Walgreens Faces $5.91 Billion Loss Amid Healthcare Shift, Beats Revenue Forecasts

The pharmacy giant narrows its earnings guidance and closes VillageMD clinics, focusing on cost-cutting and profitability in a challenging retail market.

Walgreens Boots Alliance reports a significant loss in its fiscal Q2, with a $5.91 billion net loss primarily due to a nearly $6 billion impairment charge related to VillageMD.
Despite the loss, the company's Q2 revenue exceeded expectations, growing by 6.3% to $37.05 billion, driven by sales growth across all business segments.
Walgreens narrows its full-year adjusted earnings guidance to $3.20 to $3.35 per share, citing a challenging retail environment and reduced consumer spending.
The company is closing about 160 VillageMD clinics as part of a strategy shift under new CEO Tim Wentworth, focusing more on cost-cutting and profitability.
Walgreens remains committed to its healthcare transformation, with the U.S. healthcare division reporting significant growth, including a 33% increase in sales to $2.18 billion.