Walgreens Boots Alliance (NASDAQ:WBA) Tops Q3 Estimates Ahead of $10B Privatization Deal

Walgreens Boots Alliance (NASDAQ:WBA) posted stronger-than-expected fiscal third-quarter results, supported by aggressive cost-cutting measures and solid group-wide revenue. The results come as the company moves closer to its planned $10 billion buyout by private equity firm Sycamore Partners, signaling the end of Walgreens' era as a public company.

Q3 FY2025 Key Highlights

• Adjusted EPS: $0.38 vs. $0.31 expected
  (Down from $0.63 YoY)

• Revenue: $39 billion vs. $36.79 billion expected
  (+7.2% YoY growth)

Despite a sharp year-over-year decline in profitability, Walgreens exceeded Wall Street's earnings and revenue expectations, thanks to operational streamlining under CEO Tim Wentworth. The company has been focused on shuttering underperforming locations, aiming to reduce annual costs by $1 billion.

No Forward Guidance Due to Buyout

Walgreens declined to provide full-year guidance, citing the pending transaction with Sycamore Partners. Once finalized, the deal will:

• Delist Walgreens from NASDAQ

• End nearly 100 years of public trading

• Transfer ownership to Sycamore by Q3 or Q4 of calendar year 2025, pending shareholder and regulatory approval.

Long-Term Headwinds

Once valued at $100 billion, Walgreens now faces:

• Margin compression in prescription drugs

• Competitive pressure from Amazon and Walmart in both pharmacy and front-end retail

• Erosion of foot traffic amid changing consumer habits

Still, Thursday's report suggests Walgreens is extracting value through disciplined cost control as it prepares for life as a private enterprise.

Recommended APIs for Financial Deep-Dive

1. Earnings Historical API

This API allows you to analyze Walgreens' historical earnings performance, including:

• Analyst estimate comparisons

• EPS/Revenue surprises

• Trends across fiscal quarters

Helpful in evaluating earnings momentum and the trajectory prior to its buyout.

2. Advanced DCF API

Use this valuation-focused API to:

• Model Walgreens' intrinsic value using cash flow forecasts

• Adjust assumptions to reflect privatization impact

• Analyze post-buyout valuation scenarios

This API is ideal for investors interested in estimating potential exit multiples or synergies Sycamore Partners may unlock.

Final Thoughts

Walgreens' Q3 beat provides a glimpse into a company that is realigning aggressively in anticipation of private ownership. As it trims operational excess and leans into restructuring, the Sycamore deal could serve as both a financial reset and a strategic pivot.

With one foot out of the public markets, Walgreens is no longer about quarterly momentum—but rather long-term reinvention.