Teva Pharmaceutical Industries Ltd (TEVA) shares surged 8.62% in pre-market trading on Wednesday, following the release of its better-than-expected first-quarter 2025 earnings report and raised full-year guidance. The Israeli-based generic drugmaker demonstrated resilience in a challenging market environment, buoyed by strong sales of its branded drugs.

Teva reported a non-GAAP earnings per share (EPS) of $0.52 for the quarter ended March 31, surpassing the analysts' consensus estimate of $0.46. This represents a notable increase from $0.48 per share in the same quarter last year. The company's revenue rose 1.9% to $3.89 billion, slightly below the expected $3.99 billion, but still showing growth in a competitive market landscape.

The earnings beat was primarily driven by strong sales gains in Teva's trio of branded drugs treating migraines, Huntington's disease, and schizophrenia. This performance underscores the company's successful diversification strategy beyond its core generic drug business. Furthermore, Teva has updated its full-year 2025 guidance, now expecting non-GAAP diluted EPS of $2.45 to $2.65, up from its previous forecast of $2.35 to $2.65. The company also narrowed its revenue guidance to $16.8 billion to $17.2 billion, considering the current tariff and trade environment.