Walgreens Boots Alliance shares jump on Q1 results beat, upbeat guidance

Walgreens Boots Alliance (NASDAQ:WBA) shares popped 10% in premarket trading Friday after the pharmacy retailer reported first-quarter earnings and revenue above analyst expectations, and delivered an upbeat annual forecast.

The company reported earnings per share (EPS) of $0.51, topping the consensus estimates of $0.39. Revenue for the period reached $39.46 billion, also above the projected $37.35 billion.

In the US Retail Pharmacy segment, sales rose 6.6% year-over-year to $30.87 billion, surpassing the $29.16 billion estimate.

US Healthcare sales grew 12% year-over-year to $2.17 billion, ahead of the $2.09 billion forecast.

International sales increased 10% year-over-year, reaching $6.43 billion and outperforming the $5.9 billion projection.

Walgreens reported a quarterly adjusted gross margin of 17.3%, slightly below the prior year's 18.7% and missing the estimated 17.5%.

"Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models,” said Tim Wentworth CEO of Walgreens Boots Alliance.

“While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."

For fiscal 2025, Walgreens projects EPS in the range of $1.40 to $1.80, compared to the analyst consensus of $1.53.