Teva Pharmaceutical Stock Hits 52-Week High On Credit Ratings Lift

Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) said on Wednesday that S&P Global Ratings upgraded its long-term issuer credit rating to BB+ from BB with a stable outlook, while Moody's affirmed its Ba1 rating and revised the outlook to positive.

The actions reflect Teva's steady deleveraging and improving operating performance.

Delevaraging

S&P noted adjusted leverage fell to 4.4x as of Sept. 30, 2025, and expects it to decline below 4.25x in the coming quarters, supporting the higher rating.

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Both agencies highlighted Teva's financial discipline, solid liquidity, and return to revenue growth after five years of declines, driven by strength in branded medicines and stabilization in generics.

Moody's also pointed to strong momentum in Teva's branded franchises and upcoming branded and biosimilar launches, which are expected to offset generics pressure.

With leverage projected to trend toward 3.5x over the next 12–18 months, Moody's said the company is positioned for a potential further upgrade, marking continued progress toward investment-grade status.

Eli Kalif, Teva's CFO, commented: "This upgrade is a powerful testament to our strategic vision and disciplined execution, especially coming at the heels of multiple upgrades in recent months. By driving our Pivot to Growth strategy, prioritizing robust cash flow management, and rigorously allocating capital, we have demonstrated unwavering commitment to deleveraging and sustainable business growth. These results clearly show how our focused strategy is delivering tangible value for Teva and positioning us for continued success."

Recent Earnings

Teva reported its third-quarter 2025 financial results on Wednesday, with total revenue of $4.48 billion, beating analysts' expectations of $4.35 billion, according to Benzinga Pro.

Revenues increased 3% year-over-year in U.S. dollars or 1% in local currency.

Key brands continue to drive growth, with revenues up 33% in local currency to $830 million.

Teva Pharmaceutical raised its fiscal year 2025 adjusted earnings from $2.50-$2.60 per share to $2.55-$2.65 per share compared to the consensus of $2.58.

The company narrowed 2025 sales guidance from $16.8 billion-$17.2 billion to $16.8 billion-$17 billion compared to the consensus of $16.89 billion.

TEVA Price Action: Teva Pharmaceutical shares were up 0.76% at $31.78 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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