The Motley Fool compares Novartis and Teva Pharmaceutical Industries as investment options for 2026, favoring Teva for long-term investors due to its lower valuation multiples. Novartis reported fiscal 2025 revenue of nearly $56.7 billion with net income of almost $14 billion, while Teva achieved revenue of nearly $17.3 billion and net income of $1.4 billion. Teva's first-quarter 2026 results exceeded expectations with revenue of almost $4 billion and net income of $369 million, driven by strong sales of Ajovy, Uzedy, and Austedo which grew more than 40% in local currencies. Novartis saw first-quarter volume rise 14% to $13.5 billion with net income of almost $3.2 billion, and its pipeline includes remibrutinib, a potential blockbuster for autoimmune disorders. Teva's forward price-to-earnings ratio of 17.0 and price-to-sales ratio of 2.9 are lower than Novartis's 17.6 and 5.3, respectively, making Teva more attractive on a valuation basis despite projected sales decline in 2026.
Novartis AGNovartis is compared as a solid company but deemed less attractive on valuation; pipeline mention is neutral.
Viatris Inc
Teva Pharma Industries Ltd ADRTeva is favored as a better buy due to lower valuation multiples and strong Q1 2026 results exceeding expectations.