Walgreens Q3 Sales Rise, Profits Beat Ahead of Take-Private Deal

Walgreens Boots Alliance reported strong third-quarter financial results ahead of its planned acquisition by private-equity firm Sycamore Partners. The company saw pharmacy sales increase by 11.8% and comparable pharmacy sales rise 14.6%, driven in part by branded drug inflation and a favorable product mix, while front-of-store retail sales declined due to store closures and weaker sales in certain categories. Adjusted earnings per share beat analyst expectations at 38 cents, despite being lower than the previous year, supported by cost-cutting measures including a $1 billion expense reduction and plans to close underperforming stores. Overall sales rose 7.2% year-over-year to $39 billion, with CEO Tim Wentworth highlighting ongoing improvements in the U.S. healthcare segment alongside challenges in retail sales. The company withdrew its fiscal 2025 guidance amid the pending $10 billion acquisition deal, expected to close in the latter half of 2025, which will take Walgreens private after nearly a century of public trading. Shares traded slightly higher in premarket following the earnings beat, reflecting investor confidence in the turnaround strategy despite industry pressures such as low drug reimbursement rates and strong competition.