Walgreens Boots Alliance trims full-year outlook, shares react after results

By Christina Vogel, Background & Management desk. Reviewed prior to publication on 2026-06-26, 20:23.

Walgreens Boots Alliance, Inc. (US9314271019) recently cut its fiscal 2024 earnings outlook after posting softer-than-expected quarterly results in its US retail pharmacy unit, as Reuters reported in its coverage of the latest earnings release. Trading on the NASDAQ, the company highlighted a tougher US consumer backdrop and increased competition while outlining a more aggressive cost-savings program.

What Reuters and filings highlight

In its latest quarterly report for fiscal 2024, Walgreens Boots Alliance, Inc. reported adjusted earnings per share below prior internal expectations, citing weaker sales trends in US retail and pharmacy and a drag from store closures, according to a detailed earnings summary from Reuters. The company, which trades on the NASDAQ alongside peers such as CVS Health and Walmart, responded by cutting its full-year adjusted EPS guidance range and warning of continued pressure in US retail pharmacy, as summarized in an SEC filing and follow-up commentary.

Management also announced an expansion of its ongoing cost-transformation program, targeting additional savings through store rationalization, labor efficiencies and tighter corporate overheads, building on actions already underway in both the US and UK networks. A recent analyst note compiled by MarketScreener shows that several brokers adjusted their models after the guidance change, incorporating lower US retail margins and slower front-store growth while acknowledging execution on cost savings.

How analysts frame the outlook

According to consensus data collected by MarketScreener, a mix of Buy, Hold and Sell ratings now reflects a cautious stance on Walgreens Boots Alliance shares, with price targets in recent weeks moving lower on average following the guidance cut. Some analysts at major houses such as Morgan Stanley and JPMorgan, as referenced in the same compilation, point to structural challenges in US retail pharmacy, including reimbursement pressure and reduced COVID-related volumes, as key headwinds.

At the same time, several research notes underline the potential for improved free cash flow if the enlarged cost-savings program delivers and if working-capital management remains disciplined, particularly as the company absorbs restructuring charges from its store optimization initiatives. A Reuters market commentary on US drugstores adds that investors are closely comparing Walgreens Boots Alliance with CVS Health and Walmart in terms of strategic repositioning toward healthcare services and digital pharmacy.

How Walgreens aims to make its money

Walgreens Boots Alliance, Inc. primarily generates revenue through its US Retail Pharmacy segment, which combines drugstores and health-and-wellness front-of-store sales, its International segment centered on Boots in the UK and Republic of Ireland, and its US Healthcare segment providing pharmacy and healthcare services, including partnerships with primary-care providers.

Where the stock trades today

Walgreens Boots Alliance, Inc. stock trades on the NASDAQ under the ticker WBA, with the latest available snapshot showing the shares quoted in US dollars in regular US trading hours.

This article was produced with AI assistance and editorially reviewed. Price and company figures without guarantee; prices and dates may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions carry risks up to and including total loss.