NOTE 18—Earnings (loss) per share:

Basic earnings and loss per share are computed by dividing net income (loss) attributable to Teva’s ordinary shareholders by the weighted average number of ordinary shares outstanding, net of treasury shares.

Basic and diluted earnings (loss) per share attributable to Teva’s ordinary shareholders for the years ended December 31, 2025, 2024 and 2023 are calculated as follows:


	Years ended December 31,
	2025		2024			2023
	(In millions, except per share amounts)
Basic earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
Net income (loss) attributable to Teva’s ordinary shareholders	$	1,410	$	(1,639	)	$	(559	)

Shares (denominator):
Weighted average shares outstanding		1,145		1,131			1,119

Basic earnings (loss) attributable to Teva’s ordinary shareholders	$	1.23	$	(1.45	)	$	(0.50	)

Diluted earnings (loss) attributable to Teva’s ordinary shareholders (numerator):
Net income (loss) attributable to Teva’s ordinary shareholders	$	1,410	$	(1,639	)	$	(559	)

Shares (denominator):
Weighted average shares outstanding		1,145		1,131			1,119
Diluted effect of stock options, RSUs and PSUs		17		—			—

Total dilutive shares outstanding		1,163		1,131			1,119

Diluted earnings (loss) attributable to Teva’s ordinary shareholders	$	1.21	$	(1.45	)	$	(0.50	)

In computing diluted earnings per share for the year ended December 31, 2025, basic earnings per share were adjusted to take into account the potential dilution that could occur upon the exercise of options and

non-vested

RSUs and PSUs granted under employee stock compensation plans. No account was taken of the potential dilution that could occur upon the exercise of convertible senior debentures, since they had an anti-dilutive effect on earnings per share. Additionally, an amount of

27.2

million dilutive shares of ordinary shares from the conversion of outstanding stock options, RSUs and PSUs were excluded from the computation of diluted earnings per share attributable to Teva’s ordinary shareholders for the year ended December 31, 2025, as their effect would be anti-dilutive.

In computing diluted loss per share for the years ended December 31, 2024 and 2023, no account was taken of the potential dilution that could occur upon the exercise of options and

non-vested

RSUs and PSUs granted under employee stock compensation plans, and convertible senior debentures, since they had an anti-dilutive effect on loss per share. Additionally, an amount of 52.1 million and

57.9

million dilutive shares of ordinary shares from the conversion of outstanding stock options, RSU’s and PSUs were excluded from the computation of diluted loss per share attributable to Teva’s ordinary shareholders for the years ended December 31, 2024 and 2023 respectively.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

TEVA PHARMACEUTICAL INDUSTRIES LTD Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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