Altria Raises 2026 EPS Guidance and Expands Buyback by $1 Billion

Altria raised its 2026 earnings guidance and added $1 billion to its share buyback program on Thursday, after third-quarter adjusted earnings per share rose 4.8% on higher cigarette pricing.

The Marlboro maker now expects full-year adjusted diluted EPS of $5.66 to $5.74, representing growth of 4.5% to 6.0% from $5.42 in 2025, according to the earnings release it filed with an 8-K on Thursday. In the same filing, Altria said its board on Wednesday authorized a $1 billion expansion of its existing repurchase program, which now runs through Dec. 31, 2027.

Pricing carries the quarter

Third-quarter net revenue rose 1.0% to $6.1 billion, and revenue net of excise taxes increased 3.6% to $5.4 billion. Reported diluted EPS climbed 7.1% to $1.51, and adjusted EPS rose to $1.52 from $1.45, driven by higher operating income and higher earnings from Altria's investment in brewer AB InBev.

"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," CEO Sal Mancuso said in the release.

In the core smokeable products segment, adjusted operating companies income rose 3.9% to $3.072 billion, as higher pricing and higher refunds of taxes and duties on imported cigarettes outweighed heavier promotions, lower volume and a shift toward discount brands. The segment's adjusted margin edged up to 64.5%.

Smokers trade down

Volume pressure persisted. Domestic cigarette shipments fell 2.9%, and Marlboro shipments dropped 6.4%, while discount brand shipments jumped 40.5%. Marlboro's share of the total cigarette category slipped 1.0 point from a year earlier to 39.5%, though its share of the premium segment rose to 60.0%.

The industry's discount share climbed 2.0 points to 34.1%, which Altria attributed primarily to "continued discretionary income pressures on adult smokers." Adjusted for trade inventory movements, total U.S. cigarette industry volume fell an estimated 5%.

The oral tobacco segment was weaker. Adjusted operating companies income there fell 3.7% on lower volume, higher costs and promotions, and the adjusted margin narrowed 2.8 points to 66.4%. Altria's Helix unit has expanded on! PLUS with new Blueberry Mint and Mango Pineapple flavors and plans to add Watermelon Mint in select stores in the fourth quarter.

Cash returns

Altria repurchased 5.9 million shares in the third quarter at an average of $68.52 apiece, a total of $400 million, bringing nine-month buybacks to $735 million. It paid $1.7 billion in dividends in the quarter.

The board raised the quarterly dividend 4.7% in August, the 61st increase in 57 years, putting the annualized rate at $4.44 a share. Altria said it continues to target mid-single-digit annual dividend growth through 2028.

The guidance assumes moderated e-vapor industry growth, increased macroeconomic uncertainty for adult nicotine consumers and that NJOY ACE does not return to the market in 2026, the company said.

Sources

1. Altria Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and Item 8.01 share repurchase expansion, filed Oct. 29, 2026 (accession 0000764180-26-000112)

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