimilar versions of patent-protected pharmaceuticals and biopharmaceuticals for sale prior to patent expiration in various markets. In the United States, to obtain approval for most generics prior to the expiration of the originator’s patents, Teva must challenge the patents under the procedures set forth in the Hatch-Waxman Act of 1984, as amended. For many biosimilar products that are covered by patents, Teva participates in the “patent dance” procedures of the Biologics Price Competition and Innovation Act (“BPCIA”), which allow for the challenge to originator patents prior to obtaining biosimilar product approval. To the extent that Teva seeks to utilize such patent challenge procedures, Teva is and expects to be involved in patent litigation regarding the validity, enforceability or infringement of the originator’s patents. Teva may also be involved in patent litigation involving the extent to which its product or manufacturing process techniques may infringe other originator or third-party patents.
Additionally, depending upon a complex analysis of a variety of legal and commercial factors, Teva may, in certain circumstances, elect to market a generic or biosimilar version of the product even though litigation is still pending. To the extent Teva elects to proceed in this manner, it could face substantial liability for patent infringement if the final court decision is adverse to Teva, which could be material to its results of operations and cash flows in a given period.
Teva could also be sued for patent infringement outside of the context of the Hatch-Waxman Act or BPCIA. For example, Teva could be sued for patent infringement after commencing sales of a product. This type of litigation can involve any of Teva’s pharmaceutical products, not just its generic and biosimilar products.
The general rule for damages in patent infringement cases in the United States is that the patentee should be compensated by no less than a reasonable royalty and it may also be able, in certain circumstances, to be compensated for its lost profits. The amount of a reasonable royalty award would generally be calculated based on the sales of the product. The amount of lost profits would generally be based on the lost sales of the patentee’s product. In addition, the patentee may seek consequential damages as well as enhanced damages of up to three times the profits lost by the patent holder for willful infringement, although courts have typically awarded much lower multiples.
Teva is also involved in litigation regarding patents in other countries where it does business, particularly in Europe. The laws concerning generic pharmaceuticals and patents differ from country to country. Damages for patent infringement in Europe may include lost profits or a reasonable royalty, but enhanced damages for willful infringement are generally not available.
In July 2014, GlaxoSmithKline (“GSK”) filed claims against Teva in the U.S. District Court for the District of Delaware for infringement of a patent directed to using carvedilol in a specified manner to decrease the risk of mortality in patients with congestive heart failure. Teva began selling its carvedilol tablets (the generic version of GSK’s Coreg
®
) in September 2007. A jury returned a verdict in GSK’s favor, which was initially overturned by the U.S. District Court for the District of Delaware. The Court of Appeals for the Federal Circuit reinstated the $235.5 million jury verdict, not including
pre-
or post-judgment interest, finding Teva liable for patent infringement. The U.S. Supreme Court denied Teva’s appeal for a rehearing. On March 26, 2025, briefings were completed in the U.S. District Court for the District of Delaware on legal issues remaining in the case. In addition, certain equitable issues that were never presented in the 2017 jury trial will need to be resolved. In the fourth quarter of 2025, Teva updated its provision for the matter.
 
On April 30, 2018, Vanda sued Teva in the U.S. District Court for the District of Delaware asserting infringement of six Orange-Book listed patents expiring between January 2033 and May 2034 related to Vanda’s Hetlioz
®
. On May 10, 2023, the U.S. Appeals Court for the Federal Circuit affirmed the District Court’s earlier decision that had invalidated the four patents asserted by Vanda at trial and finding one of those patents had not been infringed by Teva’s product. The Supreme Court declined to review the case further. In December 2022, Teva launched its tasimelteon product (the generic version of Hetlioz
®
) following the District Court’s decision. Additionally, in December 2022, Vanda filed a second lawsuit on a new patent, and a second newly obtained patent was later added to this second case. The second case is now pending in the U.S. District Court for the District of Delaware, and Teva has counterclaims for
non-infringement,
invalidity, and unenforceability of Vanda’s patents. Trial for this second case is currently set for August 3, 2026. Should Teva be found liable for patent infringement, it could be subject to monetary damages, and it could be enjoined from further sales of its tasimelteon product.
Product Liability Litigation
Teva’s business inherently exposes it to potential product liability claims. Teva maintains a program of insurance, which may include commercial insurance, self-insurance (including direct risk retention), or a combination of both types of insurance, in amounts and on terms that it believes are reasonable and prudent in light of its business and related risks. However, Teva sells, and will continue to sell, pharmaceuticals that are not covered by its product liability insurance; in addition, it may be subject to claims for which insurance coverage is denied, as well as claims that exceed its policy limits. Product liability coverage for pharmaceutical companies is becoming more expensive and increasingly difficult to obtain. As a result, Teva may not be able to obtain the type and amount of insurance it desires, or any insurance on reasonable terms, in certain or all of its markets.
Since July 2018, Teva and its subsidiaries have been parties to litigation relating to previously unknown nitrosamine impurities discovered in certain products. The nitrosamine impurities were allegedly found in the active pharmaceutical ingredient (“API”) supplied to Teva by multiple API manufacturers. Subsequently, Teva initiated recalls of losartan in April 2019 and metformin in June 2020, due to the presence of nitrosamine impurities.
Nitrosamine litigations remain pending in the United States related to Teva’s valsartan, losartan, metformin and ranitidine products. There are currently two Multi-District Litigations (“MDL”) pending against Teva and other manufacturers, including one MDL in the U.S. District Court for the District of New Jersey with respect to Teva’s valsartan and losartan products, and another MDL in the U.S. District Court for the Southern District of Florida related to Teva’s ranitidine products. The trial in the valsartan MDL has been postponed indefinitely, and discovery is paused indefinitely in the MDL with respect to the losartan claims against Teva. The claims against Teva and other generic manufacturers in the ranitidine MDL have been dismissed on preemption and other grounds, and are currently on appeal in the Eleventh Circuit Court of Appeals. Teva was dismissed from all ranitidine claims pending in Illinois based on preemption grounds, which plaintiffs have appealed. State court ranitidine cases naming Teva are also pending in coordinated proceedings in California and Pennsylvania.
Certain generic manufacturers, including Teva, have also been named in a small number of state court actions brought by single plaintiffs asserting allegations similar to those in the aforementioned valsartan MDL. All of these state court matters have been stayed, aside from a single case pending in New Jersey. Similar lawsuits are pending in Canada.
Teva was also named in a consolidated proceeding pending in the U.S. District Court for the District of New Jersey brought by individuals and end payors seeking economic damages on behalf of purported classes of
 
consumers and end payors who purchased Teva’s and other generic manufacturers’ metformin products. In December 2024, Teva reached a settlement on this matter that resolved all of the plaintiffs’ claims against Teva and the settlement agreement is awaiting court approval.
Teva has also been named as a defendant in product liability actions involving Paragard
®
, an Intrauterine device (“IUD”) product that Teva divested to Cooper Surgical in 2017, and those actions have been consolidated by the Judicial Panel on Multidistrict Litigation in the United States District Court for the Northern District of Georgia (“MDL Court”). The MDL plaintiffs generally brought failure to warn and design defect claims and alleged personal injuries stemming from breakage of the Paragard
®
IUD upon removal. Teva has asserted multiple defenses, including federal preemption, the learned intermediary doctrine, and lack of proximate causation, among others. In December 2025, the MDL Court granted in part and denied in part Teva’s motion for summary judgment on the basis of federal preemption. The first MDL bellwether trial commenced on January 20, 2026, with two additional bellwether trials scheduled thereafter. In addition to the MDL, a limited number of Paragard cases are pending in state courts.
Competition Matters
As part of its generic pharmaceuticals business, Teva has challenged a number of patents covering branded pharmaceuticals, some of which are among the most widely-prescribed and well-known drugs on the market. Many of Teva’s patent challenges have resulted in litigation relating to Teva’s attempts to market generic versions of such pharmaceuticals under the federal Hatch-Waxman Act. Some of this litigation has been resolved through settlement agreements in which Teva obtained a license to market a generic version of the drug, often years before the patents expire.
Teva and its subsidiaries have been named as defendants in cases that allege antitrust violations arising from such settlement agreements. The plaintiffs in these cases are usually direct and indirect purchasers of pharmaceutical products, some of whom assert claims on behalf of classes of all direct and indirect purchasers, and they typically allege that (i) Teva received something of value in exchange for an agreement to delay generic entry, and (ii) significant savings could have been realized if there had been no settlement agreement and generic competition had commenced earlier. These plaintiffs seek various forms of injunctive and monetary relief, including damages based on the difference between the brand price and what the generic price allegedly would have been and disgorgement of profits, which are often automatically tripled under the relevant statutes, plus attorneys’ fees and costs. The alleged damages generally depend on the size of the branded market and the length of the alleged delay, and can be substantial, potentially measured in multiples of the annual brand sales, particularly where the alleged delays are lengthy or branded drugs with annual sales in the billions of dollars are involved.
Teva believes that its settlement agreements are lawful and serve to increase competition, and has defended them vigorously. In Teva’s experience to date, these cases have typically settled for a fraction of the high end of the damages sought, although there can be no assurance that such outcomes will continue.
In June 2013, the U.S. Supreme Court held in Federal Trade Commission (“FTC”) v. Actavis, Inc. that a rule of reason test should be applied in analyzing whether such settlements potentially violate the federal antitrust laws. The Supreme Court held that a trial court must analyze each agreement in its entirety in order to determine whether it violates the U.S. antitrust laws. This test has resulted in increased scrutiny of Teva’s patent settlements, additional action by the FTC and state and local authorities, and an increased risk of liability in Teva’s currently pending antitrust litigations.
In December 2011, three groups of plaintiffs filed claims against Wyeth and Teva for alleged violations of the U.S. antitrust laws in connection with their November 2005 settlement of patent litigation involving
 
extended-release venlafaxine (generic Effexor XR
®
). The cases were filed by a purported class of direct purchasers, a purported class of indirect purchasers and certain chain pharmacies in the U.S. District Court for the District of New Jersey. The plaintiffs claim that the settlement agreement between Wyeth and Teva unlawfully delayed generic entry. On August 19, 2025, the district court approved a settlement agreement between Teva and one group of plaintiffs (the indirect purchaser plaintiffs), while the case is proceeding with respect to the other plaintiffs. Annual sales of Effexor XR
®
were approximately $2.6 billion at the time of settlement and at the time Teva launched its generic version of Effexor XR
®
in July 2010.
In February 2012, two purported classes of direct-purchaser plaintiffs filed claims against GSK and Teva in the U.S. District Court for the District of New Jersey for alleged violations of the antitrust laws in connection with their February 2005 settlement of patent litigation involving lamotrigine (generic Lamictal
®
). The plaintiffs claimed that the settlement agreement unlawfully delayed generic entry and sought unspecified damages. In February 2023, a number of direct purchasers who were denied class certification filed suit as individual plaintiffs, which action was transferred to the U.S. District Court for the District of New Jersey. Discovery of the newly added individual plaintiffs is ongoing. Annual sales of Lamictal
®
were approximately $950 million at the time of the settlement and approximately $2.3 billion at the time Teva launched its generic version of Lamictal
®
in July 2008.
In April 2013, purported classes of direct purchasers and indirect purchasers of Niaspan
®
(extended-release niacin) filed claims against Teva and Abbott for violating the antitrust laws by entering into a settlement agreement in April 2005 to resolve patent litigation over the product. A multidistrict litigation has been established in the U.S. District Court for the Eastern District of Pennsylvania. Throughout 2015 and in January 2016, several individual direct-purchaser
opt-out
plaintiffs filed complaints with allegations nearly identical to those of the direct purchasers’ class. On April 24, 2023, the U.S. District Court’s denial of the indirect purchasers’ motion for class certification was affirmed by the Court of Appeals for the Third Circuit, and on June 5, 2023, the Court of Appeals denied the indirect purchasers’ petition for
re-hearing.
The litigation remains ongoing. In October 2016, the District Attorney for Orange County, California, filed a similar complaint in California state court, alleging violations of state law and seeking restitution and civil penalties. The California state court case remains stayed. Annual sales of Niaspan
®
were approximately $416 million at the time of the settlement and approximately $1.1 billion at the time Teva launched its generic version of Niaspan
®
in September 2013.
In November 2020, the European Commission issued a final decision in its proceedings against both Cephalon and Teva, finding that the 2005 settlement agreement between the parties hindered the entry of generic modafinil and imposed fines totaling
 60.5 
million euros on Teva and Cephalon, potentially subject to post-decision interest. Teva and Cephalon filed an appeal against the decision in February 2021, and a judgment was issued on October 18, 2023 rejecting Teva’s appeal. A provision for this matter was included in the financial statements. On January 4, 2024, Teva appealed the October 2023 judgment to the European Court of Justice, and on October 23, 2025, the European Court of Justice issued its judgment, dismissing Teva’s appeal. In December 2025, Teva paid the European Commission the full amount of the fine plus post-decision interest and the case is now closed.
Between September 2021 and April 2022, several private plaintiffs including retailers and health insurance providers filed claims in various courts against Teva and certain other defendants related to various medicines used to treat HIV, which were all removed and/or consolidated into the U.S. District Court for the Northern District of California. As they relate to Teva, the lawsuits challenged settlement agreements Teva entered into with Gilead in 2013 and/or 2014 to resolve patent litigation relating to Teva’s generic versions of Viread
®
and/or Truvada
®
and Atripla
®
, although plaintiffs later abandoned any claim for damages relating to the Viread
®
settlement. In May 2023, Teva and Gilead reached a settlement agreement with the retailer plaintiffs and Teva
 
recognized a provision for this matter based on such settlement. On June 30, 2023, the jury in the trial against the remaining plaintiffs issued a verdict in favor of Teva and Gilead, rejecting all of the remaining plaintiffs’ claims, and on February 12, 2024, the court entered a judgment consistent with the jury verdict as to all claims against Teva. The plaintiffs appealed to the U.S. Court of Appeals for the Ninth Circuit, and oral argument on the appeal occurred on October 9, 2025. A decision remains pending. Annual sales in the United States at the time of the settlement of Viread
®
, Truvada
®
and Atripla
®
were approximately $582 million, $2.4 billion, and $2.9 billion, respectively. Annual sales in the United States at the time Teva launched its generic version of Viread
®
in 2017, Truvada
®
in 2020 and Atripla
®
in 2020 were approximately $728 million, $2.1 billion and $444 million, respectively.
On October 31, 2024, the European Commission, following a formal antitrust investigation and issuing preliminary allegations, announced its final decision, alleging that Teva had engaged in anticompetitive practices with respect to COPAXONE in certain European member states by (i) filing and withdrawing certain divisional patents, and (ii) raising concerns about competitors’
follow-on
versions of COPAXONE. The decision also includes a fine of
 462.6 
million euros, potentially subject to post-decision interest. In January 2025, Teva filed an appeal against the decision with the General Court of the European Union, and that appeal remains pending. In accordance with Accounting Standards Codification 450 “Accounting for Contingencies,” Teva recognized a provision in its financial statements in the third quarter of 2024, based on management’s best estimate of the outcome within a range of outcomes for the final resolution of this case. Teva has provided the European Commission with surety underwritten guarantees in an amount of
 462.6 
million euros, together with specified post-decision interest, to cover the fine amount. Certain generic competitors in Europe have also brought similar antitrust claims against Teva in Germany and in the Netherlands, which have been stayed. Teva could face additional claims from generic competitors, payors, or other private plaintiffs in Europe related to this matter.
On June 29, 2021, Mylan Pharmaceuticals (“Mylan”) filed claims against Teva in the U.S. District Court for the District of New Jersey. On March 11, 2022 and March 15, 2022, purported purchasers of COPAXONE filed claims against Teva in the U.S. District Court for the District of New Jersey on behalf of themselves and similarly situated direct and indirect purchasers of COPAXONE. On August 22, 2022, additional purported purchasers of COPAXONE sued Teva in the U.S. District Court for the District of Vermont on behalf of themselves and similarly situated indirect purchasers of COPAXONE. The complaints variously assert claims for alleged violations of the Lanham Act, state and federal unfair competition and monopolization laws, tortious interference, trade libel, and a violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO Act”). Additionally, plaintiffs claim Teva was involved in an unlawful scheme to delay and hinder generic competition concerning COPAXONE sales. Plaintiffs seek damages for lost profits and expenses, disgorgement, restitution, treble damages, attorneys’ fees and costs, and injunctive relief. Teva moved to dismiss all of the complaints, and on January 22, 2024, Teva’s motion to dismiss the complaint in the District of Vermont was granted as to certain state law claims but was otherwise denied. On February 27, 2025, the Special Master in the District of New Jersey (the “Special Master”) issued reports and recommendations on Teva’s motions to dismiss the direct purchaser plaintiffs’ (“DPP”) complaint and the Mylan complaint, recommending dismissal of several aspects of the plaintiffs’ respective claims and allowing others to proceed. Mylan filed an objection with the District Court to certain of the Special Master’s recommendations for dismissal, which remains pending. On May 30, 2025, the DPPs filed an amended complaint, which drops its class allegations and adds several new direct purchaser plaintiffs. Teva submitted its renewed motion to dismiss certain of DPPs’ allegations to the Special Master for resolution, which is fully briefed and remains pending. On August 7, 2025, the Special Master issued a report and recommendation on Teva’s motion to dismiss the indirect purchasers’ complaint, recommending dismissal of several aspects of the plaintiffs’ claims and allowing others to proceed. On October 20, 2025, the indirect purchasers filed an amended complaint similar to the DPPs’ amended complaint, and Teva submitted its renewed motion to dismiss those allegations on November 13, 2025. On April 3, 2025, Walgreen Co., The Kroger Co., Albertsons Companies, Inc., and
H-E-B,
L.P. (“Retailers”), as
opt-outs
of the
 
purported DPP class in the District of New Jersey, filed a complaint against Teva in the District of Vermont alleging claims similar to those filed by other plaintiffs and asserting a claim under the Sherman Act. On September 24, 2025, the Vermont court granted Teva’s motion to transfer the Retailers’ case to the District Court for the District of New Jersey, where it has been consolidated with the other pending cases for pretrial purposes.
On July 15, 2021, the U.K. Competition and Markets Authority (“CMA”) issued a decision imposing fines for breaches of U.K. competition law by Allergan, Actavis UK, Auden Mckenzie and a number of other companies in connection with the supply of 10mg and 20mg hydrocortisone tablets in the U.K. The decision combines the CMA’s three prior investigations into the supply of hydrocortisone tablets in the U.K., as well as the CMA’s subsequent investigation relating to an alleged anticompetitive agreement with Waymade. On January 9, 2017, Teva completed the sale of Actavis UK to Accord Healthcare Limited, in connection with which Teva agreed to indemnify Accord Healthcare for potential fines imposed by the CMA and/or damages awarded by a court against Actavis UK in relation to two of the three statements of objection from the CMA (dated December 16, 2016 and March 3, 2017), and resulting from conduct prior to the closing date of the sale. In addition, following Teva’s acquisition of the Actavis generics business from Allergan, Teva agreed to indemnify Allergan against losses arising from this matter in the event of any such fines or damages. On October 6, 2021, Accord UK (previously Actavis UK) and Auden Mckenzie appealed to the U.K. Competition Appeal Tribunal (the “Tribunal”) the CMA’s decisions that the prices of hydrocortisone were unfair and excessive and that the agreements amounted to infringements of the U.K.’s Competition Act as
so-called
pay-for-delay
arrangements. The Tribunal handed down partial judgments on September 18, 2023 (judgment on unfair pricing), March 8, 2024 (judgments on
pay-for-delay
and due process) and April 29, 2024 (judgment on fines). On September 6, 2024, the U.K. Court of Appeal overturned the Tribunal’s judgment on due process and, as a result, the Tribunal will consider and issue a further judgment on fines. In March 2025, the Tribunal gave Accord UK and Auden Mckenzie permission to appeal to the Court of Appeal certain other issues relating to unfair pricing and fines. Those appeals have been filed and remain pending. A provision for the estimated exposure for Teva related to the fines and/or damages has been recorded in the financial statements.
In November 2022, two complaints filed by plaintiffs purporting to represent retailer purchasers and a putative class of
end-payor
purchasers were filed in the U.S. District Court for the District of New Jersey against Teva and its marketing partner Natco Pharma Limited (“Natco”) alleging violations of the antitrust laws in connection with their December 2015 settlement of patent litigation with Celgene Corporation (which was subsequently acquired by BMS) involving the drug Revlimid
®
(lenalidomide). The complaints also name Celgene and BMS as defendants. On January 24, 2023, the complaints were consolidated for
pre-trial
purposes only with an earlier-filed, already consolidated action filed against BMS and Celgene. On February 16, 2023, plaintiffs filed amended complaints adding additional plaintiffs. Additionally, on October 6, 2023, two individual payor plaintiffs brought claims similar to those described above in the U.S. District Court for the Northern District of California, which were consolidated with the pending consolidated actions and transferred to the U.S. District Court for the District of New Jersey. On June 6, 2024, the court granted in full Celgene’s motion to dismiss the Insurer
Opt-Out
Action, but allowed plaintiffs leave to amend most of their claims. The court had previously administratively terminated Teva’s, Natco’s, and Celgene’s motions to dismiss the retailer and
end-payor
complaints pending the decision on the Insurer
Opt-Out
Action. On August 5, 2024, plaintiffs filed amended complaints to which the defendants subsequently filed motions to dismiss, which remain pending. On December 16, 2024, five individual Insurer Opt Out plaintiffs, each of whom had added Teva and Natco as defendants in the Insurer Amended Complaint filed on August 5, 2024, filed new standalone complaints adding no new substantive allegations and naming Teva, Natco and others as defendants. Annual sales of Revlimid
®
in the United States were approximately $3.5 billion at the time of the settlement.
On December 2, 2022, plaintiffs purporting to represent putative classes of indirect purchasers of EpiPen
®
(epinephrine injection) and NUVIGIL
®
(armodafinil) filed a complaint in the U.S. District Court for the District
 
of Kansas against Teva, Cephalon, and a former Teva executive. Teva owns the New Drug Application (“NDA”) for NUVIGIL and sold the brand product, for which generic entry occurred in 2016. Teva filed an Abbreviated New Drug Application (“ANDA”) to sell generic EpiPen
®
, which Teva launched in 2018 following receipt of FDA approval. The complaint alleges, among other things, that the defendants violated federal antitrust laws, the RICO Act, and various state laws in connection with settlements resolving patent litigation relating to those products. Plaintiffs seek injunctive relief, compensatory and punitive damages, interest, attorneys’ fees and costs. On September 26, 2023, plaintiffs filed a brief in which plaintiffs limited their claims only to those relating to the alleged delay of generic NUVIGIL. On March 26, 2024, the court dismissed plaintiffs’ RICO claims and certain state law claims but denied Teva’s motion to dismiss plaintiffs’ antitrust claims. On June 14, 2024, the court entered orders bifurcating discovery and limiting the first phase to the question of the timeliness of plaintiffs’ claims. Substantially similar complaints were filed in the U.S. District Courts for the Central District of California and the Eastern District of New York on June 19, 2025 and June 23, 2025, respectively. On July 28, 2025 and December 12, 2025, the Eastern District of New York and Central District of California courts granted Teva’s motions to transfer the respective cases to the District of Kansas. Annual sales of NUVIGIL in the United States were approximately $300 million at the time Teva entered into the first settlement with an ANDA filer in 2012.
In May 2023, certain
end-payor
plaintiffs filed putative class action complaints in the U.S. District Court for the District of Massachusetts against Teva and a number of its affiliates, alleging that Teva engaged in anticompetitive conduct to suppress generic competition to its branded QVAR asthma inhalers in violation of state and federal antitrust laws and state consumer protection laws. The court dismissed plaintiffs’ claim that Teva had engaged in “sham litigation” and certain of plaintiffs’ state antitrust and consumer protection claims, but permitted the case to proceed on the remainder of plaintiffs’ allegations. Teva recognized a provision for this matter in 2025. On August 4, 2025, the parties informed the court that they had reached a settlement in principle, which was subsequently finalized and filed, and is awaiting preliminary approval by the Court.
In September, October, and December 2025, private plaintiffs representing (i) a putative class of
end-payor
purchasers, (ii) a putative class of direct purchasers; (iii) Walgreen Co., The Kroger Co., Albertsons Companies, Inc., HEB, L.P., and Supervalu, Inc., and (iv) CVS Pharmacy, Inc., filed complaints in the United States District Court for the District of Rhode Island against Bausch Health Companies Inc., Teva, and their related entities. In December 2025, certain of the plaintiff groups identified above filed an amended complaint. The operative complaints allege violations of the antitrust laws and various state laws in connection with the companies’ September 2018 settlement of patent litigation concerning the drug Xifaxan
®
(rifaximin). Plaintiffs seek declaratory and injunctive relief, treble damages, attorneys’ fees, and costs of suit. On January 28, 2026, the putative class of end-payor purchasers voluntarily dismissed their claims without prejudice. Annual
 
sales of Xifaxan
®
were approximately $
1.5
 billion at the time of the settlement.
Government Investigations and Litigation Relating to Pricing and Marketing
Teva is involved in government investigations and litigation arising from the marketing and promotion of its pharmaceutical products in the United States.
In 2015 and 2016, Actavis and Teva USA each respectively received subpoenas from the U.S. Department of Justice (“DOJ”) Antitrust Division seeking documents and other information relating to the marketing and pricing of certain Teva USA generic products and communications with competitors about such products. On August 25, 2020, a federal grand jury in the Eastern District of Pennsylvania returned a three-count indictment charging Teva USA with criminal felony Sherman Act violations. On August 21, 2023, Teva USA entered into a
3-year
deferred prosecution agreement (“DPA”) with the DOJ. Under the terms of the DPA, Teva USA: (i) admitted to violating the antitrust laws by agreeing with competitors, in three instances between 2013 and 2015 involving three separate customers, not to bid on an opportunity to supply a customer with a particular
 
generic product (in the first instance pravastatin, in the second clotrimazole, and in the third tobramycin); (ii) agreed to divest the pravastatin that it sells in the United States to a third-party buyer; (iii) agreed to donate $50 million worth of clotrimazole and tobramycin, valued at wholesale acquisition cost (“WAC”), to humanitarian organizations over five years; and (iv) agreed to pay a fine in the amount of $225 million over 5 years, with $22.5 million due each year from 2024 through 2027, and $135 million due in 2028. Teva recognized a provision for the resolution of this case and divested pravastatin in November 2024 pursuant to the DPA.
In May 2018, Teva received a civil investigative demand from the DOJ Civil Division pursuant to its investigation concerning allegations that generic pharmaceutical manufacturers, including Teva, engaged in market allocation and/or price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted in violation of the False Claims Act. On October 10, 2024, Teva entered into a settlement agreement with the Civil Division to resolve these allegations. Under the terms of the settlement, which includes no admission of wrongdoing, Teva is required to pay $25 million, consisting of $10 million that was paid in the fourth quarter of 2024 and $15 million that was paid in January 2026. Teva has recognized a provision for the resolution of this matter.
In 2015 and 2016, Actavis and Teva USA each respectively received a subpoena from the Connecticut Attorney General seeking documents and other information relating to potential state antitrust law violations. On December 15, 2016, and as subsequently amended, a civil action was brought by the attorneys general of 49 states, as well as the District of Columbia and Puerto Rico, which includes claims against both Actavis and Teva. On May 10, 2019, and as subsequently amended, most of these attorneys general filed another antitrust complaint against Actavis, Teva and other companies and individuals alleging that Teva was at the center of a conspiracy in the generic pharmaceutical industry and asserting that Teva and others allegedly fixed prices, rigged bids, and allocated customers and market share with respect to certain products. The second complaint was amended on November 22, 2024, to add California as a plaintiff as well as to add additional defendants. On June 10, 2020, most of the same states, with the addition of the U.S. Virgin Islands, filed a separate, third complaint in the U.S. District Court for the District of Connecticut naming, among other defendants, Actavis, in a similar complaint relating to dermatological generic products, and that complaint was later amended to, among other things, add California as a plaintiff.
For the complaints described above, which also include claims against certain former employees of Actavis and Teva USA, the states seek a finding that the defendants’ actions violated federal antitrust law and state antitrust and consumer protection laws, as well as injunctive relief, disgorgement, damages on behalf of various state and governmental entities and consumers, civil penalties and costs. In April 2024, all three of the attorneys general’s lawsuits were transferred back to the U.S. District Court for the District of Connecticut where they were originally filed, and fact discovery in all three complaints was completed in 2025. In November and December 2025, the court denied defendants’ joint motions for summary judgment in the attorney general’s third complaint, and additional motions filed by each defendant (including Actavis) in defendant-specific motions, as well as an additional joint motion, remain pending.
In addition, for the complaints described above, Teva has settled with the states of Mississippi (in June 2021), Louisiana (in March 2022), Georgia (in September 2022), Arkansas (in October 2022), Florida (in February 2023), Kentucky (in June 2023), South Dakota (in June 2024), and New Mexico (in June 2024). Teva paid each state an amount proportional to its share of the national population (approximately $1,000,000 for each 1% share of the national population), and such states have dismissed their claims against Actavis and Teva USA, as well as certain former employees of Actavis and Teva USA, pursuant to these settlements. These settlements, in addition to the status of negotiations with several other U.S. state attorneys general to settle on comparable terms, caused management to consider settlement of the claims filed by the remaining attorneys general to be probable, and management recorded an estimated provision in the third quarter of 2022. In the second quarter of
 
2025, Teva updated the provision based on recent developments in its ongoing negotiations with certain remaining U.S. state attorneys general. The States of Alabama (in March 2022) and Hawaii (in August 2023) and the territories of American Samoa (in July 2020) and Guam (in February 2023) have all voluntarily dismissed all of their claims in the litigation against Actavis and Teva USA. The dismissals by Alabama, Hawaii and Guam were with prejudice and the dismissal by American Samoa was without prejudice.
Beginning on March 2, 2016, and through June 2025, numerous complaints have been filed in the United States on behalf of putative classes of direct and indirect purchasers of several generic drug products, as well as several individual direct and indirect purchaser
opt-out
plaintiffs, including most recently a complaint filed by an indirect opt out plaintiff on December 2, 2025. All such complaints (other than the December 2025 complaint, as detailed below) have been transferred to the generic drug multidistrict litigation in the Eastern District of Pennsylvania (“Pennsylvania MDL”). These complaints have been brought against various manufacturer defendants, including Teva USA and Actavis, alleging that these defendants engaged in conspiracies to fix prices and/or allocate market share of generic products, and generally seeking injunctive relief and damages under federal antitrust law, as well as damages under various state laws. With limited exceptions, all fact discovery in the Pennsylvania MDL was completed in December 2025. The Pennsylvania MDL court had proposed holding a bellwether trial on a single drug, starting in August 2025, in a case in which Actavis (but not Teva) is a defendant. However, on June 17, 2025, the United States Court of Appeals for the Third Circuit gave defendants permission to immediately appeal the District Court’s prior grants of class certification as to the bellwether trial on that single drug, and the Pennsylvania MDL court thereafter stayed the trial in the bellwether case against Actavis, in light of that Third Circuit ruling. Briefing on the appeal was completed in December 2025. The Pennsylvania MDL court has since selected two additional bellwethers: Humana Inc.’s (“Humana”) indirect
opt-out
case, involving claims on various drugs, and a case filed by a putative class of indirect reseller plaintiffs (“IRPs”) involving claims on a single drug (pravastatin). Under the current case schedule, the Humana bellwether case is set for trial starting in September 2026, and the IRP bellwether case is set for trial starting in December 2026. The Pennsylvania MDL court has selected three additional bellwethers: The Kroger Co., a direct
opt-out
case; Cigna Corp., an indirect
opt-out
case; and CVS Pharmacy Inc., a direct
opt-out
case, but no trial dates have been set for those bellwethers.
From 2019 to 2021, certain individual plaintiffs commenced civil actions in the Pennsylvania Court of Common Pleas of Philadelphia County against many of the defendants in the Pennsylvania MDL, including Teva and Actavis. Following defendants’ request, the cases filed in the Court of Common Pleas of Philadelphia County have all been placed in deferred status. One plaintiff, Aetna Inc., filed a complaint in Connecticut state court on December 30, 2024. Certain counties in New York and Texas have also commenced civil actions against many of the defendants in the Pennsylvania MDL, including Teva and Actavis, and the complaints have been transferred to the Pennsylvania MDL. On March 14, 2025 and June 9, 2025, respectively, Walmart Inc. and Southwest Airlines, Inc. filed lawsuits against various manufacturers, including Teva and Actavis, in the Eastern District of Pennsylvania which has been transferred to the Pennsylvania MDL. On May 19, 2025, New York Quality Healthcare Corporation filed a lawsuit against various manufacturers, including Teva and Actavis, in New York Supreme Court, County of New York. On December 2, 2025, AT&T Services, Inc. filed a lawsuit against various manufacturers, including Teva and Actavis, in the Eastern District of Pennsylvania, and that action has been transferred to the Pennsylvania MDL.
There is also one similar complaint brought in Canada, which is in its early stages and alleges that the defendants engaged in conspiracies to fix prices and/or allocate market share of generic drug products to the detriment of a class of private payors. The court held a class certification hearing in October 2025 and a decision remains pending.
 
 
In March 2017, Teva received a subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting documents related to Teva’s donations to patient assistance programs. In August 2020, the U.S. Attorney’s office in Boston, Massachusetts brought a civil action in the U.S. District Court for the District of Massachusetts alleging causes of action under the federal False Claims Act and for unjust enrichment (the “DOJ PAP Complaint”). It was alleged that Teva’s donations to certain 501(c)(3) charities that provided financial assistance to multiple sclerosis patients violated the Anti-Kickback Statute. On October 10, 2024, Teva entered into a settlement agreement with the DOJ to resolve these claims. Under the terms of the settlement, which includes no admission of wrongdoing, Teva is required to pay $425 million over 6 years – $19 million was paid in December 2024, $34 million was paid in January 2026, $49 million is due to be paid in each of December 2026 and December 2027, $99 million is due to be paid in December 2028, and $175 million is due to be paid in December 2029. The case was dismissed with prejudice on November 19, 2024. Teva has recognized a provision for the resolution of this case. Additionally, on January 8, 2021, Humana filed an action against Teva in the U.S. District Court for the Middle District of Florida based on the allegations raised in the DOJ PAP Complaint. On April 29, 2025, the court granted Teva’s motion to dismiss. On May 28, 2025, Humana
re-filed
the case in Kentucky circuit court, alleging the same facts alleged in the Florida district court action. On July 29, 2025, Teva filed a motion to dismiss, which the court granted in part and denied in part on January 15, 2026, leaving only claims for breach of various rebate agreements remaining. On November 17, 2022, United Healthcare filed an action against Teva in the U.S. District Court for the District of New Jersey based on the conduct alleged in the DOJ PAP Complaint, followed by an amended complaint filed on February 29, 2024. On March 28, 2025, Teva moved for summary judgment limited to the statute of limitations defense as per the court’s order, and that motion is pending.
In April 2021, a city and county in Washington filed claims against Teva in the U.S. District Court for the Western District of Washington for alleged violations of the RICO Act, Washington’s Consumer Protection Act, and unjust enrichment concerning Teva’s sale of COPAXONE. Plaintiffs purport to represent a nationwide class of health plans and a subclass of Washington-based health plans that purchased and/or reimbursed health plan members for COPAXONE. Plaintiffs allege that Teva engaged in several fraudulent schemes that resulted in plaintiffs and the putative class members purchasing and/or reimbursing plan members for additional prescriptions of COPAXONE and/or at inflated COPAXONE prices. Plaintiffs seek treble damages for the excess reimbursements and inflated costs, as well as injunctive relief. On November 17, 2021, Teva moved to dismiss the suit on the grounds that plaintiffs’ claims are barred by the applicable statutes of limitations and the direct purchaser rule, suffer from jurisdictional defects, and fail to plausibly allege fraud or other elements of their claims. On March 9, 2023, the court held a hearing on the motion to dismiss, and a decision remains pending. On June 27, 2025, Teva filed a motion to lift the stay of discovery. That motion is fully briefed and remains pending.
On December 1, 2022, Teva received a civil subpoena from the U.S. Attorney’s office in Boston, Massachusetts requesting certain documents related to the sale and marketing of AUSTEDO and risperidone LAI. Teva is cooperating with the request for documents and information.
In June 2024, Teva received a civil investigative demand from the Federal Trade Commission (“FTC”) seeking documents and information regarding an investigation related to patents listed in the Food and Drug Administration’s Approved Drug Products with Therapeutic Equivalence Evaluations publication (“Orange Book”) in connection with certain inhaler products. Teva is cooperating with the request for documents and information.
On October 1, 2024, Teva received a civil investigative demand from the U.S. Attorney’s office in Boston, Massachusetts and the Civil Division of the Department of Justice requesting certain documents and information
 
related to the manufacturing practices at its former manufacturing facility in Irvine, California, which Teva closed in 2022. Teva is cooperating with the request for documents and information.
Opioids Litigation
Since May 2014, more than 3,500 complaints have been filed by various governmental agencies and private plaintiffs in U.S. state and federal courts with respect to opioid sales and distribution against various Teva affiliates and several other pharmaceutical companies, the vast majority of which have been resolved. Cases brought by third party payers, both as individual cases and as class actions, remain. The majority of the remaining cases are consolidated in the multidistrict litigation in the Northern District of Ohio (the “MDL Opioid Proceeding”). These cases assert claims under similar provisions of different state laws and generally allege that the defendants engaged in improper marketing and distribution of Teva’s branded opioids, including ACTIQ
®
and FENTORA
®
, and also assert claims related to Teva’s generic opioid products.
In addition, over 950 personal injury plaintiffs, including various putative class actions of individuals, have asserted personal injury and wrongful death claims in over 600 complaints, nearly all of which are consolidated in the MDL Opioid Proceeding. Furthermore, approximately 100 personal injury complaints allege that Anda (in addition to naming other distributors and manufacturers) failed to develop and implement systems sufficient to identify suspicious orders of opioid products and prevent their abuse and diversion. Plaintiffs seek a variety of remedies, including restitution, civil penalties, disgorgement of profits, treble damages,
non-economic
damages, attorneys’ fees and injunctive relief. Certain plaintiffs seek damages for all costs associated with addressing the abuse of opioids and opioid addiction and certain plaintiffs specify multiple billions of dollars in the aggregate as alleged damages. In many of these cases, plaintiffs are seeking joint and several damages among all defendants. All but a handful of these cases are stayed in the MDL Opioid Proceedings.
In June 2023, Teva finalized and fully resolved its nationwide settlement agreement with the states and litigating subdivisions. Under the financial terms of the nationwide settlement agreement with the states and subdivisions, Teva will pay up to $4.25 billion (including the already settled cases), spread over 13 years. This total includes the supply of up to $1.2 billion of Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray), valued at wholesale acquisition cost, over 10 years or cash at 20% of the wholesale acquisition cost ($240 million) in lieu of product.
Teva has settled claims brought by 100% of the U.S. states and their litigating political subdivisions, the Native American tribes (the “Tribes”), and approximately 500 U.S. hospitals and other healthcare providers asserting opioid-related claims, including public nuisance. Teva’s estimated cash payments between 2025 and 2029 for all opioids settlements are: $412 million paid in 2025, $378 million payable in 2026; $364 million payable in 2027; $415 million payable in 2028; and $339 million payable in 2029. These payments are subject to change based on various factors including, but not limited to, timing of payments, most favored nations clauses associated with prior settlements, and the states’ elections to take Teva’s generic version of Narcan
®
(naloxone hydrochloride nasal spray). The remaining payments, subject to adjustments, will be paid beyond 2030.
In light of the nationwide settlement agreement between Teva and the States’ Attorneys General and their subdivisions, Teva’s indemnification obligations arising from Teva’s acquisition of the Actavis Generics business for opioid-related claims, prior settlements reached with Louisiana, Texas, Rhode Island, Florida, San Francisco, West Virginia, New York, the Tribes, Nevada and the City of Baltimore, the agreement with the hospitals discussed above, as well as an estimate for a number of items including, but not limited to, costs associated with administering injunctive terms, and most favored nations clauses associated with prior settlements, the Company has recorded a provision. The provision is a reasonable estimate of the ultimate costs for Teva’s opioids settlements, after discounting payments to their net present value. Opioid-related lawsuits
brought against Teva by dozens of third-party payers, such as unions and welfare funds, remain pending. A reasonable upper end of a range of loss cannot be determined for the entirety of the remaining opioid-related cases. An adverse resolution of any of these lawsuits or investigations may involve large monetary penalties, damages, and/or other forms of monetary and
non-monetary
relief and could have a material and adverse effect on Teva’s reputation, business, results of operations and cash flows.
In addition, Teva, certain of its subsidiaries and other defendants, are defending claims and putative class action lawsuits in Canada related to the manufacture, sale, marketing and distribution of opioid medications. The lawsuits include: (i) a claim brought by the Province of British Columbia on behalf of itself and a putative class of other federal and provincial governments, (ii) claims of municipalities, (iii) claims on behalf of various First Nations groups, and (iv) consumer class actions on behalf of persons who used opioids on behalf of themselves and putative classes. On January 22, 2025, the British Columbia Supreme Court certified the class of federal and provincial governments. Defendants appealed this decision, a hearing on this appeal was held in December 2025, and a decision remains pending. The court in Quebec certified the class in the consumer class action in 2024 (and denied leave to appeal), and the court in Ontario scheduled a certification hearing for an additional consumer class for March 2026. Other Canadian opioid actions remain in their preliminary stages.
Shareholder Litigation
In November and December 2016, two putative securities class actions were filed in the U.S. District Court for the Central District of California against Teva and certain of its current and former officers and directors, which were subsequently consolidated and transferred to the U.S. District Court for the District of Connecticut (the “Ontario Teachers Securities Litigation”). On December 13, 2019, the lead plaintiff filed an amended complaint, purportedly on behalf of purchasers of Teva’s securities between February 6, 2014 and May 10, 2019, asserting that Teva and certain of its current and former officers and directors violated federal securities and common laws in connection with Teva’s alleged failure to disclose pricing strategies for various drugs in its generic drug portfolio and by making allegedly false or misleading statements in certain offering materials. From July 2017 to June 2019, other putative securities class actions were filed in other federal courts based on similar allegations and claims, and were transferred to the U.S. District Court for the District of Connecticut. Between August 2017 and January 2022, twenty-three complaints were filed against Teva and certain of its current and former officers and directors on behalf of plaintiffs in various forums across the country, and many of those plaintiffs had
“opted-out”
of the Ontario Teachers Securities Litigation. On January 18, 2022, Teva entered into a settlement in the Ontario Teachers Securities Litigation for $420 million, which received final approval from the court on June 2, 2022. The vast majority of the total settlement amount was covered by the Company’s insurance carriers, with a small portion contributed by Teva. Additionally, as part of the settlement, Teva admitted no liability and denied all allegations of wrongdoing. Additionally, Teva has settled the majority of the
“opt-out”
claims including a class settlement with shareholders in Israel, and one
opt-out
case remains pending in the U.S.
On September 23, 2020, a putative securities class action was filed in the U.S. District Court for the Eastern District of Pennsylvania against Teva and certain of its former officers. On August 10, 2021, the lead plaintiff filed a corrected amended class action complaint, purportedly on behalf of persons who purchased or otherwise acquired Teva securities between October 29, 2015 and August 18, 2020. The corrected amended complaint alleges that Teva and certain of its current and former officers violated federal securities laws by allegedly making false and misleading statements regarding the commercial performance of COPAXONE, namely, by failing to disclose that Teva had allegedly caused the submission of false claims to Medicare through Teva’s donations to bona fide independent charities that provide financial assistance to patients, which allegedly impacted COPAXONE’s commercial success and the sustainability of Teva’s revenues and resulted in the DOJ PAP Complaint filed by the DOJ. The corrected amended complaint seeks unspecified damages and legal fees. On November 3, 2023, the court granted plaintiff’s motion for class certification, to which Teva filed a petition
 
with the Third Circuit Court of Appeals for leave to appeal, which was denied on May 16, 2024. A motion to approve a securities class action was also filed in September 2022 in the Central District Court in Israel, which has been stayed pending the U.S. litigation, with similar allegations to those made in the above complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.
Environmental Matters
Teva or its subsidiaries are party to a number of environmental proceedings, or have received claims, including under the federal Superfund law or other federal, provincial or state and local laws, imposing liability for alleged noncompliance, or for the investigation and remediation of releases of hazardous substances and for natural resource damages. Many of these proceedings and claims seek to require the generators of hazardous wastes disposed of at a third party-owned site, or the party responsible for a release of hazardous substances, including
per-and
polyfluoroalkyl substances (PFAS), that impacted a site, to investigate and clean the site or to pay or reimburse others for such activities, including for oversight by governmental authorities and any related damages to natural resources. Teva or its subsidiaries have received claims, or been made a party to these proceedings, along with others, as an alleged generator of waste disposed of or treated at third-party waste disposal sites, or as a result of an alleged release from one of Teva’s facilities or former facilities.
Although liability among the responsible parties, under certain circumstances, may be joint and several, these proceedings are frequently resolved so that the allocation of
clean-up
and other costs among the parties reflects the relative contributions of the parties to the site conditions and takes into account other pertinent factors. Teva’s potential liability varies greatly at each site; for some sites the costs of the investigation,
clean-up
and natural resource damages have not yet been determined, and for others Teva’s allocable share of liability has not been determined. At other sites, Teva has taken an active role in identifying those costs, to the extent they are identifiable and estimable, which do not include reductions for potential recoveries of
clean-up
costs from insurers, indemnitors, former site owners or operators or other potentially responsible parties. In addition, enforcement proceedings relating to alleged violations of federal, state, commonwealth or local requirements at some of Teva’s facilities may result in the imposition of penalties (in amounts not expected to materially adversely affect Teva’s results of operations) and the recovery of certain costs and natural resource damages, and may require that corrective actions and enhanced compliance measures be implemented.
Item 103 of Regulation
S-K
promulgated by the SEC requires disclosure of certain environmental matters when a governmental authority is a party to the proceeding and such proceeding involves potential monetary sanctions, unless the Company reasonably believes that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $300,000. The following matter is disclosed in accordance with that requirement. On July 8, 2021, the National Green Tribunal Principal Bench, New Delhi, issued an order against Teva’s subsidiary in India, Teva API India Private Limited, finding
non-compliance
with environmental laws and assessing a penalty of $1.4 million. Teva filed an appeal before the Hon’ble Supreme Court of India, disputing certain of the findings and the amount of the penalty. On August 5, 2021, the Supreme Court of India granted a stay of the judgment by the National Green Tribunal Principal Bench. On April 8, 2025, the Supreme Court of India accepted the appeal filed by Teva’s subsidiary and a hearing will be scheduled in due course. The Company does not believe that the eventual outcome of such matter will have a material effect on its business and results of operations.
Gain Contingencies
From time to time, Teva may directly or indirectly pursue claims against certain parties, including but not limited to patent infringement lawsuits against other pharmaceutical companies to protect its patent rights, as well as derivative actions brought on behalf of Teva. Teva recognizes gain contingencies from such lawsuits
 
when they are realized or when all related contingencies have been resolved. No gain has been recognized regarding any matter disclosed below, unless mentioned otherwise.
In October 2017, Teva filed a lawsuit in the U.S. District Court for the District of Massachusetts alleging that Eli Lilly & Co.’s (“Lilly”) marketing and sale of its galcanezumab product for the treatment of migraine infringes on nine Teva patents, including three method of treatment patents and six composition of matter patents. Lilly then submitted inter partes review (“IPR”) petitions to the Patent Trial and Appeal Board (“PTAB”), challenging the validity of the nine Teva patents. The PTAB issued decisions upholding the three method of treatment patents but finding the six composition of matter patents invalid, which decisions were affirmed by the Court of Appeals for the Federal Circuit on August 16, 2021. A jury trial regarding the three method of treatment patents resulted in a verdict in Teva’s favor on November 9, 2022. The jury’s verdict found that the three method of treatment patents were valid and infringed by Lilly and awarded Teva $176.5 million in damages. On September 26, 2023, the U.S. District Court for the District of Massachusetts issued a decision that reversed the jury’s verdict and damages award, finding Teva’s method of treatment patents to be invalid. Teva appealed and a hearing was held on September 5, 2025. A decision remains pending.
In March 2024, Teva filed a lawsuit in the U.S. District Court for the District of New Jersey alleging that Amarin Pharma, Inc., Amarin Pharmaceuticals Ireland Limited, and Amarin Corporation plc (collectively “Amarin”) engaged in a decade-long scheme to lock up the supply of icosapent ethyl to prevent and delay generic competition to its branded Vascepa
®
drug product. Teva’s lawsuit coincides with four other lawsuits brought by generic drug manufacturers and purchasers of branded Vascepa
®
alleging the same or similar conduct by Amarin. Teva’s requested relief includes compensatory damages for lost sales and lost profits from generic icosapent ethyl drug sales that Teva could have made absent Amarin’s alleged interference. On May 24, 2024, Amarin filed a motion in the U.S. District Court for the District of Nevada, seeking to enforce the terms of an earlier Teva-Amarin agreement to settle patent litigation regarding Vascepa
®
, which Amarin asserts precludes Teva from filing the present antitrust action. Teva opposed this motion on June 7, 2024, and on December 4, 2024, the Nevada court denied Amarin’s motion. On March 25, 2025, Amarin filed a
“pre-motion
letter” with the U.S. District Court of the District of New Jersey, where the case is pending, asking for permission to file a motion for judgment on the pleadings on the same grounds as its motion in Nevada. On October 8, 2025, the Court granted Amarin’s request to file its motion. Amarin served its motion on October 29, 2025. Briefing on Amarin’s motion is complete and a decision remains pending. As the lawsuit is still in its initial stages, it is not possible to predict its outcome and there is no guarantee that Teva will be granted its requested relief.
In June 2024, Teva filed a lawsuit in the U.S. District Court for the Northern District of California alleging that Corcept Therapeutics, Inc. (“Corcept”) and Optime Care Inc. (“Optime”) engaged in a multifaceted, years-long scheme to stifle generic competition to Corcept’s branded Korlym
®
(mifepristone) drug product, which is indicated to treat endogenous Cushing’s syndrome. Teva alleges that Corcept and Optime have suppressed competition by abusing the patent and judicial systems, entering a long-term, blanket exclusive-dealing agreement that has locked up a key pharmaceutical distribution channel, and making illicit payments to physicians as compensation for prescribing Korlym
®
. Teva’s requested relief includes compensatory damages for lost sales and lost profits from generic mifepristone drug sales that Teva could have made absent Corcept and Optime’s alleged interference, as well as injunctive relief to remove the unlawful barriers to generic competition created by Corcept and Optime. Teva filed an amended complaint in September 2024. Defendants filed a joint motion to dismiss in October 2024, which the court denied in substantial part on September 12, 2025. On September 26, 2025, Teva filed an amended complaint amending certain claims that were dismissed. On October 31, 2025, Corcept and Optime filed a motion to dismiss certain claims in Teva’s second amended complaint. Briefing on that motion is now complete and a decision remains pending. On January 14, 2026, Teva filed a motion for leave to serve a supplemental pleading, to add a new claim for unlawful exclusive dealing against Corcept and another specialty pharmacy, Curant Health LLC. Discovery is ongoing. As the lawsuit is still
 
in its initial stages, it is not possible to predict its outcome and there is no guarantee that Teva will be granted its requested relief.
Motions to approve derivative actions seeking monetary damages against certain past and present directors and officers have been filed in Israeli Courts alleging negligence and recklessness, as well as motions for document disclosure prior to initiating derivative actions. These motions were filed with respect to several U.S. and EU settlement agreements, allegations related to the DOJ PAP Complaint, and with respect to the European Commission’s proceedings relating to COPAXONE.
v3.25.4
Income taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes
NOTE 13—Income taxes:
 
a.
Income (loss) before income taxes:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Israel (domestic)
    $ (225 )     $ (456 )     $ (767 ) 
Outside Israel (foreign)
      1,448        (828 )       143  
  
 
 
     
 
 
     
 
 
  
   $ 1,223      $ (1,284 )     $ (624 ) 
  
 
 
     
 
 
     
 
 
  
 
b.
Income taxes:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Israel (domestic)
    $ 206      $ 721      $ (402 ) 
Outside Israel (foreign)
      (386 )       (45 )       395  
  
 
 
     
 
 
     
 
 
  
   $ (180 )     $ 676      $ (7 ) 
  
 
 
     
 
 
     
 
 
  
Current
                         
Israel (domestic)
    $ 154      $ 656      $ 36  
Outside Israel (foreign)
      482        438        297  
Deferred
                         
Israel (domestic)
      52        66        (438 ) 
Outside Israel (foreign)
      (868 )       (484 )       98  
  
 
 
     
 
 
     
 
 
  
   $ (180 )     $ 676      $ (7 ) 
  
 
 
     
 
 
     
 
 
  
 
 
The following table presents the reconciliation between the Company’s theoretical income tax and effective income tax for the year ended December 31, 2025 after the adoption of ASU
2023-09:
 
 
  
Year ended December 31,
 
 
  
2025
 
 
  
(U.S. $ in millions)
 
  
Percentage
 
Israel statutory tax rate for income taxes
    $ 281       23 % 
Foreign tax effects
     
Canada
     
Change in valuation allowance
      42       3.4 % 
Other
      (11 )      (0.9 %) 
Germany
     
Statutory tax rate difference
      48       4 % 
State and local income taxes*
      (77 )       (6.3 %) 
Other
      (1 )      (0.1 %) 
Ireland
     
Change in valuation allowance
      40       3.3 % 
Other
      (4 )      (0.3 %) 
Malta
     
Statutory tax rate difference
      34       2.8 % 
Reduced rate due to imputation system
      (89 )       (7.3 %) 
Other
      6       0.5 % 
Mexico
      17       1.4 % 
Netherlands
     
Non-deductible
interest
      41       3.4 % 
Change in valuation allowance
      138       11.3 % 
Other
      (1 )      (0.1 %) 
Switzerland
     
Statutory tax rate difference
      (162 )      (13.2 %) 
Exchange rate movements
      (37 )      (3.0 %) 
Change in valuation allowance
      (33 )      (2.7 %) 
Other
      4       0.4 % 
United Kingdom
      15       1.2 % 
United States
     
Change in valuation allowance
      (668 )      (54.6 %) 
R&D tax credit
      (24 )      (2.0 %) 
Base Erosion and Anti-Abuse Tax (BEAT)
      25       2.0 % 
Non-deductible
items
      19       1.6 % 
Other
      (7 )     (0.6 %) 
Other countries
      39        3.3 % 
Changes in unrecognized tax benefits
      (60 )      (4.9 %) 
Changes in valuation allowances
      187        15.3 % 
Indexation of income tax payable to tax authorities
      48        4.0 % 
Other adjustments
      6        0.5 % 
  
 
 
    
 
 
  
Total Effective Tax Rate
    $ (180 )      (14.8 %) 
  
 
 
    
 
 
  
 
*
State taxes
in
Ulm in 2025 made up the majority (greater than 50%) of the tax effect in this category.
 
 
 
The following table presents the reconciliation between the Company’s theoretical income taxes and effective income taxes for the years ended December 31, 2024 and 2023 prior the adoption of ASU
2023-09:
 
 
  
Year ended December 31,
 
 
  
 2024 
 
 
 2023 
 
 
  
(U.S. $ in millions)
 
Income (loss) before income taxes
    $ (1,284 )    $ (624 ) 
Statutory tax rate in Israel
      23 %      23 % 
  
 
 
    
 
 
  
Theoretical provision for income taxes
    $ (295 )    $ (144 ) 
Increase (decrease) in the provision for income taxes due to:
     
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (87 )      (272 )
The Parent Company and its Israeli subsidiaries - Settlement with the Israeli tax authorities
      514     — 
Increase (decrease) in other uncertain tax positions - net
      171     — 
Tax benefits arising from reduced tax rates under benefit programs
    —      14  
Mainly nondeductible items and prior year tax
      16    
Non-Israeli
subsidiaries
     
Impairments that did not have a corresponding tax effect,
non-deductible
interest and other items
      463       372  
Adjustments to valuation allowances on deferred tax assets (*)
      (105 )    — 
Increase (decrease) in other uncertain tax positions - net
      (1 )      23  
  
 
 
    
 
 
  
Effective consolidated income taxes
    $ 676     $ (7 ) 
  
 
 
    
 
 
  
 
*
Mainly related to deduction of interest expenses in the United States.
 
c.
Deferred income taxes:
 
 
  
December 31,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Deferred tax assets (liabilities), net:
  
Inventory related
  
$
77
 
  
$
88
 
Sales reserves and allowances
  
 
57
 
  
 
55
 
Provision for legal settlements
  
 
650
 
  
 
667
 
Intangible assets
  
 
(79
) 
  
 
170
 
Carryforward losses and deductions and credits (*)
  
 
1,789
 
  
 
1,557
 
Property, plant and equipment
  
 
(49
) 
  
 
(157
) 
Deferred interest
  
 
964
 
  
 
789
 
Provisions for employee related obligations
  
 
117
 
  
 
95
 
Other
  
 
712
 
  
 
69
 
    
 
 
     
 
 
  
 
  
 
4,238
 
  
 
3,333
 
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
  
 
(2,342
) 
  
 
(2,017
) 
    
 
 
     
 
 
  
 
  
$
1,895
 
  
$
1,316
 
  
 
 
     
 
 
  
 
(*)
The amounts are shown after reduction for unrecognized tax benefits of $445
 
million and $
163
 
million as of December 31, 2025 and 2024, respectively. 
The
 amount as of December 31, 2025 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2026
-
2027
— $
59 million;
2028
-
2035
— $
552 million;
2036
and thereafter—$
453 million. The remaining balance—$
1,170
million—can be utilized with no expiration date.
 
 
The deferred income taxes are reflected in the balance sheets among:
 
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes
      2,191        1,799  
Long-term liabilities—deferred income taxes
      (296 )       (483 ) 
  
 
 
     
 
 
  
   $ 1,895      $ 1,316  
  
 
 
     
 
 
  
 
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 449      $ 651      $ 638  
Increase (decrease) related to prior year tax positions, net
      125        109        (1 ) 
Increase related to current year tax positions
      8        53        15  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (8 )       (395 )       (15 ) 
Other
      23        29        14  
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 596      $ 449      $ 651  
  
 
 
     
 
 
     
 
 
  
Uncertain tax positions, mainly of a long-term nature, included accrued potential penalties and interest of $14 million, $69 million and $224 million as of December 31, 2025, 2024 and 2023, respectively. The total amount of interest and penalties reflected in the consolidated statements of income was a net decrease of $55 million, $155 million for the years ended December 31, 2025 and 2024, respectively, and a net increase of $12 million for the year ended December 31, 2023. The above uncertain tax benefits, if recognized, would reduce Teva’s annual effective tax rate. Teva does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities or court decisions, the likelihood and timing of which are difficult to estimate.
 
 
e.
Cash Income Taxes Paid (net of refunds):
 
    
Year ended December 31,
  
    
2025
  
    
(U.S. $ in millions)
  
Israel
    $ 155  
Foreign
   
Croatia
      30  
Poland
      35  
Spain
      59  
United Kingdom
      42  
Other
      237  
  
 
 
  
   $ 558  
  
 
 
  
 
Income taxes paid (net of refunds) for the years ended December 31, 2024 and 2023 were $471 million and $298 million respectively.
 
f.
Tax assessments:
Teva files income tax returns in various jurisdictions with varying statutes of limitations. Teva and its subsidiaries in Israel have received final tax assessments through tax year 2020.
On June 23, 2024, Teva entered into an agreement with the ITA to settle certain litigation with respect to taxes payable for the Company’s taxable years 2008 through 2020 (the “Agreement”). Pursuant to the terms of the Agreement, the Company will pay a total amount of approximately $750 million (based on exchange rates at the date of the Agreement) to the ITA spread over a
six-year
period beginning in 2024. Additionally, under the terms of the Agreement, it was further agreed that the Company pays dividends on, or repurchases, its equity interests, the Company will pay an additional
5%-7%
of such amounts in corporate taxes, up to a maximum tax payment amount of approximately $500 million. Any amounts due under this provision of the Agreement will be recorded as incurred.
In the U.S., Teva is subject to ongoing examination of its U.S. subsidiaries by federal and state tax authorities. The years 2016 to 2019 are open years, and under IRS examination. Additionally, Teva is currently under examination by various state tax authorities for open years from 2016 to 2023. Besides these ongoing audits, Teva and its subsidiaries are in the process of closing and removing tax years 2009 to 2015 from administrative suspense, following the holding of the U.S. District Court of Appeals for the Federal Circuit, pursuant to which certain legal fees incurred related to Abbreviated New Drug Applications (“ANDAs”) were held deductible for Federal tax purposes in the years incurred.
On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the United States. The Act contains certain provisions related to the extent of deductibility for U.S. federal tax purposes of interest expense, R&D costs and other depreciable property, as well as changes to U.S. taxation of foreign subsidiaries’ earnings, and other U.S. corporate tax law changes. Pursuant to ASC 740, changes in tax rates and tax law are required to be recognized in the period in which the legislation is enacted. Teva evaluated the impact of this Act on its annual consolidated financial statements and related disclosures, and concluded the Act does not have a material impact on its 2025 consolidated financial statements.
 
Teva periodically assesses the need for valuation allowances against its deferred tax assets, and considers available evidence including but not limited to, the Company’s recent earnings history, forecasted future taxable income to the extent it is objectively verifiable, and significant nonrecurring items impacting those amounts. To the extent Teva’s operating results improve or deteriorate, or to the extent changes in tax laws and other factors affect Teva’s ability to utilize deferred tax assets, Teva may need to adjust its valuation allowance.
With respect to carry forward of historical nondeductible interest expenses in the U.S., the Company had sufficient positive evidence to release valuation allowances in 2025. The release resulted in the recognition of certain deferred tax assets with a corresponding income tax benefit.
Teva paid withholding taxes to the Indian tax authorities in 2012. Teva filed a claim seeking the refund of these withholding tax payments. Trial in this case is ongoing. A final and binding decision against Teva in this case may lead to an impairment of income tax (refund) receivable in an amount of up to $117 million.
The Company’s subsidiaries in Europe have received final tax assessments mainly through tax year 2019. Teva believes it has adequately provided for all of its uncertain tax positions for open years, including items currently under dispute, however, adverse outcomes to any of these positions or disputes could be material.
 
 
g.
Basis of taxation:
The Company and its subsidiaries are subject to tax in many jurisdictions, and estimation is required in recording the assets and liabilities related to income taxes. The Company believes that its accruals for tax liabilities are adequate for all open years. The Company considers various factors in making these assessments, including past history, recent interpretations of tax law, and the specifics of each matter. Because tax regulations are subject to interpretation and tax litigation is inherently uncertain, these assessments can involve a series of complex judgments regarding future events.
An assessment of the tax that would have been payable had the Company’s foreign subsidiaries distributed their income to the Company is not practicable because of the multiple levels of corporate ownership and multiple tax jurisdictions involved in each hypothetical dividend distribution.
The New Technological Enterprise Incentives Regime – Amendment 73 to the Investment Law
Since 2017, a portion of the Company’s taxable income in Israel is entitled to a preferred 6% tax rate under Amendment 73 to the Investment Law as it pertains to Special Preferred Technological Enterprises.
The new incentives regime applies to “Preferred Technological Enterprises” or “Special Preferred Technological Enterprises.” A “Preferred Technological Enterprise” is an enterprise that meet certain conditions, including,
inter alia
:
 
  1.
Investment of at least 7% of income, or at least NIS 75 million (approximately $22 million) in R&D activities; and
 
  2.
One of the following:
 
  a.
At least 20% of the workforce (or at least 200 employees) are employed in R&D;
 
  b.
A venture capital investment approximately equivalent to at least $2 million was previously made in the company; or
 
  c.
Growth in sales or workforce by an average of 25% over the three years preceding the tax year.
 
A “Special Preferred Technological Enterprise” is an enterprise that meets,
inter alia
conditions 1 and 2 above, and in addition has total annual consolidated revenues above NIS 10 billion (approximately $2.9 billion).
Preferred Technological Enterprises are subject to a corporate tax rate of 7.5% on their income derived from intellectual property in areas in Israel designated as Zone A and 12% elsewhere, while Special Preferred Technological Enterprises are subject to 6% on such income. The withholding tax on dividends from these enterprises is 4% to foreign companies (or a lower rate under a tax treaty, if applicable).
Income not eligible for Preferred Technological Enterprise benefits is taxed at the regular corporate tax rate, which is 23%, or the preferred tax rate, as the case may be.
The Parent Company and its Israeli subsidiaries elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of U.S. dollar – NIS exchange rate on the Company’s Israeli taxable income.
 
 
Non-Israeli
subsidiaries are taxed according to the tax laws in their respective country of residence. Certain manufacturing subsidiaries operate in jurisdictions outside Israel, some of which benefit from tax incentives such as reduced tax rates, investment tax credits and accelerated deductions.
Pillar Two Taxation
On December 12, 2022, the EU Council announced that EU member states had reached an agreement to implement the minimum taxation component of 15% (“Pillar Two”) of the OECD’s reform of international taxation, as part of the base erosion and profit shifting (“BEPS”) for large multinational corporations. Other countries have also enacted legislation with general implementation of a global minimum tax by January 1, 2025. Although, the impact of Pillar Two on Teva’s 2025 consolidated financial statements was not material on Teva’s effective tax rate, it could have a material impact on Teva’s effective tax rate and consolidated financial statements in the future.
v3.25.4
Equity
 12 Months Ended
Dec. 31, 2025
Federal Home Loan Banks [Abstract]  
Equity
NOTE 14—Equity:
 
a.
Ordinary shares and ADSs
As of December 31, 2025 and 2024, Teva had approximately 1.3 billion and 1.2 billion ordinary shares issued respectively. Teva ordinary shares are traded on the
Tel-Aviv
Stock Exchange and on the New York Stock Exchange, in the form of American Depositary Shares (“ADSs”), each of which represents one ordinary share.
 
b.
Stock-based compensation plans
Stock-based compensation plans are comprised of stock options, RSUs, PSUs, and other equity-based awards to employees, officers, directors and consultants of the Company and its affiliates. The purpose of the plans is to (a) attract, retain, motivate, and reward such individuals, and (b) promote the creation of long-term value for shareholders of the Company by closely aligning the interests of such individuals with those of the shareholders.
On June 29, 2010, the Teva 2010 Long-Term Equity-Based Incentive Plan (“2010 Plan”) was approved by Teva’s shareholders, under which 70 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant. The 2010 Plan expired on June 28, 2015 (except with respect to awards outstanding on that date), and no additional awards under the 2010 Plan may be made.
 
On September 3, 2015, the Teva 2015 Long-Term Equity-Based Incentive Plan (“2015 Plan”) was approved by Teva’s shareholders, under which 43.7 million equivalent share units, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
On April 18, 2016 and July 13, 2017, Teva’s shareholders approved an increase of an additional 33.3 million and 65 million, equivalent share units, respectively, to the share reserve of the 2015 Plan, so that a total of 77 million and 142 million, equivalent share units, respectively, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
The 2015 Plan expired on June 30, 2020 (except with respect to awards outstanding on that date), and no additional awards under the 2015 Plan may be made.
On June 11, 2020, the Teva 2020 Long-Term Equity-Based Incentive Plan (“2020 Plan”) was approved by Teva’s shareholders and became effective on July 1, 2020. Under the 2020 Plan, 68 million shares, including options exercisable into ordinary shares, RSUs and PSUs, were approved for grant.
 
 
As of December 31, 2025, 52.1 million shares remain available for future awards under the 2020 Plan.
In the past, Teva had various employee-stock and incentive plans under which stock options and other share-based awards were granted. Stock options and other share-based awards granted under such prior plans continue in accordance with the terms of the respective plans.
The vesting period of the outstanding options and RSUs is generally between one to four years from grant date. The vesting period of PSUs is generally three years from grant date. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.
Status of options
A summary of the status of the options previously granted by Teva as of December 31, 2025, 2024 and 2023, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      17,713     $ 36.96        22,703     $ 36.89        24,119     $ 36.83  
Changes during the year:
               
Exercised
      (2,541 )      18.91        (1,284 )      15.37        —        —   
Forfeited
      (581 )      35.86        (1,211 )      34.13        (885 )      34.65  
Expired
      (2,722 )      59.63        (2,495 )      48.84        (531 )      37.57  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      11,870       35.68        17,713       36.96        22,703       36.89  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      11,870       35.68        17,713       36.96        22,703       36.89  
  
 
 
       
 
 
       
 
 
    
No options were granted during 2025, 2024 and 2023.
The following table summarizes information as of December 31, 2025 regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
$15.01 - $20.00
      3,390        18.97        2.14  
$20.01 - $25.00
      26        22.48        2.61  
$25.01 - $35.00
      4,956        34.67        1.16  
$35.01 - $45.00
      57        37.70        0.92  
$45.01 - $55.00
      2,883        53.24        0.28  
$55.01 - $65.00
      558        55.83        0.12  
  
 
 
        
Total
      11,870        35.68        1.18  
  
 
 
        
 
 
The aggregate intrinsic value represents the total
pre-tax
intrinsic value, based on the Company’s closing stock price of $31.21 on December 31, 2025, less the weighted average exercise price in each range. This represents the potential amount receivable by the option holders had all option holders exercised their options as of such date. The total number of
in-the-money
options exercisable as of December 31, 2025
,
was 3.5 million.
The total intrinsic value of the options outstanding at the end of the years ended December 31, 2025 and 2024 was $42 million and $19 million respectively.
The total intrinsic value of options exercised during the years ended December 31, 2025 and 2024 was $17 million and $3 million based on the Company’s average stock price of $19.09 and $15.97 respectively.
No options were exercised during 2023.
Status of
non-vested
RSUs and PSUs
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      33,810     $ 10.46        35,664     $ 9.07        32,302     $ 9.11  
Granted
      12,037       16.11        11,557       13.66        16,608       9.77  
Vested
      (13,428 )      9.48        (11,464 )      9.46        (10,195 )      10.28  
Forfeited
      (1,953 )      6.58        (1,947 )      9.81        (3,052 )      9.81  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      30,466       13.14        33,810       10.46        35,664       9.07  
  
 
 
       
 
 
       
 
 
    
The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2025, 2024 and 2023, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
RSUs and PSUs
      157        123        121  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      157        123        121  
Tax effect on stock-based compensation expense
      14        11        11  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 143      $ 112      $ 110  
  
 
 
     
 
 
     
 
 
  
As of December 31, 2025, the total unrecognized compensation cost before tax on RSUs and PSUs amounted to $
262
 million. The cost is expected to be recognized over a weighted average period of approximately
2.4
years. There were
no
unrecognized compensation costs related to employee stock options.
 
c.
Dividends
Teva has not paid dividends on Teva ordinary shares or ADSs since December 2017.
 
 
d.
Accumulated other comprehensive loss
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
 
  
Net Unrealized Gains (Losses)
 
 
Benefit Plans
 
 
 
 
 
  
Foreign
currency
translation
adjustments
 
 
Derivative
financial
instruments
 
 
Actuarial
gains (losses)
and prior
service
(costs)
credits
 
 
Total
 
 
  
(U.S. $ in millions)
 
Balance as of January 1, 2023
    $ (2,514 )      (295 )      (28 )      (2,838 ) 
Other comprehensive income (loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
      (2,384 )      (266 )      (46 )      (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income (loss) before reclassifications
      (456 )      —        (1 )      (457 ) 
Amounts reclassified to the statements of income
      —        28       (6 )      22  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) before tax
      (456 )      28       (7 )      (434 ) 
Corresponding income tax
      (17 )      —        1       (16 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      (473 )      28       (6 )      (450 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024
      (2,857 )      (238 )      (52 )      (3,148 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income
 
(loss) before reclassifications
      569     4     3       572  
Amounts reclassified to the statements of income
        35       12       51  
Release of cumulative translation adjustments**
      181     —    —      181  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive
income
(loss) before tax
      750       39       15       804  
Corresponding income tax
      (45 )     —        (2 )     (47 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      705       39       13       757  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2025
    $ (2,152 )   $ (199 )    $ (39 )    $ (2,391 )
  
 
 
    
 
 
    
 
 
    
 
 
  
 
*
Amounts do not include $27 million gain in 2025, $61 million l
oss
in 2024 and $50 million loss in 2023 from foreign currency translation adjustments attributable to
redeemable
and
non-redeemable
non-controlling
interests.
**
In connection with the sale of Teva’s business venture in Japan.
v3.25.4
Other assets impairments, restructuring and other items
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Other assets impairments, restructuring and other items
 
 
NOTE 15—Other assets impairments, restructuring and other items:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Impairment
of long
-lived
tangible assets
(1)
    $ 769      $ 1,024      $ 28  
Contingent consideration (see note 20)
      54        303        548  
Restructuring
      225        74        111  
Other
      1        (14 )
 
      30  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,050      $ 1,388      $ 718  
  
 
 
     
 
 
     
 
 
  
 
(1)
Including impairments related to exit and disposal activities.
Impairments
Impairments of tangible assets for the years ended December 31, 2025, 2024 and 2023 were $769 million, $1,024 million and $28 million, respectively.
Impairments for the year ended December 31, 2025, were mainly related to a $
726
 
million impairment charge in connection with a manufacturing facility in Europe. During the fourth quarter of 2025, due to impairment indicators, the Company performed an undiscounted cash flow analysis pursuant to ASC
360-10,
Impairment and Disposal of Long-Lived Asset. Based on this analysis, the undiscounted cash flows were not sufficient to recover the carrying value of the long-lived assets related to this facility. To estimate the fair value of the asset group, the Company performed a discounted cash flow analysis using assumptions which required significant judgment, including appropriate discount rates, estimates of revenue growth rate and the amount and timing of expected future cash flows. The discount rate was based on an estimate of the WACC of market participants relative to the asset group and amounted to
8.8
%. 
The forecasted cash flows were based on the Company’s most recent strategic alternatives, including contract manufacturing services partnerships and possible divestitures. The Company believes the assumptions are consistent with the plans and estimates that a market participant would use to manage the business. As a result of this analysis, an impairment charge was recorded as the fair value of the asset group was below its carrying value.
Impairments for the year ended December 31, 2024 were mainly related to the classification of the business venture in Japan and the API business (including its R&D, manufacturing and commercial activities) as held for sale (see note 2).
Impairments for the year ended December 31, 2023 were mainly related to certain assets in Europe and the United States.
In addition, as part of the Company’s efforts to further focus its business by optimizing its portfolio and global manufacturing footprint to achieve additional operational efficiencies, the Company, from time to time, evaluates strategic alternatives for certain individual assets or asset groups. These strategic alternatives may include partnerships, joint ventures, redeployment of assets or divestitures. These actions may involve substantial impairment charges in the future depending on the ultimate course of action for these long-lived assets. Any such impairment charges are recorded in the period in which there is a triggering event or commitment to a probable transaction.
Teva may record additional impairments in the future, to the extent it changes its plans on any given asset and/or the assumptions underlying such plans, as a result of its network consolidation activities and its “Pivot to Growth Strategy”.
 
 
Contingent consideration
In 2025, Teva recorded expenses of $54 million for contingent consideration, compared to expenses of $303 million in 2024 and $548 million in 2023. The expense in 2025 was mainly related to lenalidomide capsules (the generic version of Revlimid
®
) (mainly the effect of the passage of time on the net present value of the discounted payments) and to a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales. Expenses in 2024 and 2023 were mainly related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide (generic equivalent of Revlimid
®
) and a change in the estimated future royalty payments to Eagle in connection with expected future bendamustine sales.
Restructuring
In 2025, Teva recorded $225 million of
restructuring expenses
, compared to $74 million in 2024 and $111 million in 2023. Expenses in 2025 were primarily related to optimization activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations, mainly through headcount reduction. Expenses in 2024 and
2023
were primarily related to network consolidation activities.
Under Teva’s Transformation programs announced on May 7, 2025, Teva expects to achieve cost savings through a variety of initiatives including examining practices and efficiencies in methods of working, reduction in headcount and optimizing external spend in the following years. These Transformation programs are expected to result in the reduction of approximately 8% of Teva’s total work force as of December 31, 2024, by the end of 2027.
The following table provides the components of restructuring costs:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Restructuring
         
Employee termination
    $ 215      $ 53      $ 52  
Other
      10        21        59  
  
 
 
     
 
 
     
 
 
  
Total
    $ 225      $ 74      $ 111  
  
 
 
     
 
 
     
 
 
  
 
 
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination
costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2023
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (53 )       (21 )       (74 ) 
Utilization and other*
      73        16        88  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2024
    $ (55 )     $ (13 )     $ (68 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (215 )       (10 )       (225 ) 
Utilization and other*
      147        9        156  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2025
    $ (124 )     $ (14 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
 
*
Includes adjustments for foreign currency translation.
v3.25.4
Other income
 12 Months Ended
Dec. 31, 2025
Other income
NOTE 16—Other income:
 
 
  
Year ended
December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Gain (loss) on divestitures, net of divestitures related costs
    $ (22 )     $ 15      $ 3  
Gain (loss) on sale of assets
      2        2        25  
Other, net
      2        (4 )       21  
  
 
 
     
 
 
     
 
 
  
Total other income (loss)
    $ (18 )     $ 14      $ 49  
  
 
 
     
 
 
     
 
 
  
v3.25.4
Financial expenses, net
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Financial expenses, net
NOTE 17—Financial expenses, net:
 
    
Year ended December, 31
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 916      $ 1,002      $ 1,029  
(Income) loss from investments
      (92 )       (86 )       (68 ) 
Foreign exchange (gains) losses, net
      41        17        30  
Other, net (*)
      69        48        66  
  
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 934      $ 981      $ 1,057  
  
 
 
     
 
 
     
 
 
  
 
(*)
Amortization of issuance costs and terminated derivative instruments.
v3.25.4
Earnings (loss) per share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings (loss) per share
NOTE 18—Earnings (loss) per share:
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.
 
 
Basic and diluted earnings (loss) per share attributable to Teva’s ordinary shareholders for the years ended December 31, 2025, 2024 and 2023 are calculated as follows:
 
 
  
Years ended December 31,
 
 
  
 2025 
 
  
 2024 
 
  
 2023 
 
 
  
(In millions, except per share amounts)
 
Basic earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
         
Net income (loss) attributable to Teva’s ordinary shareholders
    $ 1,410      $ (1,639 )     $ (559 ) 
  
 
 
     
 
 
     
 
 
  
Shares (denominator):
         
Weighted average shares outstanding
      1,145        1,131        1,119  
  
 
 
     
 
 
     
 
 
  
Basic earnings (loss) attributable to Teva’s ordinary shareholders
    $ 1.23      $ (1.45 )     $ (0.50 ) 
  
 
 
     
 
 
     
 
 
  
Diluted earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
         
Net income (loss) attributable to Teva’s ordinary shareholders
    $ 1,410      $ (1,639 )     $ (559 ) 
  
 
 
     
 
 
     
 
 
  
Shares (denominator):
         
Weighted average shares outstanding
      1,145        1,131        1,119  
Diluted effect of stock options, RSUs and PSUs
      17        —         —   
  
 
 
     
 
 
     
 
 
  
Total dilutive shares outstanding
      1,163        1,131        1,119  
  
 
 
     
 
 
     
 
 
  
Diluted earnings (loss) attributable to Teva’s ordinary shareholders
    $ 1.21      $ (1.45 )     $ (0.50 ) 
  
 
 
     
 
 
     
 
 
  
In computing diluted earnings per share for the year ended December 31, 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
27.2
 
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 year ended December 31, 2025, as their effect would be anti-dilutive.
In computing diluted loss per share for the years ended December 31, 2024 and 2023, no account was taken of the potential dilution that could occur upon the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share. Additionally, an amount of 52.1 million and
57.9 
million dilutive shares of ordinary shares from the conversion of outstanding stock options, RSU’s and PSUs were excluded from the computation of diluted loss per share attributable to Teva’s ordinary shareholders for the years ended December 31, 2024 and 2023 respectively.
v3.25.4
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 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 other activities, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis.
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 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.
 
 
To align with Teva’s Pivot to Growth strategy, commencing January 1, 2026, Anda will no longer be reported under Teva’s United States segment. This shift will allow 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 will be reported as part of the Company’s Other Activities. Teva will align its internal financial and segment reporting in coordination with this shift effective January 1, 2026.
 
a.
Segment information:
 
    
Year ended December 31,
  
    
2025
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 9,186      $ 5,040      $ 2,162  
Cost of sales
      3,568        2,293        1,116  
R&D expenses
      633        247        103  
S&M expenses
      1,172        902        475  
G&A expenses
      458        295        147  
Other
      §        1        (14 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 3,356      $ 1,303      $ 336  
  
 
 
     
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.

    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 8,034      $ 5,103      $ 2,463  
Cost of sales
      3,646        2,197        1,229  
R&D expenses
      633        229        112  
S&M expenses
      1,049        826        534  
G&A expenses
      410        272        150  
Other
      §        3        (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,296      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 

    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,731      $ 4,837      $ 2,351  
Cost of sales
      3,421        2,111        1,191  
R&D expenses
      604        220        104  
S&M expenses
      938        767        487  
G&A expenses
      378        263        142  
Other loss (income)
      (5 )       (2 )       (39 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,394      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
United States profit
    $ 3,356      $ 2,296      $ 2,394  
Europe profit
      1,303        1,575        1,478  
International Markets profit
      336        440        465  
  
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      4,995        4,311        4,338  
Profit (loss) of other activities
      (90 )       18        24  
  
 
 
     
 
 
     
 
 
  
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 (loss)
      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  
Anda
      1,496        1,536        1,577  
Other*
      929        523        1,025  
  
 
 
     
 
 
     
 
 
  
Total
    $ 9,186      $ 8,034      $ 7,731  
  
 
 
     
 
 
     
 
 
  
 
*
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  
  
 
 
     
 
 
  
v3.25.4
Fair value measurement
 12 Months Ended
Dec. 31, 2025
Fair value measurement
NOTE 20—Fair value measurement:
Financial items carried at fair value as of December 31, 2025 and 2024 are classified in the tables below in one of the three categories described in note 1f:
 
 
  
December 31, 2025
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
 
  
(U.S. $ in millions)
 
Cash and cash equivalents:
  
  
  
  
Money markets
    $ 2,678        —         —       $ 2,678  
Cash, deposits and other
      878        —         —         878  
Investment in securities:
            
Equity securities
      16        —         —         16  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives:
            
Options and forward contracts
      —         86        —         86  
Liabilities derivatives:
            
Options and forward contracts
      —         (38 )       —         (38 ) 
Cross currency interest rate swap
        
(19
 )        (19 ) 
Contingent consideration*
      —         —         (51 )       (51 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,575      $ 29      $ (51 )     $ 3,553  
  
 
 
     
 
 
     
 
 
     
 
 
  

 
  
December 31, 2024
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
 
  
(U.S. $ in millions)
 
Cash and cash equivalents:
            
Money markets
    $ 2,005        —         —       $ 2,005  
Cash, deposits and other
      1,295        —         —         1,295  
Investment in securities:
            
Equity securities
      12        —         —         12  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives:
            
Options and forward contracts
      —         71        —         71  
Liabilities derivatives:
            
Options and forward contracts
      —         (24 )       —         (24 ) 
Contingent consideration*
      —         —         (401 )       (401 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,315      $ 47      $ (401 )     $ 2,961  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
Teva determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant unobservable inputs in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration is based on several factors, such as: the cash flows projected from the success of unapproved product candidates; the probability of success of product candidates, including risks associated with
 
uncertainty regarding achievement and payment of milestone events; the time and resources needed to complete the development and approval of product candidates; the life of the potential commercialized products and associated risks of obtaining regulatory approvals in the United States and Europe, and the risk adjusted discount rate for fair value measurement. The discount rate applied ranged from
8.5
% to
11
%.
The weighted average discount rate, calculated based on the relative fair value of Teva’s contingent consideration liabilities, was
9
%.
The contingent consideration is evaluated quarterly, or more frequently, if circumstances dictate. Changes in the fair value of contingent consideration are recorded in consolidated statements of income under other asset impairments, restructuring and other items. Significant changes in unobservable inputs, mainly the cash flows projected, could result in material changes to the contingent consideration liabilities. A change of the discount rate by
1
% would not have resulted in material changes to the contingent consideration liabilities.
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
    
December 31,
2025
     
December 31,
2024
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (401 )     $ (477 ) 
Redemption of convertible bond security*
      —         (40 ) 
Adjustments to provisions for contingent consideration:
      
Allergan transaction
      (30 )       (270 ) 
Eagle transaction
      (22 )       (31 ) 
Novetide transaction
      (2 )       (2 ) 
Settlement of contingent consideration:
      
Allergan transaction
      356        363  
Eagle transaction
      46        54  
Novetide transaction
      2        2  
  
 
 
     
 
 
  
Fair value at the end of the period
    $ (51 )     $ (401 ) 
  
 
 
     
 
 
  
 
*
On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
Teva’s financial instruments consist mainly of cash and cash equivalents, investments in securities, current and
non-current
receivables, short-term credit, accounts payable and accruals, loans, senior notes and sustainability-linked senior notes, convertible senior debentures and derivatives.
The fair value of the financial instruments included in working capital approximates their carrying value. The fair value of long-term bank loans mostly approximates their carrying value, since they bear interest at rates close to the prevailing market rates.
 
 
Financial instruments not measured at fair value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 15,128      $ 15,717  
Senior notes and convertible senior debentures included under short-term debt
      1,801        1,779  
  
 
 
     
 
 
  
Total
    $ 16,929      $ 17,496  
  
 
 
     
 
 
  
 
*
The fair value was estimated based on quoted market prices.
v3.25.4
Long-term Employee-related Obligations
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Long-term Employee-related Obligations
NOTE 21—Long-term employee-related obligations:
 
a.
Long-term employee-related obligations consisted of the following:
 
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 73      $ 65  
Defined benefit plans
      50        63  
  
 
 
     
 
 
  
Total (*)
    $ 123      $ 128  
  
 
 
     
 
 
  
 
(*)
Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
As of December 31, 2025 and 2024, Teva had $112 million and $97 million, respectively, deposited in funds managed by financial institutions and earmarked by management to cover severance pay liability. Such deposits are not considered to be “plan assets” and are therefore included in other
non-current
assets.
The Company expects to expense an approximate contribution of $128 million in 2026 to pension funds and insurance companies in connection with its severance and pension pay obligations.
The main terms of the different arrangements with employees are described below.
 
b.
Terms of arrangements:
Israel
Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Parent Company and its Israeli subsidiaries make ongoing deposits into employee pension plans to fund their severance liabilities. Generally, employees that joined the Company after 2005, have signed an arrangement, pursuant to which such deposits are made in lieu of the
 
 
Company’s severance liability. Therefore, no obligation is provided for in the financial statements. Severance pay liabilities with respect to employees who were employed by the Parent Company and its Israeli subsidiaries prior to that date, as well as employees who have special contractual arrangements, are provided for in the financial statements based upon the number of years of service and the latest monthly salary of such employees.
Europe
Many of the employees in the Company’s European subsidiaries are entitled to a retirement grant when they leave the Company. In the consolidated financial statements, the liability of the European subsidiaries is accrued, based on the length of service and remuneration of each employee at the balance sheet date. Other employees in Europe are entitled to a pension according to a defined benefit scheme providing benefits based on final or average pensionable pay or according to a hybrid pension scheme that provides retirement benefits on a defined benefit and a defined contribution basis. Independent certified actuaries value these schemes and determine the rates of contribution payable. Pension costs for the defined benefit section of the scheme are accounted for on the basis of charging the expected cost of providing pensions over the period during which the subsidiaries benefit from the employees’ services. The Company uses December 31 as the measurement date for defined benefit plans.
North America
The Company’s North American subsidiaries mainly provide various defined contribution plans for the benefit of their employees. Under these plans, contributions are based on specified percentages of pay. Additionally, a multi-employer plan is maintained in accordance with various union agreements.
Latin America
The majority of the employees in Latin America are entitled to severance under local law. The severance payments are calculated based on service term and employee remuneration, and accruals are maintained to reflect these amounts. In some Latin American countries, it is Teva’s practice to offer retirement health benefits to qualifying employees. Based on the specific plan requirements, benefits accruals are maintained to reflect the estimated amounts or adjusted if future plans are modified.
The Company expects to pay the following future minimum benefits to its employees: $19 
million in 2026; $
14
 
million in 2027; $
15
 million in
2028
; $
16
 million in
2029
; $
17
 million in
2030
; and $
91
 million in the aggregate between
2031
to
2035
. These amounts do not include amounts that may be paid to employees who cease working with the Company before their normal retirement age.
v3.25.4
Redeemable Non-Controlling Interests
 12 Months Ended
Dec. 31, 2025
Redeemable Non Controlling Interests [Abstract]  
Redeemable Non-Controlling Interests
NOTE 22—Redeemable
Non-Controlling
Interests:
In December 2024, Teva entered into an agreement with JKI Co., Ltd. (“JKI”) established by the fund managed and operated by private equity firm
J-Will
Partners Co., Ltd.
(“J-Will”),
through which JKI will acquire Teva-Takeda, Teva’s business venture in Japan (the “BV”), which includes generic products and legacy products. This transaction was completed on March 31, 2025.
Since the establishment of the BV and until the completion of the BV’s sale on March 31, 2025, Teva held 51% of the outstanding common stock of the BV, and as a result, Teva consolidated the BV in its financial statements during that period. On March 31, 2025, after the sale of the BV was completed, Teva deconsolidated the BV from its financial statements.
 
 
Pursuant to existing agreements with the minority investors of the BV, a redemption feature exists whereby the interest held by the minority investors is redeemable as a result of a sale of the BV, subject to certain terms listed therein. The redemption value would be determined based on a prescribed formula derived from the consideration received from the sale of the BV.
The balance of the redeemable
non-controlling
interest is reported at the greater of the initial carrying amount adjusted for the redeemable
non-controlling
interest’s share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional
paid-in-capital.
Since the share redemption feature does not include a share cap, these interests are presented on the consolidated balance sheets outside of permanent equity under the caption “Redeemable
non-controlling
interest”.
Commensurate with the sale of the BV, Teva redeemed the remaining balance of the redeemable
non-controlling
interest with consideration of $38 million, following which, such balance was zero, as of March 31, 2025.
Changes in the carrying amount of the redeemable
non-controlling
interests for the year ended December 31, 2025 were as follows:
 
 
  
Redeemable
non-controlling

interests
 
 
  
(U.S. $ in millions)
 
Balance as of December 31, 2024
    $ 340  
  
 
 
  
Changes during the period:
   
Share in comprehensive income (loss)
      33  
Dividend payment
      (340 ) 
Purchase of shares from redeemable
non-controlling
interests
      (38 ) 
Other adjustments related to redeemable
non-controlling
interests
      6  
  
 
 
  
Balance as of December 31, 2025
    $ —   
  
 
 
  
v3.25.4
Schedule of Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule of Valuation and Qualifying Accounts
Column A
 
Column B
 
 
Column C
 
 
Column D
 
 
Column E
 
 
 
Balance at
beginning
of period
 
 
Charged to costs
and expenses
 
 
Charged to other
accounts
 
 
Deductions
 
 
Balance at end
of period
 
Allowance for doubtful accounts including credit
losses:
 
 
 
 
 
Year ended December 31, 2025
 
$
146
 
 
$
10
 
 
$
(9
) 
 
$
(13
) 
 
 
134
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2024
 
$
164
 
 
$
35
 
 
$
(8
) 
 
$
(46
) 
 
 
146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2023
 
$
162
 
 
$
10
 
 
$
(6
) 
 
$
(2
) 
 
 
164
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance in respect of carryforward tax losses and deductions that may not be utilized:
 
 
 
 
 
Year ended December 31, 2025
 
$
2,017
 
 
$
1,036
 
 
$
— 
 
 
$
(710
) 
 
$
2,342
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2024
 
$
3,009
 
 
$
100
 
 
$
— 
 
 
$
(1,093
) 
 
$
2,017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2023
 
$
3,072
 
 
$
161
 
 
$
— 
 
 
$
(224
) 
 
$
3,009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
v3.25.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
General
a.
General:
Operations
Teva Pharmaceutical Industries Limited (the “Parent Company”), together with its subsidiaries and associated companies (the “Company,” “Teva” or the “Group”), is engaged in the development, manufacturing, marketing and distribution of generics, innovative medicines and biopharmaceuticals. The majority of the Group’s revenues are in the United States and Europe.
Basis of presentation and use of estimates
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
In preparing the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity and disclosure of contingent liabilities and assets at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates.
In preparing the Company’s consolidated financial statements, management also considered the economic implications of inflation expectations on its critical and significant accounting estimates. Actions taken to address macroeconomic developments such as decisions regarding interest rates in the countries in which Teva operates, as well as their economic impact on Teva’s third-party manufacturers and suppliers, customers and markets, could also impact such estimates and may change in future periods. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to: determining the valuation and recoverability of IPR&D and long-lived assets, marketed product rights and goodwill, assessing sales reserves and allowances in the United States, uncertain tax positions, valuation allowances and contingencies. Some of these estimates could be impacted by higher costs and the ability to pass on such higher costs to customers, which is highly uncertain.
In preparing the Company’s consolidated financial statements, management also considered the impact of geopolitical conflicts and developments, including in the Middle East and in Russia and Ukraine. Other than the impact on the goodwill impairment charge in its International Markets reporting unit recorded in the second quarter of 2023 resulted from the sustained conflict between Russia and Ukraine, the impact of these conflicts on Teva’s results of operation and financial condition continued to be immaterial as of December 31, 2025.
Certain amounts in the consolidated financial statements and associated notes may not add up due to rounding. All percentages have been calculated using unrounded amounts.
Functional currency
A major part of the Group’s operations is carried out by the Company in the United States, Israel and certain other countries. The functional currency of these entities is the U.S. dollar (“dollar” or “$”).
The functional currency of certain subsidiaries and associated companies is their local currency. The financial statements of those companies are included in the consolidated financial statements, translated into U.S. dollars. Assets and liabilities are translated at
year-end
exchange rates, while revenues and expenses are translated at monthly average exchange rates during the year. Differences resulting from translation are presented as other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
 
 
In the event of a divestiture of a foreign subsidiary, the related foreign currency translation results net of related income taxes are reversed from equity to income. Foreign currency exchange gains and losses are included in net income (loss).
Principles of consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, joint ventures and variable interest entities (“VIEs”) for which the Company is considered the primary beneficiary. For those consolidated entities where Teva owns less than 100%, the outside shareholders’ interests are shown as
non-controlling
interests
in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, are carried on an equity basis.
For VIEs, the Company performs an analysis to determine whether the variable interests give a controlling financial interest in a VIE. The Company periodically reassesses whether it controls its VIEs.
Intercompany transactions and balances are eliminated on consolidation; profits from intercompany sales, not yet realized outside the Group, are also eliminated.
New accounting pronouncements
b.
New accounting pronouncements
Recently adopted accounting pronouncements
In September 2025, the FASB issued ASU
No. 2025-07
(“ASU
2025-07”),
Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The guidance refines the scope of Topic 815 by clarifying which contracts are subject to derivative accounting and expands the scope exception for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU
2025-07
are effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Effective January 1, 2025, the company early adopted ASU
2025-07
on a modified retrospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU
2025-05,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient when estimating credit losses on accounts receivable and contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The ASU is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Effective January 1, 2025, the company early adopted ASU
2025-05
on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU
2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU
2023-09
address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU
2023-09
is effective for the Company’s annual reporting period beginning January 1, 2025. The Company has adopted this update on a prospective basis. The adoption of this guidance resulted in expanded disclosures in its consolidated financial statements.
 
 
Recently issued accounting pronouncements, not yet adopted
In December 2025, the FASB issued ASU
2025-12
“Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In December 2025, the FASB issued ASU
2025-11,
“Interim Reporting (Topic 270) Narrow-Scope Improvements.” The amendments in this Update clarify interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this ASU are required to be adopted for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09 to amend the guidance in “Derivatives and Hedging” (Topic 815). The update provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Topic 350-40): Targeted Improvements.” This ASU 2025-06 provides updated guidance clarifying the capitalization of costs related to internal-use software, including enhanced guidance on cloud computing arrangements. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
In May 2025, the FASB issued ASU
2025-03
“Business Combinations and Consolidation: Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which amends the guidance for determining the accounting acquirer in certain transactions. The guidance should be applied prospectively. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The adoption of this guidance will affect acquisition transactions of variable interest entities that occur after the initial application date.
In November 2024, the FASB issued ASU
2024-03
“Income Statement: Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement, as well as disclosures about selling expenses. ASU
2024-03
is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The
 
 
Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
In October 2023, the FASB issued ASU
2023-06
“Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC’s existing disclosures with those
 
entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation
S-X
or Regulation
S-K
becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. For all entities within the scope of the affected Codification subtopics, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation
S-X
or Regulation
S-K,
the pending content of the associated amendment will be removed from the Codification and will not become effective for any entities. The Company does not expect ASU
2023-06
to have a material impact on its consolidated financial statements
Acquisitions
c.
Acquisitions:
The Company makes a determination whether a transaction should be accounted for as a business combination or as an asset acquisition in accordance with ASC 805, Business Combinations.
In a business combination, the acquisition method of accounting generally requires that the assets acquired and liabilities assumed be recorded as of the date of the acquisition at their respective fair values. Amounts allocated to acquired
in-process
research and development are capitalized as indefinite-lived intangible assets. Any excess of the purchase price (consideration transferred), including the fair value of any contingent consideration and
any non-controlling interest
in the acquire, over the fair values of net assets acquired is recorded as goodwill. Contingent consideration obligations that are classified as liabilities, are recorded at fair value as of the acquisition date and remeasured each subsequent reporting period until the contingencies have been resolved, with any adjustments in fair value recognized in earnings under other asset impairments, restructuring and other items. Transaction costs are expensed as incurred.
If it is determined that the assets acquired do not meet the definition of a business, or if substantially all of the fair value of the assets acquired are concentrated in a single identifiable asset, then the transaction is accounted for as an asset acquisition rather than a business combination. In an asset acquisition, assets acquired are recorded at cost which is generally allocated to the assets on a relative fair value basis. Goodwill is not recognized, and acquired
in-process
research and development with no alternative future use is charged to expense.
The fair value of contingent consideration liabilities acquired as part of business combination is determined at the acquisition date using unobservable inputs in accordance with ASC 805, Business Combinations. These inputs include the estimated amount and timing of projected cash flows, the probability of success (achievement of the contingent event) and the risk-adjusted discount rate used to present value the probability-weighted cash flows. Subsequent to the acquisition date, at each reporting period until the contingency is resolved, the contingent consideration liability is remeasured at current fair value with changes (either expense or income) recorded in earnings under other asset impairments, restructuring and other items. Significant events that increase or decrease the probability of achieving development and regulatory milestones or that increase or decrease projected cash flows will result in corresponding increases or decreases in the fair values of the related contingent consideration obligations.
Collaborative arrangements
d.
Collaborative arrangements:
The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development.
The Company recognizes revenue generated and costs incurred on sales to third parties as it relates to collaborative agreements on a gross or net basis. When the Company is the principal in sales transactions with third parties, the Company recognizes sales, cost of sales and selling, general and administrative expenses on a gross basis. Profit sharing amounts it pays to its collaborative partners are recorded within cost of sales. When the collaborative partner is the principal on sales transactions with third parties, the Company records profit sharing amounts received from its collaborative partners on a net basis.
Research and development costs the Company incurs related to collaborations are recorded within research and development expenses. Cost reimbursements to the collaborative partner or payments received from the collaborative partner to share these costs pursuant to the terms of the collaboration agreements are recorded as increases or decreases to research and development expenses.
In addition, the terms of the collaboration agreements may require the Company to make payments based upon the achievement of certain developmental, regulatory approval or commercial milestones. Upfront and milestone payments payable by the Company to collaborative partners prior to regulatory approval are expensed as incurred and included in Research and development expenses. Payments due to collaborative partners upon or subsequent to regulatory approval are capitalized as an intangible asset and amortized to Cost of sales over the estimated useful life of the corresponding intangible asset, provided that future cash flows support the amounts capitalized. Sales-based milestones payable by the Company to collaborative partners are accrued and capitalized, subject to cumulative amortization
catch-up,
when determined to be probable of being achieved by the Company and when reasonably estimable. The amortization
catch-up
is calculated either from the time of the first regulatory approval for indications that were unapproved at the time the collaboration was formed, or from the time of the formation of the collaboration for approved products. The related intangible asset that is recognized is amortized to Cost of sales over its remaining useful life, subject to impairment testing.
Equity securities
e.
Equity securities:
The Company measures equity securities at fair value, with changes in fair value recognized in net income, in accordance with ASC 321, Investments—Equity Securities. For equity investments that do not have a readily determinable fair value and are not accounted for under the equity method or consolidated, the Company elects the measurement alternative. Under this approach, such investments are carried at cost, less any impairment, and adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Impairment assessments are performed each reporting period when indicators of impairment exist. Dividend income is recognized as earned, to the extent it represents a distribution of the investee’s accumulated earnings; other distributions are treated as a return of investment and reduce the carrying amount of the investment.
 
Fair value measurement
f.
Fair value measurement:
The Company measures certain assets and liabilities in accordance with ASC 820, Fair Value Measurement.. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 
 
The accounting standard establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable inputs that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
The Company’s valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs whenever possible and considers factors such market conditions and counterparty credit risk.
Cash and cash equivalents
g.
Cash and cash equivalents:
All highly liquid investments, which include short-term bank deposits and money market instruments, that are not restricted as to withdrawal or use, and investment in short-term debentures, the period to maturity of which did not exceed three months at the time of investment, are considered to be cash equivalents.
Restricted cash
h.
Restricted cash:
Restricted cash represents amounts which are legally
restricted
to withdrawal or usage and is presented in the Consolidated Balance Sheet under other current assets.
Accounts receivables
i.
Accounts Receivables:
Accounts receivables are recorded net of allowance for credit losses. The Company maintains the allowance for estimated credit losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable based on current conditions as of the balance sheet date in accordance with
ASC 326-20-30-10C
and ASC
326-20-30-10D.
The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses and economic and market conditions.
Write-off
activity and recoveries for the periods presented were not material.
The Company elected to apply the practical expedient provided in ASU
2025-05
as described above.
Concentration of credit risks
j.
Concentration of credit risks:
Most of Teva’s cash and cash equivalents, along with investment in securities, on December 31, 2025 were deposited with European, U.S. and Israeli banks and financial institutions and were comprised mainly of money market funds investments and cash deposits.
The U.S. market constituted approximately 53%
of Teva’s consolidated revenues in 2025. The exposure of credit risks relating to other trade receivables outside the U.S. is limited, due to the relatively large number of group customers and their wide geographic distribution. Teva performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts and generally does not require collateral. From time to time, the Company may choose to purchase trade credit insurance.
Inventories
k.
Inventories:
Inventories are valued at the lower of cost or net realizable value. Cost of raw and packaging materials, purchased products, manufactured finished products, products in process and capitalized production costs are
 
determined predominantly on a standard cost basis, approximating actual costs. Other methods which are utilized for determining the value of inventories are moving average, cost basis and the first in first out method. Teva regularly reviews its inventories for obsolescence and other impairment risks and reserves are established when necessary.
Inventories acquired in a business combination are
stepped-up
to their estimated fair value and amortized to cost of sales as that inventory is sold or written off.
Long-lived assets, goodwill and other indefinite-lived intangible assets
l.
Long-lived assets, other indefinite-lived intangible assets and goodwill:
Long-lived assets
Teva’s long-lived,
non-current
assets are comprised mainly of identifiable intangible assets that are subject to amortization, property, plant and equipment, and operating lease
right-of-use
(“ROU”) assets. All long-lived assets with finite lives are monitored for impairment indicators throughout the year in accordance with
ASC 360-10,
Impairment or Disposal of Long-Lived Assets, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the assets (or asset group). If such evaluation indicates that the carrying amount of the asset (or asset group) is not recoverable, the assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value.
Property, plant and equipment
Property, plant and equipment are stated at cost, after deduction of the related investment grants, and depreciated using the straight-line method over the estimated useful life of the assets: buildings, mainly 40 years; machinery and equipment, mainly 20 years; and other assets (such as computer equipment, internal-used software, and assets under constructions) between 5 to 10 years.
For property, plant and equipment, whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s cash flows and compares such value against the asset’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value.
Lease
right-of-use
(ROU) assets
See note 8 and note 1dd for further discussion.
Identifiable intangible assets
Identifiable intangible assets are comprised of definite and indefinite life intangible assets.
Definite life intangible assets primarily include acquired product rights and other rights related to products approved by the FDA or the equivalent regulatory agencies in other countries. These assets are amortized using mainly the straight-line method over their estimated period of useful life or based on economic benefit models when they better reflect the expected cash flow patterns. Amortization of acquired product rights is recorded
 
 
under cost of sales, while amortization of marketing and distribution rights, if separable, is recorded under selling and marketing expenses (“S&M”).
Indefinite life intangible assets, primarily IPR&D assets, are monitored for research and development progress, clinical trial outcomes, and regulatory approvals to identify any triggering events for impairment.
IPR&D acquired in a business combination is capitalized as an indefinite life intangible asset until the related research and development efforts are either completed or abandoned. In the reporting periods where they are treated as indefinite life intangible assets, they are not amortized but rather are monitored triggering events and tested for impairment at least on an annual basis in the second quarter of the fiscal year. Upon completion of the related research and development efforts, management determines the useful life of the intangible assets and amortizes them accordingly. In case of abandonment or a reduction in the expected realizable value of the asset, the related research and development assets are impaired. Acquired IPR&D, not in a business combination, is expensed on its acquisition date unless it has an alternative future use.
Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. Whenever impairment indicators are identified, Teva reconsiders the asset’s estimated life, calculates the undiscounted value of the asset’s or asset group’s cash flows and compares such value against the asset’s or asset group’s carrying amount. If the carrying amount is greater, Teva records an impairment loss for the excess of book value over fair value based on the discounted cash flows.
For indefinite life intangible assets, Teva tests for impairment on an annual basis, in the second quarter of the fiscal year, or more frequently if facts and circumstances indicate an asset is more likely than not impaired, as required by ASC 350, intangibles–Goodwill and Other. Teva determines the fair value of the asset based on discounted cash flows and records an impairment loss if its carrying value exceeds fair value.
In determining the estimated fair value of identifiable intangible assets, Teva utilized a discounted cash flow model. The key assumptions within the model related to forecasting future revenue and operating income, an appropriate discount rate and an appropriate terminal value based on the nature of the long-lived asset. Teva’s updated forecasts of net cash flows for the impaired assets reflect, among others, the following: (i) for IPR&D assets, the impact of changes to the development programs, the projected development and regulatory timeframes and the risks associated with these assets; and (ii) for product rights, pricing and volume projections, as well as patent life and any significant changes to the competitive environment.
Goodwill
Goodwill reflects the excess of the consideration transferred, including the fair value of any contingent consideration and any
non-controlling
interest in the acquiree, over the assigned fair values of the identifiable net assets acquired as part of a business combination. Goodwill is not amortized and is assigned to reporting units and tested for impairment on an annual basis in the second quarter of the fiscal year, or more frequently, if facts and circumstances indicate an asset is more likely than not impaired, as required by ASC 350, intangibles–Goodwill and Other.
The goodwill impairment test is performed according to the following principles:
 
 
1.
An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount.
 

 
2.
If Teva concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized.
An interim goodwill impairment test may be required in advance or after of the annual impairment test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. For example, a substantial decline in Teva’s market capitalization, unexpected adverse business conditions, economic factors and unanticipated competitive activities may indicate that an interim impairment test is required. In the event that the Company’s market capitalization declines below its book value, Teva considers the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists.
Assets and liabilities held for sale
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount or fair value, less costs to sell.
Non-current
assets included in assets held for sale are not subject to depreciation or amortization while classified as held for sale. These assets and liabilities are presented separately within current assets and current liabilities on the Consolidated Balance Sheets.
Contingencies
m.
Contingencies:
The Company is involved in various patent, product liability, commercial, government investigations, environmental claims and other legal proceedings that arise from time to time in the ordinary course of business. Except for income tax contingencies, contingent consideration, other contingent liabilities incurred or acquired in a business combination, Teva records accruals for these types of contingencies to the extent that Teva concludes their occurrence is probable and that the related liabilities are reasonably estimable. When accruing these costs, the Company will recognize an accrual in the amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Teva records anticipated recoveries under existing insurance contracts that are probable of occurring at the gross amount that is expected to be collected, subject to a limitation that such anticipated recoveries do not exceed the related loss recognized. When applicable, the Company classifies the effects of the passage of time on the net present value of discounted legal accruals as legal expense. Legal costs are expensed as incurred.
The Company recognizes gain contingencies when they are realized or when all related contingencies have been resolved.
Treasury shares
n.
Treasury shares:
Treasury shares are presented as a reduction of Teva shareholders’ equity and carried at their cost to Teva, under treasury shares.
Stock-based compensation

o.
Stock-based compensation:
Teva accounts for grants of equity awards to employees in accordance with ASC 718, Compensation—Stock Compensation. Teva recognizes stock-based compensation expense for equity grants under the Teva’s long-term incentive plans (including stock options, restricted share units (“RSUs”) and performance share units (“PSUs”). The grant-date fair value of an award is primarily recognized as compensation expense using a straight-line attribution method over the award’s requisite service period.
 
 
Teva uses the Black-Scholes model to compute the estimated fair value of stock option awards. Additionally, Teva uses a Monte Carlo simulation to compute the estimated fair value of PSUs that are subject to vesting based on the Company’s attainment of
pre-established
criteria that include a market condition. The fair value of the RSUs is based on the market value of the underlying stock at the date of grant, less the present value of expected dividends not received during the vesting period, if applicable.
For performance-based restricted stock units that contain a performance condition, Teva recognizes
stock-based
compensation expense if and when the Company determines that it is probable the performance condition will be achieved. If Teva subsequently determines that the performance criteria are not met or are not expected to be met, any amounts previously recognized as compensation expense are reversed in the period when such determination is made.
Teva accounts for forfeitures of share-based awards, RSUs and PSUs, at the time they occur.
Deferred income taxes
p.
Deferred income taxes:
Teva accounts for deferred income taxes using the “asset and liability” method in accordance with ASC 740, Income taxes, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are based on the estimated future tax effects of temporary differences between the financial accounting and tax basis of assets and liabilities under the applicable tax laws, and on tax rates anticipated to be in effect when the deferred income taxes are expected to be paid or realized. Under ASC 740, a valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that a portion of the deferred income tax assets will not be realized. In determining whether a valuation allowance is needed, Teva considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. Deferred income tax liabilities and assets are classified as
non-current.
Tax has not been provided on taxes that would apply in the event of disposal of investments in subsidiaries, as it is generally Teva’s intention to hold these investments, not to realize them. The determination of the amount of related unrecognized deferred tax liability is not practicable.
Uncertain tax positions
q.
Uncertain tax positions:
Teva records uncertain tax positions in accordance with ASC 740, Income taxes, on the basis of a
two-step
approach in which (1) Teva determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the
more-likely-than-not
recognition threshold, Teva recognize the largest amount of tax benefit or expense that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Teva regularly
re-evaluates
its tax positions based on developments in its tax audits, statute of limitations expirations, changes in tax laws and new information that can affect the technical merits and change the assessment of Teva’s ability to sustain the tax benefit. In addition, Teva classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item.
Provisions for uncertain tax positions, whereas Teva has net operating losses to offset additional income taxes that would result from the settlement of the tax position, are presented as a reduction of the deferred tax assets for such net operating loss.
Derivatives and hedging
r.
Derivatives and hedging:
The Group carries out transactions involving derivative financial instruments (mainly forward exchange contracts, currency options, cross-currency swap contracts, interest rate swap contracts and treasury locks). The transactions are designed to hedge the Company’s currency and interest rate exposures. The Company does not enter into derivative transactions for trading purposes.
All derivatives are recognized on the Consolidated Balance Sheet at fair value in accordance with ASC 815, Derivatives and Hedging.
Fair value hedges: For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in financial expenses, net in the statements of income in the period that the changes in fair value occur.
Cash-flow hedges: For derivative instruments that are designated and qualify as a cash-flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the anticipated transaction in the same period or periods during which the hedged transaction affects earnings.
Net-investment
hedges: For derivative instruments that are designated as
net-investment
hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income. The effective portion is determined by looking into changes in the spot exchange rate. The change in fair value attributable to changes other than those due to fluctuations in the spot exchange rate are excluded from the assessment of hedge effectiveness and are recognized in the statement of income under financial expenses, net.
For derivative instruments that qualify for hedge accounting, the cash flows associated with these derivatives are reported in the consolidated statements of cash flows consistently with the classification of the cash flows from the underlying hedged items that these derivatives are hedging.
Derivative instruments that do not qualify for hedge accounting are recognized on the balance sheet at their fair value. Gains and losses on foreign exchange contracts related to balance sheet items are recognized in earnings within “Financial expenses, net,” offsetting the revaluation of the underlying items. For economic hedges of projected revenues and expenses, changes in fair value are recognized in the same line item as the underlying exposure, typically within “Revenues”. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
Revenue recognition
s.
Revenue recognition:
A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party’s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.
Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer, excluding amounts collected on behalf of other third parties and sales taxes.
 
 
The amount of consideration to which Teva expects to be entitled varies as a result of rebates, chargebacks, returns and other sales reserves and allowances (“SR&A”) that the Company offers to its customers and their customers, as well as the occurrence or nonoccurrence of future events, including milestone events. Variable consideration is recorded by the Company concurrently with the satisfaction of performance obligations to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Estimates of variable consideration are based on historical experience and the specific terms in the individual agreements (which the Company believes approximates expected value). Rebates and chargebacks are the largest components of SR&A. If a minimum cannot be reasonably estimated, such revenue may be deferred to a future period when better information is available. For further description of SR&A components and how they are estimated, see “Variable Consideration” below.
Shipping and handling costs, after control of the product has transferred to a customer, are accounted for as a fulfillment cost and are recorded under S&M expenses. Shipping and handling costs to end customers, were $107 million, $119 million and $124 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Teva does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms with customers typically range from thirty to ninety days.
Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (e.g., sales tax and other indirect taxes).
The Company generally recognizes the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The costs are recorded under S&M expenses. Similarly, Teva does not disclose the value of unsatisfied performance obligations for contracts with original expected duration of one year or less.
Nature of revenue streams
Revenue from sales of goods, including sales to distributors, is recognized when the customer obtains control of the product. This generally occurs when products are shipped once the Company has a present right to payment and legal title, and risk and rewards of ownership are obtained by the customer.
Licensing arrangements performance obligations generally include intellectual property (“IP”) rights, certain R&D and contract manufacturing services. The Company accounts for IP rights and services separately if they are distinct – i.e. if they are separately identifiable from other items in the arrangement and if the customer can benefit from them on their own or with other resources that are readily available to the customer. The consideration is allocated between IP rights and services based on their relative stand-alone selling prices.
Revenue for distinct IP rights is accounted for based on the nature of the promise to grant the license. In determining whether the Company’s promise is to provide a right to access its IP or a right to use its IP, the Company considers the nature of the IP to which the customer will have rights. Revenue from functional IP is recognized at the point in time when control of the distinct license is transferred to the customer.
Revenue from sales-based milestones and royalties promised in exchange for a license of IP is recognized only when, or as, the later of subsequent sale or the performance obligation to which some or all of the
sales-based
royalty has been allocated is satisfied.
 
 
Distribution revenues are derived from sales of third-party products for which the Company acts as distributor, mostly in the United States via Anda and in Israel via Salomon Levin and Elstein Ltd. (SLE). In the United States, the Company is generally the principal in these arrangements and therefore records revenue on a gross basis as it controls the promised goods before transferring these goods to the customer. In Israel, the Company is the agent in these arrangements and therefore records revenue on a net basis as it has no discretion in establishing prices for any specified goods or services, limited inventory risk and is not primarily responsible for contract fulfillment. Revenue is recognized when the customer obtains control of the products. This generally occurs when products are shipped once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Other revenues are primarily comprised of contract manufacturing services, sales of IP rights, sales of medical devices and other miscellaneous items. Revenue is recognized when the customer obtains control of such rights or products. This generally occurs when products are shipped, once the Company has a present right to payment and legal title and risk and rewards of ownership are obtained by the customer.
Trade receivables and contract liabilities
Trade receivables are presented net of allowance for credit losses, which include amounts billed and currently due from customers.
Contract liabilities are mainly comprised of deferred revenues (defined as obligations to provide products or services to customers when payment has been made in advance and delivery or performance has not yet occurred), which were immaterial as of December 31, 2025 and 2024.
Variable consideration
Variable consideration mainly includes SR&A, comprised of rebates (including Medicaid and other governmental program discounts), chargebacks, returns and other promotional (including shelf stock adjustments) items. Provisions for prompt payment discounts are netted against trade receivables.
The Company recognizes these provisions at the time of sale and adjusts them if the actual amounts differ from the estimated provisions. The following describes the nature of each deduction and how provisions are estimated:
Rebates
Rebates are primarily related to volume incentives and are offered to key customers to promote loyalty. These rebate programs provide that, upon the attainment of
pre-established
volumes or the attainment of revenue milestones for a specified period, the customer receives a rebate. Since rebates are contractually agreed upon, they are estimated based on the specific terms in each agreement based on historical trends and expected sales. Externally obtained inventory levels and expected sales usage by contract are evaluated in relation to estimates made for rebates payable to indirect customers and managed care agreements.
Medicaid and Other Governmental Rebates
Pharmaceutical manufacturers whose products are covered by the Medicaid program are required to provide a rebate to each state as a percentage of their average manufacturer’s price for generic products dispensed and
 
 
“best price” for innovative products dispensed. Many states have also implemented supplemental rebate programs that obligate manufacturers to pay rebates in excess of those required under federal law. The Company estimates these rebates based on historical trends of rebates paid, as well as on changes in wholesaler and retail inventory levels and increases or decreases in sales.
Chargebacks
The Company has arrangements with various third parties, such as managed care organizations and drug store chains, establishing prices for certain of Teva’s products. While these arrangements are made between the Company and the customers, the customers independently select a wholesaler from which they purchase the products. In certain cases, the wholesalers may enter into agreements with customers that establish the pricing of specific products, provided that Teva approves such agreements. Under either arrangement, Teva will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract prices. Provisions for chargebacks involve estimates of contract prices of over 2,000 products and multiple contracts with multiple wholesalers. Provisions for chargebacks involve estimates of usage by indirect buyers with varying contract prices and wholesaler inventory levels. The provision for chargebacks varies in relation to changes in product mix, pricing and the level of inventory at the wholesalers and, therefore, will not necessarily fluctuate in proportion to an increase or decrease in sales. Provisions for estimating chargebacks are calculated using historical chargeback experience and/or expected chargeback levels for new products and anticipated pricing changes. Teva considers current and expected price competition when evaluating the provision for chargebacks. Chargeback provisions are compared to externally obtained distribution channel reports for reasonableness. The Company regularly monitors the provision for chargebacks and makes adjustments when the Company believes that actual chargebacks may differ from estimated provisions.
Other Promotional Arrangements
Other promotional or incentive arrangements are periodically offered to customers, specifically related to the launch of products or other targeted promotions. Provisions are made in the period for which the Company can estimate the incentive earned by the customer, in accordance with the contractual terms. The Company regularly monitors the provision for other promotional arrangements and makes adjustments when it believes that the actual provision may differ from the estimated provisions.
Shelf Stock Adjustments
The custom in the pharmaceutical industry is generally to grant customers a shelf stock adjustment based on the customers’ existing inventory contemporaneously with decreases in the market price of the related product. The most significant of these relate to products for which an exclusive or semi-exclusive period exists. Provisions for price reductions depend on future events, including price competition, new competitive launches and the level of customer inventories at the time of the price decline. Teva regularly monitors the competitive factors that influence the pricing of its products and customer inventory levels and adjust these estimates where appropriate.
Returns
Returns primarily relate to customer returns of expired products which, the customer has the right to return up to one year following the expiration date. Such returned products are destroyed and credits and/or refunds are issued to the customer for the value of the returns. Accordingly, no returned assets are recoded in connection with those products. The returns provision is estimated by applying a historical return rate to the amounts of
 
 
revenue estimated to be subject to returns. Revenue subject to returns is estimated based on the lag time from time of sale to date of return. The estimated lag time is developed by analyzing historical experience. Additionally, The Company considers specific factors, such as estimated levels of inventory in the distribution channel, product dating and expiration, size and maturity of launch, entrance of new competitors, changes in formularies or packaging and any changes to customer terms, for determining the overall expected levels of returns.
Prompt Pay Discounts
Prompt pay discounts are offered to most customers to encourage timely payment. Discounts are estimated at the time of invoice based on historical discounts in relation to sales. Prompt pay discounts are almost always utilized by customers. As a result, the actual discounts do not vary significantly from the estimated amount.
Research and development
t.
Research and development:
Research and development (R&D) costs are expensed as incurred in accordance with ASC 730, Research and Development Arrangements.
Participations and grants in respect of research and development expenses are recognized as a reduction of research and development expenses as the related costs are incurred, or as the related milestone is met.
When the Company enters into an arrangement with another party to fund its R&D costs, the Company assesses whether the funding represents a liability or a contract to perform R&D services for others. If repayment is required regardless of the outcome, the Company recognizes a liability. If repayment is contingent on successful results or not required, the funding is accounted for as a contract to perform R&D services, and a reduction of R&D expense is recognized as related costs are incurred.
Advance payments for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as an expense as the related goods are used or the services are rendered.
Research and development
in-process
acquired as part of an asset purchase, which has not reached technological feasibility and has no alternative future use, is expensed as incurred.
Advertising costs
u.
Advertising costs:
Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2025, 2024 and 2023 were $309 million, $259 million and $162 million, respectively.
Restructuring
v.
Restructuring:
Restructuring provisions are recognized for the direct expenditures arising from restructuring initiatives, where the plans are sufficiently detailed and where appropriate communication to those affected has been made, in accordance with ASC 420, Exit or Disposal Cost Obligations.
Costs for
one-time
termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.
Contractual termination benefits are provided to employees when employment is terminated due to an event specified in the provisions of an existing plan or agreement. A liability is recorded and the expense is recognized when it is probable that employees will be entitled to the benefits and the amount is reasonably estimable.
 
 
Special termination benefits arise when the Company offers, for a short period of time, to provide certain additional benefits to employees electing voluntary termination. A liability is recorded and the expense is recognized in the period the employees irrevocably accept the offer and the amount of the termination liability is reasonably estimable.
Segment reporting
w.
Segment reporting:
The Company’s business includes three reporting segments based on three geographical areas:
 
  (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 in which Teva operates other than those in the United States and Europe segments.
Each business segment manages the entire product portfolio in its region, including generic products, innovative medicines and
over-the-counter
(“OTC”) products.
In addition to these three segments, Teva has other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an
out-licensing
platform offering a portfolio of products to other pharmaceutical companies through its affiliate Medis. See also note 19.
Earnings per share
x.
Earnings per share:
Basic earnings (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 during the period, net of treasury shares.
In computing diluted earnings per share, basic earnings per share are adjusted to by giving effect to all potential dilution that could occur upon: (i) the exercise of options and
non-vested
RSUs and PSUs granted under employee stock compensation plans using the treasury stock method; and (ii) the conversion of the remaining convertible senior debentures using the
“if-converted”
method, by adding to net income interest expense on the debentures and amortization of issuance costs, net of tax benefits, and by adding the weight
ed
average number of shares issuable upon assumed conversion of the debentures.
Securitization and factoring
y.
Securitization and factoring
Teva accounts for transfers of its trade receivable as sales when it has surrendered control over the related assets in accordance with ASC Topic 860 “Transfer and Servicing” of Financial Assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the balance sheet at fair value. Refer to note 10f.
Supplier finance program
z.
Supplier finance program
When the Company enters into a supplier finance arrangement, it assesses whether the obligation should be classified as accounts payable or as debt, based on the substance of the arrangement and any changes in terms or conditions in accordance with ASC
405-50,
Supplier Finance Programs. If the original trade payable terms
 
remain unchanged and the Company’s obligation is not legally modified, the liability continues to be classified as accounts payable. If the arrangement results in a substantive change in terms or creates a financing component, the obligation is classified as debt.
Under each program, participating suppliers may elect to receive early payment on their invoices from a third-party financial institution under terms agreed between the supplier and the financial institution. Amounts outstanding under such programs are presented within trade payables in the Consolidated Balance Sheet and payments are reflected in operating cash flows, when classification as accounts payable is appropriate.
Divestitures
aa.
Divestitures
The Company nets the proceeds on the divestitures of businesses and tangible assets with the carrying amount of the related assets and records gain or loss on sale within other income. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when it is probable that a significant reversal of income will not occur, or in the case of a business, when such payments are realizable. For divestures of businesses, including divestitures of products that qualify as a business under ASC 805, Business Combinations, the Company reflects the relative fair value of goodwill associated with the businesses in the determination of gain or loss on sale.
 
Debt instruments
bb.
Debt instruments
Debt instruments are initially recognized at the fair value of the consideration received. Debt issuance costs are recorded on the consolidated balance sheet as a reduction of liability. The debt instruments are subsequently recognized at amortized cost using the effective interest method. Debt may be considered extinguished when it has been modified and the terms of the new debt instruments and old debt instruments are “substantially different” (as defined in the debt modification guidance in ASC
470-50
“Debt—Modifications and Extinguishments”). The Company classifies the current portion of long term debt as
non-current
liabilities on the balance sheet when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC
470-50
“Debt”.
 
Leases
cc.
Leases
Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC
842-10-25-2.
If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.
Operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in the consolidated balance sheet. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheet.
ROU assets represent Teva’s right to use an underlying asset for the lease term and lease liabilities represent Teva’s obligation to make lease payments arising from the lease. Operating lease ROU and finance lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease, when it is reasonably certain at the commencement date whether the Company will or will not exercise the option to renew or terminate the lease. Teva uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.
 
 
For finance leases, Teva recognizes interest on the lease liability separately from amortization of the assets in the consolidated statement of income. For operating leases, lease expenses are recognized on a straight-line basis over the lease term.
Teva elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, Teva does not recognize ROU assets or lease liabilities, but recognizes lease expenses over the lease term on a straight line basis. Teva also elected the practical expedient to not separate lease and
non-lease
components for all of Teva’s leases, other than leases of real estate.
Lease terms will include options to extend or terminate the lease when it is reasonably certain that Teva will either exercise or not exercise the option to renew or terminate the lease.
Teva’s lease agreements have remaining lease terms ranging from 1 year to 74 years. Some of these agreements include options to extend the leases for up to 10 years and some include options to terminate the leases immediately. Certain leases also include options to purchase the leased property.
The depreciable life of leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset reasonably certain of exercise.
Some of Teva’s vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. Teva’s lease agreements do not contain any material residual value guarantees.
Teva rents out or subleases certain assets to third parties, which has an immaterial impact on Teva’s consolidated financial statements.
v3.25.4
Certain transactions (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Major Classes of Assets and Liabilities Included as Held for Sale
The table below summarizes all of Teva’s assets and liabilities included as held for sale as of December 31, 2025 and December 31, 2024:
 
    
December 31,
     
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Accounts receivables
    $ 86        222  
Inventories
      506      $ 647  
Property, plant and equipment, net
      1,020        913  
Identifiable intangible assets, net
      29        83  
Goodwill
      213        255  
Other current assets
      87        99  
Other
non-current
assets
      184        236  
Expected loss on sale*
      (283 )       (684 ) 
  
 
 
     
 
 
  
Total assets of the disposal group classified as held for sale in the consolidated balance sheets
    $ 1,842      $ 1,771  
  
 
 
     
 
 
  
Accounts payables
      (261 )       (283 ) 
Other current liabilities
      (16 )       (49 ) 
Other
non-current
liabilities
      (77 )       (85 ) 
Expected loss on sale*
      —         (281 ) 
  
 
 
     
 
 
  
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets
    $ (354 )     $ (698 ) 
  
 
 
     
 
 
  
 
*
Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale.
v3.25.4
Revenue from contracts with customers (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of disaggregates revenues by major revenue streams
The following table disaggregates Teva’s revenues by major revenue streams. For additional information on disaggregation of revenues, see note 19.
 
 
In conjunction with a recent 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. Amounts for the year ended December 31, 2023 have been recast to conform to the reporting structure.
 
 
  
Year ended December 31, 2025
 
 
  
United
States
 
  
Europe
 
  
International
Markets
 
  
Other
Activities
 
  
Total
 
 
  
(U.S.$ in millions)
 
Sale of goods
      7,081        4,959        2,039        526        14,605  
Licensing arrangements*
      607        39        28        4        678  
Distribution
      1,496        1        54        —         1,551  
Other**
      2        41        41        339        423  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 9,186      $ 5,040      $ 2,162      $ 870      $ 17,258  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in United States segment 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 Europe and International Markets segments include revenues related to sales of certain product rights.
 
    
Year ended December 31, 2024
  
    
United
States
     
Europe
     
International
Markets
     
Other
Activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      6,327        4,891        2,280        553        14,050  
Licensing arrangements
      103        35        24        11        173  
Distribution
      1,536        1        39        —         1,576  
Other*
      68        176        121        380        745  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 8,034      $ 5,103      $ 2,463      $ 944      $ 16,544  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
“Other” revenues in United States, Europe and International Markets segments include revenues related to sales of certain product rights.
 
    
Year ended December 31, 2023
  
    
United
States
     
Europe
     
International
Markets
     
Other
Activities
     
Total
  
    
(U.S.$ in millions)
  
Sale of goods
      5,554        4,631        2,229        565        12,979  
Licensing arrangements*
      597        51        28        5        681  
Distribution
      1,577      §          38        —         1,615  
Other**
      2        155        57        357        570  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 7,731      $ 4,837      $ 2,351      $ 926      $ 15,846  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Revenues from licensing arrangements in United States segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
**
“Other” revenues in Europe segment mainly related to the sale of certain product rights.
§
Represents an amount less than $0.5 million.
Summary of Sales Reserves and Allowances
 
 
Sales Reserves and Allowances
 
 
 
Reserves
included in
Accounts
Receivable,
net
 
 
Rebates
 
 
Medicaid and
other
governmental
allowances
 
 
Chargebacks
 
 
Returns
 
 
Other
 
 
Total
reserves
included in
Sales
Reserves
and
Allowances
 
 
Total
 
 
 
(U.S.$ in millions)
 
Balance at January 1, 2025
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
Provisions related to sales made in current year period
   412   5,129   1,050   8,005   289   124     14,597       15,009  
Provisions related to sales made in prior periods
   —    (46 )    44   (29 )    (15 )    (12 )      (58 )      (58 )
Credits and payments
   (405 )    (4,869 )    (970 )    (7,995 )    (233 )    (131 )      (14,198 )     (14,603 ) 
Translation differences
   —    66   16   20   5   17   124     124  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2025
   $ 63     $ 1,954     $ 701     $ 937     $ 445     $ 106     $ 4,143     $ 4,206  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Sales Reserves and Allowances
  
   
Reserves
included in
Accounts
Receivable,
net
    
Rebates
    
Medicaid and
other
governmental
allowances
    
Chargebacks
    
Returns
    
Other
    
Total
reserves
included in
Sales
Reserves
and
Allowances
    
Total
  
   
(U.S.$ in millions)
  
Balance at January 1, 2024
   $ 61       1,603       540       859       436       97     $ 3,535     $ 3,596  
Provisions related to sales made in current year period
     390       4,640       787       7,952       276       149       13,804       14,194  
Provisions related to sales made in prior periods
     —        5       22       (11 )      (22 )      (3 )      (9 )      (9 ) 
Credits and payments
     (395 )      (4,531 )      (781 )      (7,851 )      (286 )      (126 )      (13,575 )      (13,970 ) 
Translation differences
     —        (43 )      (7 )      (13 )      (5 )      (9 )      (77 )      (77 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance at December 31, 2024
   $ 56     $ 1,674     $ 561     $ 936     $ 399     $ 108     $ 3,678     $ 3,734  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
v3.25.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Inventories
Inventories, net of reserves, consisted of the following:
 
    
December 31,
  
    
 2025 
     
 2024 
  
    
(U.S. $ in millions)
  
Finished products
    $ 1,904      $ 1,783  
Raw and packaging materials
      745        671  
Products in process
      364        353  
Materials in transit and payments on account
      166        199  
  
 
 
     
 
 
  
   $ 3,179      $ 3,007  
  
 
 
     
 
 
  
v3.25.4
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following:


    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Machinery and equipment
    $ 3,332      $ 3,092  
Buildings
      2,327        1,968  
Internal-use software, computer equipment and other assets
      2,514        2,388  
Assets under construction and payments on account
      377        1,330  
Land
      258        213  
  
 
 
     
 
 
  
     8,807        8,991  
Less- accumulated depreciation
      (4,728 )       (4,410 ) 
  
 
 
     
 
 
  
   $ 4,080      $ 4,581  
  
 
 
     
 
 
  
v3.25.4
Identifiable Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Identifiable Intangible Assets
Identifiable intangible assets consisted of the following:

 
 
  
Gross carrying
amount net of
impairment
 
  
Accumulated
amortization
 
  
Net carrying amount
 
 
  
December 31,
 
 
  
 2025 
 
  
 2024 
 
  
 2025 
 
  
 2024 
 
  
 2025 
 
  
 2024 
 
 
  
(U.S. $ in millions)
 
Product rights
    $ 16,308      $ 15,915      $ 12,990      $ 11,998      $ 3,318      $ 3,917  
Trade names
      597        568        340        300        257        268  
In-process
research and development (IPR&D)
      206        233        —         —         206        233  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 17,111      $ 16,716      $ 13,330      $ 12,298      $ 3,781      $ 4,418  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
v3.25.4
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Changes in the Carrying Amount of Goodwill by Segment
Changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows:
 
 
  
North
America
 
 
United
States
 
 
Europe
 
 
International
Markets
 
 
Other
 
 
Total
 
 
 
Teva’s API
 
 
Medis
 
 
  
(U.S. $ in millions)
 
 
 
 
 
 
 
Balance as of December 31, 2023 (1)
    $ 6,459     $ —      $ 8,466     $ 675     $ 1,313     $ 265     $ 17,177  
Goodwill allocation related to the shift of Canada to International Markets
      (6,459 )      5,813       —        646       —        —        —   
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of January 1, 2024
    $ —      $ 5,813     $ 8,466     $ 1,321     $ 1,313     $ 265     $ 17,177  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other changes during the period:
               
Goodwill impairment
      —        —        —        —        (1,280 )      —        (1,280 ) 
Goodwill reclassified as assets held for sale
      —        (81 )      (98 )      (50 )      —        (7 )      (236 ) 
Translation differences and other
      —        —        (293 )      (161 )      (33 )      (26 )      (513 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024 (1)
    $ —      $ 5,732     $ 8,075     $ 1,110     $ —      $ 232     $ 15,147  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill reclassified as assets held for sale
      —        —        —        (6 )      —        —        (6 ) 
Translation differences and other
      —        —        737       62       —        60       859  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2025 (1)
    $ —      $ 5,732     $ 8,812     $ 1,166     $ —      $ 292     $ 16,000  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Cumulative goodwill impairment as of December 31, 2025, 2024 and 2023, was approximately $29.6 billion, $29.6 billion and $28.3 billion, respectively.
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Components Of Lease Expense
The components of operating lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating lease cost:
         
Fixed payments and variable payments that depend on an index or rate
      116        123        132  
Variable lease payments not included in the lease liability
      16        16        5  
Short-term lease cost
      4        3        3  
  
 
 
     
 
 
     
 
 
  
   $ 136      $ 142      $ 139  
  
 
 
     
 
 
     
 
 
  
Supplemental cash flow information related to leases
Supplemental cash flow information related to operating leases was as follows:
 
    
Year ended
December 31,
     
Year ended
December 31,
     
Year ended
December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Cash paid for amounts included in the measurement of lease liabilities:
         
Operating cash flows from operating leases
    $ 136      $ 143      $ 141  
Right-of-use
assets obtained in exchange for lease obligations
(non-cash):
         
Operating leases
    $ 65      $ 137      $ 121  
Supplemental Balance Sheet Information Related To Leases
Supplemental balance sheet information related to operating leases was as follows:
 
    
December 31,
     
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Operating leases:
      
Operating lease ROU assets
    $ 345      $ 367  
  
 
 
     
 
 
  
Other current liabilities
      94        87  
Operating lease liabilities
      288        296  
  
 
 
     
 
 
  
Total operating
lease
liabilities
    $ 382      $ 383  
  
 
 
     
 
 
  


    
December 31,
    
December 31,
  
    
2025
    
2024
  
Weighted average remaining lease term
     
Operating leases
      5.7 years       6.1 years  
Weighted average discount rate
     
Operating leases
      6.9 %      6.5 % 
Maturities of lease liabilities
Maturities of operating lease liabilities were as follows:
 
    
December 31,
  
    
2025
  
    
(U.S. $ in millions)
  
2026
      116  
2027
      97  
2028
      71  
2029
      50  
2030 and thereafter
      105  
  
 
 
  
Total operating lease payments
    $ 439  
  
 
 
  
Less: imputed interest
      57  
  
 
 
  
Present value of lease liabilities
    $ 382  
  
 
 
  
v3.25.4
Debt obligations (Tables)
 12 Months Ended
Dec. 31, 2025
Schedule of Short-term Debt
 
a.
Short-term debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Weighted average
interest rate as of
December 31, 2025
 
 
 
 
  
December 31,
 
 
 
Maturity
 
  
2025
 
  
2024
 
 
  
 
 
 
 
 
  
(U.S. $ in millions)
 
Convertible debentures
      0.25 %      2026      $ 23      $ 23  
Current maturities of long-term liabilities
 
      1,798        1,758  
       
 
 
     
 
 
  
Total short-term debt
 
    $ 1,820      $ 1,781  
Schedule of Senior Notes and Loans
 
b.
Long-term debt:
 
   
Interest rate as of
December 31, 2025
    
Maturity
    
December 31,
2025
    
December 31,
2024
  
               
(U.S. $ in millions)
  
Senior notes EUR 1,000 million (4)
     6.00 %      2025       —        429  
Senior notes USD 1,000 million (5)
     7.13 %      2025       —        427  
Senior notes EUR 900 million (6)
     4.50 %      2025       —        515  
Senior notes CHF 350 million (12)
     1.00 %      2025       —        387  
Senior notes USD 3,500 million (10)
     3.15 %      2026       1,798       3,374  
Senior notes EUR 700 million
     1.88 %      2027       823       730  
Sustainability-linked senior notes USD 1,000 million (1)(*)(10)
     4.75 %      2027       649       1,000  
Sustainability-linked senior notes EUR 1,100 million (1)(*)
     3.75 %      2027       1,292       1,144  
Senior notes USD 1,250 million
     6.75 %      2028       1,250       1,250  
Senior notes EUR 750 million
     1.63 %      2028       880       778  
Sustainability-linked senior notes USD 1,000 million (2)(*)
     5.13 %      2029       1,000       1,000  
Sustainability-linked senior notes USD 600 million (3)(*)(10)
     7.88 %      2029       398       600  
Sustainability-linked senior notes EUR 800 million (3)(*)(10)
     7.38 %      2029       779       835  
Sustainability-linked senior notes EUR 1,500 million (2)(*)
     4.38 %      2030       1,762       1,562  
Senior notes USD 700 million (7)
     5.75 %      2030       696       —   
Sustainability-linked senior notes USD 500 million (3)(*)
     8.13 %      2031       500       500  
Sustainability-linked senior notes EUR 500 million (3)(*)
     7.88 %      2031       587       521  
Senior notes EUR 1,000 million (8)
     4.13 %      2031       1,168       —   
Senior notes USD 500 million (9)
     6.00 %      2032       496       —   
Senior notes USD 789 million
     6.15 %      2036       784       783  
Senior notes USD 2,000 million
     4.10 %      2046       1,988       1,986  
 
 
 
    
 
 
  
Total senior notes
 
     16,850       17,821  
Less current maturities
 
     (1,798 )      (1,758 ) 
Less debt issuance costs (11)
 
     (66 )      (61 ) 
     
 
 
    
 
 
  
Total senior notes and loans
 
   $ 14,986     $ 16,002  
     
 
 
    
 
 
  
 
(1)
If Teva fails to achieve certain sustainability performance targets, a
one-time
premium payment of
0.15%
-
0.45%
out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after
May 9, 2026
.
(2)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.125%
-
0.375%
per annum, from and including May 9, 2026.
(3)
If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by
0.100%
-
0.300%
per annum, from and including September 15, 2026.
(4)
In January 2025, Teva repaid $
426
 million of
th
e
 
6.00
% senior notes due 2025 at maturity.
(5)
In January 2025, Teva repaid $
427
 million of
the
 
7.13
% senior notes due 2025 at maturity.
(6)
In March 2025, Teva repaid $
515
 million of
the
 
4.50
% senior notes due 2025 at maturity.
(7)
In May 2025, Teva issued senior notes in an aggregate principal amount of $
700
 million bearing
5.75
% annual interest and due
December 2030
.
(8)
In May 2025, Teva issued senior notes in an aggregate principal amount of €
1,000
 million bearing
4.125
% annual interest and due
June 2031
.
(9)
In May 2025, Teva issued senior notes in an aggregate principal amount of $
500
 million bearing
6.00
% annual interest and due
December 2032
.
(10)
In June 2025, Teva consummated a cash tender offer and extinguished $
1,579
 million aggregate principal amount of its
3.15
% senior notes due 2026; $
351
 million aggregate principal amount of its
4.75
% senior notes due 2027; $
202
 million aggregate principal amount of its
7.88
% senior notes due in 2029; and $
157
 million aggregate principal amount of its
7.38
% senior notes due in 2029. The extinguishment resulted in a loss of $
10
 million which was recorded under financial expenses, net.
(11)
Debt issuance costs as of December 31, 2025 include $
20
 million in connection with the issuance of the senior notes in May 2025, partially offset by $
6
 million acceleration of issuance costs related to the cash tender offer.
(12)
In July 2025, Teva repaid $
444
 million of the
1
% senior notes due 2025 at maturity.
*
Interest rate adjustments and a potential
one-time
premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
Required Annual Principal Payments of Long-term Debt, Excluding Debt Issuance Cost  
v3.25.4
Derivative instruments and hedging activities (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Classification and Fair Values of Derivative Instruments
The following table summarizes the classification and fair values of derivative instruments:
 
    
Fair value
  
    
Designated as hedging
instruments
     
Not designated as hedging

instruments
  
    
December 31,

2025
    
December 31,

2024
     
December 31,

2025
    
December 31,

2024
  
Reported under
   
(U.S. $ in millions)
     
(U.S. $ in millions)
  
Asset derivatives:
          
Other current assets:
          
Option and forward contracts
    $ —      $ —       $ 86     $ 71  
Liability derivatives:
          
Other current liabilities:
          
Option and forward contracts
    $ —      $ —       $ (38 )    $ (24 ) 
Other
non-current
liabilities:
          
Cross-currency interest rate swap-cash flow hedge (1)
      (19 )      —         —        —   
Summary of Pre-tax (Gains) Losses From Derivatives Designated in Cash Flow Hedging Relationships
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives designated in fair value or cash flow hedging relationships:
 
Reported under
  
Financial expenses, net
 
 
Other comprehensive income
(loss)
 
 
  
Year ended December 31,
 
 
Year ended December 31,
 
 
  
 2025 
 
  
 2024 
 
 
 2023 
 
 
 2025 
 
 
 2024 
 
 
 2023 
 
 
  
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
    $ 934      $ 981     $ 1,057     $ 784     $ (508 )    $ 91  
Cross-currency swaps-cash flow hedge (1)
      11        (8 )      (11 )      (3 )      1       1  
Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments
 
 
The table below provides information regarding the location and amount of
pre-tax
(gains) losses from derivatives not designated as hedging instruments:


Reported under
  
Financial expenses, net
 
 
Net revenues
 
 
  
Year ended December 31,
 
 
Year ended December 31,
 
 
  
2025
 
 
2024
 
 
2023
 
 
2025
 
 
2024
 
 
2023
 
 
  
(U.S. $ in millions)
 
Line items in which effects of hedges are recorded
    $ 934     $ 981     $ 1,057     $ (17,258 )    $ (16,544 )    $ (15,846 ) 
Option and forward contracts (2)
      (24 )      (109 )      (54 )      —        —        —   
Option and forward contracts economic hedge (3)
      —        —        —        65       (34 )      2  
 
(1)
On May 2025, Teva entered into a $500 million notional amount of fixed to fixed cross-currency interest rate swaps relating to its 5.75% senior notes due 2030 to hedge the foreign currency exchange risk of future
 
principal and interest payments associated with the USD denominated notes. The cross-currency swaps synthetically convert part of the USD debt into CHF, aligning debt servicing costs with Teva’s inflows and reducing economic volatility. These swaps have been designated as cash flow hedges and the gain or loss on these swaps will be reported as a component of other comprehensive income and reclassified into earnings in each period during which the swaps affect earnings in the same line item associated with the USD denominated bonds. 
(2)
Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
(3)
Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, British pound, Russian ruble, Canadian dollar, Polish złoty, new Israeli shekel, Indian rupee and some other currencies to protect its projected operating results for 2025 and 2026. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions of future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program
The following table summarizes the change in the sold receivables outstanding balance, net of DPP, under the outstanding securitization program:
 
 
  
As of and for the year
ended December 31,
 
 
  
 2025 
 
  
 2024 
 
 
  
(U.S. $ in millions)
 
Sold receivables at the beginning of the year
    $ 626      $ 686  
Proceeds from sale of receivables
      4,505        4,737  
Cash collections (remitted to the owner of the receivables)
      (4,513 )       (4,768 ) 
Effect of currency exchange rate changes
      59        (29 ) 
  
 
 
     
 
 
  
Sold receivables at the end of the year
    $ 677      $ 626  
  
 
 
     
 
 
  
Schedule of Change in Outstanding Accounts Payable
The following table summarizes the change in the outstanding accounts payables under the program:
 
 
  
As of and for the year ended
December 31,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Confirmed obligations outstanding at the beginning of the year
    $ 158        108  
Invoices confirmed during the year
      786        533  
Confirmed invoices paid during the year
      (719 )       (483 ) 
  
 
 
     
 
 
  
Confirmed obligations outstanding at the end of the year
    $ 225        158  
  
 
 
     
 
 
  
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes
a.
Income (loss) before income taxes:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Israel (domestic)
    $ (225 )     $ (456 )     $ (767 ) 
Outside Israel (foreign)
      1,448        (828 )       143  
  
 
 
     
 
 
     
 
 
  
   $ 1,223      $ (1,284 )     $ (624 ) 
  
 
 
     
 
 
     
 
 
  
Schedule of the Provision for Income Taxes
b.
Income taxes:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Israel (domestic)
    $ 206      $ 721      $ (402 ) 
Outside Israel (foreign)
      (386 )       (45 )       395  
  
 
 
     
 
 
     
 
 
  
   $ (180 )     $ 676      $ (7 ) 
  
 
 
     
 
 
     
 
 
  
Current
                         
Israel (domestic)
    $ 154      $ 656      $ 36  
Outside Israel (foreign)
      482        438        297  
Deferred
                         
Israel (domestic)
      52        66        (438 ) 
Outside Israel (foreign)
      (868 )       (484 )       98  
  
 
 
     
 
 
     
 
 
  
   $ (180 )     $ 676      $ (7 ) 
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
 
The following table presents the reconciliation between the Company’s theoretical income tax and effective income tax for the year ended December 31, 2025 after the adoption of ASU
2023-09:
 
 
  
Year ended December 31,
 
 
  
2025
 
 
  
(U.S. $ in millions)
 
  
Percentage
 
Israel statutory tax rate for income taxes
    $ 281       23 % 
Foreign tax effects
     
Canada
     
Change in valuation allowance
      42       3.4 % 
Other
      (11 )      (0.9 %) 
Germany
     
Statutory tax rate difference
      48       4 % 
State and local income taxes*
      (77 )       (6.3 %) 
Other
      (1 )      (0.1 %) 
Ireland
     
Change in valuation allowance
      40       3.3 % 
Other
      (4 )      (0.3 %) 
Malta
     
Statutory tax rate difference
      34       2.8 % 
Reduced rate due to imputation system
      (89 )       (7.3 %) 
Other
      6       0.5 % 
Mexico
      17       1.4 % 
Netherlands
     
Non-deductible
interest
      41       3.4 % 
Change in valuation allowance
      138       11.3 % 
Other
      (1 )      (0.1 %) 
Switzerland
     
Statutory tax rate difference
      (162 )      (13.2 %) 
Exchange rate movements
      (37 )      (3.0 %) 
Change in valuation allowance
      (33 )      (2.7 %) 
Other
      4       0.4 % 
United Kingdom
      15       1.2 % 
United States
     
Change in valuation allowance
      (668 )      (54.6 %) 
R&D tax credit
      (24 )      (2.0 %) 
Base Erosion and Anti-Abuse Tax (BEAT)
      25       2.0 % 
Non-deductible
items
      19       1.6 % 
Other
      (7 )     (0.6 %) 
Other countries
      39        3.3 % 
Changes in unrecognized tax benefits
      (60 )      (4.9 %) 
Changes in valuation allowances
      187        15.3 % 
Indexation of income tax payable to tax authorities
      48        4.0 % 
Other adjustments
      6        0.5 % 
  
 
 
    
 
 
  
Total Effective Tax Rate
    $ (180 )      (14.8 %) 
  
 
 
    
 
 
  
 
*
State taxes
in
Ulm in 2025 made up the majority (greater than 50%) of the tax effect in this category.
 
 
 
The following table presents the reconciliation between the Company’s theoretical income taxes and effective income taxes for the years ended December 31, 2024 and 2023 prior the adoption of ASU
2023-09:
 
 
  
Year ended December 31,
 
 
  
 2024 
 
 
 2023 
 
 
  
(U.S. $ in millions)
 
Income (loss) before income taxes
    $ (1,284 )    $ (624 ) 
Statutory tax rate in Israel
      23 %      23 % 
  
 
 
    
 
 
  
Theoretical provision for income taxes
    $ (295 )    $ (144 ) 
Increase (decrease) in the provision for income taxes due to:
     
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses
      (87 )      (272 )
The Parent Company and its Israeli subsidiaries - Settlement with the Israeli tax authorities
      514     — 
Increase (decrease) in other uncertain tax positions - net
      171     — 
Tax benefits arising from reduced tax rates under benefit programs
    —      14  
Mainly nondeductible items and prior year tax
      16    
Non-Israeli
subsidiaries
     
Impairments that did not have a corresponding tax effect,
non-deductible
interest and other items
      463       372  
Adjustments to valuation allowances on deferred tax assets (*)
      (105 )    — 
Increase (decrease) in other uncertain tax positions - net
      (1 )      23  
  
 
 
    
 
 
  
Effective consolidated income taxes
    $ 676     $ (7 ) 
  
 
 
    
 
 
  
 
*
Mainly related to deduction of interest expenses in the United States.
Schedule of Deferred Income Taxes
c.
Deferred income taxes:
 
 
  
December 31,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Deferred tax assets (liabilities), net:
  
Inventory related
  
$
77
 
  
$
88
 
Sales reserves and allowances
  
 
57
 
  
 
55
 
Provision for legal settlements
  
 
650
 
  
 
667
 
Intangible assets
  
 
(79
) 
  
 
170
 
Carryforward losses and deductions and credits (*)
  
 
1,789
 
  
 
1,557
 
Property, plant and equipment
  
 
(49
) 
  
 
(157
) 
Deferred interest
  
 
964
 
  
 
789
 
Provisions for employee related obligations
  
 
117
 
  
 
95
 
Other
  
 
712
 
  
 
69
 
    
 
 
     
 
 
  
 
  
 
4,238
 
  
 
3,333
 
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized
  
 
(2,342
) 
  
 
(2,017
) 
    
 
 
     
 
 
  
 
  
$
1,895
 
  
$
1,316
 
  
 
 
     
 
 
  
 
(*)
The amounts are shown after reduction for unrecognized tax benefits of $445
 
million and $
163
 
million as of December 31, 2025 and 2024, respectively. 
The
 amount as of December 31, 2025 represents the tax effect of gross carryforward losses and deductions with the following expirations:
2026
-
2027
— $
59 million;
2028
-
2035
— $
552 million;
2036
and thereafter—$
453 million. The remaining balance—$
1,170
million—can be utilized with no expiration date.
Schedule of Deferred Tax Assets and Liabilities By Report Caption
The deferred income taxes are reflected in the balance sheets among:
 
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Long-term assets—deferred income taxes
      2,191        1,799  
Long-term liabilities—deferred income taxes
      (296 )       (483 ) 
  
 
 
     
 
 
  
   $ 1,895      $ 1,316  
  
 
 
     
 
 
  
Schedule of Unrecognized Tax Benefits
 
d.
Uncertain tax positions:
The following table summarizes the activity of Teva’s gross unrecognized tax benefits:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Balance at the beginning of the year
    $ 449      $ 651      $ 638  
Increase (decrease) related to prior year tax positions, net
      125        109        (1 ) 
Increase related to current year tax positions
      8        53        15  
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations
      (8 )       (395 )       (15 ) 
Other
      23        29        14  
  
 
 
     
 
 
     
 
 
  
Balance at the end of the year
    $ 596      $ 449      $ 651  
  
 
 
     
 
 
     
 
 
  
Schedule of Cash Income Taxes Paid (net of refunds)
e.
Cash Income Taxes Paid (net of refunds):
 
    
Year ended December 31,
  
    
2025
  
    
(U.S. $ in millions)
  
Israel
    $ 155  
Foreign
   
Croatia
      30  
Poland
      35  
Spain
      59  
United Kingdom
      42  
Other
      237  
  
 
 
  
   $ 558  
  
 
 
  
v3.25.4
Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Stock Option Activity
A summary of the status of the options previously granted by Teva as of December 31, 2025, 2024 and 2023, and changes during the years ended on those dates, is presented below (the number of options represents ordinary shares exercisable in respect thereof).
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
     
Number

(in thousands)
    
Weighted
average
exercise
price
  
Balance outstanding at beginning of year
      17,713     $ 36.96        22,703     $ 36.89        24,119     $ 36.83  
Changes during the year:
               
Exercised
      (2,541 )      18.91        (1,284 )      15.37        —        —   
Forfeited
      (581 )      35.86        (1,211 )      34.13        (885 )      34.65  
Expired
      (2,722 )      59.63        (2,495 )      48.84        (531 )      37.57  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      11,870       35.68        17,713       36.96        22,703       36.89  
  
 
 
       
 
 
       
 
 
    
Balance exercisable at end of year
      11,870       35.68        17,713       36.96        22,703       36.89  
  
 
 
       
 
 
       
 
 
    
Schedule of Ordinary Shares Issued Upon Vested Options
The following table summarizes information as of December 31, 2025 regarding the number of ordinary shares issuable upon vested options:
 
Number of ordinary shares issuable upon exercise of vested options
  
Range of exercise prices
   
Balance at end of
period (in thousands)
     
Weighted average
exercise price
     
Weighted average
remaining life
  
    
Number of shares
     
$
     
Years
  
$15.01 - $20.00
      3,390        18.97        2.14  
$20.01 - $25.00
      26        22.48        2.61  
$25.01 - $35.00
      4,956        34.67        1.16  
$35.01 - $45.00
      57        37.70        0.92  
$45.01 - $55.00
      2,883        53.24        0.28  
$55.01 - $65.00
      558        55.83        0.12  
  
 
 
        
Total
      11,870        35.68        1.18  
  
 
 
        
Schedule of the Number of RSUs Issued and Outstanding
The following table summarizes information about the number of RSUs and PSUs granted and outstanding:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
     
Number

(in thousands)
    
Weighted
average
grant
date fair
value
  
Balance outstanding at beginning of year
      33,810     $ 10.46        35,664     $ 9.07        32,302     $ 9.11  
Granted
      12,037       16.11        11,557       13.66        16,608       9.77  
Vested
      (13,428 )      9.48        (11,464 )      9.46        (10,195 )      10.28  
Forfeited
      (1,953 )      6.58        (1,947 )      9.81        (3,052 )      9.81  
  
 
 
       
 
 
       
 
 
    
Balance outstanding at end of year
      30,466       13.14        33,810       10.46        35,664       9.07  
  
 
 
       
 
 
       
 
 
    
Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value
The Company expenses compensation costs are based on the grant-date fair value. For the years ended December 31, 2025, 2024 and 2023, the Company recorded stock-based compensation costs as follows:
 
    
Year ended December 31,
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
RSUs and PSUs
      157        123        121  
  
 
 
     
 
 
     
 
 
  
Total stock-based compensation expense
      157        123        121  
Tax effect on stock-based compensation expense
      14        11        11  
  
 
 
     
 
 
     
 
 
  
Net effect
    $ 143      $ 112      $ 110  
  
 
 
     
 
 
     
 
 
  
Accumulated Other Comprehensive Income/(Loss) (Net of Tax)
The components of accumulated other comprehensive loss attributable to Teva are presented in the table below:
 
 
  
Net Unrealized Gains (Losses)
 
 
Benefit Plans
 
 
 
 
 
  
Foreign
currency
translation
adjustments
 
 
Derivative
financial
instruments
 
 
Actuarial
gains (losses)
and prior
service
(costs)
credits
 
 
Total
 
 
  
(U.S. $ in millions)
 
Balance as of January 1, 2023
    $ (2,514 )      (295 )      (28 )      (2,838 ) 
Other comprehensive income (loss) before reclassifications
      167       (1 )      (17 )      149  
Amounts reclassified to the statements of income
      —        30       (4 )      26  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) before tax
      167       29       (21 )      175  
Corresponding income tax
      (37 )      —        3       (34 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      130       29       (18 )      141  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2023
      (2,384 )      (266 )      (46 )      (2,697 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income (loss) before reclassifications
      (456 )      —        (1 )      (457 ) 
Amounts reclassified to the statements of income
      —        28       (6 )      22  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) before tax
      (456 )      28       (7 )      (434 ) 
Corresponding income tax
      (17 )      —        1       (16 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      (473 )      28       (6 )      (450 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2024
      (2,857 )      (238 )      (52 )      (3,148 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other comprehensive income
 
(loss) before reclassifications
      569     4     3       572  
Amounts reclassified to the statements of income
        35       12       51  
Release of cumulative translation adjustments**
      181     —    —      181  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive
income
(loss) before tax
      750       39       15       804  
Corresponding income tax
      (45 )     —        (2 )     (47 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Net other comprehensive income (loss) after tax*
      705       39       13       757  
  
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of December 31, 2025
    $ (2,152 )   $ (199 )    $ (39 )    $ (2,391 )
  
 
 
    
 
 
    
 
 
    
 
 
  
 
*
Amounts do not include $27 million gain in 2025, $61 million l
oss
in 2024 and $50 million loss in 2023 from foreign currency translation adjustments attributable to
redeemable
and
non-redeemable
non-controlling
interests.
**
In connection with the sale of Teva’s business venture in Japan.
v3.25.4
Other assets impairments, restructuring and other items (Tables)
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule of Other Assets Impairments, Restructuring and Other Items
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Impairment
of long
-lived
tangible assets
(1)
    $ 769      $ 1,024      $ 28  
Contingent consideration (see note 20)
      54        303        548  
Restructuring
      225        74        111  
Other
      1        (14 )
 
      30  
  
 
 
     
 
 
     
 
 
  
Total
    $ 1,050      $ 1,388      $ 718  
  
 
 
     
 
 
     
 
 
  
 
(1)
Including impairments related to exit and disposal activities.
Summary of Restructuring Plan Including Costs Related to Exit and Disposal
The following table provides the components of restructuring costs:
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Restructuring
         
Employee termination
    $ 215      $ 53      $ 52  
Other
      10        21        59  
  
 
 
     
 
 
     
 
 
  
Total
    $ 225      $ 74      $ 111  
  
 
 
     
 
 
     
 
 
  
Summary of Restructuring Accruals
 
 
The following table provides the components of and changes in the Company’s restructuring accruals:
 
    
Employee
termination
costs
     
Other
     
Total
  
    
(U.S. $ in millions )
  
Balance as of January 1, 2023
    $ (112 )     $ (7 )     $ (119 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (52 )       (59 )       (111 ) 
Utilization and other*
      90        59        149  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2023
    $ (75 )     $ (7 )     $ (82 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (53 )       (21 )       (74 ) 
Utilization and other*
      73        16        88  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2024
    $ (55 )     $ (13 )     $ (68 ) 
  
 
 
     
 
 
     
 
 
  
Provision
      (215 )       (10 )       (225 ) 
Utilization and other*
      147        9        156  
  
 
 
     
 
 
     
 
 
  
Balance as of December 31, 2025
    $ (124 )     $ (14 )     $ (138 ) 
  
 
 
     
 
 
     
 
 
  
 
*
Includes adjustments for foreign currency translation.
v3.25.4
Other income (Tables)
 12 Months Ended
Dec. 31, 2025
Schedule of Other Income
 
 
  
Year ended
December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
Gain (loss) on divestitures, net of divestitures related costs
    $ (22 )     $ 15      $ 3  
Gain (loss) on sale of assets
      2        2        25  
Other, net
      2        (4 )       21  
  
 
 
     
 
 
     
 
 
  
Total other income (loss)
    $ (18 )     $ 14      $ 49  
  
 
 
     
 
 
     
 
 
  
v3.25.4
Financial expenses, net (Tables)
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule of Financial Expenses  
    
Year ended December, 31
  
    
2025
     
2024
     
2023
  
    
(U.S. $ in millions)
  
Interest expenses and other bank charges
    $ 916      $ 1,002      $ 1,029  
(Income) loss from investments
      (92 )       (86 )       (68 ) 
Foreign exchange (gains) losses, net
      41        17        30  
Other, net (*)
      69        48        66  
  
 
 
     
 
 
     
 
 
  
Total finance expense, net
    $ 934      $ 981      $ 1,057  
  
 
 
     
 
 
     
 
 
  
 
(*)
Amortization of issuance costs and terminated derivative instruments.
v3.25.4
Earnings (loss) per share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings per Share
 
 
Basic and diluted earnings (loss) per share attributable to Teva’s ordinary shareholders for the years ended December 31, 2025, 2024 and 2023 are calculated as follows:
 
 
  
Years ended December 31,
 
 
  
 2025 
 
  
 2024 
 
  
 2023 
 
 
  
(In millions, except per share amounts)
 
Basic earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
         
Net income (loss) attributable to Teva’s ordinary shareholders
    $ 1,410      $ (1,639 )     $ (559 ) 
  
 
 
     
 
 
     
 
 
  
Shares (denominator):
         
Weighted average shares outstanding
      1,145        1,131        1,119  
  
 
 
     
 
 
     
 
 
  
Basic earnings (loss) attributable to Teva’s ordinary shareholders
    $ 1.23      $ (1.45 )     $ (0.50 ) 
  
 
 
     
 
 
     
 
 
  
Diluted earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
         
Net income (loss) attributable to Teva’s ordinary shareholders
    $ 1,410      $ (1,639 )     $ (559 ) 
  
 
 
     
 
 
     
 
 
  
Shares (denominator):
         
Weighted average shares outstanding
      1,145        1,131        1,119  
Diluted effect of stock options, RSUs and PSUs
      17        —         —   
  
 
 
     
 
 
     
 
 
  
Total dilutive shares outstanding
      1,163        1,131        1,119  
  
 
 
     
 
 
     
 
 
  
Diluted earnings (loss) attributable to Teva’s ordinary shareholders
    $ 1.21      $ (1.45 )     $ (0.50 ) 
  
 
 
     
 
 
     
 
 
  
v3.25.4
Segments (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Summary of Segment Profit
a.
Segment information:
 
    
Year ended December 31,
  
    
2025
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 9,186      $ 5,040      $ 2,162  
Cost of sales
      3,568        2,293        1,116  
R&D expenses
      633        247        103  
S&M expenses
      1,172        902        475  
G&A expenses
      458        295        147  
Other
      §        1        (14 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 3,356      $ 1,303      $ 336  
  
 
 
     
 
 
     
 
 
  

§
Represents an amount less than $0.5 million.

    
Year ended December 31,
  
    
2024
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 8,034      $ 5,103      $ 2,463  
Cost of sales
      3,646        2,197        1,229  
R&D expenses
      633        229        112  
S&M expenses
      1,049        826        534  
G&A expenses
      410        272        150  
Other
      §        3        (2 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,296      $ 1,575      $ 440  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 

    
Year ended December 31,
  
    
2023
  
    
United
States
     
Europe
     
International
Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 7,731      $ 4,837      $ 2,351  
Cost of sales
      3,421        2,111        1,191  
R&D expenses
      604        220        104  
S&M expenses
      938        767        487  
G&A expenses
      378        263        142  
Other loss (income)
      (5 )       (2 )       (39 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,394      $ 1,478      $ 465  
  
 
 
     
 
 
     
 
 
  
 
 
  
Year ended December 31,
 
 
  
2025
 
  
2024
 
  
2023
 
 
  
(U.S. $ in millions)
 
United States profit
    $ 3,356      $ 2,296      $ 2,394  
Europe profit
      1,303        1,575        1,478  
International Markets profit
      336        440        465  
  
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      4,995        4,311        4,338  
Profit (loss) of other activities
      (90 )       18        24  
  
 
 
     
 
 
     
 
 
  
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 (loss)
      2,157        (303 )       433  
  
 
 
     
 
 
     
 
 
  
Financial expenses, net
      934        981        1,057  
  
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ 1,223      $ (1,284 )     $ (624 ) 
  
 
 
     
 
 
     
 
 
  
 
Schedule Of Consolidated Income Before Income Tax
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  
Anda
      1,496        1,536        1,577  
Other*
      929        523        1,025  
  
 
 
     
 
 
     
 
 
  
Total
    $ 9,186      $ 8,034      $ 7,731  
  
 
 
     
 
 
     
 
 
  
 
*
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  
  
 
 
     
 
 
     
 
 
  
Schedule of Sales Percentage by Therapeutic Category
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.
Schedule of Property, Plant and Equipment by Geographic Location
 
  
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  
  
 
 
     
 
 
  
v3.25.4
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Financial Items Carried at Fair Value
Financial items carried at fair value as of December 31, 2025 and 2024 are classified in the tables below in one of the three categories described in note 1f:
 
 
  
December 31, 2025
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
 
  
(U.S. $ in millions)
 
Cash and cash equivalents:
  
  
  
  
Money markets
    $ 2,678        —         —       $ 2,678  
Cash, deposits and other
      878        —         —         878  
Investment in securities:
            
Equity securities
      16        —         —         16  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives:
            
Options and forward contracts
      —         86        —         86  
Liabilities derivatives:
            
Options and forward contracts
      —         (38 )       —         (38 ) 
Cross currency interest rate swap
        
(19
 )        (19 ) 
Contingent consideration*
      —         —         (51 )       (51 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,575      $ 29      $ (51 )     $ 3,553  
  
 
 
     
 
 
     
 
 
     
 
 
  

 
  
December 31, 2024
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
 
  
(U.S. $ in millions)
 
Cash and cash equivalents:
            
Money markets
    $ 2,005        —         —       $ 2,005  
Cash, deposits and other
      1,295        —         —         1,295  
Investment in securities:
            
Equity securities
      12        —         —         12  
Other
      3        —         —         3  
Derivatives:
            
Asset derivatives:
            
Options and forward contracts
      —         71        —         71  
Liabilities derivatives:
            
Options and forward contracts
      —         (24 )       —         (24 ) 
Contingent consideration*
      —         —         (401 )       (401 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,315      $ 47      $ (401 )     $ 2,961  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs
The following table summarizes the activity for those financial assets and liabilities where fair value measurements are estimated utilizing Level 3 inputs.
 
    
December 31,
2025
     
December 31,
2024
  
    
(U.S. $ in millions)
  
Fair value at the beginning of the period
    $ (401 )     $ (477 ) 
Redemption of convertible bond security*
      —         (40 ) 
Adjustments to provisions for contingent consideration:
      
Allergan transaction
      (30 )       (270 ) 
Eagle transaction
      (22 )       (31 ) 
Novetide transaction
      (2 )       (2 ) 
Settlement of contingent consideration:
      
Allergan transaction
      356        363  
Eagle transaction
      46        54  
Novetide transaction
      2        2  
  
 
 
     
 
 
  
Fair value at the end of the period
    $ (51 )     $ (401 ) 
  
 
 
     
 
 
  
 
*
On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
Summary of Financial Instrument Measured on a Basis Other Than Fair Value
Financial instruments measured on a basis other than fair value consist of senior notes, sustainability-linked senior notes and convertible senior debentures (see note 9), and are presented in the below table in terms of fair value:
 
    
Estimated fair value*
  
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Senior notes and sustainability-linked senior notes included under senior notes and loans
    $ 15,128      $ 15,717  
Senior notes and convertible senior debentures included under short-term debt
      1,801        1,779  
  
 
 
     
 
 
  
Total
    $ 16,929      $ 17,496  
  
 
 
     
 
 
  
 
*
The fair value was estimated based on quoted market prices.
v3.25.4
Long-term Employee-related Obligations (Tables)
 12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule of Long Term Employee Related Obligation
 
    
December 31,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Accrued severance obligations
    $ 73      $ 65  
Defined benefit plans
      50        63  
  
 
 
     
 
 
  
Total (*)
    $ 123      $ 128  
  
 
 
     
 
 
  
 
(*)
Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
v3.25.4
Redeemable Non-Controlling Interests (Tables)
 12 Months Ended
Dec. 31, 2025
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]  
Summary of Redeemable Noncontrolling Interests
Changes in the carrying amount of the redeemable
non-controlling
interests for the year ended December 31, 2025 were as follows:
 
 
  
Redeemable
non-controlling

interests
 
 
  
(U.S. $ in millions)
 
Balance as of December 31, 2024
    $ 340  
  
 
 
  
Changes during the period:
   
Share in comprehensive income (loss)
      33  
Dividend payment
      (340 ) 
Purchase of shares from redeemable
non-controlling
interests
      (38 ) 
Other adjustments related to redeemable
non-controlling
interests
      6  
  
 
 
  
Balance as of December 31, 2025
    $ —   
  
 
 
  
v3.25.4
Significant Accounting Policies - Additional information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Significant Accounting Policies [Line Items]      
Percentage of consolidated sales in North America 53.00%    
Shipping and handling costs, which are included in selling and marketing expenses $ 107 $ 119 $ 124
Advertising expense $ 309 $ 259 $ 162
Operating lease description Teva determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five criteria is met, Teva classifies the lease as a finance lease. Otherwise, Teva classifies the lease as an operating lease. When determining lease classification, Teva’s approach in assessing two of the mentioned criteria is: (i) generally, 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset.    
Minimum [Member]      
Significant Accounting Policies [Line Items]      
Operating lease remaining lease term 1 year    
Maximum [Member]      
Significant Accounting Policies [Line Items]      
Operating lease remaining lease term 74 years    
Building [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 40 years    
Other Machinery and Equipment [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 20 years    
Other Capitalized Property Plant and Equipment [Member] | Minimum [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 5 years    
Other Capitalized Property Plant and Equipment [Member] | Maximum [Member]      
Significant Accounting Policies [Line Items]      
Property plant and equipment useful life 10 years    
v3.25.4
Certain Transactions - Other Transactions - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 11, 2026
Jul. 31, 2024
Nov. 09, 2023
Jan. 31, 2026
Jan. 31, 2024
Oct. 31, 2021
Dec. 31, 2016
Nov. 30, 2013
Dec. 31, 2025
Jun. 30, 2025
Dec. 31, 2024
Sep. 30, 2024
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Mar. 28, 2024
Oct. 03, 2023
Sep. 29, 2023
Noncash or Part Noncash Acquisitions [Line Items]                                              
Other commitment                                         $ 150    
Reimbursement of research and development expenses incurred                                   $ 100          
Sanofi [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                 $ 250                            
Sanofi [Member] | Collaborative Arrangement [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Upfront payment                               $ 500   500          
Milestone payment receivable                                           $ 500  
Development and launch milestone payment receivable                                           $ 500  
Biolojic Design Ltd [Member] | Collaborative Arrangement [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Additional development and milestone payments receivable                 500             500              
Biolojic Design Ltd [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment         $ 10         $ 5                          
Royalty Pharma [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Collaborative agreement milestone payments $ 500   $ 100                                        
Milestone payment percentage cap 130.00%                                            
Phase 3 funding option amount $ 425                                            
Phase 2b funding option amount $ 75                                            
Term of royalty payment     5 years                                        
Royalty Pharma [Member] | Research and Development Expense [Member] | Collaborative Arrangement [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Reimbursement of research and development expenses incurred                                 $ 100            
Takeda [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Upfront payment             $ 30                                
Milestone payment             $ 20             $ 25                  
Teva's API business [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax                               8              
Abingworth [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Reimbursement of research and development expenses incurred                               98 42            
Teva [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Cost of the investment                                             $ 40
Alvotech [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                 20                 $ 124 $ 124 $ 124      
Collaborative agreement milestone payments                 $ 345                            
Proceeds from available for sale debt securities   $ 44                                          
Alvotech [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                     $ 5           124            
mAbxience [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Collaborative agreement milestone payments                               291              
mAbxience [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                               $ 29              
Aggregate upfront and milestone payments                     $ 15           $ 20            
MedinCell [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                         $ 3                    
Collaborative agreement milestone payments               $ 105       $ 112                      
MedinCell [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                         $ 5                    
MODAG [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
License agreement potential aggregate milestone payments amount           $ 20                                  
MODAG [Member] | Research and Development Expense [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Milestone payment                             $ 10                
Milestone Payment To Be Paid                   $ 10                          
Subsequent Event [Member] | Abingworth [Member]                                              
Noncash or Part Noncash Acquisitions [Line Items]                                              
Increase in development funding commitment       $ 50                                      
v3.25.4
Certain Transactions - Business Acquisitions - Summary of Major Classes of Assets and Liabilities Included as Held for Sale (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Business Combinations [Abstract]    
Accounts receivables $ 86 $ 222
Inventories 506 647
Property, plant and equipment, net 1,020 913
Identifiable intangible assets, net 29 83
Goodwill 213 255
Other current assets 87 99
Other non-current assets 184 236
Expected loss on sale [1] (283) (684)
Total assets of the disposal group classified as held for sale in the consolidated balance sheets 1,842 1,771
Accounts payables (261) (283)
Other current liabilities (16) (49)
Other non-current liabilities (77) (85)
Expected loss on sale [1] 0 (281)
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets $ (354) $ (698)
[1] Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale.
v3.25.4
Revenue from Contracts with Customers - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2025
United States [Member]  
Revenue Recognition [Line Items]  
Percentage sales reserves and allowances to U.S. customers 70.00%
v3.25.4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenue $ 17,258 $ 16,544 $ 15,846
Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 14,605 14,050 12,979
Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 678 [1] 173 [2] 681 [3]
Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,551 1,576 1,615
Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 423 [4] 745 [5] 570 [6]
International Markets [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2,162 2,463 2,351
International Markets [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2,039 2,280 2,229
International Markets [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 28 [1] 24 [2] 28 [3]
International Markets [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 54 39 38
International Markets [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 41 [4] 121 [5] 57 [6]
Other Activities [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 870 944 926
Other Activities [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 526 553 565
Other Activities [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 4 [1] 11 [2] 5 [3]
Other Activities [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 0 0 0
Other Activities [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 339 [4] 380 [5] 357 [6]
United States [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 9,186 8,034 7,731
United States [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 7,081 6,327 5,554
United States [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 607 [1] 103 [2] 597 [3]
United States [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1,496 1,536 1,577
United States [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 2 [4] 68 [5] 2 [6]
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 5,040 5,103 4,837
Europe [Member] | Sale of Goods [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 4,959 4,891 4,631
Europe [Member] | Licensing Arrangements [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 39 [1] 35 [2] 51 [3]
Europe [Member] | Distribution [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue 1 1  
Europe [Member] | Other [Member]      
Disaggregation of Revenue [Line Items]      
Total revenue $ 41 [4] $ 176 [5] $ 155 [6]
[1] Revenues from licensing arrangements in United States segment 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.
[2] “Other” revenues in all segments include revenues related to sales of certain product rights.
[3] Revenues from licensing arrangements in United states segment were mainly comprised of $500 million upfront payment received in connection with the collaboration on Teva’s anti-TL1A asset. See note 2.
[4] “Other” revenues in Europe and International Markets segments include revenues related to sales of certain product rights.
[5] “Other” revenues in United States, Europe and International Markets segments include revenues related to sales of certain product rights.
[6] “Other” revenues in Europe segment mainly related to the sale of certain product rights.
v3.25.4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues by Major Revenue Streams (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2023
Sanofi [Member] | Collaborative Arrangement [Member]    
Disaggregation of Revenue [Line Items]    
Upfront payment $ 500 $ 500
v3.25.4
Revenue from Contracts with Customers - Schedule of Sales Reserves and Allowances (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue Recognition [Line Items]    
Balance at beginning of period $ 3,734 $ 3,596
Provisions related to sales made in current year period 15,009 14,194
Provisions related to sales made in prior periods (58) (9)
Credits and payments (14,603) (13,970)
Translation differences 124 (77)
Balance at end of period 4,206 3,734
Reserves Included in Accounts Receivable, net [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 56 61
Provisions related to sales made in current year period 412 390
Provisions related to sales made in prior periods 0 0
Credits and payments (405) (395)
Translation differences 0 0
Balance at end of period 63 56
Rebates [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 1,674 1,603
Provisions related to sales made in current year period 5,129 4,640
Provisions related to sales made in prior periods (46) 5
Credits and payments (4,869) (4,531)
Translation differences 66 (43)
Balance at end of period 1,954 1,674
Medicaid and other governmental allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 561 540
Provisions related to sales made in current year period 1,050 787
Provisions related to sales made in prior periods 44 22
Credits and payments (970) (781)
Translation differences 16 (7)
Balance at end of period 701 561
Chargebacks [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 936 859
Provisions related to sales made in current year period 8,005 7,952
Provisions related to sales made in prior periods (29) (11)
Credits and payments (7,995) (7,851)
Translation differences 20 (13)
Balance at end of period 937 936
Returns [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 399 436
Provisions related to sales made in current year period 289 276
Provisions related to sales made in prior periods (15) (22)
Credits and payments (233) (286)
Translation differences 5 (5)
Balance at end of period 445 399
Other [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 108 97
Provisions related to sales made in current year period 124 149
Provisions related to sales made in prior periods (12) (3)
Credits and payments (131) (126)
Translation differences 17 (9)
Balance at end of period 106 108
Total reserves included in sales reserves and allowances [Member]    
Revenue Recognition [Line Items]    
Balance at beginning of period 3,678 3,535
Provisions related to sales made in current year period 14,597 13,804
Provisions related to sales made in prior periods (58) (9)
Credits and payments (14,198) (13,575)
Translation differences 124 (77)
Balance at end of period $ 4,143 $ 3,678
v3.25.4
Inventories - Summary of Inventories (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventories [Line Items]    
Finished products $ 1,904 $ 1,783
Raw and packaging materials 745 671
Products in process 364 353
Materials in transit and payments on account 166 199
Total $ 3,179 $ 3,007
v3.25.4
Property, Plant and Equipment - Summary of Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Machinery and equipment $ 3,332 $ 3,092
Buildings 2,327 1,968
Internal-use software, computer equipment and other assets 2,514 2,388
Assets under construction and payments on account 377 1,330
Land 258 213
Subtotal 8,807 8,991
Less- accumulated depreciation (4,728) (4,410)
Property, Plant and Equipment, Net, Total $ 4,080 $ 4,581
v3.25.4
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation expense for the year $ 421 $ 471 $ 537
Impairment charge during the year on property, plant and equipment 769 1,024 28
Teva [Member]      
Property, Plant and Equipment [Line Items]      
Impairment charge during the year on property, plant and equipment $ 755 $ 61 $ 28
v3.25.4
Identifiable Intangible Assets - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets useful life   7 years  
Amortization of intangible assets $ 581 $ 588 $ 616
2026 484    
2027 497    
2028 446    
2029 397    
2030 390    
Impairment of intangible assets excluding goodwill $ 259 251 350
Impairment, Intangible Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] Intangible Assets Impairments    
Minimum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 8.5    
Maximum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 11    
Generic Pipeline Products [Member] | In Process Research And Development To Product Rights [Member] | Development Progress And Changes In Other Key Valuation Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 18 57 90
In process research and development [Member] | Minimum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 8.25    
In process research and development [Member] | Maximum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 9.25    
In process research and development [Member] | Maximum [Member] | Measurement input, discount rate [Member]      
Finite-Lived Intangible Assets [Line Items]      
Business combination, contingent consideration, liability, measurement input 90    
Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 242 $ 194 260
Identifiable product rights [Member] | Regulatory Price And Volume Of Products [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     148
Identifiable product rights [Member] | Updated Market Assumptions [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill     $ 112
United States [Member] | Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill 87    
Europe [Member] | Identifiable product rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Impairment of intangible assets excluding goodwill $ 155    
v3.25.4
Identifiable Intangible Assets - Summary of Identifiable Intangible Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment $ 17,111 $ 16,716
Accumulated amortization 13,330 12,298
Net carrying amount 3,781 4,418
Product rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 16,308 15,915
Accumulated amortization 12,990 11,998
Net carrying amount 3,318 3,917
Trade names [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 597 568
Accumulated amortization 340 300
Net carrying amount 257 268
In process research and development [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount net of impairment 206 233
Accumulated amortization 0 0
Net carrying amount $ 206 $ 233
v3.25.4
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]        
Beginning balance   $ 15,147 [1] $ 17,177 $ 17,177 [1]
Goodwill allocation related to the shift of Canada to International Markets       0
Goodwill impairment $ 0 0 (1,280) (700)
Goodwill reclassified as assets held for sale   (6) (236)  
Translation differences and other   859 (513)  
Ending balance   16,000 [1] 15,147 [1] 17,177
North America [Member]        
Goodwill [Line Items]        
Beginning balance [1]       6,459
Goodwill allocation related to the shift of Canada to International Markets       (6,459)
Goodwill impairment     0  
Goodwill reclassified as assets held for sale   0 0  
Translation differences and other   0 0  
United States [Member]        
Goodwill [Line Items]        
Beginning balance   5,732 [1] 5,813 0 [1]
Goodwill allocation related to the shift of Canada to International Markets       5,813
Goodwill impairment     0  
Goodwill reclassified as assets held for sale   0 (81)  
Translation differences and other   0 0  
Ending balance   5,732 [1] 5,732 [1] 5,813
Europe [Member]        
Goodwill [Line Items]        
Beginning balance   8,075 [1] 8,466 8,466 [1]
Goodwill allocation related to the shift of Canada to International Markets       0
Goodwill impairment     0  
Goodwill reclassified as assets held for sale   0 (98)  
Translation differences and other   737 (293)  
Ending balance   8,812 [1] 8,075 [1] 8,466
International Markets [Member]        
Goodwill [Line Items]        
Beginning balance   1,110 [1] 1,321 675 [1]
Goodwill allocation related to the shift of Canada to International Markets       646
Goodwill impairment     0  
Goodwill reclassified as assets held for sale   (6) (50)  
Translation differences and other   62 (161)  
Ending balance   1,166 [1] 1,110 [1] 1,321
Other [Member] | Tevas API Reporting Unit [Member]        
Goodwill [Line Items]        
Beginning balance   0 [1] 1,313 1,313 [1]
Goodwill allocation related to the shift of Canada to International Markets       0
Goodwill impairment     (1,280)  
Goodwill reclassified as assets held for sale   0 0  
Translation differences and other   0 (33)  
Ending balance   0 [1] 0 [1] 1,313
Other [Member] | Medis Reporting Units [Member]        
Goodwill [Line Items]        
Beginning balance   232 [1] 265 265 [1]
Goodwill allocation related to the shift of Canada to International Markets       0
Goodwill impairment     0  
Goodwill reclassified as assets held for sale   0 (7)  
Translation differences and other   60 (26)  
Ending balance   $ 292 [1] $ 232 [1] $ 265
[1] Cumulative goodwill impairment as of December 31, 2025, 2024 and 2023, was approximately $29.6 billion, $29.6 billion and $28.3 billion, respectively.
v3.25.4
Goodwill - Summary of Changes in the Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - USD ($)
$ in Billions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]      
Accumulated goodwill impairment $ 29.6 $ 29.6 $ 28.3
v3.25.4
Goodwill - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]              
Goodwill impairment $ 0       $ 0 $ 1,280 $ 700
Tevas United States, Europe, International Markets and Medis reporting units [Member]              
Goodwill [Line Items]              
Reporting unit percentage of fair value in excess of carrying amount 10.00%            
Tevas API Reporting Unit [Member]              
Goodwill [Line Items]              
Goodwill impairment   $ 280 $ 600 $ 400      
v3.25.4
Leases - Components of Lease Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating lease cost:      
Fixed payments and variable payments that depend on an index or rate $ 116 $ 123 $ 132
Variable lease payments not included in the lease liability 16 16 5
Short-term lease cost 4 3 3
Total operating lease cost $ 136 $ 142 $ 139
v3.25.4
Leases - Supplemental cash flow information related to leases (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 136 $ 143 $ 141
Right-of-use assets obtained in exchange for lease obligations (non-cash):      
Operating leases $ 65 $ 137 $ 121
v3.25.4
Leases - Supplemental Balance Sheet Information Related To Leases (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating leases:    
Operating lease ROU assets $ 345 $ 367
Other current liabilities 94 87
Operating lease liabilities 288 296
Total operating lease liabilities $ 382 $ 383
Weighted average remaining lease term Operating leases 5 years 8 months 12 days 6 years 1 month 6 days
Weighted average discount rate Operating leases 6.90% 6.50%
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Liabilities, Current Liabilities, Current
v3.25.4
Leases - Maturities of lease liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 116  
2027 97  
2028 71  
2029 50  
2030 and thereafter 105  
Total operating lease payments 439  
Less: imputed interest 57  
Present value of lease liabilities $ 382 $ 383
v3.25.4
Leases - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finance Lease, Right-of-Use Asset $ 37 $ 18
Finance Lease, Liability $ 43 $ 23
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant and Equipment, Net Property, Plant and Equipment, Net
v3.25.4
Debt Obligations - Schedule of Short-term Debt (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 28, 2026
Dec. 31, 2024
Debt Instrument [Line Items]      
Weighted average interest rate   0.25%  
Current maturities of long-term liabilities $ 1,798   $ 1,758
Total short term debt $ 1,820   1,781
Convertible senior debentures [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 0.25%    
Maturity 2026    
Convertible debentures $ 23   $ 23
v3.25.4
Debt Obligations - Schedule of Senior Notes and Loans (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 28, 2026
Dec. 31, 2024
Debt Instrument [Line Items]      
Weighted average interest rate   0.25%  
Total senior notes $ 16,850   $ 17,821
Less current maturities (1,798)   (1,758)
Less debt issuance costs [1] (66)   (61)
Total senior notes and loans $ 14,986   16,002
Senior notes EUR 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [2] 6.00%    
Maturity [2] 2025    
Total senior notes [2] $ 0   429
Senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [3] 7.13%    
Maturity [3] 2025    
Total senior notes [3] $ 0   427
Senior notes EUR 900 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [4] 4.50%    
Maturity [4] 2025    
Total senior notes [4] $ 0   515
Senior notes CHF 350 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [5] 1.00%    
Maturity [5] 2025    
Total senior notes [5] $ 0   387
Senior notes USD 3,500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6] 3.15%    
Maturity [6] 2026    
Total senior notes [6] $ 1,798   3,374
Senior notes EUR 700 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.88%    
Maturity 2027    
Total senior notes $ 823   730
Sustainability-linked senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6],[7],[8] 4.75%    
Maturity [6],[7],[8] 2027    
Total senior notes [6],[7],[8] $ 649   1,000
Sustainability-linked senior notes EUR 1,100 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [7],[8] 3.75%    
Maturity [7],[8] 2027    
Total senior notes [7],[8] $ 1,292   1,144
Senior notes USD 1,250 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 6.75%    
Maturity 2028    
Total senior notes $ 1,250   1,250
Senior notes EUR 750 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 1.63%    
Maturity 2028    
Total senior notes $ 880   778
Sustainability-linked senior notes USD 1,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [8],[9] 5.13%    
Maturity [8],[9] 2029    
Total senior notes [8],[9] $ 1,000   1,000
Sustainability-linked senior notes USD 600 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6],[8],[10] 7.88%    
Maturity [6],[8],[10] 2029    
Total senior notes [6],[8],[10] $ 398   600
Sustainability-linked senior notes EUR 800 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [6],[8],[10] 7.38%    
Maturity [6],[8],[10] 2029    
Total senior notes [6],[8],[10] $ 779   835
Sustainability-linked senior notes EUR 1,500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [8],[9] 4.38%    
Maturity [8],[9] 2030    
Total senior notes [8],[9] $ 1,762   1,562
Senior notes USD 700 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [11] 5.75%    
Maturity [11] 2030    
Total senior notes [11] $ 696    
Sustainability-linked senior notes USD 500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [8],[10] 8.13%    
Maturity [8],[10] 2031    
Total senior notes [8],[10] $ 500   500
Sustainability-linked senior notes EUR 500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [8],[10] 7.88%    
Maturity [8],[10] 2031    
Total senior notes [8],[10] $ 587   521
Senior notes EUR 1000 Million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [12] 4.13%    
Maturity [12] 2031    
Total senior notes [12] $ 1,168    
Senior notes USD 500 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate [13] 6.00%    
Maturity [13] 2032    
Total senior notes [13] $ 496    
Senior notes USD 789 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 6.15%    
Maturity 2036    
Total senior notes $ 784   783
Senior notes USD 2,000 million [Member]      
Debt Instrument [Line Items]      
Weighted average interest rate 4.10%    
Maturity 2046    
Total senior notes $ 1,988   $ 1,986
[1] Debt issuance costs as of December 31, 2025 include $20 million in connection with the issuance of the senior notes in May 2025, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
[2] In January 2025, Teva repaid $426 million of the 6.00% senior notes due 2025 at maturity.
[3] In January 2025, Teva repaid $427 million of the 7.13% senior notes due 2025 at maturity.
[4] In March 2025, Teva repaid $515 million of the 4.50% senior notes due 2025 at maturity.
[5] In July 2025, Teva repaid $444 million of its 1% senior notes due 2025 at maturity.
[6] In June 2025, Teva consummated a cash tender offer and extinguished $1,579 million aggregate principal amount of its 3.15% senior notes due 2026; $351 million aggregate principal amount of its 4.75% senior notes due 2027; $202 million aggregate principal amount of its 7.88% senior notes due in 2029; and $157 million aggregate principal amount of its 7.38% senior notes due in 2029. The extinguishment resulted in a loss of $10 million which was recorded under financial expenses, net.
[7] If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of 0.15%-0.45% out of the principal amount will be paid at maturity or upon earlier redemption, if such redemption is on or after May 9, 2026.
[8] Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 10c.
[9] If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.125%-0.375% per annum, from and including May 9, 2026.
[10] If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by 0.100%-0.300% per annum, from and including September 15, 2026.
[11] In May 2025, Teva issued senior notes in an aggregate principal amount of $700 million bearing 5.75% annual interest and due December 2030.
[12] In May 2025, Teva issued senior notes in an aggregate principal amount of €1,000 million bearing 4.125% annual interest and due June 2031.
[13] In May 2025, Teva issued senior notes in an aggregate principal amount of $500 million bearing 6.00% annual interest and due December 2032.
v3.25.4
Debt Obligations - Schedule of Senior Notes and Loans (Parenthetical) (Detail)
$ in Thousands, € in Millions, SFr in Millions
 12 Months Ended
May 31, 2025
EUR (€)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Dec. 31, 2025
CHF (SFr)
Jul. 31, 2025
USD ($)
Jun. 30, 2025
USD ($)
May 31, 2025
USD ($)
Mar. 31, 2025
USD ($)
Jan. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]                    
Accumulated Amortization, Debt Issuance Costs, Noncurrent     $ 6,000              
Debt Issuance Costs, Noncurrent, Net [1]     66,000             $ 61,000
Debt Instrument, Maturity Date   Apr. 30, 2026                
Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Debt Issuance Costs, Noncurrent, Net     20,000              
Senior notes repaid amount         $ 444,000          
Senior notes maturity percentage         1.00%          
Six Point Zero Zero Semiannual Interest Senior [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount             $ 500,000      
Debt, Weighted Average Interest Rate 6.00%           6.00%      
Debt Instrument, Maturity Date, Description December 2032                  
Seven Point Three Eight Senior Notes Due In 2029 [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount           $ 7,380        
Debt Instrument, Repurchase Amount           $ 157,000        
Debt, Weighted Average Interest Rate           10.00%        
Four Point Seven Five Senior Notes Due In 2029 [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Repurchase Amount           $ 202,000        
Debt, Weighted Average Interest Rate           7.88%        
Four Point Seven Five Senior Notes Due In 2027 [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Repurchase Amount           $ 351,000        
Debt, Weighted Average Interest Rate           4.75%        
Three Point One Five Senior Notes Due In 2026 [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Repurchase Amount           $ 1,579,000        
Debt, Weighted Average Interest Rate           3.15%        
Four Point Thirteen Semiannual Interest Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | € € 1,000                  
Debt, Weighted Average Interest Rate 4.125%           4.125%      
Debt Instrument, Maturity Date, Description June 2031                  
Five Point Seven Five Semiannual Interest Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount             $ 700,000      
Debt, Weighted Average Interest Rate 5.75%           5.75%      
Debt Instrument, Maturity Date, Description December 2030                  
Senior notes EUR 1,000 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   € 1,000                
Senior notes EUR 1,000 million [Member] | Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Senior notes repaid amount                 $ 426,000  
Senior notes maturity percentage                 6.00%  
Senior notes USD 1,000 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     1,000,000              
Senior notes USD 1,000 million [Member] | Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Senior notes repaid amount                 $ 427,000  
Senior notes maturity percentage                 7.13%  
Senior notes EUR 900 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   900                
Senior notes EUR 900 million [Member] | Senior Notes [Member]                    
Debt Instrument [Line Items]                    
Senior notes repaid amount               $ 515,000    
Senior notes maturity percentage               4.50%    
Senior notes CHF 350 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | SFr       SFr 350            
Senior notes USD 3,500 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     3,500,000              
Senior notes EUR 700 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   700                
Sustainability-linked senior notes USD 1,000 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     1,000,000              
Sustainability-linked senior notes EUR 1,100 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   1,100                
Senior notes USD 1,250 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     1,250,000              
Senior notes EUR 750 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   € 750                
Sustainability-linked senior notes USD 1,000 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     1,000,000              
Sustainability-linked senior notes USD 600 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     600,000              
Sustainability-linked senior notes USD 600 million [Member] | Maximum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.30%                
Sustainability-linked senior notes USD 600 million [Member] | Minimum [Member] | From September Fifteenth Two Thousand And Twenty Six [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.10%                
Sustainability-linked senior notes EUR 800 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   € 800                
Sustainability-linked senior notes EUR 1,500 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   1,500                
Senior notes USD 700 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     700,000              
Sustainability-linked senior notes USD 500 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     500,000              
Sustainability-linked senior notes EUR 500 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   500                
Senior notes EUR 1000 Million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount | €   € 1,000                
Senior notes USD 500 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     500,000              
Senior notes USD 789 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     789,000              
Senior notes USD 2,000 million [Member]                    
Debt Instrument [Line Items]                    
Debt instrument face amount     $ 2,000,000              
Interest Rate Increase [Member] | Maximum [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.375%                
Interest Rate Increase [Member] | Minimum [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.125%                
One Time Premium Payment [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Maturity Date   May 09, 2026                
One Time Premium Payment [Member] | Maximum [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.45%                
One Time Premium Payment [Member] | Minimum [Member]                    
Debt Instrument [Line Items]                    
Debt Instrument, Interest Rate, Increase (Decrease)   0.15%                
[1] Debt issuance costs as of December 31, 2025 include $20 million in connection with the issuance of the senior notes in May 2025, partially offset by $6 million acceleration of issuance costs related to the cash tender offer.
v3.25.4
Debt Obligations - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 28, 2026
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jan. 31, 2025
Debt Instrument [Line Items]            
Weighted average interest rate 0.25%          
Repayments of short-term debt     $ 0 $ 0 $ 700  
Long term debt currency portion USD   57.00% 57.00%      
Debt Instrument, Maturity Date     Apr. 30, 2026      
Subsequent Event [Member]            
Debt Instrument [Line Items]            
Repayments of short-term debt $ 23          
Convertible Debt [Member]            
Debt Instrument [Line Items]            
Principal amount currently outstanding on the debt instruments   $ 23 $ 23 $ 23    
Weighted average interest rate   0.25% 0.25%      
Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Debt Instrument, Covenant Description     Proceeds from borrowings under the RCF can be used for general corporate purposes, including repaying existing debt. As of December 31, 2025, and as of the date of this Annual Report on Form 10-K, no amounts were outstanding under the RCF. Based on current and forecasted results, the Company expects that it will not exceed the financial covenant thresholds set forth in the RCF within one year from the date the financial statements are issued.      
Line of Credit Facility, Maximum Borrowing Capacity           $ 1,800
Debt Instrument, Maturity Date     Apr. 30, 2026      
Line of credit extension period     one-year      
Revolving Credit Facility [Member] | Amended Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Leverage Ratio   4.25        
v3.25.4
Derivative Instruments and Hedging Activities - Summary of Classification and Fair Values of Derivative Instruments (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]    
Derivative [Line Items]    
Asset derivatives $ 0 $ 0
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member]    
Derivative [Line Items]    
Liability derivatives 0 0
Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Noncurrent Liabilities [Member]    
Derivative [Line Items]    
Asset derivatives [1] (19) 0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member]    
Derivative [Line Items]    
Asset derivatives 86 71
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member]    
Derivative [Line Items]    
Liability derivatives (38) (24)
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Cash Flow Hedge [Member] | Other Noncurrent Liabilities [Member]    
Derivative [Line Items]    
Asset derivatives [1] $ 0 $ 0
[1] On May 2025, Teva entered into a $500 million notional amount of fixed to fixed cross-currency interest rate swaps relating to its 5.75% senior notes due 2030 to hedge the foreign currency exchange risk of future principal and interest payments associated with the USD denominated notes. The cross-currency swaps synthetically convert part of the USD debt into CHF, aligning debt servicing costs with Teva’s inflows and reducing economic volatility. These swaps have been designated as cash flow hedges and the gain or loss on these swaps will be reported as a component of other comprehensive income and reclassified into earnings in each period during which the swaps affect earnings in the same line item associated with the USD denominated bonds.
v3.25.4
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Designated in Cash Flow Hedging Relationships (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]      
Financial expenses, net [1] $ 11 $ (8) $ (11)
Other comprehensive income (loss) [1] (3) 1 1
Other Comprehensive Income [Member] | Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Other comprehensive income (loss) 784 (508) 91
Financial expenses [Member] | Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Financial expenses, net $ 934 $ 981 $ 1,057
[1] On May 2025, Teva entered into a $500 million notional amount of fixed to fixed cross-currency interest rate swaps relating to its 5.75% senior notes due 2030 to hedge the foreign currency exchange risk of future principal and interest payments associated with the USD denominated notes. The cross-currency swaps synthetically convert part of the USD debt into CHF, aligning debt servicing costs with Teva’s inflows and reducing economic volatility. These swaps have been designated as cash flow hedges and the gain or loss on these swaps will be reported as a component of other comprehensive income and reclassified into earnings in each period during which the swaps affect earnings in the same line item associated with the USD denominated bonds.
v3.25.4
Derivative Instruments and Hedging Activities - Summary of Pre-tax (Gains) Losses From Derivatives Not Designated in as Hedging Instruments (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net Revenues [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax $ (17,258) $ (16,544) $ (15,846)
Net Revenues [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] 0 0 0
Net Revenues [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] 65 (34) 2
Financial expenses [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax 934 981 1,057
Financial expenses [Member] | Not Designated as Hedging Instrument, Trading [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [1] (24) (109) (54)
Financial expenses [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]      
Derivative [Line Items]      
Gain (Loss) on Derivative Instruments, Net, Pretax [2] $ 0 $ 0 $ 0
[1] Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net.
[2] Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, British pound, Russian ruble, Canadian dollar, Polish złoty, new Israeli shekel, Indian rupee and some other currencies to protect its projected operating results for 2025 and 2026. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions of future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters.. Changes in the fair value of the derivative instruments are recognized in the same line item in the statements of income as the underlying exposure being hedged. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows.
v3.25.4
Derivative Instruments and Hedging Activities - Summary of Sold Receivables Outstanding Balance Net of DPP Asset under Outstanding Securitization Program (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Derivative [Line Items]    
Sold receivables at the beginning of the year $ 626 $ 686
Proceeds from sale of receivables 4,505 4,737
Cash collections (remitted to the owner of the receivables) (4,513) (4,768)
Effect of currency exchange rate changes 59 (29)
Sold receivables at the end of the year $ 677 $ 626
v3.25.4
Derivative Instruments and Hedging Activities - Summary of Change in Outstanding Accounts Payable (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Derivative Instrument Detail [Abstract]    
Confirmed obligations outstanding at the beginning of the year $ 158 $ 108
Invoices confirmed during the year 786 533
Confirmed invoices paid during the year (719) (483)
Confirmed obligations outstanding at the end of the year $ 225 $ 158
v3.25.4
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Nov. 07, 2022
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
May 31, 2025
Derivative [Line Items]          
Revenues other than USD   43.00%      
Transactions termination loss settled   $ 493      
Forward starting interest rate swaps and treasury lock agreements losses   35 $ 28 $ 31  
Deferred purchase asset   326 231    
Sold receivables   $ 677 626 $ 686  
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]   Liabilities      
Supplier finance program obligation   $ 225 158    
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | 5.75% senior notes due 2030 [Member]          
Derivative [Line Items]          
Debt, Weighted Average Interest Rate         5.75%
Debt Instrument, Face Amount         $ 500
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member]          
Derivative [Line Items]          
Sold receivables   799 558    
Derivatives term of contract 3 years        
Transfer of financial assets sold and derecognized   $ 794 $ 895    
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | November 2023 [Member]          
Derivative [Line Items]          
Derivative notional amount $ 1,000        
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | SPV Amendment Agreement October Two Thousand And Twenty Four [Member]          
Derivative [Line Items]          
Derivative notional amount 950        
Accounts Receivable Securitization Facility [Member] | PNC Bank [Member] | Initial Commitment [Member]          
Derivative [Line Items]          
Derivative notional amount $ 950        
v3.25.4
Legal Settlements and Loss Contingencies - Additional Information (Detail)
€ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Nov. 30, 2020
EUR (€)
Loss Contingencies [Line Items]        
Legal settlements and loss contingencies, expenses $ 467 $ 761 $ 1,043  
Accrued amount for legal settlements and loss contingencies $ 4,753 $ 4,881   € 60.5
Opioid Litigation [Member] | United States [Member]        
Loss Contingencies [Line Items]        
Restructuring expense and income Legal settlements and loss contingencies in 2025 were mainly related to 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), an update to the provision recorded for the carvedilol patent litigation, 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, as well as a provision recorded for the antitrust litigation related to QVAR. Legal settlements and loss contingencies in 2024 were mainly related to a decision by the European Commission in its antitrust investigation into COPAXONE, and an update to the estimated settlement provision for the opioid cases (mainly the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore). Legal settlements and loss contingencies in 2023 were mainly related to an estimated provision for the U.S. DOJ patient assistance program litigation, an update to the estimated settlement provision of the opioid cases, the provision for the settlement of the U.S. DOJ criminal antitrust charges on the marketing and pricing of certain Teva USA generic products, as well as the provision for the settlement of the reverse-payment antitrust litigation over certain HIV medicines.  
v3.25.4
Commitments and Contingencies - Commitments - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Commitment And Contingencies [Line Items]      
Royalty expense $ 740 $ 719 $ 543
Maximum [Member]      
Commitment And Contingencies [Line Items]      
Milestone contingent expense $ 104    
v3.25.4
Commitments and Contingencies - Contingencies - Additional Information (Detail)
€ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jun. 14, 2024
USD ($)
Nov. 09, 2022
USD ($)
Jun. 02, 2022
USD ($)
Apr. 01, 2013
USD ($)
Jun. 30, 2023
USD ($)
Nov. 30, 2022
USD ($)
Feb. 28, 2021
USD ($)
Jul. 31, 2014
USD ($)
Sep. 30, 2013
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2023
USD ($)
Jan. 31, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Oct. 10, 2024
USD ($)
Mar. 28, 2024
USD ($)
Aug. 21, 2023
USD ($)
Jul. 08, 2021
USD ($)
Mar. 31, 2021
EUR (€)
Nov. 30, 2020
EUR (€)
Feb. 29, 2012
USD ($)
Jul. 31, 2008
USD ($)
Commitment And Contingencies [Line Items]                                            
Annual sales of Effexor                   $ 2,600,000,000                        
Annual sales of Lamictal                                         $ 950,000,000 $ 2,300,000,000
Annual sales of Niaspan       $ 416,000,000         $ 1,100,000,000                          
Litigation settlement amount         $ 4,250,000,000                                  
Litigation settlement amount awarded distribution period         13 years                                  
Loss Contingency Accrual, Provision               $ 235,500,000                            
Annual sales of the time of settlement of viread             $ 582,000,000                              
Annual sales of the time of settlement of Truvada             2,400,000,000                              
Annual sales of the time of settlement of Atripla             2,900,000,000                              
Annual sales of the time of New launch of viread             728,000,000                              
Annual sales of the time of New launch of Truvada             2,100,000,000                              
Annual sales of the time of New launch of Atripla             $ 444,000,000                              
Litigation Settlement Amount Distributable In Kind         $ 1,200,000,000                                  
Accrual for Environmental Loss Contingencies                           $ 300,000                
Loss Contingencies On Environmental Laws Penalty                                   $ 1,400,000        
Revenues                     $ 1,500,000,000                      
Accrued amount for legal settlements and loss contingencies                     $ 4,753,000,000     $ 4,881,000,000           € 60.5    
Litigation fine amount of copaxone | €                         € 462.6           € 462.6      
Other commitment                               $ 150,000,000            
Annual Sales Of Revlimid           $ 3,500,000,000                                
Annual Sales At The Time Of Nuvigil Entered Into First Settlement Of With AN ANDA Filer $ 300,000,000                                          
Loss Contingency Claims Dismissed Value Paid To Each State Proportional To Its Share Of National Population                       $ 1,000,000,000,000                    
Percentage Of Share Of The National Population                       1.00%                    
Percentgae of amount in cash settlement         20.00%                                  
Litigation Settlement Amount Distributable in cash         $ 240,000,000                                  
Loss Contingency, Damages Awarded, Value   $ 176,500,000                                        
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Donation of Clotrimazole and Tobramycin [Member]                                            
Commitment And Contingencies [Line Items]                                            
Other commitment                                 $ 50,000,000          
Deferred Prosecution Agreement With U.S. Department of Justice [Member] | Fine for Violating the Antitrust Laws [Member]                                            
Commitment And Contingencies [Line Items]                                            
Other commitment, to be paid, year five                                 135,000,000          
Other commitment to pay for each year                                 22,500,000          
Other commitment                                 $ 225,000,000          
Opioid Litigation [Member]                                            
Commitment And Contingencies [Line Items]                                            
Loss contingency accrual, product liability, undiscounted, to be paid, year five         339,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year four         415,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year three         364,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year two         378,000,000                                  
Loss contingency accrual, product liability, undiscounted, to be paid, year one         $ 412,000,000                                  
Modafinil Settlement Agreement [Member]                                            
Commitment And Contingencies [Line Items]                                            
Settlement as a percentage of aggregate subdivisions and tribes         100.00%                                  
Civil Action In Respect Of Donations To Patient Assistance Programmers [Member]                                            
Commitment And Contingencies [Line Items]                                            
Accrued amount for legal settlements and loss contingencies                             $ 425,000,000              
Loss contingency accrual due in fifth year                             175,000,000              
Loss contingency accrual due in fourth year                             99,000,000              
Loss contingency accrual due in third year                             49,000,000              
Loss contingency accrual next twelve months                             34,000,000              
Loss contingency accrual remainder of fiscal year                             19,000,000              
Civil Investigative Demand From Department Of Justice Civil Division [Member]                                            
Commitment And Contingencies [Line Items]                                            
Accrued amount for legal settlements and loss contingencies                             25,000,000              
Civil Investigative Demand From Department Of Justice Civil Division [Member] | Two Thousand And Twenty Five [Member]                                            
Commitment And Contingencies [Line Items]                                            
Loss contingency accrual current                             15,000,000              
Civil Investigative Demand From Department Of Justice Civil Division [Member] | Two Thousand And Twenty Four [Member]                                            
Commitment And Contingencies [Line Items]                                            
Loss contingency accrual current                             $ 10,000,000              
Ontario Teachers Securities Litigation [Member] | Settled Litigation [Member]                                            
Commitment And Contingencies [Line Items]                                            
Litigation settlement amount     $ 420,000,000                                      
v3.25.4
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]      
Israel (domestic) $ (225) $ (456) $ (767)
Outside Israel (foreign) 1,448 (828) 143
Income (loss) before income taxes $ 1,223 $ (1,284) $ (624)
v3.25.4
Income Taxes - Schedule of the Provision for Income Taxes (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]      
Israel (domestic) $ 206 $ 721 $ (402)
Outside Israel (foreign) (386) (45) 395
Effective consolidated income taxes (180) 676 (7)
Israel (domestic), Current 154 656 36
Outside Israel (foreign), Deferred 482 438 297
Israel (domestic), Current 52 66 (438)
Outside Israel (foreign), Deferred (868) (484) 98
Effective consolidated income taxes $ (180) $ 676 $ (7)
v3.25.4
Income Taxes - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2020
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Israel statutory tax rate for income taxes (Percent)   23.00% 23.00% 23.00%
Change in valuation allowance, Other (Amount) [1]   $ (105)    
Income (loss) before income taxes $ 1,223 $ (1,284) $ (624)  
Statutory tax rate in Israel   23.00% 23.00% 23.00%
Changes in unrecognized tax benefits (Amount)     $ 14  
Total Effective Tax Rate (14.80%)      
Tax benefits arising from net deferred taxes, resulting from intellectual property related integration plans, including carryforward losses   $ (87) (272)  
Theoretical provision for income taxes   (295) (144)  
The parent company and its israeli subsidiaries - settlement with the israeli tax authorities   514    
Increase (decrease) in other uncertain tax positions - net   171    
Mainly nondeductible items and prior year tax   16    
Impairments that did not have a corresponding tax effect, non-deductible interest and other items   463 372  
Adjustments to valuation allowances on deferred tax assets [1]   (105)    
Increase (decrease) in other uncertain tax positions - net   (1) 23  
Effective consolidated income taxes $ (180) $ 676 $ (7)  
Israel [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Israel statutory tax rate for income taxes (Amount) $ 281      
Israel statutory tax rate for income taxes (Percent) 23.00%      
Statutory tax rate in Israel 23.00%      
Canada [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ 42      
Change in valuation allowance, Other (Percent) 3.40%      
Other (Amount) $ (11)      
Other (Percent) (0.90%)      
Adjustments to valuation allowances on deferred tax assets $ 42      
Germany [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Other (Amount) $ (1)      
Other (Percent) (0.10%)      
Statutory tax rate difference (Amount) $ 48      
Statutory tax rate difference (Percent) (4.00%)      
State and local income taxes (Amount) [2] $ (77)      
State and local income taxes (Percent) [2] (6.30%)      
Ireland [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ 40      
Change in valuation allowance, Other (Percent) 3.30%      
Other (Amount) $ (4)      
Other (Percent) (0.30%)      
Adjustments to valuation allowances on deferred tax assets $ 40      
Malta [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Other (Amount) $ 6      
Other (Percent) 0.50%      
Statutory tax rate difference (Amount) $ 34      
Statutory tax rate difference (Percent) 2.80%      
Reduced rate due to imputation system (Amount) $ (89)      
Reduced rate due to imputation system (Percent) (7.30%)      
Mexico [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Amount) $ 17      
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Percent) 1.40%      
Netherlands [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ 138      
Change in valuation allowance, Other (Percent) 11.30%      
Other (Amount) $ (1)      
Other (Percent) (0.10%)      
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent 3.40%      
Impairments that did not have a corresponding tax effect, non-deductible interest and other items $ 41      
Adjustments to valuation allowances on deferred tax assets 138      
Switzerland [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ (33)      
Change in valuation allowance, Other (Percent) (2.70%)      
Other (Amount) $ 4      
Other (Percent) 0.40%      
Statutory tax rate difference (Amount) $ (162)      
Statutory tax rate difference (Percent) 13.20%      
Exchange rate movements (Amount) $ (37)      
Exchange rate movements (Percent) (3.00%)      
Adjustments to valuation allowances on deferred tax assets $ (33)      
United Kingdom [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Amount) $ 15      
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Percent) 1.20%      
United States [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ (668)      
Change in valuation allowance, Other (Percent) (54.60%)      
R&D tax credit (Amount) $ (24)      
R&D tax credit (Percent) (2.00%)      
Base Erosion and Anti-Abuse Tax (BEAT) (Amount) $ 25      
Base Erosion and Anti-Abuse Tax (BEAT) (Percent) 2.00%      
Non-deductible items (Percent) 1.60%      
Non-deductible items (Amount) $ 19      
Other adjustments (Amount) $ (7)      
Other adjustments (Percent) (0.60%)      
Adjustments to valuation allowances on deferred tax assets $ (668)      
Other countries [Member]        
Income Before Income Taxes And Income Tax Expense Benefit [Line Items]        
Change in valuation allowance, Other (Amount) $ 187      
Change in valuation allowance, Other (Percent) 15.30%      
Other adjustments (Amount) $ 6      
Other adjustments (Percent) 0.50%      
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Amount) $ 39      
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential (Percent) 3.30%      
Changes in unrecognized tax benefits (Amount) $ (60)      
Changes in unrecognized tax benefits (Percent) (4.90%)      
Indexation of income tax payable to tax authorities (Percent) 4.00%      
Indexation of income tax payable to tax authorities (Amount) $ 48      
Adjustments to valuation allowances on deferred tax assets $ 187      
[1] Mainly related to deduction of interest expenses in the United States.
[2] State taxes in Ulm in 2025 made up the majority (greater than 50%) of the tax effect in this category.
v3.25.4
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred Tax Assets Liabilities Net [Line Items]    
Inventory related $ 77 $ 88
Sales reserves and allowances 57 55
Provision for legal settlements 650 667
Intangible assets (79) 170
Carryforward losses and deductions and credits [1] 1,789 1,557
Property, plant and equipment (49) (157)
Deferred interest 964 789
Provisions for employee related obligations 117 95
Other 712 69
Long-term deferred tax assets (liabilities)-gross 4,238 3,333
Valuation allowance—in respect of carryforward losses and deductions that may not be utilized (2,342) (2,017)
Deferred tax assets liabilities net $ 1,895 $ 1,316
[1] The amounts are shown after reduction for unrecognized tax benefits of $445 million and $163 million as of December 31, 2025 and 2024, respectively. The amount as of December 31, 2025 represents the tax effect of gross carryforward losses and deductions with the following expirations: 2026-2027 — $59 million; 2028-2035 — $552 million; 2036 and thereafter—$453 million. The remaining balance—$1,170 million—can be utilized with no expiration date.
v3.25.4
Income Taxes - Schedule of Deferred Income Taxes (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Deferred Tax Assets Liabilities Net [Line Items]    
Unrecognized tax benefits $ 163 $ 445
Tax Carryforwards And Deductions Expiration Period One [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 59  
Tax Carryforwards And Deductions Expiration Period One [Member] | Minimum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2026  
Tax Carryforwards And Deductions Expiration Period One [Member] | Maximum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2027  
Tax Carryforwards And Deductions Expiration Period Two [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 552  
Tax Carryforwards And Deductions Expiration Period Two [Member] | Minimum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2028  
Tax Carryforwards And Deductions Expiration Period Two [Member] | Maximum [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2035  
Tax Carryforwards And Deductions No Expiration [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Expiration period Dec. 31, 2036  
Tax effect of unspecified carryforward losses and deductions $ 453  
Tax Carryforwards And Deductions Indefinite [Member]    
Deferred Tax Assets Liabilities Net [Line Items]    
Tax effect of unspecified carryforward losses and deductions $ 1,170  
v3.25.4
Income Taxes - Additional Information (Detail)
₪ in Millions, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jun. 23, 2024
USD ($)
Jul. 31, 2020
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
ILS (₪)
Dec. 31, 2025
USD ($)
Employee
Dec. 31, 2025
ILS (₪)
Employee
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2020
Income Tax [Line Items]                  
Balance of accrued potential penalties and interest in unrecognized tax benefits     $ 69   $ 14   $ 69 $ 224  
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense         55   $ 155 $ 12  
Statutory tax rate in Israel             23.00% 23.00% 23.00%
Annual revenue         17,258   $ 16,544 $ 15,846  
Expected impairment of income tax benefit   $ 117              
Proceeds from Income Tax Refunds         $ 558   $ 471 $ 298  
With Effect From January 2025 [Member] | Organization For Economic Cooperation And Development [Member] | Pillar Two Rules [Member]                  
Income Tax [Line Items]                  
Global minimum tax rate percentage         15.00% 15.00%      
Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel         23.00% 23.00%      
Proceeds from Income Tax Refunds         $ 155        
Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Maximum tax payment limit $ 500                
Number of years spread to pay tax payable 6 years                
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount, Total $ 750                
Preferred Technological Enterprises [Member]                  
Income Tax [Line Items]                  
Venture capital investment         $ 2        
Average growth rate in sales or workforce         25.00% 25.00%      
Average growth preceding period in sales or workforce         3 years 3 years      
Preferred Technological Enterprises [Member] | Research and Development Arrangement [Member]                  
Income Tax [Line Items]                  
Minimum percentage of investment income         7.00% 7.00%      
Minimum investment income         $ 22 ₪ 75      
Minimum percentage of workforce         20.00% 20.00%      
Minimum number of employees employed | Employee         200 200      
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel         12.00% 12.00%      
Preferred Technological Enterprises [Member] | Israel Tax Authority [Member] | Development Zonea [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel         7.50% 7.50%      
Special Preferred Technological Enterprise [Member]                  
Income Tax [Line Items]                  
Annual revenue     $ 2,900 ₪ 10,000          
Special Preferred Technological Enterprise [Member] | Israel Tax Authority [Member]                  
Income Tax [Line Items]                  
Statutory tax rate in Israel         6.00% 6.00%      
Withholding tax percentage on dividends         4.00% 4.00%      
Minimum [Member] | Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Effective income tax rate reconciliation, tax settlement, other, percent 5.00%                
Maximum [Member] | Israel Tax Authority [Member] | 2008 Through 2020 Tax Payable [Member]                  
Income Tax [Line Items]                  
Effective income tax rate reconciliation, tax settlement, other, percent 7.00%                
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities By Report Caption (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred Tax Assets Liabilities Net [Line Items]    
Long-term assets—deferred income taxes $ 2,191 $ 1,799
Long-term liabilities—deferred income taxes (296) (483)
Deferred tax assets liabilities net $ 1,895 $ 1,316
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule Of Unrecognized Tax Benefits [Line Items]      
Balance at the beginning of the year $ 449 $ 651 $ 638
Increase (decrease) related to prior year tax positions, net 125 109 (1)
Increase related to current year tax positions 8 53 15
Decrease related to settlements with tax authorities and lapse of applicable statutes of limitations (8) (395) (15)
Other 23 29 14
Balance at the end of the year $ 596 $ 449 $ 651
v3.25.4
Income Taxes - Schedule of Cash Income Taxes Paid (net of refunds) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds $ 558 $ 471 $ 298
Federal (National)-Israel [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds 155    
Croatia [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds 30    
Poland [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds 35    
Spain [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds 59    
United Kingdom [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds 42    
Other [Member]      
Cash Income Tax Paid Net Of Refund [Line Items]      
Proceeds from Income Tax Refunds $ 237    
v3.25.4
Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jul. 13, 2017
Apr. 18, 2016
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 11, 2020
Sep. 03, 2015
Jun. 29, 2010
Class of Stock [Line Items]                
Ordinary shares issuance ADSs     1,300,000,000 1,200,000,000        
Share price     $ 31.21          
Number of shares exercisable     11,870,000          
Number of shares available for future awards     52,100,000          
Vesting period, description     The vesting period of the outstanding options and RSUs is generally between one to four years from grant date. The vesting period of PSUs is generally three years from grant date. The rights of ordinary shares obtained from the exercise of options, RSUs or PSUs are identical to those of other ordinary shares of the Company. The contractual term of these options is primarily for ten years.          
Intrinsic value of options outstanding     $ 42 $ 19        
Exercisable     11,870,000 17,713,000 22,703,000      
Intrinsic value of options exercised     $ 17 $ 3        
Average stock price     $ 19.09 $ 15.97        
Unrecognized compensation cost before tax related to RSUs/PSUs     $ 262          
Weighted average period     2 years 4 months 24 days          
Unrecognized compensation costs related to employee stock options     $ 0          
Money Options [Member]                
Class of Stock [Line Items]                
Exercisable     3,500,000          
2010 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable               70,000,000
2015 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable 142,000,000 77,000,000         43,700,000  
Number of additional shares authorized 65,000,000 33,300,000            
2020 Long-Term Equity-Based Incentive Plan [Member]                
Class of Stock [Line Items]                
Number of shares exercisable           68,000,000    
v3.25.4
Equity - Summary of Stock Option Activity (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at beginning of year 17,713 22,703 24,119
Exercised (2,541) (1,284) 0
Forfeited (581) (1,211) (885)
Expired (2,722) (2,495) (531)
Balance outstanding at end of year 11,870 17,713 22,703
Balance exercisable at end of year 11,870 17,713 22,703
Balance outstanding at beginning of year $ 36.96 $ 36.89 $ 36.83
Exercised 18.91 15.37 0
Forfeited 35.86 34.13 34.65
Expired 59.63 48.84 37.57
Balance outstanding at end of year 35.68 36.96 36.89
Balance exercisable at end of year $ 35.68 $ 36.96 $ 36.89
v3.25.4
Equity - Schedule of Ordinary Shares Issued Upon Vested Options (Detail)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
yr
$ / shares
shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 11,870
Weighted average exercise price $ 35.68
Weighted average remaining life Years | yr 1.18
$15.01 - $20.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 3,390
Weighted average exercise price $ 18.97
Weighted average remaining life Years | yr 2.14
Range of exercise prices, lower limit $ 15.01
Range of exercise prices, upper limit $ 20
$20.01 - $25.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 26
Weighted average exercise price $ 22.48
Weighted average remaining life Years | yr 2.61
Range of exercise prices, lower limit $ 20.01
Range of exercise prices, upper limit $ 25
$25.01 - $35.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 4,956
Weighted average exercise price $ 34.67
Weighted average remaining life Years | yr 1.16
Range of exercise prices, lower limit $ 25.01
Range of exercise prices, upper limit $ 35
$35.01 - $45.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 57
Weighted average exercise price $ 37.7
Weighted average remaining life Years | yr 0.92
Range of exercise prices, lower limit $ 35.01
Range of exercise prices, upper limit $ 45
$45.01 - $55.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 2,883
Weighted average exercise price $ 53.24
Weighted average remaining life Years | yr 0.28
Range of exercise prices, lower limit $ 45.01
Range of exercise prices, upper limit $ 55
$55.01 - $65.00 [Member]  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Balance at end of period (in thousands) Number of shares | shares 558
Weighted average exercise price $ 55.83
Weighted average remaining life Years | yr 0.12
Range of exercise prices, lower limit $ 55.01
Range of exercise prices, upper limit $ 65
v3.25.4
Equity - Schedule of Number of RSUs Issued and Outstanding (Detail) - Restricted Stock Units [Member] - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance outstanding at beginning of year 33,810 35,664 32,302
Granted 12,037 11,557 16,608
Vested (13,428) (11,464) (10,195)
Forfeited (1,953) (1,947) (3,052)
Balance outstanding at end of year 30,466 33,810 35,664
Weighted-average grant date fair value per share - RSUs at beginning year $ 10.46 $ 9.07 $ 9.11
Granted 16.11 13.66 9.77
Vested 9.48 9.46 10.28
Forfeited 6.58 9.81 9.81
Weighted-average grant date fair value per share - RSUs at end of year $ 13.14 $ 10.46 $ 9.07
v3.25.4
Equity - Summary of Company Expenses Compensation Costs Based on Grant Date Fair Value (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 157 $ 123 $ 121
Omnibus Long Term Share Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 157 123 121
Tax effect on stock-based compensation expense 14 11 11
Net effect $ 143 $ 112 $ 110
v3.25.4
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Net other comprehensive income(loss) after tax $ 757    
Foreign Currency Translation Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (2,857) $ (2,384) $ (2,514)
Other comprehensive income (loss) before reclassifications 569 (456) 167
Release of cumulative translation adjustments [1] 181    
Net other comprehensive income(loss) before tax 750 (456) 167
Corresponding income tax (45) (17) (37)
Net other comprehensive income(loss) after tax [2] 705 (473) 130
Ending Balance (2,152) (2,857) (2,384)
Derivative Financial Instruments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (238) (266) (295)
Other comprehensive income (loss) before reclassifications 4   (1)
Amounts reclassified to the statements of income 35 28 30
Net other comprehensive income(loss) before tax 39 28 29
Net other comprehensive income(loss) after tax [2] 39 28 29
Ending Balance (199) (238) (266)
Benefit Plans [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (52) (46) (28)
Other comprehensive income (loss) before reclassifications 3 (1) (17)
Amounts reclassified to the statements of income 12 (6) (4)
Net other comprehensive income(loss) before tax 15 (7) (21)
Corresponding income tax (2) 1 3
Net other comprehensive income(loss) after tax [2] 13 (6) (18)
Ending Balance (39) (52) (46)
AOCI Attributable to Parent [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (3,148) (2,697) (2,838)
Other comprehensive income (loss) before reclassifications 572 (457) 149
Amounts reclassified to the statements of income 51 22 26
Release of cumulative translation adjustments [1] 181    
Net other comprehensive income(loss) before tax 804 (434) 175
Corresponding income tax (47) (16) (34)
Net other comprehensive income(loss) after tax [2] 757 (450) 141
Ending Balance $ (2,391) $ (3,148) $ (2,697)
[1] In connection with the sale of Teva’s business venture in Japan.
[2] Amounts do not include $27 million gain in 2025, $61 million loss in 2024 and $50 million loss in 2023 from foreign currency translation adjustments attributable to redeemable and non-redeemable non-controlling interests.
v3.25.4
Equity - Accumulated Other Comprehensive Income/(Loss) (Net of Tax) (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Foreign Currency Translation Adjustments Attributable to Non-controlling Interests [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Foreign currency translation attributable to non-controlling interests $ 27 $ (61) $ (50)
v3.25.4
Other assets impairments, restructuring and other items - Schedule of Other Assets Impairments, Restructuring and Other Items (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Impairment Costs [Line Items]      
Impairment of long-lived tangible assets [1] $ 769 $ 1,024 $ 28
Contingent consideration 54 303 548
Restructuring 225 74 111
Other 1 (14) 30
Total $ 1,050 $ 1,388 $ 718
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Impairments Restructuring And Others Impairments Restructuring And Others Impairments Restructuring And Others
[1] Including impairments related to exit and disposal activities.
v3.25.4
Other assets impairments, restructuring and other items - Components of costs associated with restructuring plan including costs related to exit and disposal activities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 225 $ 74 $ 111
Employee termination [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 215 53 52
Other [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ 10 $ 21 $ 59
v3.25.4
Other assets impairments, restructuring and other items - Summary of Restructuring Accruals (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Beginning balance $ (68) $ (82) $ (119)
Provision (225) (74) (111)
Utilization and other [1] 156 88 149
Ending balance (138) (68) (82)
Employee termination costs [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (55) (75) (112)
Provision (215) (53) (52)
Utilization and other [1] 147 73 90
Ending balance (124) (55) (75)
Other Exit and Disposal [Member]      
Restructuring Cost and Reserve [Line Items]      
Beginning balance (13) (7) (7)
Provision (10) (21) (59)
Utilization and other [1] 9 16 59
Ending balance $ (14) $ (13) $ (7)
[1] Includes adjustments for foreign currency translation.
v3.25.4
Other assets impairments, restructuring and other items - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Impairment Costs [Line Items]      
Impairments of property, plant and equipment $ 769 $ 1,024 $ 28
impairment charge [1] $ 769 1,024 28
Weighted average cost of capital discount rate 8.80%    
Business combination contingent consideration arrangements change in amount of contingent consideration liability $ 54 303 548
Restructuring costs $ 225 $ 74 $ 111
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Income (Loss) Operating Income (Loss) Operating Income (Loss)
Europe [Member]      
Restructuring and Impairment Costs [Line Items]      
impairment charge $ 726    
[1] Including impairments related to exit and disposal activities.
v3.25.4
Other Income - Schedule of Other Income (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income [Line Items]      
Gain (loss) on divestitures, net of divestitures related costs $ (22) $ 15 $ 3
Gain (loss) on sale of assets 2 2 25
Other, net 2 (4) 21
Total other income (loss) $ (18) $ 14 $ 49
v3.25.4
Financial expenses, net - Schedule of Financial Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Expenses [Line Items]      
Interest expenses and other bank charges $ 916 $ 1,002 $ 1,029
(Income) loss from investments (92) (86) (68)
Foreign exchange (gains) losses, net 41 17 30
Other, net [1] 69 48 66
Total finance expense, net $ 934 $ 981 $ 1,057
[1] Amortization of issuance costs and terminated derivative instruments.
v3.25.4
Earnings (loss) per share - Schedule of Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net income (loss) attributable to Teva's ordinary shareholders $ 1,410 $ (1,639) $ (559)
Weighted average shares outstanding 1,145 1,131 1,119
Basic earnings (loss) attributable to Teva's ordinary shareholders $ 1.23 $ (1.45) $ (0.5)
Diluted effect of stock options, RSUs and PSUs 17    
Total dilutive shares outstanding 1,163 1,131 1,119
Diluted earnings (loss) attributable to Teva's ordinary shareholders $ 1.21 $ (1.45) $ (0.5)
v3.25.4
Earnings (loss) per share - Additional Information (Detail) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock 27.2 52.1 57.9
v3.25.4
Segments - Summary of Segment Profit (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   $ 2,157 $ (303) $ 433
Amounts Not Allocated To Segments [Abstract]        
Amortization   581 588 616
Other asset impairments, restructuring and other items   1,050 1,388 718
Goodwill impairment $ 0 0 1,280 700
Intangible asset impairments   259 251 350
Legal settlements and loss contingencies   473 761 1,043
Other Unallocated Amounts   384 364 502
Revenues   17,258 16,544 15,846
R&D expenses   1,013 998 953
S&M expenses   2,686 2,541 2,336
G&A expenses   1,287 1,161 1,162
Segment profit   2,157 (303) 433
Financial expenses, net   934 981 1,057
Consolidated income (loss) before income taxes   1,223 (1,284) (624)
United States [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   3,356 2,296 2,394
Amounts Not Allocated To Segments [Abstract]        
Revenues   9,186 8,034 7,731
Cost of Sales   3,568 3,646 3,421
R&D expenses   633 633 604
S&M expenses   1,172 1,049 938
G&A expenses   458 410 378
Other loss (income)       (5)
Segment profit   3,356 2,296 2,394
Europe [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   1,303 1,575 1,478
Amounts Not Allocated To Segments [Abstract]        
Revenues   5,040 5,103 4,837
Cost of Sales   2,293 2,197 2,111
R&D expenses   247 229 220
S&M expenses   902 826 767
G&A expenses   295 272 263
Other loss (income)   1 3 (2)
Segment profit   1,303 1,575 1,478
International Markets [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   336 440 465
Amounts Not Allocated To Segments [Abstract]        
Revenues   2,162 2,463 2,351
Cost of Sales   1,116 1,229 1,191
R&D expenses   103 112 104
S&M expenses   475 534 487
G&A expenses   147 150 142
Other loss (income)   (14) (2) (39)
Segment profit   336 440 465
Corporate Segment [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   4,995 4,311 4,338
Amounts Not Allocated To Segments [Abstract]        
Segment profit   4,995 4,311 4,338
Other Segments [Member]        
Amounts Allocated To Segments [Abstract]        
Consolidated operating income (loss)   (90) 18 24
Amounts Not Allocated To Segments [Abstract]        
Segment profit   $ (90) $ 18 $ 24
v3.25.4
Segments - Schedule of Revenues by Major Products and Activities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Product Information [Line Items]      
Revenues $ 17,258 $ 16,544 $ 15,846
United States [Member]      
Product Information [Line Items]      
Revenues 9,186 8,034 7,731
Europe [Member]      
Product Information [Line Items]      
Revenues 5,040 5,103 4,837
International Markets [Member]      
Product Information [Line Items]      
Revenues 2,162 2,463 2,351
Generic products (including OTC and biosimilars) [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 3,657 3,599 3,138
Generic products (including OTC and biosimilars) [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 4,044 3,926 3,664
Generic products (including OTC and biosimilars) [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 1,721 1,937 1,932
AJOVY [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 295 207 211
AJOVY [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 270 216 160
AJOVY [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 108 84 63
AUSTEDO [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 2,217 1,642 1,225
AUSTEDO [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 43 46 15
BENDEKA and TREANDA [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 147 168 237
COPAXONE [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 255 242 297
COPAXONE [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 181 213 231
COPAXONE [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues 32 48 63
UZEDY [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 191 117 23
Anda [Member] | United States [Member]      
Product Information [Line Items]      
Revenues 1,496 1,536 1,577
Respiratory Product [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues 227 244 265
Other [Member] | United States [Member]      
Product Information [Line Items]      
Revenues [1] 929 523 1,025
Other [Member] | Europe [Member]      
Product Information [Line Items]      
Revenues [2] 319 504 516
Other [Member] | International Markets [Member]      
Product Information [Line Items]      
Revenues [3] $ 259 $ 349 $ 278
[1] Other revenues in 2025 were mainly comprised of 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 to our consolidated financial statements). Other revenues in 2024 include the sale of certain product rights. Other revenues in 2023 were mainly comprised of a $500 million upfront payment received in the fourth quarter of 2023, in connection with the collaboration on Teva’s duvakitug (anti-TL1A) asset.
[2] Other revenues in 2025, 2024 and 2023 include the sale of certain product rights.
[3] Other revenues in 2025 and 2024 include the sale of certain product rights.
v3.25.4
Segments - Schedule of Revenues by Major Products and Activities (Parentheticals) (Detail) - Collaborative Arrangement [Member] - Sanofi [Member] - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2025
Dec. 31, 2023
Product Information [Line Items]    
Payment For Development Milestone $ 500  
Milestone payment received   $ 500
v3.25.4
Segments - Schedule of Sales Percentage by Therapeutic Category (Detail)
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
McKesson Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 13.00% 12.00% 9.00%
AmerisourceBergen Corporation [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Third party net sales present 11.00% 9.00% 9.00%
v3.25.4
Segments - Schedule of Net Sales by Product Line - Schedule of Property, Plant and Equipment by Geographic Location (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 4,080 $ 4,581
Israel [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 1,033 1,066
Germany [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 704 1,262
United States [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 529 561
Croatia [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 312 277
Czech republic [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 199 206
Hungary [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 86 83
Ireland [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net 244 261
Other [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net $ 973 $ 865
v3.25.4
Segments - Additional Information (Detail) - Segment
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Number of reportable segments 3    
Israel [Member] | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 2.00% 2.00% 2.00%
UNITED STATES | Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member]      
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 53.00% 49.00% 49.00%
v3.25.4
Fair Value Measurement - Summary of Financial Items Carried at Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration [1] $ (51) $ (401)
Total 3,553 2,961
Asset Derivatives - Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 86 71
Cross Currency Interest Rate Contract [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (19)  
Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (38) (24)
Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 2,678 2,005
Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 878 1,295
Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 16 12
Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 3 3
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 3,575 3,315
Level 1 [Member] | Money Markets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 2,678 2,005
Level 1 [Member] | Cash, Deposits and Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 878 1,295
Level 1 [Member] | Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 16 12
Level 1 [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in securities 3 3
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 29 47
Level 2 [Member] | Asset Derivatives - Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives 86 71
Level 2 [Member] | Cross Currency Interest Rate Contract [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (19)  
Level 2 [Member] | Liabilities Derivatives Options and Forward Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivatives (38) (24)
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contingent consideration [1] (51) (401)
Total $ (51) $ (401)
[1] Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. The contingent consideration liability is recorded under accrued expenses and other taxes and long term liabilities.
v3.25.4
Fair value measurement - Additional Information (Detail)
Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Percentage of increase decrease in contingent consideration liabilities 1.00%
Maximum [Member] | Measurement input, discount rate [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 11
Minimum [Member] | Measurement input, discount rate [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 8.5
Weighted Average [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Business combination, contingent consideration, liability, measurement input 9
v3.25.4
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value at the beginning of the period $ (401) $ (477)
Redemption of convertible bond security [1]   (40)
Fair value at the end of the period (51) (401)
Nove Tide Acquisition [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (2) (2)
Settlement of contingent consideration 2 2
Allergan transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (30) (270)
Settlement of contingent consideration 356 363
Eagle Transaction [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Adjustments to provisions for contingent consideration (22) (31)
Settlement of contingent consideration $ 46 $ 54
[1] On September 29, 2023, Teva purchased $40 million of subordinated convertible bonds of Alvotech. On June 26, 2024, Alvotech announced its intention to exercise its redemption rights and redeemed the convertible bonds, which were paid to Teva in July 2024 (see note 2).
v3.25.4
Fair Value Measurement - Summary of Fair Value of Financial Liabilities Measured Using Level 3 Inputs (Parenthetical) (Detail)
$ in Millions
Sep. 29, 2023
USD ($)
Subordinated Convertible Bonds [Member] | Alvotech [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument face amount $ 40
v3.25.4
Fair Value Measurement - Summary of Financial Instrument Measured on a Basis Other Than Fair Value (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 16,929 $ 17,496
Senior Notes And Sustainability Linked Senior Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] 15,128 15,717
Senior Notes and Convertible Senior Debentures Included Under Short-Term Debt [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total [1] $ 1,801 $ 1,779
[1] The fair value was estimated based on quoted market prices.
v3.25.4
Long-term Employee-related Obligations - Schedule of Long Term Employee Related Obligation (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
Accrued severance obligations $ 73 $ 65
Defined benefit plans 50 63
Total [1] $ 123 $ 128
[1] Teva’s long-term employee-related obligations are presented in the Consolidated Balance Sheet under other taxes and long-term liabilities.
v3.25.4
Long-term Employee-related Obligations - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
Long-term investments earmarked for severance pay liabilities in Israel $ 112 $ 97
Expected contributions to pension funds 128  
2026 19  
2027 14  
2028 15  
2029 16  
2030 17  
2031 to 2035 $ 91  
v3.25.4
Redeemable Non-Controlling Interests - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
 [1]
Redeemable Non Controlling Interests [Line Items]    
Redeemable non controlling interest equity carrying amount $ 38 $ 64
Corporate Joint Venture [Member] | Common Stock [Member]    
Redeemable Non Controlling Interests [Line Items]    
Ownership Percentage 51.00%  
[1] Purchase of shares from non-controlling interests in a Teva’s subsidiary in Switzerland.
v3.25.4
Redeemable Non-Controlling Interests - Summary of Redeemable Noncontrolling Interests (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]      
Beginning balance $ 340    
Share in comprehensive income (loss) 33    
Dividend payment (340) $ (78) $ 0
Purchase of shares from redeemable non-controlling interests (38) (64) [1]  
Other adjustments related to redeemable non-controlling interests 6    
Ending balance $ 0 $ 340  
[1] Purchase of shares from non-controlling interests in a Teva’s subsidiary in Switzerland.
v3.25.4
Schedule II Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period $ 3,734 $ 3,596  
Deductions (14,603) (13,970)  
Balance at end of period 4,206 3,734 $ 3,596
Valuation Allowance in Tax Carryforward Losses And Deductions [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 2,017 3,009 3,072
Charged to costs and expenses 1,036 100 161
Deductions (710) (1,093) (224)
Balance at end of period 2,342 2,017 3,009
SEC Schedule 1209 Allowance Credit Loss [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 146 164 162
Charged to costs and expenses 10 35 10
Charged to other accounts (9) (8) (6)
Deductions (13) (46) (2)
Balance at end of period $ 134 $ 146 $ 164