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Teva Pharmaceutical Industries Ltd.

Earnings Release Jul 30, 2025

7082_rns_2025-07-30_3c3c336d-ace5-474a-b22d-f21b81eea532.pdf

Earnings Release

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 30, 2025

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

(Exact name of registrant as specified in its charter)

Israel 001-16174 00-0000000 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.)

124 Dvora Hanevi'a Street Tel Aviv 6944020, Israel (Address of Principal Executive Offices, including Zip Code)

+972-3-914-8213

(Registrant's Telephone Number, including Area Code)

Not Applicable

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s)
Name of each exchange on which registered
American Depositary Shares, each
representing one Ordinary Share
TEVA New York Stock Exchange

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

Emerging Growth Company ☐

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

ITEM 2.02 Results of Operations and Financial Condition

On July 30, 2025, Teva Pharmaceutical Industries Ltd. issued a press release announcing its financial results for the period ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and the information contained therein is incorporated herein by reference.

The information included in this Item 2.02 is being furnished to the Securities and Exchange Commission and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No. Description of Document 99.1 Teva Reports 2025 Second Quarter Financial Results

SIGNATURES

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

TEVA PHARMACEUTICAL INDUSTRIES LIMITED

Date: July 30, 2025 By:/s/ Eli Kalif

Name:Eli Kalif Title: Executive Vice President, Chief Financial Officer

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December 31, 2024, Teva classified its API business (including its R&D, manufacturing and commercial activities) as held for sale.

Second Quarter 2025 Consolidated Results

Revenues in the second quarter of 2025 were \$4,176 million, flat in U.S. dollars, or a decrease of 1% in local currency terms compared to the second quarter of 2024. This decrease was mainly due to a decrease from generic products in our International Markets seqment associated with the divestment of our business venture in Japan, as well as in our U.S. segment, and a decrease in revenues from COPAXONE®, partially offset by an increase in revenues from our key innovative products. Exchange rate movements during the second quarter of 2025, net of hedging effects, positively impacted revenues by \$49 million, compared to the second quarter of 2024.

Exchange rate movements during the second quarter of 2025, net of hedging effects, had a negligible impact on our operating income and non-GAAP operatinq income compared to the second quarter of 2024.

Gross profit in the second quarter of 2025 was \$2,102 million, an increase of 4% compared to \$2,024 million in the second quarter of 2024. Gross profit margin was 50.3% in the second quarter of 2025, compared to 48.6% in the second quarter of 2024. Non-GAAP gross profit was \$2,278 million in the second quarter of 2025, an increase of 3% compared to \$2,205 million in the second quarter of 2024. Non-GAAP gross profit marqin was 54.6% in the second quarter of 2025, compared to 52.9% in the second quarter of 2024. The increase in both qross profit marqin and non-GAAP gross profit marqin was mainly due to a favorable mix of products, primarily driven by higher revenues from AUSTEDO, the sale of certain product rights in our Europe Segment, and the divestment of our business venture in Japan, partially offset by lower revenues from COPAXONE.

Research and Development (R&D) expenses, net in the second quarter of 2025 were \$244 million, a decrease of 9% compared to \$269 million in the second quarter of 2024. Our lower R&D expenses, net in the second quarter of 2025 compared to the second quarter of 2024, were mainly due to a decrease in non-recurring milestone payments related to certain biosimilar projects, and a decrease in our generics projects.

Selling and Marketing (S&M) expenses in the second quarter of 2025 were \$654 million, flat compared to the second quarter of 2024.

General and Administrative (G&A) expenses in the second quarter of 2025 were \$305 million, an increase of 8% compared to the second quarter of 2024. This increase was mainly due to costs related to optimization activities of our global organization and operations in connection with Teva's Transformation programs.

Operating Income in the second quarter of 2025 was \$455 million, compared to an operating loss of \$5 million in the second quarter of 2024. Operating income as a percentage of revenues was 10.9% in the second quarter of 2025, compared to an operating loss as a percentage of revenues of 0.1% in the second quarter of 2024. This increase was mainly due to a goodwill impairment charge recorded in the second quarter of 2024, as well as higher gross profit in the second quarter of 2025, partially offset by higher legal settlements and loss contingencies in the second quarter of 2025. Non-GAAP operating income in the second quarter of 2025 was \$1,133 million representing a non-GAAP operating marqin of 27.1% compared to non-GAAP operatinq income of \$1,056 million representing a non-GAAP operating marqin of 25.3% in the second quarter of 2024. The increase in non-GAAP operating marqin in the

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Segment Results for the Second Quarter of 2025

United States Segment

The following table presents revenues, expenses and profit for our United States segment for the three months ended June 30, 2025 and 2024:

Three months ended June 30
2025 2024
(U.S. \$ in millions / % of Seqment Revenues)
Revenues \$ 2.151 100% S 2,110 100%
Cost of sales 901 41.9% 943 44.7%
Gross profit 1.250 58.1% 1,167 55.3%
R&D expenses 152 7.0% 170 8.1%
S&M expenses 279 13.0% 270 12.8%
G&A expenses 113 5.2% 100 4.7%
Other (1) S
Seqment profit* \$ 706 32.8% 5 629 29.8%

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

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

Revenues from our United States segment in the second quarter of 2025 were \$2,151 million, an increase of \$41 million, or 2%, compared to the second quarter of 2024. This increase was mainly due to higher revenues from our innovative products, mainly AUSTEDO, UZEDY and AJOVY, partially offset by lower revenues from generic products and COPAXONE.

Revenues by Major Products and Activities

The following table presents revenues for our United States segment by major products and activities for the three months ended June 30, 2025 and 2024:

Three months ended
June 30,
Percentage
Change
2025 2024 2025-2024
(U.S. \$ in millions)
Generic products (including 961 ട്
biosimilars) \$ 1,023 (6%)
AJOVY 63 42 53%
AUSTEDO 495 407 22%
BENDEKA® and TREANDA® 40 41 (3%)
COPAXONE 62 81 (23%)
UZEDY 54 24 120%
Anda 365 373 (2%)
Other 111 119 (7%)
Total 2,151 2,110 2%

Generic products (including biosimilars) revenues in our United States segment in the second quarter of 2025 were \$961 million, a decrease of 6% compared to the second quarter of 2024. This decrease was mainly driven by lower revenues from lenalidomide capsules (the generic version of Revlimid®) and liraglutide injection 1.8mg (an authorized generic of Victoza®), driven primarily by increased competition, partially offset by higher revenues from our portfolio of biosimilar products.

Among the most significant generic products we sold in the United States in the second quarter of 2025 were lenalidomide capsules (the generic version of Revlimid®), epinephrine injectable solution (the qeneric equivalent of EpiPen® and EpiPen Jr®) and Truxima® (the biosimilar to Rituxan®). In the second quarter of 2025, our total prescriptions were approximately 266 million (based on trailing twelve months), representing 6.9% of total U.S. generic prescriptions, compared to approximately 303 million (based on trailing twelve months), representing 7.9% of total U.S. generic prescriptions in the second quarter of 2024, all according to IQVIA data.

On April 7 2025, Teva and Samsung Bioepis Co., Ltd. announced the availability of, and subsequently launched, EPYSQL® (eculizumab-aagh), a biosimilar to Soliris® (eculizumab) in the U.S., for the treatment of paroxysmal nocturnal hemoqlobinuria (PNH), atypical hemolytic uremic syndrome (aHUS) and generalized myasthenia gravis (gMG) in adult patients who are anti-acetylcholine receptor (AchR) antibody positive.

AJOVY revenues in our United States segment in the second quarter of 2025 were \$63 million, an increase of 53% compared to the second quarter of 2024, mainly due to an increase in sales allowance due to a non-recurring item in the second quarter of 2024 and growth in volume in the second quarter of 2025. In the second quarter of 2025, AJOVY's exit market share in the United States in terms of total number of prescriptions was 31.0% of the subcutaneous injectable anti- CGRP class, compared to 28.6% in the second quarter of 2024.

AUSTEDO revenues in our United States segment in the second quarter of 2025 were \$495 million, an increase of 22%, compared to \$407 million in the second quarter of 2024. This increase was mainly due to growth in volumes, including the approval of AUSTEDO XR as a one pill, once-daily treatment in 2024.

AUSTEDO XR (deutetrabenazine) extended-release tablets were approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. The FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg in May 2024 and in 18 mq in July 2024. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington's disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Oranqe Book patents expiring between 2031 and 2041.

On January 17, 2025, the Centers for Medicaid Services ("CMS") released a list of prescription medicines selected for price-setting discussions, which included AUSTEDO and AUSTEDO XR. The price-setting process has commenced, and the revised prices set by the U.S. Government, which will apply to eligible Medicare patients, are expected to become effective on January 1, 2027. As the price-setting process is still in its early stages, the extent to which prices for AUSTEDO and AUSTEDO XR will change as a result of such discussions remains uncertain.

UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the second quarter of 2025 were \$54 million, an increase of 120% compared to the second quarter of 2024, mainly due to growth in volume.

BENDEKA and TREANDA combined revenues in our United States segment in the second quarter of 2025 were \$40 million, a decrease of 3% compared to the second quarter of 2024, mainly due to competition from alternative therapies, as well as from generic bendamustine products.

COPAXONE revenues in our United States segment in the second quarter of 2025 were \$62 million, a decrease of 23% compared to the second quarter of 2024, mainly due to market share erosion and competition.

Anda revenues from third-party products in our United States segment in the second quarter of 2025 were \$365 million, a decrease of 2%, compared to \$373 million in the second quarter of 2024. This decrease was mainly due to lower volumes. Anda, our distribution business in the United States, distributes generic and innovative medicines and OTC pharmaceutical products from Teva and various third-party manufacturers to independent retail pharmacy retail chains, hospitals and physician offices in the United States.

United States Gross Profit

Gross profit from our United States segment in the second quarter of 2025 was \$1,250 million, an increase of 7%, compared to \$1,167 million in the second quarter of 2024.

Gross profit margin for our United States segment in the second quarter of 2025 increased to 58.1%, compared to 55.3% in the second quarter of 2024. This increase was mainly due to a favorable mix of products primarily driven by higher revenues from AUSTEDO.

United States Profit

Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.

Profit from our United States segment in the second quarter of 2025 was \$706 million, an increase of 12% compared to \$629 million in the second quarter of 2024. This increase was mainly due to higher gross profit, as discussed above.

Europe Segment

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

The following table presents revenues, expenses and profit for our Europe seqment for the three months ended June 30, 2025 and 2024:

Three months ended June 30,
2025 2024
(U.S. \$ in millions / % of Segment Revenues)
Revenues S 1,298 100% Ş 1.213 100%
Cost of sales 581 44.8% 536 44.2%
Gross profit 717 55.2% 677 55.8%
R&D expenses ਦੇ ਰੋ 4.6% 62 5.1%
S&M expenses 228 17.5% 209 17.2%
G&A expenses ୧୧ 5.1% 64 5.3%
Other ട്
Segment profit* \$ 364 28.0% \$ 342 28.2%

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

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

Revenues from our Europe segment in the second quarter of 2025 were \$1,298 million, an increase of 7%, or \$85 million, compared to the second quarter of 2024. In local currency terms, revenues increased by 3% compared to the second quarter of 2024, mainly due to the sale of certain product rights, higher revenues from AJOVY and higher revenues from generic products.

In the second quarter of 2025, revenues were positively impacted by exchange rate fluctuations of \$46 million, net of hedqing effects, compared to the second quarter of 2024. Revenues in the second quarter of 2025, included \$25 million from a negative hedging impact, which is included in "Other" in the table below. Revenues in the second quarter of 2024 included \$3 million from a positive hedging impact, which is included in "Other" in the table below.

Revenues by Major Products and Activities

The following table presents revenues for our Europe segment by major products and activities for the three months ended June 30, 2025 and 2024:

Three months ended
June 30,
Percentag
Change
2025 2024 2025-2024
(U.S. \$ in millions)
Generic products (including OTC and
biosimilars) \$ 970 7%
AJOVY 71 52 38%
COPAXONE 50 53 (6%)
Respiratory products 55 57 (3%)
Other* 81 81 1%
Total ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 1,298 Ş 7%

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

Generic products revenues (including OTC and biosimilar products) in our Europe seqment in the second quarter of 2025, were \$1,040 million, an increase of 7% compared to the second quarter of 2024. In local currency terms, revenues increased by 1%, mainly due to OTC price increases, as well as revenues from recently launched products, partially offset by lower volumes.

AJOVY revenues in our Europe segment in the second quarter of 2025 increased by 38% to \$71 million, compared to \$52 million in the second quarter of 2024. In local currency terms, revenues increased by 30% due to growth in volume.

COPAXONE revenues in our Europe segment in the second quarter of 2025 were \$50 million, a decrease of 6% compared to the second quarter of 2024. In local currency terms revenues decreased by 11%, due to price reductions and a decline in volume resulting from the availability of alternative therapies and competing glatiramer acetate products.

Respiratory products revenues in our Europe segment in the second quarter of 2025 were \$55 million, a decrease of 3% compared to the second quarter of 2024. In local currency terms, revenues decreased by 8%, mainly due to net price reductions and lower volumes.

Europe Gross Profit

Gross profit from our Europe segment in the second quarter of 2025 was \$717 million, an increase of 6% compared to \$677 million in the second quarter of 2024.

Gross profit margin for our Europe segment in the second quarter of 2025 decreased to 55.2%, compared to 55.8% in the second quarter of 2024. This decrease was mainly due to a negative impact from hedging activities, and an unfavorable mix of products, partially offset by the sale of certain product rights.

Europe Profit

Profit from our Europe seqment consists of revenues less cost of sales, R&D expenses, G&A expenses and other expenses (income) related to this segment profit does not include amortization and certain other items.

Profit from our Europe segment in the second quarter of 2025 was \$364 million, an increase of 6%, compared to \$342 million in the second quarter of 2024. This increase was mainly due to higher gross profit, partially offset by higher S&M expenses.

International Markets Segment

Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe seqment. The International Markets seqment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries.

The countries in our International Markets segment include highly regulated, mainly generic markets, such as Canada and Israel, and branded generics-oriented markets, such as Russia and certain Latin America markets.

As previously disclosed, on March 31, 2025, we closed the agreement with JKI Co. Ltd., established by the fund managed and operated by private equity firm J-Will Partners Co. Ltd., to sell our Teva-Takeda business venture in Japan, which includes generic and legacy products.

Three months ended June 30
2025 2024
(U.S. S in millions / % of Segment Revenues)
Revenues S 495 100% 5 ਦੇ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੋਂ ਤੇ ਕਿ ਉੱਤੇ ਸਾਰ ਦੇ ਕੇ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿ 100%
Cost of sales 251 50.8% 307 51.7%
Gross profit 243 49.2% 286 48.3%
R&D expenses 24 4.9% 30 5.1%
S&M expenses 114 23.0% 145 24.5%
G&A expenses 32 6.6% 38 6.4%
Other (1) S ട് S
Segment profit* \$ 74 14.9% \$ 73 12.3%

The following table presents revenues, expenses and profit for our International Markets segment for the three months ended June 30, 2025 and 2024:

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

Revenues from our International Markets segment in the second quarter of 2025 were \$495 million, a decrease of 17% compared to the second quarter of 2024. In local currency terms, revenues decreased by 16% compared to the second quarter of 2024. This decrease was mainly due to the divestment of our business venture in Japan.

In the second quarter of 2025, revenues were neqatively impacted by exchange rate fluctuations of \$2 million, including hedging effects, compared to the second quarter of 2024. Revenues in the second quarter of 2025 included \$8 million from a negative hedging impact, compared to a negative hedging impact of \$5 million in the second quarter of 2024, which are included in "Other" in the table below.

The following table presents revenues for our International Markets segment by major products and activities for the three months ended June 30, 2025 and 2024:

Three months ended
June 30,
Percentage
Change
2025 2024 2025-2024
(U.S. \$ in millions)
Generic products (including OTC and
biosimilars) 410 ટે 486 (16%)
AJOVY 20 22 (7%)
AUSTEDO 3 12 (76%)
COPAXONE 7 14 (50%)
Other 55 ਦੇ ਰੋ (6%)
Total 495 593 (17%)

Generic products revenues (including OTC and biosimilar products) in our International Markets segment were \$410 million in the second quarter of 2025, a decrease of 16%, in both U.S. dollars and local currency terms compared to the second quarter of 2024, mainly due to the divestment of our business venture in Japan.

AJOVY was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the second quarter of 2025 were \$20 million, compared to \$22 million in the second quarter of 2024, mainly due to timing of shipments.

AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington's disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China. In April 2025, AUSTEDO received marketing authorization in South Korea. We continue to pursue additional submissions in various other markets.

AUSTEDO revenues in our International Markets segment in the second quarter of 2025 were \$3 million compared to \$12 million in the second quarter of 2024. In local currency terms, revenues decreased by 75%, mainly due to timing of shipments.

COPAXONE revenues in our International Markets segment in the second quarter of 2025 were \$7 million compared to \$14 million in the second quarter of 2024.

International Markets Gross Profit

Gross profit from our International Markets segment in the second quarter of 2025 was \$243 million, a decrease of 15% compared to \$286 million in the second quarter of 2024.

Gross profit margin for our International Markets segment in the second quarter of 2025 increased to 49.2%, compared to 48.3% in the second quarter of 2024. This increase was primarily due to a favorable mix of products, mainly in connection with the divestment of our business venture in Japan.

International Markets Profit

Profit of our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.

Profit from our International Markets segment in the second quarter of 2025 was \$74 million, an increase of 1%, compared to \$73 million in the second quarter of 2024. This increase was mainly due to lower operating expenses, partially offset by a decrease in gross profit, mainly as a result of the divestment of our business venture in Japan.

Other Activities

We have 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 our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above.

On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. 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.

Revenues from other activities in the second quarter of 2025 were \$232 million, a decrease of 7% in U.S. dollars compared to the second quarter of 2024. In local currency terms, revenues decreased by 9%.

API sales to third parties in the second quarter of 2025 were \$135 million, reflecting a decrease of 11% in both U.S. dollars and local currency terms, compared to the second quarter of 2024, mainly due to lower demand and timing of shipments.

Outlook for 2025 Non-GAAP Results

\$ billions, except EPS or as
noted
January 2025
Outlook
May 2025 Outlook July 2025 Outlook
Revenues* \$16.8 - \$17.4 \$16.8 - \$17.2 \$16.8 - \$17.2
AUSTEDO (\$m)* 1,900-2,050 1,950-2,050 2,000-2,050
AJOVY (Sm)* ~600 ~600 630-640
UZEDY (Şm)* ~160 ~160 190-200
COPAXONE (Sm)* ~370 ~370 ~370
Operating Income 4.1 - 4.6 4.3 - 4.6 4.3 - 4.6
Adjusted EBITDA 4.5 - 5.0 4.7 - 5.0 4.7 - 5.0
Tax Rate 15%-18% 15%-18% 15%-18%
Finance Expenses ~0.9 ~0.9 ~0.9
Diluted EPS (\$) 2.35 - 2.65 2.45 - 2.65 2.50 - 2.65
Free Cash Flow** 1.6 - 1.9 1.6 - 1.9 1.6 – 1.9
CAPEX* ~0.5 ~0.5 ~0.5
Volatilo cuinar in EV can noastiuniu immact

Foreign Exchange

Volatile swings in FX can negatively impact revenue and income

* Revenues and CAPEX presented on a GAAP basis.

** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables.

Conference Call

Teva will host a conference call and live webcast along with a slide presentation on Wednesday, July 30, 2025 at 8:00 a.m. ET to discuss its second quarter 2025 financial results and overall business environment. A question & answer session will follow.

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

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

Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva's commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients' needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com.

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

Non-GAAP Financial Measures

This press release contains certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures, including, but not limited to, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross profit margin, Adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net income (loss) attributable to Teva and non-GAAP diluted EPS, are presented in order to facilitate investors' understanding of our business. We utilize certain non-GAAP financial measures to evaluate performance, in conjunction with other performance metrics. The following are examples of how we utilize the non-GAAP measures: our management and board of directors use the non-GAAP measures to evaluate our operational performance, to compare against work plans and budgets, and ultimately to evaluate the performance of management; our annual budgets are prepared on a non-GAAP basis; and senior management's annual compensation is derived, in part, using these non-GAAP measures. See the attached tables for a reconciliation of the GAAP results to the adjusted non-GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. We are not providing forward looking guidance for GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measure because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items including, but not limited to, the amortization of purchased intangible assets, legal settlements and loss contingencies, impairment of long-lived assets and goodwill impairment, without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as "should," "expect," "anticipate," "target," "may," "project," "guidance," "intend," "plan," "believe" and other words and terms of similar meaning and expression with any discussion of future operating or financial performance. These forward-looking statements concerning our plans, strategies, objectives, future performance and financial and operating targets, and any other information information. Important factors that could cause or contribute to such differences include risks relating to:

· our ability to successfully compete in the marketplace, including; that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical companies and changes in regulatory policy that may result in additional costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, and to sustain and focus our portfolio of generics medicines, and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness of our patents and other measures to protect our intellectual property rights, including any potential challenges to our Orange Book patent listings in the U.S .;

Consolidated Statements of Income

(U.S. dollars in millions, except share and per share data) (Unaudited)

Three months ended Six months ended
June 30,
June 30,
2025 2024 2025 2024
Net revenues 4,176 4,164 8,067 7,983
Cost of sales 2,074 2,140 4,088 4,188
Gross profit 2,102 2,024 3,979 3,795
Research and development expenses 244 269 490 511
Selling and marketing expenses 654 656 1,276 1,265
General and administrative expenses 305 283 603 561
Intangible assets impairments 42 61 163 141
Goodwill impairment - 400 - 400
Other asset impairments, restructuring and other items 232 280 210 954
Legal settlements and loss contingencies 166 83 252 188
Other loss (income) 4 (2) 9 (1)
Operating income (loss) 455 (5) 975 (223)
Financial expenses, net 252 241 477 491
Income (loss) before income taxes 203 (246) 497 (713)
Income taxes (benefit) (78) 630 (4) 578
Share in (profits) losses of associated companies, net (1) (2) (1) 2
Net income (loss) 283 (874) 503 (1,294)
Net income (loss) attributable to redeemable and non-redeemable non-controlling interests § (29) 6 (309)
Net income (loss) attributable to Teva 282 (846) 497 (985)
Earnings (loss) per share attributable to Teva: Basic (\$) 0.25 (0.75) 0.43 (0.87)
Diluted (\$) 0.24 (0.75) 0.43 (0.87)
Weighted average number of shares (in millions): Basic 1,147 1,133 1,142 1,128
Diluted 1,161 1,133 1,159 1,128
Non-GAAP net income attributable to Teva for diluted earnings per share:* 769 697 1,371 1,245
Non-GAAP earnings per share attributable to Teva:* Diluted (\$) 0.66 0.61 1.18 1.09
Non-GAAP average number of shares (in millions): Diluted 1,161 1,151 1,159 1,146

Amounts may not add up due to rounding.

§ Represents an amount less than \$0.5 million.

* See reconciliation attached.

CONSOLIDATED BALANCE SHEETS (U.S. dollars in millions, except for share data) (Unaudited)

June 30,
2025
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents S 2,161 S 3,300
Accounts receivables, net of allowance for credit losses of \$84 million and \$78
million as of June 30, 2025 and December 31, 2024, respectively. 3,564 3,059
Inventories 3,497 3,007
Prepaid expenses 1,084 1,006
Other current assets. 472 409
Assets held for sale 1,842 1,771
Total current assets 12,620 12,552
Deferred income taxes 1,781 1,799
Other non-current assets 470 462
Property, plant and equipment, net 4,810 4,581
Operating lease right-of-use assets, net 358 367
ldentifiable intangible assets, net 4,142 4,418
Goodwill 15,949 15,147
Total assets રિ 40,131 ਦੇ ਤੇ 39,326
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt S 464 ಲ್ಲಿ 1,781
Sales reserves and allowances 4,050 3,678
Accounts payables 2,498 2,203
Employee-related obligations 481 624
Accrued expenses 3,095 2,792
Other current liabilities 940 1,020
Liabilities held for sale 334 ર્ભ રહ્યારે સ્વિક્ષ્ઠ
Total current liabilities 11,861 12,796
Long-term liabilities:
Deferred income taxes 440 483
Other taxes and long-term liabilities 3,938 4,028
Senior notes and loans 16,763 16,002
Operating lease liabilities 296 296
Total long-term liabilities 21,436 20,809
Redeemable non-controlling interests 340
Equity:
Teva shareholders' equity 6,827 5,373
Non-controlling interests 7 7
Total equity 6,834 5,380
Total liabilities and equity S 40,131 ਦਿ 39,326

Amounts may not add up due to rounding.

TEVA PHARMACEUTICAL INDUSTRIES LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in millions) (Unaudited)

Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Operating activities:
Net income (loss) \$ 283 (874) \$ 503 (1,294)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization 251 259 494 531
Impairment of goodwill - 400 - 400
Impairment of long-lived assets and assets held for sale 99 130 177 809
Net change in operating assets and liabilities (336) (10) (1,035) (507)
Deferred income taxes – net and uncertain tax positions (211) (424) (183) (613)
Stock-based compensation 38 32 72 60
Other items* 105 592 94 594
Net loss (gain) from sale of business and long-lived assets (2) (1) - (1)
Net cash provided by (used in) operating activities 227 103 122 (21)
Investing activities:
Beneficial interest collected in exchange for securitized trade receivables 336 317 658 612
Purchases of property, plant and equipment and intangible assets (96) (97) (223) (221)
Proceeds from sale of business and long-lived assets, net 9 1 26 1
Acquisition of businesses, net of cash acquired - - - (15)
Purchases of investments and other assets (16) (43) (27) (55)
Other investing activities 3 - 3 -
Net cash provided by (used in) investing activities 236 178 437 322
Financing activities:
Repayment of senior notes and loans and other long-term liabilities (2,300) (956) (3,668) (956)
Proceeds from senior notes, net of issuance costs 2,305 - 2,305 -
Purchase of shares from redeemable and non-redeemable non-controlling interests - - (38) (64)
Dividends paid to redeemable and non-redeemable non-controlling interests - - (340) (78)
Other financing activities 1 (10) 3 (19)
Net cash provided by (used in) financing activities 6 (966) (1,738) (1,117)
Translation adjustment on cash and cash equivalents (5) (49) 40 (153)
Net change in cash and cash equivalents 464 (733) (1,139) (969)
Balance of cash, cash equivalents at beginning of period 1,697 2,991 3,300 3,227
Balance of cash, cash equivalents at end of period \$ 2,161 2,258 \$ 2,161 2,258
Non-cash financing and investing activities:
Beneficial interest obtained in exchange for securitized accounts receivables
\$
329 320 \$ 641 632

*Adjustment in the three months period ended June 30, 2024 was mainly related to an agreement with the Israeli Tax Authorities.

Amounts may not add up due to rounding.

The accompanying notes are an integral part of the financial statements.

Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva

Three months ended
June 30,
Six months ended
June 30,
(\$ in millions except per share amounts) 2025 2024 2025 2024
Net income (Loss) attributable to Teva (\$) 282 (846) (\$) 497 (985)
Increase (decrease) for excluded items:
Amortization of purchased intangible assets 148 146 292 298
Legal settlements and loss contingencies(1) 166 83 249 188
Goodwill impairment(2) - 400 - 400
Impairment of long-lived assets(3) 99 130 177 809
Restructuring costs(4) 154 18 168 31
Equity compensation 38 32 72 60
Contingent consideration(5) 19 192 30 271
Accelerated depreciation - - - 7
Financial expenses 37 12 51 24
Redeemable and non-redeemable non-controlling interests(6) - (33) 2 (317)
Other non-GAAP items(7) 53 59 116 106
Corresponding tax effects and unusual tax items(8) (228) 503 (\$) (283) 353
Non-GAAP net income attributable to Teva (\$) 769 697 1,371 1,245
Non-GAAP tax rate(9) 16.4% 15.4% (\$) 16.9% 15.2%
GAAP diluted earnings (loss) per share attributable to Teva (\$) 0.24 (0.75) 0.43 (0.87)
EPS difference(10) 0.42 1.35 (\$) 0.75 1.96
Non-GAAP diluted EPS attributable to Teva(10) (\$) 0.66 0.61 1.18 1.09
Non-GAAP average number of shares (in millions)(10) 1,161 1,151 1,159 1,146

(1) For the three and six months ended June 30, 2025, adjustments of legal settlements and loss contingencies mainly consisted of (a) an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments) in the amount of \$47 million and \$97 million, respectively (b) an update to the estimated provision recorded for the claims brought by attorneys general representing states and territories throughout the United States in the generic drug antitrust litigation in the amount of \$55 million.

(2) A goodwill impairment charge of \$400 million related to our Teva's API reporting unit was recognized in the three and six months ended June 30, 2024.

  • (3) For the three months ended June 30, 2025, the adjustment for impairment of long-lived assets consisted of (a) impairment of long-lived assets of \$42 million mainly related to products in the U.S. and Europe, and (b) \$55 million related to the held for sale measurement of the API business (including its R&D, manufacturing and commercial activities), which includes a favorable impact related to the expected gain from the reclassification of currency translation adjustments. For the six months ended June 30, 2025, the adjustment for impairment of long-lived assets was mainly related to products in the U.S. and Europe. For the six months ended June 30, 2024, adjustments for impairment of long-lived assets primarily consisted of \$644 million related to the classification of our business venture in Japan as held for sale.
  • (4) In the three and six months ended June 30, 2025, Teva recorded \$154 million and \$168 million, respectively, of restructuring expenses primarily related to optimization activities in connection with Teva's Transformation programs related to Teva's global organization and operations mainly through headcount reduction.
  • (5) In the three and six months ended June 30, 2024, adjustments for contingent consideration primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®), of \$174 million and \$238 million, respectively.
  • (6) For the six months ended June 30, 2024, the adjustment is related to non-controlling interests portion of long-lived assets impairment of \$644 million related to the classification of our business venture in Japan as held for sale.
  • (7) Other non-GAAP items include other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, accelerated depreciation, certain inventory write-offs, material litigation fees and other unusual events.
  • (8) Adjustments for corresponding tax effects and unusual tax items exclusively consisted of the tax impact directly attributable to the pre-tax items that are excluded from non-GAAP net income included in the other adjustments to this table. For the three months ended June 30, 2024, adjustments of \$503 million mainly related to the settlement agreement with the ITA to settle certain litigation with respect to taxes payable for the Company's taxable years 2008 through 2020, in an amount of \$495 million.
  • (9) Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above.
  • (10) EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares.

Reconciliation of gross profit to Non-GAAP gross profit

(Unaudited)
Three months ended Six months ended
June 30, June 30,
(\$ in millions) 2025 2024 2025 2024
Gross profit \$ 2,102 2,024 \$
3,979
3,795
Gross profit margin 50.3% 48.6% 49.3% 47.5%
Increase (decrease) for excluded items: (1)
Amortization of purchased intangible assets 138 136 273 273
Equity compensation 6 7 12 13
Other non-GAAP items 32 37 69 87
Non-GAAP gross profit \$ 2,278 2,205 \$
4,332
4,168
Non-GAAP gross profit margin (2) 54.6% 52.9% 53.7% 52.2%

(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

(2) Non-GAAP gross profit margin is non-GAAP gross profit as a percentage of revenue.

Reconciliation of operating income (loss) to Non-GAAP operating income (loss) (Unaudited)

Three months ended
June 30,
Six months ended
June 30,
(\$ in millions) 2025 2024 2025 2024
Operating income (loss) (\$) 455 (5) (\$) 975 (223)
Operating margin 10.9% (0.1%) 12.1% (2.8%)
Increase (decrease) for excluded items: (1)
Amortization of purchased intangible assets 148 146 292 298
Legal settlements and loss contingencies 166 83 249 188
Goodwill impairment - 400 - 400
Impairment of long-lived assets 99 130 177 809
Restructuring costs 154 18 168 31
Equity compensation 38 32 72 60
Contingent consideration 19 192 30 271
Loss (gain) on sale of business - - 13 §
Other non-GAAP items 53 59 103 113
Non-GAAP operating income (loss) (\$) 1,133 1,056 (\$) 2,079 1,948
Non-GAAP operating margin(2) 27.1% 25.3% 25.8% 24.4%

§ Represents an amount less than \$0.5 million.

(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

(2) Non-GAAP operating margin is Non-GAAP operating income as a percentage of revenues.

(Unaudited) Reconciliation of net income (loss) to adjusted EBITDA

Three months ended Six months ended
June 30, June 30,
(\$ in millions) 2025 2024 2025 2024
Net income (loss) \$
283
(874) \$ 503 (1,294)
Increase (decrease) for excluded items:(1)
Financial expenses 252 241 477 491
Income taxes (78) 630 (4) 578
Share in profits (losses) of associated companies –net (1) (2) (1) 2
Depreciation 103 113 201 233
Amortization 148 146 292 298
EBITDA 705 254 1,468 308
Legal settlements and loss contingencies 166 83 249 188
Goodwill impairment - 400 - 400
Impairment of long lived assets 99 130 177 809
Restructuring costs 154 18 168 31
Equity compensation 38 32 72 60
Contingent consideration 19 192 30 271
Other non-GAAP items 50 59 110 106
Adjusted EBITDA \$
1,233
1,168 2,274 2,173

(1) For further explanations, refer to the footnotes under the "Reconciliation of net income (loss) attributable to Teva to Non-GAAP net income (loss) attributable to Teva" table.

Segment Information (Unaudited)

United States
Three months ended June 30,
Europe
Three months ended June 30,
International Markets
Three months ended June 30,
2025
2024
2025
2024
2025 2024
(U.S. \$ in millions) (U.S. \$ in millions) (U.S. \$ in millions)
Revenues \$ 2,151 \$ 2,110 \$ 1,298 \$ 1,213 \$ 495 \$ 593
Cost of sales 901 943 581 536 251 307
Gross profit 1,250 1,167 717 677 243 286
R&D expenses 152 170 59 62 24 30
S&M expenses 279 270 228 209 114 145
G&A expenses 113 100 66 64 32 38
Other § (1) § § (1) §
Segment profit \$ 706 \$ 629 \$ 364 \$ 342 \$ 74 \$ 73

§ Represents an amount less than \$0.5 million.

Segment Information

Unaudited

United States Europe
Six months ended June 30,
International Markets
Six months ended June 30, Six months ended June 30,
2025 2024 2025 2024 2025 2024
(U.S. \$ in millions) (U.S. \$ in millions) (U.S. \$ in millions)
Revenues \$ 4,060 \$ 3,835 \$ 2,492 \$ 2,485 \$ 1,077 \$ 1,190
Cost of sales 1,752 1,809 1,117 1,070 556 607
Gross profit 2,308 2,025 1,374 1,415 521 583
R&D expenses 306 324 120 118 49 58
S&M expenses 552 530 427 403 232 263
G&A expenses 208 193 135 130 72 73
Other income 3 (1) § § (2) (1)
Segment profit \$ 1,239 \$ 979 \$ 693 \$ 764 \$ 171 \$ 190

§ Represents an amount less than \$0.5 million.

Reconciliation of our segment profit to consolidated income (loss) before income taxes

Three months ended
June 30,
2025 2024
(U.S.\$ in millions)
United States profit \$
706
\$ 629
Europe profit 364 342
International Markets profit 74 73
Total reportable segment profit 1,144 1,043
Profit (loss) of other activities (11) 12
Total segment profit 1,133 1,056
Amounts not allocated to segments:
Amortization 148 146
Other asset impairments, restructuring and other items 232 280
Goodwill impairment - 400
Intangible asset impairments 42 61
Legal settlements and loss contingencies 166 83
Other unallocated amounts 91 91
Consolidated operating income (loss) 455 (5)
Financial expenses - net 252 241
Consolidated income (loss) before income taxes \$
203
\$ (246)

Reconciliation of our segment profit to consolidated income (loss) before income taxes

Six months ended
June 30,
2025 2024
(U.S.\$ in millions)
United States profit \$ 1,239 \$ 979
Europe profit 693 764
International Markets profit 171 190
Total reportable segment profit 2,102 1,933
Profit (loss) of other activities (23) 15
Total segment profit 2,079 1,948
Amounts not allocated to segments:
Amortization 292 298
Other asset impairments, restructuring and other items 210 954
Goodwill impairment - 400
Intangible asset impairments 163 141
Legal settlements and loss contingencies 249 188
Other unallocated amounts 190 190
Consolidated operating income (loss) 975 (223)
Financial expenses - net 477 491
Consolidated income (loss) before income taxes \$ 497 \$ (713)

Segment revenues by major products and activities (Unaudited)

Three months ended
June 30, Percentage
Change
2025 2024 2025-2024
(U.S.\$ in millions)
United States segment
Generic products (including biosimilars) \$ 961 \$ 1,023 (6%)
AJOVY 63 42 53%
AUSTEDO 495 407 22%
BENDEKA and TREANDA 40 41 (3%)
COPAXONE 62 81 (23%)
UZEDY 54 24 120%
Anda 365 373 (2%)
Other 111 119 (7%)
Total 2,151 2,110 2%
Percentage
Change
June 30,
2025 2024 2025-2024
(U.S.\$ in millions)
Europe segment
Generic products (including OTC and biosimilars) \$ 1,040 \$ 970 7%
AJOVY 71 52 38%
COPAXONE 50 53 (6%)
Respiratory products 55 57 (3%)
Other* 81 81 1%
Total 1,298 1,213 7%

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

Three months ended
June 30, Percentage
Change
2025-2024
2025
2024
(U.S.\$ in millions)
International Markets segment
Generic products (including OTC and biosimilars) \$ 410 \$ 486 (16%)
AJOVY 20 22 (7%)
AUSTEDO 3 12 (76%)
COPAXONE 7 14 (50%)
Other* 55 59 (6%)
Total 495 593 (17%)

Segment revenues by major products and activities

(Unaudited)

June 30, Percentage
Change
2025
2024
2025-2024
(U.S.\$ in millions)
United States segment
Generic products \$ 1,809 \$ 1,831 (1%)
AJOVY 117 87 34%
AUSTEDO 891 689 29%
BENDEKA / TREANDA 76 87 (12%)
COPAXONE 116 111 5%
UZEDY 93 40 134%
Anda 738 754 (2%)
Other 220 237 (7%)
Total 4,060 3,835 6%
Six months ended
June 30, Percentage
Change
2025 2024 2025-2024
(U.S.\$ in millions)
Europe segment
Generic products \$ 2,029 \$ 1,974 3%
AJOVY 129 102 26%
COPAXONE 92 110 (17%)
Respiratory products 110 123 (11%)
Other* 132 175 (25%)
Total 2,492 2,485 0%

*Other revenues in the first six months of 2025 include the sale of certain product rights.

Six months ended
June 30, Percentage
Change
2025 2024 2025-2024
(U.S.\$ in millions)
International Markets segment
Generic products \$ 878 \$ 963 (9%)
AJOVY 48 39 25%
AUSTEDO 18 26 (33%)
COPAXONE 17 25 (32%)
Other* 116 136 (15%)
Total 1,077 1,190 (9%)

*Other revenues in the first six months of 2025 include the sale of certain product rights.

Free cash flow reconciliation

(Unaudited)

Three months ended June 30,
2025 2024
(U.S. \$ in millions)
Net cash provided by (used in) operating activities 227 Net cash provided (used in) by operating activities
103
Beneficial interest collected in exchange for securitized accounts receivables
Capital investment
336
(96)
317
(97)
Proceeds from divestitures of businesses and other assets, net 9 1
Free cash flow \$ 476 \$ 324

Free cash flow reconciliation

(Unaudited)

Six months ended June 30,
2025 2024
(U.S. \$ in millions)
Net cash provided by (used in) operating activities 122 (21)
Beneficial interest collected in exchange for securitized trade receivables 658 612
Capital investment (223) (221)
Proceeds from divestitures of businesses and other assets, net 26 1
Acquisition of businesses, net of cash acquired - (15)
Free cash flow \$
583
\$
356

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