"The cornerstone of our turnaround is stabilizing the US retail pharmacy business... we're currently exceeding historical script retention rates."
— Tim Wentworth, CEO
03Detailed Report
WBA
Walgreens Boots Alliance Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
In the first quarter of fiscal 2025, Walgreens Boots Alliance Inc (WBA) reported a revenue increase of 6.9% year-on-year on a constant currency basis, totaling $39.46 billion. Despite these positive results, the company faced significant operational challenges, reflected in a net loss of $265 million and a diluted EPS of -$0.31. During the earnings call, CEO Tim Wentworth indicated progress in key areas of financial and operational strategy, specifically in cost management and pharmacy services, while expressing caution about consumer pressures and evolving retail dynamics. Walgreens is focused on optimizing its store footprint to enhance profitability and re-aligning its reimbursement strategies amid a changing healthcare landscape.
Key Performance Indicators
Revenue
Increasing
39.46B
QoQ: 5.09% | YoY: 7.50%
Gross Profit
Increasing
6.78B
17.18% margin
QoQ: 8.41% | YoY: 0.13%
Operating Income
Increasing
-236.00M
QoQ: -75.84% | YoY: 505.13%
Net Income
Increasing
-265.00M
QoQ: -91.18% | YoY: 295.52%
EPS
Increasing
-0.31
QoQ: -91.09% | YoY: 299.48%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics for Q1 2025:
- Revenue: $39.46 billion, up 6.9% YoY
- Net Income: -$265 million, with a net income ratio of -0.67%
- EBITDA: -$236 million, indicating challenges in operational efficiency
- Gross Profit: $6.78 billion; gross profit margin at 17.2%
- EPS (Diluted): -$0.31, reflecting significant operational challenges compared to previous periods
These metrics highlight both the growth potential in pharmacy services and the underlying weaknesses in retail sectors, exacerbated by consumer behavior shifts and market dynamics.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
39.46B
7.50%
5.09%
Gross Profit
6.78B
0.13%
8.41%
Operating Income
-236.00M
505.13%
-75.84%
Net Income
-265.00M
295.52%
-91.18%
EPS
-0.31
299.48%
-91.09%
Key Financial Ratios
Gross Profit Margin
Weak
17.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.01%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.64
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.75
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-7.35x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.70x
Trading below book value, potential value opportunity or distressed
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