Altria raises 2026 profit forecast, expands buyback by $1 billion

Altria Group, Inc. (MO) raised its full-year 2026 adjusted diluted earnings per share forecast to $5.66 to $5.74 in a release issued Oct. 29, up from the $5.61 to $5.72 range it gave on July 30. The company also reported third-quarter adjusted diluted EPS of $1.52, up 4.8% from a year earlier.

In an 8-K filing, the company said its Board of Directors authorized on Oct. 28 a $1 billion expansion of its existing share repurchase program. The expanded program expires on Dec. 31, 2027, and repurchases depend on marketplace conditions and other factors.

Here's how the company did:

• Adjusted diluted EPS: $1.52 vs. $1.45 a year earlier
• Reported diluted EPS: $1.51 vs. $1.41 a year earlier
• Net revenues: $6.13 billion vs. $6.07 billion a year earlier

Net revenues rose 1.0% in the quarter, driven mainly by higher net revenues in the smokeable products segment. Revenues net of excise taxes increased 3.6% to $5.4 billion.

For the first nine months, adjusted diluted EPS rose 5.1% to $4.33, and reported diluted EPS rose 21.2% to $4.18. Net revenues increased 1.4% to $17.7 billion.

2026 guidance

The company now expects adjusted diluted EPS of $5.66 to $5.74, a growth rate of 4.5% to 6.0% from a base of $5.42 in 2025. The new range is higher than the one it gave in July, which was $5.61 to $5.72.

The company said the guidance contemplates moderated e-vapor industry growth, increased macroeconomic uncertainty facing adult nicotine consumers, investments in support of its contract manufacturing capabilities, and reinvestment of anticipated cost savings from its Optimize & Accelerate initiative. It also assumes that NJOY ACE does not return to the marketplace in 2026.

The company does not provide a GAAP reconciliation for its adjusted EPS guidance, because it says it cannot estimate on a forward-looking basis the impact of certain special items.

Segment results

In smokeable products, operating companies income rose 3.8% to $3.05 billion in the quarter. Reported domestic cigarette shipment volume fell 2.9%. Marlboro retail share of the total cigarette category was 39.5%, down 1.0 share point from a year earlier.

In oral tobacco products, operating companies income fell 5.4% to $434 million. Reported domestic shipment volume fell 4.3%, and on! retail share of the oral tobacco category was 8.3%, up 0.1 share point from a year earlier.

The company said it plans to expand its on! PLUS portfolio with Watermelon Mint in select retail locations in the fourth quarter.

Cash returns and costs

In the third quarter, the company 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, it repurchased 11.2 million shares for $735 million.

In August, the Board increased the regular quarterly dividend by 4.7%, the 61st increase in 57 years. The annualized dividend rate is $4.44 per share. The company paid dividends of $1.7 billion in the quarter and $5.3 billion in the first nine months.

In the first nine months, the company recorded pre-tax charges of $106 million tied mainly to plans to consolidate USSTC's manufacturing operations.

Sal Mancuso, CEO, said: “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.”