Walgreens stock rises after strong Q1 results despite earnings drop

Walgreens Boots Alliance's stock has surged in early 2025 after reporting better-than-expected fiscal Q1 results. Revenue increased by 7.5% year over year to $39.5 billion, surpassing analyst expectations despite a 29% drop in adjusted earnings per share. The company is undergoing a turnaround, closing 67 stores in the quarter and planning to close about 450 more by the end of 2025. While U.S. retail pharmacy sales rose, comparable retail sales fell 4.6% due to a slow cold and flu season. Walgreens ended the quarter with $8.1 billion in debt and $1.2 billion in cash. It maintained its fiscal full-year guidance for adjusted earnings per share between $1.40 and $1.80, indicating ongoing challenges but some positive developments in its business strategy.