Total revenue for the third quarter of 2025 reached $3.76 billion, a 1‑2% decline from the $3.78 billion reported in the same period last year. The company’s adjusted net earnings of $784 million translated to $0.67 per share, beating the consensus estimate of $0.63 by $0.04 or 6.3%. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin branded products, offsetting the revenue dip.
U.S. GAAP gross profit fell to $1.37 billion, giving a 36.5% margin that is 2.4 percentage points lower than the 38.9% margin recorded a year earlier. Adjusted gross profit was $2.10 billion, a 56.0% margin that is 2.5 percentage points below the 58.5% margin of the prior year. The margin compression reflects pricing pressure in North America and the impact of the FDA‑issued warning at the Indore manufacturing facility, which has reduced the company’s ability to charge premium prices for some generics.
Segment analysis shows that China and other emerging markets drove a 3% increase in branded sales to $2.44 billion, while North America experienced a significant decline in revenue due to the Indore facility shutdown and broader market softness. The company’s complex generics portfolio also faced headwinds, but the growth in emerging markets helped cushion the overall impact.
Management raised and narrowed its full‑year 2025 outlook. Revenue guidance was increased to $13.9‑$14.3 billion from the previous $13.5‑$14.0 billion range, and adjusted earnings per share guidance was lifted to $2.25‑$2.35 from $2.16‑$2.30. The upward revision signals confidence that the company’s strategic focus on emerging markets and disciplined capital allocation will sustain growth despite short‑term operational challenges.
CEO Scott Smith said the quarter demonstrated “strong commercial execution and disciplined capital allocation,” while CFO Doretta Mistras highlighted that the company remains on track to meet its 2025 financial commitments, citing “foreign‑exchange gains and share‑repurchase activity” as key contributors to the guidance lift.
Investors reacted cautiously, weighing the revenue decline and the ongoing Indore facility restrictions against the earnings beat and guidance upgrade. The market’s focus on the headwinds—particularly the impact of the FDA warning and margin compression—underscored the need for continued operational resilience as the company pursues growth in high‑potential markets.
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