Teva Stock Has More Than Doubled in a Year. Where Will It Be in 3 Years?

Teva Pharmaceutical Industries (TEVA) has experienced an impressive 108% increase in its stock price over the past year, driven by its successful pivot towards a branded-drug company. This shift has started to show positive results in Teva's earnings, with projected earnings per share (EPS) of $2.11 in 2026 and $3.09 in 2027. Despite early signs of a sales slowdown in the second quarter of 2025 due to a decline in its legacy generic drug business, strong sales growth for Teva's flagship branded drugs has helped offset this.

For Q2 2026, Teva reported robust revenue growth for its key branded drugs, including Ajovy (56%), Uzedy (43%), and Austedo (40%) year-over-year.

Management has raised full-year sales guidance for Ajovy, Uzedy, and Austedo, with Ajovy reaching a projected $850 million to $870 million in sales, a 26.3% to 29.3% increase. Austedo, a therapy for Huntington's disease, is guided for $2.45 billion to $2.6 billion in sales, an 8.4% to 15% increase from 2025. Schizophrenia treatment Uzedy is expected to see sales of $270 million to $290 million, a 41.3% to 51.8% increase.

As Teva prepares for its Q3 2026 earnings release, management's guidance update will provide further insight into the company's progress. If the company continues to report strong growth for its three main branded drug products and shows promising results from ongoing drug candidates like Olanzapine for schizophrenia and Ecopipam for Tourette's syndrome, the stock may continue to gain value, albeit at a slower pace.

Currently, Teva trades at around 13 times its earnings, near the higher end of valuations for pharmaceutical stocks, likely due to the anticipated growth surge from its branded-drug pivot. While further multiple expansion remains uncertain, even modest earnings growth could still drive shares higher over the next three years.