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Feb 28
Walgreens Q2 2025 Earnings Report
Walgreens reported mixed results in Q2 2025 with significant net losses driven by impairment charges, despite growth in U.S. Healthcare and modest revenue increase.
Key Takeaways
Walgreens Boots Alliance posted a net loss of $2.9 billion in Q2 2025 due to $4.2 billion in non-cash impairment charges. Revenue grew 4.1% YoY, with notable gains in the U.S. Healthcare segment, though front-end retail softness and legal settlements negatively impacted results.
Net loss of $2.9 billion driven by $4.2 billion in impairment charges.
Revenue increased 4.1% year-over-year to $38.6 billion.
Adjusted EPS dropped to $0.63 from $1.20 in the prior year quarter.
U.S. Healthcare posted positive adjusted operating income for the first time.
Walgreens
Walgreens
Walgreens Revenue by Segment
Walgreens Revenue by Geographic Location
Forward Guidance
Guidance for FY2025 has been withdrawn due to pending acquisition by Sycamore Partners.
Positive Outlook
- U.S. Healthcare turned a positive adjusted operating income.
- Boots.com retail sales grew over 20% YoY.
- Shields business posted nearly 30% revenue growth.
- Free cash flow improved by $192 million YoY.
- Operating cash flow improved despite high legal payouts.
Challenges Ahead
- Guidance for FY25 withdrawn due to acquisition process.
- Ongoing legal settlements impacted cash flow.
- Retail front-end sales declined, especially in discretionary categories.
- U.S. Retail Pharmacy faced a $2B goodwill impairment.
- Adjusted EPS declined significantly YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income