$MO earnings report

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.

Altria reported modest top-line growth in the second quarter, with net revenues essentially unchanged at $6,111 million and revenues net of excise taxes up 1.2% to $5,356 million. First-half net revenues increased 1.6% to $11,539 million, while revenues net of excise taxes increased 3.1% to $10,114 million. The first-half increase was primarily driven by higher smokeable products segment net revenues, while second-quarter oral tobacco products segment net revenues declined.

Profit performance was stronger on an adjusted basis than on a reported basis. Q2 adjusted diluted EPS increased 2.8% to $1.48, driven primarily by higher adjusted OCI and fewer shares outstanding. Q2 reported diluted EPS declined 2.8% to $1.37, reflecting lower OCI, including higher litigation items, USSTC Facilities Consolidation costs and unfavorable ABI-related special items. First-half reported diluted EPS increased 30.9% to $2.67, primarily because the prior year included a non-cash impairment of the e-vapor reporting unit goodwill, while adjusted diluted EPS increased 4.9% to $2.80.

In smokeable products, higher pricing and higher refunds of taxes and duties supported reported OCI. Higher promotional investments, lower shipment volume and a higher proportion of discount shipment volume relative to premium were offsets to net revenue performance. The company also identified moderated e-vapor industry growth, macroeconomic uncertainty facing adult nicotine consumers, investments in contract manufacturing capabilities and planned reinvestment of Initiative cost savings as factors contemplated in its outlook.

Capital returns remained substantial, with $55 million of second-quarter share repurchases and $1.8 billion of dividends paid in the quarter. Through the first half, the company repurchased 5.3 million shares for $335 million and paid $3.6 billion in dividends. The company had $665 million remaining under its $2 billion repurchase program as of June 30, 2026.

Management narrowed full-year adjusted diluted EPS guidance to $5.61 to $5.72 and raised the lower end of the range. It expects a greater contribution from cigarette import and export activity in the second half than in the first half, with the benefit more balanced between the third and fourth quarters due to the timing of second-quarter benefits. Capital expenditure guidance increased to between $375 million and $450 million, primarily for the USSTC Facilities Consolidation.