Walgreens has delivered better-than-expected fiscal second-quarter results, just weeks after confirming a private equity buyout by Sycamore Partners valued at nearly $10bn.

The company posted a reduced net loss of $2.85bn, down from $5.91bn in the same quarter last year. Adjusted earnings came in at 63 cents per share, ahead of the 53 cents forecast by analysts. Revenue rose 4% to $38.59bn, also beating expectations.

The earnings release follows Walgreens’ announcement in March that it would be acquired by Sycamore Partners in a deal that underscores private equity’s growing role in retail healthcare. The acquisition offers a potential turnaround path for Walgreens, which has struggled with persistent cost pressures, margin erosion in its pharmacy business, and lacklustre performance from its primary care clinic division, VillageMD.

The company has responded by aggressively cutting costs, closing underperforming stores, and suspending its long-standing quarterly dividend earlier this year.

U.S. pharmacy sales climbed 12% in the quarter, driven by prescription growth, though retail sales at those same locations declined by around 3%. Walgreens also operates nearly 3,700 international stores, but its U.S. operations remain the group’s largest segment.

This quarter’s operating loss includes a $3bn non-cash impairment charge, partially tied to VillageMD. That’s a marked improvement from the more than $12bn impairment charge reported in the same quarter last year.

Due to the pending acquisition, Walgreens withdrew its annual forecast and opted not to host an earnings call with analysts.

The company’s shares edged higher to $10.90 in morning trading, buoyed by broader market gains.

Sycamore Partners’ acquisition of Walgreens marks one of the largest retail healthcare take-privates in recent memory and reflects increasing private equity interest in distressed, restructuring-prone assets with embedded value in core operating segments.