2026 second quarter and first half
Filed Jul 30, 2026Altria Reports 2026 Second-Quarter and First-Half Results; Narrows 2026 Full-Year Earnings Guidance
Second-quarter adjusted diluted EPS increased 2.8% and first-half adjusted diluted EPS increased 4.9%, while the company raised the lower end of its full-year adjusted diluted EPS range. Revenue growth remained modest and oral tobacco products revenue declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 net revenuesGAAP | $6,111 million | – | 0.1% |
| Q2 revenues net of excise taxesGAAP | $5,356 million | – | 1.2% |
| Q2 reported effective tax rateGAAP | 21.5% | – | (2.2) pp |
| Q2 adjusted effective tax ratenon-GAAP | 23.0% | – | (0.3) pp |
| Q2 reported diluted EPSGAAP | $1.37 | – | (2.8) % |
| Q2 adjusted diluted EPSnon-GAAP | $1.48 | – | 2.8 % |
| First Half net revenuesGAAP | $11,539 million | – | 1.6% |
| First Half revenues net of excise taxesGAAP | $10,114 million | – | 3.1% |
| First Half reported effective tax rateGAAP | 22.6% | – | (5.4) pp |
| First Half adjusted effective tax ratenon-GAAP | 23.0% | – | (0.4) pp |
| First Half reported diluted EPSGAAP | $2.67 | – | 30.9 % |
| First Half adjusted diluted EPSnon-GAAP | $2.80 | – | 4.9 % |
| Q2 asset impairment, exit and implementation costsGAAP | $88 million (or $0.04 per share) | – | – |
| First Half asset impairment, exit and implementation costsGAAP | $94 million (or $0.04 per share) | – | – |
| Q2 tobacco and health and certain other litigation itemsGAAP | $95 million (or $0.05 per share) | – | – |
| First Half tobacco and health and certain other litigation itemsGAAP | $97 million (or $0.04 per share) | – | – |
| First Half amortization of intangiblesGAAP | $46 million (or $0.03 per share) | – | – |
| Q2 ABI-related special itemsGAAP | $77 million (or $0.04 per share) | – | – |
| First Half ABI-related special itemsGAAP | $78 million (or $0.04 per share) | – | – |
| Q2 income tax itemsGAAP | $42 million (or $0.03 per share) | – | – |
| First Half income tax itemsGAAP | $30 million (or $0.02 per share) | – | – |
2026 full-year outlook
- NoteAdjusted diluted EPS of $5.61 to $5.72
- NoteAdjusted diluted EPS growth rate of 3.5% to 5.5% from a base of $5.42 in 2025
- Note2026 capital expenditures of between $375 million and $450 million
- NoteExpectation for a greater benefit from cigarette import and export activity in the second half of the year than in the first half
- NoteExpectation that the second-half benefit from cigarette import and export activity will be more balanced between the third and fourth quarters
- NoteNJOY ACE does not return to the marketplace in 2026
Capital returns
- In the second quarter, we repurchased 0.8 million shares at an average price of $65.11 per share, for a total cost of $55 million.
- Through the first half, we repurchased 5.3 million shares at an average price of $62.78 per share, for a total cost of $335 million.
- As of June 30, 2026, we had $665 million remaining under our $2 billion share repurchase program, which expires on December 31, 2026.
- We paid dividends of $1.8 billion and $3.6 billion in the second quarter and first half, respectively.
What drove it
- Q2 net revenues were essentially unchanged as higher net revenues in the smokeable products segment and all other category, which included 2025 acquisition-related items, were offset by lower net revenues in the oral tobacco products segment.
- First-half net revenue growth was primarily driven by higher net revenues in the smokeable products segment.
- Q2 adjusted diluted EPS increased primarily due to higher adjusted OCI and fewer shares outstanding.
- First-half adjusted diluted EPS increased primarily due to higher adjusted OCI and fewer shares outstanding.
- Smokeable products Q2 net revenues increased 0.7%, primarily driven by higher pricing, partially offset by higher promotional investments, lower shipment volume and a higher percentage of discount shipment volume relative to premium versus the prior year.
- Helix resumed shipments of 12-milligram on! PLUS in Florida, North Carolina and Texas in Mint, Wintergreen and Tobacco, with a national expansion planned for the third quarter.
- Helix plans additional on! PLUS flavors across 6-, 9- and 12-milligram nicotine strengths, beginning with Blueberry Mint and Mango Pineapple, in the fourth quarter.
Concerns
- The company cited moderated e-vapor industry growth on combustible and e-vapor product volumes.
- The company cited increased macroeconomic uncertainty facing adult nicotine consumers.
- Q2 oral tobacco products segment net revenues were lower.
- Smokeable products faced lower shipment volume, higher promotional investments and an unfavorable volume mix change.
- Q2 reported diluted EPS decreased 2.8%, primarily due to lower OCI, including higher tobacco and health and certain other litigation items, 2026 costs related to the USSTC Facilities Consolidation and unfavorable ABI-related special items.
- The increase in capital expenditure guidance primarily reflects investments to support the USSTC Facilities Consolidation.
What to watch
- National expansion of 12-milligram on! PLUS in the third quarter.
- Additional on! PLUS flavor launches beginning in the fourth quarter.
- The expected second-half benefit from cigarette import and export activity.
- Execution of the USSTC Facilities Consolidation and capital expenditures of between $375 million and $450 million.
- The company's expectation that NJOY ACE does not return to the marketplace in 2026.
Analysis
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.
Management, verbatim
In the second quarter, our operating companies continued to deliver against the priorities we outlined at the start of the year – advancing our smoke-free portfolio, strengthening our traditional tobacco businesses and delivering significant returns to shareholders,
Sal Mancuso, Altria’s Chief Executive Officer
We delivered strong first-half results, driving adjusted diluted EPS growth of 4.9%, and returned nearly $3.9 billion to shareholders through dividends and share repurchases combined.
Sal Mancuso, Altria’s Chief Executive Officer
We are raising the lower-end of our full-year 2026 guidance. We now expect to deliver adjusted diluted EPS in a range of $5.61 to $5.72, representing a growth rate of 3.5% to 5.5% from a base of $5.42 in 2025.
Sal Mancuso, Altria’s Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue amounts for smokeable products, oral tobacco products and all other category were not included in the supplied filing text.
- Segment revenue comparisons for oral tobacco products and all other category were not included in the supplied filing text.
- Gross profit and gross margin were not reported in the supplied filing text.
- Operating income, operating margin and adjusted operating income were not reported in the supplied filing text.
- Net income was not reported in the supplied filing text.
- Operating cash flow and free cash flow were not reported in the supplied filing text.
- Cash, cash equivalents, total debt and net debt were not reported in the supplied filing text.
- Quarterly dividend per share was not reported in the supplied filing text.
- A prior outlook document was not provided, so no actual-versus-prior-guidance comparison is available.
- Revenue, gross margin, operating expense and tax-rate guidance were not provided.
- The supplied filing text is truncated during the smokeable products section, so additional segment and financial metrics may not be present.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.