Teva Pharmaceutical Industries Ltd. (TEVA) just proved that its "Pivot to Growth" strategy is more than corporate buzzword bingo. The generic drug maker turned branded pharma contender reported fourth-quarter results Wednesday that showed its transformation is actually working.

Revenue came in at $4.71 billion, crushing analyst expectations of $4.37 billion. That's an 11% jump year-over-year in U.S. dollars, or 9% in local currency terms. More importantly, the company hit a symbolic milestone: its key branded drugs collectively pulled in about $1 billion in revenue during the quarter. For the first time ever.

The star of the show remains Austedo, Teva's Huntington's disease treatment. Full-year 2025 sales climbed 34% to $2.26 billion, sailing past management's own guidance of $2.05 billion to $2.15 billion. Ajovy, the company's migraine drug, wasn't far behind with 2025 sales hitting $673 million (up 30% in local currency), also exceeding the $630 million to $640 million target. Even Uzedy, the schizophrenia treatment, beat expectations with $191 million in revenue, up 63% from the prior year.

What drove the revenue surge? Mostly those blockbuster branded products, plus some development milestone payments linked to the Phase 3 initiation of duvakitug, an anti-TL1A antibody. The gains were partially offset by lower proceeds from selling off certain product rights and reduced revenue from international markets following the divestment of a business venture in Japan.

On the earnings front, Teva posted adjusted earnings of 96 cents per share, demolishing the 68-cent consensus and up from 71 cents a year ago. That's the kind of beat that gets investors' attention.

CEO Richard Francis didn't hide his enthusiasm: "In 2025, our Pivot to Growth strategy drove Teva's third year of consecutive growth, solidifying our transformation into a leading biopharmaceutical company. Our key innovative brands led our growth, reaching $1 billion in revenues in the fourth quarter of 2025 for the first time, and becoming a true engine of sustainable growth."

Looking Ahead to 2026

For fiscal 2026, Teva is projecting adjusted earnings between $2.57 and $2.77 per share, compared to the Street estimate of $2.73. Revenue guidance landed at $16.4 billion to $16.8 billion, just shy of the $16.89 billion consensus.

Breaking down the key products: Austedo is expected to generate $2.4 billion to $2.55 billion in sales, Ajovy should bring in $750 million to $790 million, and Uzedy is forecasted at $250 million to $280 million. The company also anticipates operating income between $4.55 billion and $4.8 billion, with adjusted EBITDA of $5.0 billion to $5.3 billion.

Francis highlighted what's coming down the pipeline: "Looking ahead, 2026 will be a milestone-rich year with multiple late-stage pipeline readouts across immunology and neurology; the anticipated FDA approval of olanzapine LAI, and important data expected for duvakitug, our anti-TL1A, and for our anti-IL-15 programs. Together, these pipeline assets represent a potential of over $10 billion, reinforcing our confidence..."

Teva Pharmaceutical shares slipped 0.81% to $31.11 following the announcement, a modest pullback likely reflecting the slightly below-consensus 2026 guidance despite the strong quarterly performance.