Is Walgreens Boots Alliance (WBA) a Good Stock to Buy before Earnings?

Walgreens Boots Alliance (WBA) is set to report its 2025 third-quarter earnings on June 26, and Wall Street is forecasting earnings of $0.33 per share with revenue of around $36.8 billion. If met, this would be a slight 0.9% increase in revenue compared to the same quarter last year, but a decline from the $0.63 in EPS. In the second quarter, however, WBA delivered revenue of $38.6 billion, a 4.1% year-over-year rise, and beat EPS expectations with adjusted earnings per share of $0.63.

That performance was driven largely by strong results in the U.S. pharmacy segment (its largest segment, as per the image below from Main Street Data), which benefited from branded drug inflation and a higher volume of prescriptions. Still, front-end retail sales have continued to show weakness, and investors will be watching to see if pharmacy strength alone can support overall revenue in Q3.

Beyond earnings, Walgreens is working through a turnaround strategy that includes store closures and a tighter focus on its pharmacy and healthcare operations. The company also recently pulled its full-year guidance due to a potential buyout by private equity firm Sycamore Partners, which has created uncertainty around long-term expectations. Nevertheless, analysts currently estimate full-year earnings of around $2.00 per share, with next year’s figure potentially closer to $1.00. Investors will be listening for updates on that deal, as well as how management plans to sustain earnings during its transition.

What Do Options Traders Anticipate?

Using TipRanks’ Options tool, we can see that options traders are expecting a 1.85% move from WBA stock in either direction right after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement.

It’s worth noting that WBA’s after-earnings price moves in the past 12 quarters have mostly been larger than the 1.85% that is expected. This implies that current option prices might be undervalued.

Is WBA Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on WBA stock based on two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average WBA price target of $11.50 per share implies that shares are trading near fair value.

See more WBA analyst ratings