Walgreens Reports $175M Q3 Loss Ahead Of $23B Sycamore Sale

Walgreens Boots Alliance reported a mixed fiscal third quarter in 2025, with revenues rising 7.2% to nearly $39 billion, driven by resilience in its U.S. Retail Pharmacy and international segments, but front-of-store retail sales declined by 5.3% due to store closures and weaker comps. The company posted a net loss of $175 million, a significant decline from prior-year earnings, influenced by higher tax expenses, absence of previous extraordinary gains, and legal settlements related to opioid litigation. Adjusted earnings per share beat analyst expectations at $0.38 but fell considerably from $0.63 the previous year, reflecting challenges in U.S. retail sales and distribution earnings, partially offset by cost-saving initiatives. Walgreens' CEO Tim Wentworth emphasized ongoing efforts in a turnaround plan requiring disciplined focus amid an evolving pharmacy and retail environment. The company is in the process of being acquired by private equity firm Sycamore Partners for over $10 billion, leading to the withdrawal of financial guidance and suspension of conference calls as strategic recalibration takes place. Despite operational difficulties, particularly in retail store performance, Walgreens showed strength in healthcare services and pharmacy sales, signaling cautious optimism for its future under new ownership.