Walgreens Reports $265M Loss, Shares Surge on Signs of Turnaround

The pharmacy chain's first-quarter revenue exceeded expectations, as leadership emphasized progress in cost-cutting and store closures to stabilize operations.

Walgreens Boots Alliance posted a $265 million net loss for Q1 FY 2025, largely driven by costs tied to its store closure plan and restructuring efforts.
Revenue rose 7.5% year-over-year to $39.5 billion, surpassing analyst expectations of $37.3 billion, with growth across its pharmacy, healthcare, and international segments.
The company plans to close 1,200 underperforming stores by 2027, with 500 closures expected this year, as part of its footprint optimization strategy.
CEO Tim Wentworth reaffirmed Walgreens’ commitment to a retail pharmacy-led turnaround, emphasizing cost control, cash flow improvement, and better prescription reimbursement models.
Shares surged over 25% following the earnings report, reflecting investor optimism about early progress in the company’s long-term recovery plan.