Walgreens Boots Alliance (NASDAQ: WBA) reported fiscal second-quarter results that topped Wall Street expectations on both the top and bottom lines, driven by strong performance in its U.S. Retail Pharmacy segment. Shares fell more than 1% pre-market today following the report.
The company posted adjusted earnings per share of $0.63, beating the consensus estimate of $0.53. Revenue reached $38.6 billion, exceeding projections of $38 billion and marking a 4.1% year-over-year increase.
Sales in the U.S. Retail Pharmacy segment rose 5.3% to $30.4 billion, supported by a 12.2% increase in comparable pharmacy sales. Growth was fueled by higher branded drug inflation and increased prescription volumes.
However, the company’s front-end retail business continued to face challenges, with comparable retail sales down 2.8%, reflecting softer demand in discretionary categories.
CEO Tim Wentworth noted that the quarter reflected strong cost discipline and ongoing improvement in the U.S. Healthcare segment, though retail softness partially offset those gains.
Walgreens Boots Alliance (NASDAQ: WBA) withdrew its fiscal 2025 guidance, citing its pending $6.5 billion acquisition by private equity firm Sycamore Partners, announced on March 6. The transaction, which is expected to close in the fourth quarter of 2025, will result in the company going private.
The company’s shares are up more than 16% year-to-date, and its market capitalization stands at $9.16 billion.
