Walgreens Tops Q3 Estimates Amid Cost Cuts Ahead of $10B Takeover

Walgreens Boots Alliance (NASDAQ:WBA) posted better-than-expected third-quarter results as cost-saving efforts helped offset ongoing retail headwinds. The results come as the pharmacy chain prepares to go private in a $10 billion deal with Sycamore Partners.

Adjusted EPS for the quarter was $0.38, down from $0.63 a year ago but ahead of the $0.31 consensus. Sales rose 7.2% year-over-year to $39 billion, topping analyst estimates of $36.79 billion.

The company did not issue financial guidance due to the pending privatization, which is expected to close in late 2025, subject to regulatory and shareholder approval. Walgreens shares will be delisted from the Nasdaq following the deal.

Once valued at $100 billion, Walgreens has struggled in recent years with shrinking drug margins and stiff competition from retail giants like Walmart and Amazon. Under CEO Tim Wentworth, the company has been aggressively cutting costs—closing thousands of stores and targeting $1 billion in annual savings.