Walgreens announced fiscal first-quarter earnings and revenue on Friday that exceeded expectations, attributing the results to ongoing cost-cutting measures and store closures as it navigates a challenging period.
For the three months ending November 30, Walgreens reported the following compared to Wall Street expectations based on an LSEG analyst survey:
Despite outperforming estimates, Walgreens reaffirmed its fiscal 2025 adjusted earnings guidance of $1.40 to $1.80 per share. The company did not update its annual sales guidance, although in October, it projected fiscal year revenue between $147 billion and $151 billion.
Shares of Walgreens surged 27% on Friday following the earnings release.
CEO Remarks and Strategic Progress
“We’ve started the fiscal year by making progress against our financial and strategic priorities, despite the challenging backdrop for our consumer,” said Walgreens CEO Tim Wentworth during Friday’s earnings call.
He emphasized the company’s focus on stabilizing its U.S. retail pharmacy business, calling it the “cornerstone” of their long-term turnaround plan.
Wentworth also noted that Walgreens is addressing several issues from the prior year, including pharmacy reimbursement pressures, softer consumer spending, and challenges related to its primary care expansion. Reports have also surfaced about potential acquisition talks with private equity firm Sycamore Partners.
Revenue and Losses
Walgreens recorded $39.46 billion in sales for the fiscal first quarter, a 7.5% year-over-year increase driven by growth across its three business segments. However, the company posted a net loss of $265 million, or 31 cents per share, compared to a loss of $67 million, or 8 cents per share, in the same period last year.

The increased loss was primarily attributed to higher operating expenses, including costs associated with its plan to close 1,200 underperforming stores over three years, 500 of which are slated to close in fiscal 2025.
The company, which operates approximately 8,500 U.S. retail pharmacy locations, plans to accelerate the pace of store closures, Wentworth said. Adjusted earnings for the quarter came to 51 cents per share.
Operational Changes and Consumer Trends
To enhance efficiency, Walgreens is refining labor forecasting, allocation, and scheduling processes. In January, the company will launch a new scheduling model at 200 stores to improve the in-store experience for customers and employees. This approach will align staffing with store-specific demand patterns while considering team member preferences.
Despite these efforts, Wentworth acknowledged that consumer discretionary spending has been under pressure due to inflation and higher interest rates. “We are progressing a number of elements of our retail strategy,” he said, adding that while there are early signs of improvement, significant work remains.
Business Segment Performance
All three of Walgreens’ business segments posted growth during the fiscal first quarter:
- U.S. Retail Pharmacy: Sales rose 6.6% to $30.87 billion, surpassing analysts’ expectations of $29.21 billion. Pharmacy sales increased 10.4%, with comparable pharmacy sales up 12.7% due to brand medication price inflation and other factors. However, retail sales fell 6.2%, and comparable retail sales dropped 4.6%, reflecting weaker sales in discretionary categories and a milder cough, cold, and flu season.
- U.S. Healthcare: Revenue grew over 12% to $2.17 billion, beating analysts’ estimates of $2.09 billion. This growth was partly driven by primary-care provider VillageMD and specialty pharmacy company Shields Health Solutions.
- International Operations: Sales climbed 10.2% to $6.43 billion, exceeding expectations of $5.85 billion. The company’s U.K.-based Boots chain saw a 4.5% sales increase.
Additional Insights
Walgreens filled 316.3 million prescriptions during the quarter, including vaccines, marking a 1.5% year-over-year increase. Specialty pharmacies, which manage medications for complex conditions, also contributed to revenue growth. Meanwhile, international operations continued to strengthen, with notable performance improvements in the U.K. market.
As Walgreens navigates the ongoing retail and healthcare landscape, its strategic shifts and operational adjustments aim to position the company for long-term stability and growth.