Walgreens Boots Alliance Inc. reported its fiscal 2025 second-quarter earnings, surpassing Wall Street's expectations with an adjusted earnings per share of $0.63, compared to the anticipated $0.52. The company's revenue for the quarter reached $38.59 billion, exceeding the expected $38.17 billion, with a year-over-year growth of 4.1%. The company's performance was bolstered by growth in its U.S. retail pharmacy segment, although it faced challenges in its U.S. Healthcare division, which reported sales of $2.15 billion. Walgreens reported a net loss of $2.8 billion for the quarter, influenced by significant legal settlements and a $4.2 billion non-cash impairment charge related to its U.S. retail pharmacy and VillageMD investments. Amid these financial results, Walgreens has withdrawn its fiscal 2025 guidance due to a pending acquisition by Sycamore Partners. The company is preparing to go private, with the transaction expected to close in the fourth quarter of the year. Walgreens CEO Tim Wentworth noted that the quarter's results reflect disciplined cost management and improvement in U.S. Healthcare, which were partially offset by weaker front-end results in U.S. Retail Pharmacy, while significant legal settlements resulted in continued negative free cash flow. The company's stock rose nearly 2% in premarket trading following the announcement.