Altria Reports 2026 Third-Quarter and Nine-Months Results
ALTRIA GROUP, INC. (MO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Altria Reports 2026 Third-Quarter and Nine-Months Results; Announces Expanded Share Repurchase Program; Raises 2026 Full-Year Earnings Guidance RICHMOND, Va. - October 29, 2026 - Altria Group, Inc. (NYSE: MO) today reports our 2026 third-quarter and nine-months busin
How this was made
The 30-second read
Why it matters
The guidance raise and larger buyback are likely to attract income‑focused investors and support the stock price in the near term.
Market read
Altria's earnings beat and raised guidance provide a fresh catalyst for the stock, making it a short‑term buying opportunity.
What to watch
Potential regulatory pressure on tobacco products and the exclusion of NJOY ACE from 2026 may limit upside.
Altria Reports 2026 Third-Quarter and Nine-Months Results; Announces Expanded Share Repurchase Program; Raises 2026 Full-Year Earnings Guidance
Third-quarter adjusted diluted EPS increased 4.8% and the company raised full-year adjusted diluted EPS guidance, supported by pricing and smokeable-products OCI growth, but oral tobacco revenue, OCI, margins and retail share weakened.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenuesGAAP | $6.13B | – | 1.0% |
| Q3 2026 revenues net of excise taxesGAAP | $5.44B | – | 3.6% |
| Q3 2026 gross profitGAAP | $3.94B | – | 3.4% |
| Q3 2026 operating companies incomeGAAP | $3.40B | – | 2.2% |
| Q3 2026 operating incomeGAAP | $3.31B | – | 2.6% |
| Q3 2026 earnings before income taxesGAAP | $3.29B | – | 7.0% |
| Q3 2026 provision for income taxesGAAP | $776M | – | – |
| Q3 2026 reported effective tax rateGAAP | 23.6% | – | 0.8 pp |
| Q3 2026 adjusted effective tax ratenon-GAAP | 23.0% | – | (0.1) pp |
| Q3 2026 net earningsGAAP | $2.51B | – | 5.9% |
| Q3 2026 net earnings attributable to AltriaGAAP | $2.52B | – | 6.0% |
| Q3 2026 reported diluted EPSGAAP | $1.51 | – | 7.1% |
| Q3 2026 adjusted net earnings attributable to Altrianon-GAAP | $2.55B | – | 4.2% |
| Q3 2026 adjusted diluted EPSnon-GAAP | $1.52 | – | 4.8% |
| Q3 2026 weighted-average diluted shares outstandingGAAP | 1.67B | – | (0.7)% |
| Nine months ended September 30, 2026 net revenuesGAAP | $17.67B | – | 1.4% |
| Nine months ended September 30, 2026 revenues net of excise taxesGAAP | $15.55B | – | 3.3% |
| Nine months ended September 30, 2026 gross profitGAAP | $11.27B | – | 3.3% |
| Nine months ended September 30, 2026 operating companies incomeGAAP | $9.68B | – | 13.4% |
| Nine months ended September 30, 2026 operating incomeGAAP | $9.40B | – | 14.0% |
| Nine months ended September 30, 2026 net earningsGAAP | $7.00B | – | 20.0% |
| Nine months ended September 30, 2026 net earnings attributable to AltriaGAAP | $7.00B | – | 20.1% |
| Nine months ended September 30, 2026 reported diluted EPSGAAP | $4.18 | – | 21.2% |
| Nine months ended September 30, 2026 adjusted net earnings attributable to Altrianon-GAAP | $7.25B | – | 4.0% |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $4.33 | – | 5.1% |
| Nine months ended September 30, 2026 reported effective tax rateGAAP | 22.9% | – | (3.1) pp |
| Nine months ended September 30, 2026 adjusted effective tax ratenon-GAAP | 23.0% | – | (0.3) pp |
| Nine months ended September 30, 2026 weighted-average diluted shares outstandingGAAP | 1.67B | – | (0.8)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Smokeable Products Q3 2026Higher pricing was partially offset by higher promotional investments, lower shipment volume and a higher percentage of discount shipment volume relative to premium versus the prior year. | $5.43B | – | 0.8% |
| Oral Tobacco Products Q3 2026Lower shipment volume and higher promotional investments mostly offset higher pricing. | $688M | – | (0.1)% |
| All Other Q3 2026Operations contributed $16 million versus the prior-year quarter in the revenue reconciliation. | $12M | – | 100%+ |
| Smokeable Products nine months ended September 30, 2026Higher pricing was partially offset by higher promotional investments, lower shipment volume and volume mix change. | $15.58B | – | 1.4% |
| Oral Tobacco Products nine months ended September 30, 2026Lower shipment volume and higher promotional investments were partially offset by higher pricing. | $2.07B | – | (1.2)% |
| All Other nine months ended September 30, 2026The prior-year period included $42 million of acquisition-related items, while operations added $6 million in the revenue reconciliation. | $19M | – | 100%+ |
2026 full-year outlook
- NoteAdjusted diluted EPS of $5.66 to $5.74
- NoteGrowth rate of 4.5% to 6.0% from a base of $5.42 in 2025
- NoteGuidance contemplates that NJOY ACE does not return to the marketplace in 2026.
- NoteGuidance contemplates reinvestment of anticipated cost savings related to the Optimize & Accelerate initiative.
- NoteGuidance contemplates investments in support of Altria's Vision.
Capital returns
- In the third quarter, Altria repurchased 5.9 million shares at an average price of $68.52 per share, for a total cost of $400 million.
- Through the first nine months, Altria repurchased 11.2 million shares at an average price of $65.78 per share, for a total cost of $735 million.
- The Board authorized a $1 billion expansion of the existing share repurchase program, which now expires on December 31, 2027.
- Altria paid dividends of $1.7 billion and $5.3 billion in the third quarter and first nine months, respectively.
- In August, the Board increased the regular quarterly dividend by 4.7%; the current annualized dividend rate is $4.44 per share.
- Altria maintains a progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028.
What drove it
- Smokeable products Q3 reported OCI increased 3.8% to $3,053 million and adjusted OCI increased 3.9% to $3,072 million, driven by higher pricing and higher refunds of taxes and duties paid on imported cigarettes.
- Smokeable products Q3 adjusted OCI margin increased 0.1 percentage point to 64.5%.
- Smokeable products Q3 total domestic cigarette shipment volume decreased 2.9%, while discount shipment volume increased 40.5%.
- Reported cigar shipment volume increased 0.9% in the third quarter.
- Marlboro retail share of the premium segment was 60.0%, up 0.3 share points versus the prior year and 0.4 share points sequentially.
- on! shipment volume increased 13.3% in the third quarter to 47.8 million cans.
- Helix expanded on! PLUS with Blueberry Mint and Mango Pineapple across 6-, 9- and 12-milligram nicotine strengths.
Concerns
- Smokeable products Q3 domestic cigarette shipment volume decreased 2.9%; adjusted for trade inventory movements, the decrease was estimated at 4%.
- Marlboro retail share of the total cigarette category was 39.5%, down 1.0 share point versus the prior year.
- The cigarette industry discount retail share was 34.1%, up 2.0 share points versus the prior year, primarily due to continued discretionary income pressures on adult smokers.
- Oral tobacco products Q3 reported OCI decreased 5.4% to $434 million and adjusted OCI decreased 3.7% to $443 million.
- Oral tobacco products Q3 adjusted OCI margin decreased 2.8 percentage points to 66.4%.
- Total oral tobacco products Q3 shipment volume decreased 4.3%, while Copenhagen volume decreased 10.1% and Skoal volume decreased 12.6%.
- on! retail share of the nicotine pouch category was 13.5%, down 1.3 share points versus the prior year and down 0.9 share points sequentially.
- Guidance contemplates moderated e-vapor industry growth, increased macroeconomic uncertainty facing adult nicotine consumers, contract-manufacturing investments, and that NJOY ACE does not return to the marketplace in 2026.
What to watch
- Execution of the expanded on! PLUS portfolio, including planned fourth-quarter expansion of Watermelon Mint in select retail locations.
- Smokeable pricing, promotional investment, shipment-volume trends and continued consumer movement toward discount products.
- Marlboro total-category retail share and premium-segment retail share.
- Oral tobacco volume, Copenhagen and Skoal share trends, and on! share within the nicotine pouch category.
- The financial effect of USSTC Facilities Consolidation costs and investments in contract manufacturing capabilities.
- Execution under the expanded share repurchase authorization through December 31, 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $2,697 million at September 30, 2026, compared with $4,474 million at December 31, 2025.
- Total debt was $24,061 million at September 30, 2026, compared with $25,709 million at December 31, 2025.
- Long-term debt was $22,886 million at September 30, 2026, compared with $24,140 million at December 31, 2025.
- Current portion of long-term debt was $1,175 million at September 30, 2026, compared with $1,569 million at December 31, 2025.
- Investments in equity securities were $9,326 million at September 30, 2026, compared with $8,617 million at December 31, 2025.
- Total stockholders' equity (deficit) attributable to Altria was $(2,225) million at September 30, 2026, compared with $(3,502) million at December 31, 2025.
Analysis
Altria reported modest top-line growth in the third quarter, with net revenues increasing 1.0% to $6,132 million and revenues net of excise taxes increasing 3.6% to $5,441 million. Gross profit increased 3.4% to $3,941 million. Reported diluted EPS increased 7.1% to $1.51, while adjusted diluted EPS increased 4.8% to $1.52. The difference between reported and adjusted growth reflects special-item comparisons, including ABI-related items, amortization and tax items.
Smokeable products remained the principal operating driver. Segment net revenues increased 0.8% to $5,432 million, adjusted OCI increased 3.9% to $3,072 million and adjusted OCI margin increased 0.1 percentage point to 64.5%. Higher pricing and higher refunds of taxes and duties paid on imported cigarettes outweighed lower shipment volume, greater promotion, a mix shift toward discount and higher costs. However, total domestic cigarette shipment volume declined 2.9%, Marlboro's total-category retail share declined 1.0 share point to 39.5%, and the industry discount share rose 2.0 share points to 34.1% amid discretionary-income pressure.
Oral tobacco products were the weaker operating area. Third-quarter revenue declined 0.1% to $688 million, reported OCI declined 5.4% to $434 million and adjusted OCI declined 3.7% to $443 million. Adjusted OCI margin declined 2.8 percentage points to 66.4%. Shipment volume fell 4.3%, reflecting sharp declines in Copenhagen and Skoal, while on! volume increased 13.3%. on! total oral-category retail share increased 0.1 share point to 8.3%, but its nicotine-pouch-category share declined 1.3 share points to 13.5% as the nicotine pouch category expanded.
For the first nine months, reported diluted EPS increased 21.2% to $4.18, but adjusted diluted EPS increased 5.1% to $4.33. Reported growth benefited from comparison with the prior-year e-vapor reporting-unit goodwill impairment. Altria returned $400 million through third-quarter buybacks and $1.7 billion through dividends, while total debt declined to $24,061 million at September 30, 2026 from $25,709 million at December 31, 2025. The Board also approved a $1 billion expansion of the repurchase program.
Management raised 2026 full-year adjusted diluted EPS guidance to $5.66 to $5.74, representing growth of 4.5% to 6.0% from a base of $5.42 in 2025. The outlook explicitly incorporates moderated e-vapor industry growth, macroeconomic uncertainty, contract-manufacturing investment, reinvestment of Optimize & Accelerate savings, Vision investment and no 2026 return of NJOY ACE. The central operating variables are smokeable pricing against volume and discount-mix pressure, oral tobacco share recovery, and execution of the on! PLUS innovation program.
Management, verbatim
Altria delivered strong financial performance in the third quarter, growing adjusted diluted earnings per share by 4.8%, while continuing to invest in our Vision and building on our foundation for the future.
Sal Mancuso, Altria’s Chief Executive Officer
Our highly cash-generative businesses supported significant returns to shareholders through dividends and share repurchases, while we continued to invest in support of our Vision.
Sal Mancuso, Altria’s Chief Executive Officer
Our strong performance through the first nine months and confidence in our full-year plan allowed us to raise our earnings guidance for the year.
Sal Mancuso, Altria’s Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported financial metrics were not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Forward revenue guidance was not provided.
- Forward gross-margin guidance was not provided.
- Forward operating-expense guidance was not provided.
- Forward tax-rate guidance was not provided.
- Prior outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Altria disclosed Q3 2026 results, highlighted EPS growth, and announced an expanded share repurchase program alongside a dividend increase.
Ticker impact
Altria raised its 2026 full-year adjusted diluted EPS guidance to $5.66‑$5.74 and expanded its $1 bn share repurchase program.
likely upward pressure as investors price in higher earnings expectations and buyback support
The company reported 4.8% EPS growth YoY and announced a $1 bn repurchase expansion, both material catalysts for the stock.
Market effects
Tobacco sector may see modest uplift as Altria's guidance beat expectations and buyback expansion signal confidence.
U.S. consumer discretionary investors may tilt toward higher‑yield dividend stocks.
Limited; impact confined mainly to U.S. equity and dividend‑focused funds.
Counterpoint
If macro‑economic uncertainty dampens adult nicotine demand, the guidance raise could be overly optimistic.
Key entities
- companyAltria Group, Inc.
U.S. tobacco company reporting earnings and guidance.
