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Segments
 9 Months Ended
Sep. 30, 2025
Segments
NOTE 15 – Segments:
Teva operates its business and reports its financial results in the following 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 the 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 the 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 the CODM analyzes each of these categories, the CODM focuses particularly on period-over-period fluctuations and
budget-to-actual
variances to determine the right allocation of resources to be attributed to each segment 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 6.
On January 31, 2024, Teva announced that it intends to divest its API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with Teva’s Pivot to Growth strategy. As of the date of this Quarterly Report on Form 10-Q, exclusive discussions with a selected buyer on the sale have terminated. Teva is initiating 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 that a divestiture will be agreed or completed at all. See note 2.
 
 
a.
Segment information:
 
    
Three months ended September 30,
  
    
2025
  
    
United States
    
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 2,483     $ 1,235      $ 557  
Cost of sales
      996       570        280  
R&D expenses
      161       62        26  
S&M expenses
      278       225        122  
G&A expenses
      114       75        36  
Other
      (3 )      §        §  
  
 
 
    
 
 
     
 
 
  
Segment profit
    $ 937     $ 303      $ 95  
 
§
Represents an amount less than $0.5 million. 
 
 
    
Three months ended September 30,
  
    
2024
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 2,225      $ 1,265      $ 613  
Cost of sales
      960        566        307  
R&D expenses
      151        55        27  
S&M expenses
      259        203        134  
G&A expenses
      107        67        36  
Other
      §        1        §  
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 748      $ 373      $ 109  
 
§
Represents an amount less than $0.5 million. 
 
    
Nine months ended September 30,
  
    
2025
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 6,543      $ 3,726      $ 1,634  
Cost of sales
      2,748        1,687        835  
R&D expenses
      467        181        75  
S&M expenses
      831        652        353  
G&A expenses
      323        210        107  
Other
      (1 )       §        (3 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 2,175      $ 996      $ 266  
  
 
 
     
 
 
     
 
 
  
 
§
Represents an amount less than $0.5 million.
 
    
Nine months ended September 30,
  
    
2024
  
    
United States
     
Europe
     
International Markets
  
    
(U.S. $ in millions)
  
Revenues
    $ 6,060      $ 3,749      $ 1,802  
Cost of sales
      2,769        1,637        914  
R&D expenses
      475        173        85  
S&M expenses
      789        605        397  
G&A expenses
      300        197        109  
Other
      (1 )       1        (1 ) 
  
 
 
     
 
 
     
 
 
  
Segment profit
    $ 1,727      $ 1,137      $ 299  
  
 
 
     
 
 
     
 
 
  
 
 
The following table presents a reconciliation of Teva’s segment profits to its consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended September 30, 2025 and 2024:
 
    
Three months ended
     
Nine months ended
  
    
September 30,
     
September 30,
  
    
2025
     
2024
     
2025
     
2024
  
    
(U.S. $ in millions)
     
(U.S. $ in millions)
  
United States profit
    $ 937      $ 748      $ 2,175      $ 1,727  
Europe profit
      303        373        996        1,137  
International Markets profit
      95        109        266        299  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total reportable segments profit
      1,334        1,230        3,437        3,163  
Profit (loss) of other activities
      (40 )       (16 )       (64 )       (1 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Amounts not allocated to segments:
            
Amortization
      144        146        436        444  
Other assets impairments, restructuring and other items
      62        (23 )       272        931  
Goodwill impairment
      —         600        —        1,000  
Intangible assets impairments
      64        28        227        169  
Legal settlements and loss contingencies
      60        450        309        638  
Other unallocated amounts
      82        64        272        254  
  
 
 
     
 
 
     
 
 
     
 
 
  
Consolidated operating income (loss)
      882        (51 )       1,857        (274 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Financial expenses, net
      237        272        714        763  
  
 
 
     
 
 
     
 
 
     
 
 
  
Consolidated income (loss) before income taxes
    $ 646      $ (324 )     $ 1,143      $ (1,037 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
b. Segment revenues by major products and activities:
The following tables present revenues by
major
products and activities for the three months ended September 30, 2025 and 2024:
 
United States
   
Three months ended

September 30,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 1,175      $ 1,094  
AJOVY
®
      73        58  
AUSTEDO
      601        435  
BENDEKA
®
and TREANDA
®
      35        40  
COPAXONE
      62        69  
UZEDY
      43        35  
Anda
      392        380  
Other
      101        115  
  
 
 
     
 
 
  
Total
    $ 2,483      $ 2,225  
  
 
 
     
 
 
  
 
 
United States
   
Nine months ended

September 30,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including biosimilars)
    $ 2,984      $ 2,924  
AJOVY
      190        144  
AUSTEDO
      1,492        1,124  
BENDEKA and TREANDA
      111        127  
COPAXONE
      179        179  
UZEDY
      136        75  
Anda
      1,130        1,134  
Other
      321        352  
  
 
 
     
 
 
  
Total
    $ 6,543      $ 6,060  
  
 
 
     
 
 
  
 
Europe
   
Three months ended

September 30,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 982      $ 973  
AJOVY
      66        56  
COPAXONE
      44        53  
Respiratory products
      52        60  
Other*
      91        124  
  
 
 
     
 
 
  
Total
    $ 1,235      $ 1,265  
  
 
 
     
 
 
  
 
*
Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights.
 
Europe
  
Nine months ended

September 30,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
  
$
3,011
 
  
$
2,947
 
AJOVY
      195        158  
COPAXONE
      135        163  
Respiratory products
      162        183  
Other*
      223        299  
  
 
 
     
 
 
  
Total
    $ 3,726      $ 3,749  
  
 
 
     
 
 
  
 
*
Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights.
 
International markets
  
Three months ended

September 30,
 
 
  
2025
 
  
2024
 
 
  
(U.S. $ in millions)
 
Generic products (including OTC and biosimilars)
  
$
421
 
  
$
477
 
AJOVY
      30        24  
AUSTEDO
      17        13  
COPAXONE
      8        13  
Other*
      82        86  
  
 
 
     
 
 
  
Total
    $ 557      $ 613  
  
 
 
     
 
 
  
 
*
Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights.
 
International markets
   
Nine months ended

September 30,
  
    
2025
     
2024
  
    
(U.S. $ in millions)
  
Generic products (including OTC and biosimilars)
    $ 1,298      $ 1,440  
AJOVY
      78        63  
AUSTEDO
      34        39  
COPAXONE
      25        38  
Other*
      199        222  
  
 
 
     
 
 
  
Total
    $ 1,634      $ 1,802  
  
 
 
     
 
 
  
 
*
Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights.