Walgreens Q2 2025 Earnings Beat Wall Street Estimates, Despite Posting Net Loss of $2.85B

Walgreens managed to deliver a relatively sunny Q2 2025 earnings report on April 8, as CNBC detailed, edging out Wall Street expectations on both the EPS (earnings per share) and revenue fronts.

According to the outlet, Walgreens delivered EPS of $0.63 adjusted versus $0.53 expected and also posted quarterly revenue of $38.59 billion against an expected $38 billion for the three-month period that ended Feb. 28.

On the other hand, the drug store chain also reported a quarterly net loss of $2.85 billion, down from a more substantial net loss of $5.91 billion a year prior. A $4.2 billion charge related to a loss in value centered around Walgreen’s U.S. retail pharmacy business and investment in VillageMD was also included in the earnings report, somewhat counterbalanced by $1 billion in profit taken from the sale of its shares in Cencora, a pharmaceutical solutions organization.

Walgreens CEO Tim Wentworth underscored the company’s commitment to its ongoing turnaround efforts in a statement shared via a press release.

“Second quarter results reflect disciplined cost management and improvement in U.S. Healthcare, which were partially offset by weaker front-end results in U.S. Retail Pharmacy, while significant legal settlements resulted in continued negative free cash flow,” Wentworth said.

“We remain in the early stages of our turnaround plan, and continue to expect that meaningful value creation will take time, enhanced focus and balancing future cash needs with necessary investments to navigate a changing pharmacy and retail landscape,” the CEO added.

Walgreens Is Going Private Soon. Why Earnings Are Sending the Stock Higher. https://t.co/rdayYgfGrm

— Barron's (@barronsonline) April 8, 2025

Walgreens Engaged in Process of Being Taken Private by Sycamore Partners

Walgreens remains engaged in the process of being taken private by Sycamore Partners — a deal that is reportedly worth approximately $10 billion. That deal is expected to close sometime during the fourth quarter of this year and would mark the end of a nearly 100-year run for Walgreens as a public company.

The company’s current turnaround plan has involved a significant number of store closures and a re-assessment of its move into healthcare services. Cost-cutting measures have been enacted as part of an attempted return to profitability, although Walgreens continues to face numerous headwinds, from cash-strapped consumers to competition from other national drug store brands.