Altria uvádí, že prémiový segment tvoří asi 85 % ziskovosti v cigaretovém segmentu, takže klíčovým tahounem zůstává Marlboro. Jeho podíl v celé kategorii ve 2. čtvrtletí 2026 klesl o 1,5 procentního bodu na 39,5 %.
Key Takeaways Altria's premium segment accounts for about 85% of cigarette profitability, making Marlboro a key driver.Marlboro's total cigarette share fell 1.5 points to 39.5% as discount retail share rose to 33.8%.Basic gained 2.3 points to 2.9%, while smokeable adjusted OCI rose 2.4% to $3.02 billion. Altria Group, Inc. (MO - Free Report) is keeping the cigarette strategy centered on the premium segment, which accounts for about 85% of profitability in the cigarette category. That makes Marlboro’s position especially important as cigarette consumers continue to trade down toward discount offerings amid pressure on discretionary income.
In the second quarter of 2026, Marlboro held a 59.6% share of the premium segment, unchanged from a year earlier and up 0.1 percentage point sequentially. However, Marlboro’s share of the total cigarette category fell 1.5 percentage points year over year to 39.5%. At the same time, industry discount retail share rose 2.6 percentage points to 33.8%, reflecting continued trade-down among adult nicotine consumers.
Altria is addressing the shift toward discount cigarettes through a broader PM USA portfolio strategy. Basic’s retail share increased 2.3 percentage points year over year to 2.9% in the second quarter, while targeted promotional support expanded to roughly 35,000 stores during the first half of 2026. The strategy seeks to participate in the discount segment while limiting the impact on Marlboro.
Despite the mix shift, smokeable price realization was 4.5% in the quarter, supported by strong Marlboro net pricing. Smokeable products adjusted OCI increased 2.4% to $3.02 billion, while adjusted OCI margin expanded 0.3 percentage point to 64.8%. The premium segment therefore remains central to cigarette profitability even as discount participation grows.
How Altria Compares With Philip Morris and TPBPhilip Morris International Inc. (PM - Free Report) also showed premium-brand resilience in second-quarter 2026. While international combustible pricing rose 10%, Philip Morris’ Marlboro share reached a record 11% of the international cigarette category, up 0.3 percentage points year over year. Philip Morris also maintained a 25.3% cigarette category share, with international combustible gross profit increasing 8% organically in the quarter despite unfavorable geographic mix.
Turning Point Brands, Inc. (TPB - Free Report) is also leaning on premium positioning across nicotine products. While Modern Oral investments focus on shelf placement, retail visibility and brand equity to build long-term premium potential, Turning Point Brands described Stoker’s as the segment’s only truly premium product for value-oriented consumers. Turning Point Brands reported Stoker’s segment net sales up 54.5%, with adjusted gross profit rising 40.7% year over year.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 3.4% in the past three months against the industry’s growth of 2.7%.
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From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.90X, down from the industry’s average of 14.92X.
Altria zvýšila čtvrtletní dividendu na 1,11 USD na akcii, už po 60. navýšení za 56 let. Roční výplata 4,44 USD dává forwardový dividendový výnos kolem 6,4 %.
Altria just handed shareholders a bigger check for the 60th time in 56 years, but negative operating cash flow last quarter and a vape unit bleeding billions in impairments raise a real question about whether the streak has a price.
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Altria just wrote another check to shareholders, and it’s a bigger one. Altria (NYSE:MO | MO Price Prediction) declared a $1.11 per share quarterly dividend with an ex-dividend date of September 15, 2026 and a payment date of October 9, 2026. That is a raise from the prior $1.06 quarterly rate, pushing the annualized forward payout to $4.44. Against a current share price of $69.85, the forward yield sits near 6.4%. The question this scorecard tackles: does the cash actually support the check?
Why the Dividend Earns High Marks Altria just logged its 60th dividend increase in the past 56 years, putting it firmly in Dividend King territory (we ranked ten of them by valuation in a free report here: 10 Dividend Kings to Buy Now and Hold Forever), and management called out that $3.6 billion was paid in dividends in the first half of 2026 alone. Coverage looks solid at the annual level. For fiscal 2025, operating cash flow was $9.29 billion against dividend payouts of $6.96 billion, a roughly 75% cash payout that leaves room for the $335 million spent on buybacks in the first half.
The core smokable business is still a cash machine powering this dividend. Adjusted smokable OCI margins ran 64.9% in the first half, price realization hit 4.5% in Q2, and Marlboro’s premium share held steady at 59.6%. Debt-to-EBITDA at 1.9 times sits right at management’s roughly 2x target.
Cracks in the Cash Machine Domestic cigarette shipments fell 10.0% in full-year 2025, and even after adjusting for trade inventories, Q2 2026 volumes still declined 4.5%. Marlboro’s total retail share slipped 1.5 share points year over year. The next-generation bets have bruises: NJOY absorbed $2.2 billion in non-cash impairments, and oral tobacco adjusted OCI fell 8% in Q2 as on! pouch investment ramped.
Operating cash flow was negative $51 million in Q2 2026 against a $1.54 billion dividend payout. That pattern (weak Q2 operating cash flow) has now happened in 2021, 2022, 2024, and 2026, so timing rather than solvency is the likely explanation. Still, negative stockholders’ equity of negative $3.2 billion is a real balance-sheet flag.
Final Grade: B Full-year 2026 adjusted EPS guidance of $5.61 to $5.72 comfortably covers the $4.44 annualized dividend, and management flagged the payout as its “primary vehicle” for shareholder returns. The 6% yield is real, the streak is real, and cash coverage works today. The B, rather than an A, reflects a shrinking core, an impairment-scarred vape unit, and a pouch business still spending to defend share. Income investors get paid well while management races the volume clock.
Contact [email protected] for any questions or corrections.
Chris Lange
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
Altria podala žalobu na americký úřad FDA a chce, aby soud přinutil úřad přepracovat proces schvalování tabákových výrobků. Firma tvrdí, že současný systém brzdí růst a drží její nikotinové sáčky On! v regulačním limbu.
Marlboro-maker Altria (MO.N) on Wednesday sued the U.S. Food and Drug Administration, seeking to force the agency to overhaul a product review process that tobacco companies say has stifled their growth in the key U.S. market, a legal filing showed.
Under U.S. law, the FDA must review new tobacco products before they can be sold, assessing whether they provide a net public health benefit, such as helping smokers quit, without creating significant risk of new addiction among young people.
But the system has been plagued by a huge backlog of applications and a booming illegal market of products sold without FDA authorisation.
Altria's lawsuit marks the latest industry challenge to a regime that has become one of the biggest obstacles facing tobacco companies in the $22 billion U.S. market. It follows an extensive lobbying campaign targeting President Donald Trump.
Filed in the federal court in Lubbock, Texas, Altria's complaint said the FDA's approach had buried products such as its On! nicotine pouches in regulatory red tape, while allowing foreign competitors that ignored the rules to gain market share.
The plaintiffs, including two Altria subsidiaries and the Texas Food and Fuel Association, asked the court to set aside the current system and require the FDA to develop a new one.
Their arguments included that the FDA's approach violates a legal requirement that the agency decide on applications within 180 days of receiving them, a deadline Altria's complaint said the FDA has never met.
An FDA official said the agency was committed to facilitating access to less harmful alternatives for adult smokers, while protecting young people from the dangers of nicotine addiction and toxic exposure.
"FDA takes seriously this legal challenge ... and will carefully review the issues raised," the official said.
SOME APPLICATIONS DELAYED FOR YEARS
The agency has rejected tens of millions of applications for products such as vapes and nicotine pouches. Others have been under review for more than six years, hurting sales and market share at companies including Altria, Philip Morris International (PM.N) and British American Tobacco (BATS.L).
Tobacco companies have responded with lawsuits, threats to launch products without FDA permission and intensive lobbying of the Trump administration, aided by meetings, millions of dollars in donations to Trump's campaign, inauguration and White House ballroom project, and influential connections in Washington.
Those efforts have helped secure changes including the first marketing authorisations for flavoured vapes, a fast-track pathway for nicotine pouches and a plan under which the FDA would not prioritise enforcement against companies launching certain vapes or nicotine pouches without agency approval.
Altria's complaint argued that some of the FDA's recent changes bolster its case. Applications for Altria nicotine pouches in the fast-track programme, for example, remained under review despite the agency's target of deciding them by December 2025, the complaint said.
A company spokesperson said it filed the complaint ahead of a statutory time limit, in order to fix a system that has been "broken for a long time".
Altria Group zvýšila dividendu už po 61. za 57 let a dividendový výnos činí 6,18 %. Firma ale čelí meziročnímu poklesu objemu cigaret o 3,2 % v posledním čtvrtletí.
A Dividend King is a stock that has raised its dividend payout for 50 consecutive years or more. Very few companies can boast this enduring accomplishment. One of them is Altria Group (MO +1.59%). The tobacco/nicotine giant has raised its dividend for 57 straight years, and 61 times in total, due to the durability of cash flows generated by its cigarette business.
It now trades at a dividend yielding 6.18%. That means, if you have $10,000 invested in Altria Group stock, you will receive a cool $618 in dividends each year.
But does that make Altria Group stock a buy?
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Dividend growth math The tobacco business has been fantastic due to its extraordinary pricing power through the decades. Packs of cigarettes -- along with other types of nicotine products -- have grown steadily above the rate of inflation, leading to growing cash flows for companies like Altria and its Marlboro brand.
This has allowed management to steadily grow its dividend per share payout to shareholders. In the last 10 years, Altria's dividend has grown by 74% cumulatively. For long-term shareholders, this can deliver growing income into your portfolio. An investor who bought at a 6.18% dividend yield 10 years ago would now be receiving $1,075 in annual dividend income.
Dividend growth like this has helped Altria Group outperform the stock indices. In the last five years, it has generated a total return of 104%, beating the S&P 500's 82%.
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A business struggling to grow Where Altria Group could run into struggles is its failure to pivot away from smokeable tobacco products like Marlboro or Black and Mild. Cigarette volumes were down 3.2% year over year last quarter and are expected to decline in the future.
Other tobacco giants have worked to replace their cigarette cash flows with healthier alternatives, such as nicotine pouches or electronic vapor. Altria Group is failing to make a dent with its new offerings, such as its on! nicotine pouch brand. Volumes for on! were down 4.2% year over year last quarter, despite a growing overall nicotine pouch category in the United States, and that is with minimal overall market share already.
Unless management can spring a miracle in new nicotine categories, the future of Altria's dividend payments will be from its legacy cigarette business. Specifically, its ability to keep raising prices on cigarette packs sold.
MO PE Ratio data by YCharts
Is Altria Group still a buy? Where Altria helps itself with dividend growth sustainability is its steady stock repurchase program. It has reduced shares outstanding by 14.4% cumulatively over the last 10 years through these buybacks, which will help grow earnings per share (EPS).
Importantly, for the dividend, a lower total number of outstanding shares will mean that Altria can raise its per-share dividend without increasing the total dollar amount paid to shareholders. This is important for a business whose overall revenue has barely budged in the last five years. You are not buying Altria Group for its growth, but its return of capital to shareholders.
The stock has done well in the last year, with the share price now at $69. It has a price-to-earnings ratio (P/E) of 14.5, which is generally higher than it has been in the last few years, but still, it has one of the fattest dividend yields of the entire market today. What investors need to decide is whether the long history of price hikes and dividend growth can continue for the next decade as well.
I don't think Altria Group stock is a screaming buy right now, but investors will probably do just fine buying today for long-term dividend income, despite the decline in its cigarette business.
Altria uvádí, že on! PLUS pohání růst tržního podílu: retailový podíl on! vzrostl na 8,6 % a produkt je už v asi 120 000 obchodech. Nová 12mg verze má přijít na celostátní trh ve 3. čtvrtletí 2026, zatímco nové příchutě Blueberry Mint a Mango Pineapple v silách 6, 9 a 12 mg mají začít ve 4. čtvrtletí 2026.
Key Takeaways Altria's on! PLUS drove a sequential retail share gain as nicotine pouches expanded their category presence.on! PLUS reached about 120,000 stores, while early repeat purchase rates were encouraging.New strengths and flavors are planned for the second half of 2026, broadening the on! PLUS portfolio. Altria Group, Inc.’s (MO - Free Report) on! PLUS is gaining early traction within its oral nicotine portfolio as the U.S. nicotine pouch category expands. In the second quarter of 2026, nicotine pouches represented 59.9% of the oral tobacco category, up 8.1 share points year over year. on! retail share reached 8.6%, rising 0.8 share points sequentially and 0.3 points from a year earlier, with the sequential increase driven by on! PLUS.
The product has also gained broad retail reach. Helix expanded on! PLUS to about 120,000 stores nationwide. Early data indicated that the product was resonating with existing on! users and consumers of competing nicotine pouch brands. Repeat purchase rates were encouraging, suggesting consumers valued the differentiated experience of the NICOSILK soft pouch. A new retail trade program also secured premium visibility and incremental fixture space for the product.
on! shipments were 49.9 million cans in the second quarter, down 4.2% due to trade inventory movements. However, first-half shipments increased 5.1%, reflecting the early impact of the on! PLUS national expansion.
The portfolio is set to broaden further. The 12-milligram version is planned for national expansion in the third quarter, while Blueberry Mint and Mango Pineapple extensions across 6, 9 and 12-milligram strengths are scheduled to begin in the fourth quarter. These additions will expand the on! PLUS offering, while introductory trial investments continue to accompany the rollout.
MO’s Nicotine Pouch Momentum Faces Growing Peer CompetitionPhilip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN. In the second quarter of 2026, ZYN shipments rose 1.8% to 2.9 billion pouches, while offtake was flat to slightly higher year over year. Philip Morris also launched 9 and 11-milligram ZYN ULTRA moist variants. In the third quarter, Philip Morris plans 1.5- and 8-milligram dry variants and higher U.S. investment.
Turning Point Brands, Inc. (TPB - Free Report) is also building momentum in nicotine pouches through FRE and ALP. In the second quarter of 2026, Modern Oral net sales surged 128% to $68.4 million and represented 48% of total company net sales. Turning Point Brands is expanding retail distribution, with chain-store count expected to rise 70% year over year by 2026-end. To support its Modern Oral brands, Turning Point Brands is also investing in sales and marketing.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 1.1% in the past three months against the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.83X, down from the industry’s average of 15.40X.
Altria zvýšila spodní hranici výhledu upraveného EPS pro rok 2026 na 5,61 USD, zatímco horní hranice zůstala na 5,72 USD. Ve 2. čtvrtletí jí pomohly 4,5% cenové realizace u smokeable a marže 64,8 %.
Key Takeaways Altria raised the low end of 2026 adjusted EPS guidance to $5.61, keeping the $5.72 high end unchanged.MO's 4.5% smokeable price realization and 64.8% margin helped support the earnings outlook in Q2.Cigarette volumes fell 3.2%, while oral tobacco income dropped 8% and capital spending guidance increased. Altria Group, Inc. (MO - Free Report) missed second-quarter consensus expectations, but adjusted earnings still increased year over year and management raised the low end of its 2026 earnings outlook. That combination puts more weight on execution in the second half.
Pricing, smokeable margins and cigarette import and export benefits support the earnings path. Cigarette volume declines, weaker oral tobacco results and higher capital spending remain the main offsets.
Altria’s Q2 Miss Still Came With Earnings GrowthAdjusted second-quarter earnings were $1.48 per share, up 2.8% year over year but below the Zacks Consensus Estimate of $1.50. Higher adjusted operating companies income and a lower share count supported the increase.
Net revenues rose 0.1% to $6.11 billion. Revenues net of excise taxes increased 1.2% to $5.356 billion, below the consensus mark of $5.362 billion.
MO’s Narrower Guidance Raises the Earnings FloorAltria narrowed 2026 adjusted earnings guidance to $5.61-$5.72 per share from $5.56-$5.72. The revision leaves the upper end unchanged while lifting the lower end by 5 cents.
The new range implies 3.5-5.5% growth from adjusted earnings of $5.42 per share in 2025. Management narrowed the range after first-half adjusted earnings increased 4.9% to $2.80 per share.
Altria’s Pricing and Margins Support the OutlookSmokeable price realization was 4.5% in the second quarter, led by Marlboro pricing and partly offset by Basic mix. Adjusted smokeable operating companies income increased 2.4% to $3.02 billion, while margin expanded 30 basis points to 64.8%.
Management continues to expect a greater benefit from cigarette import and export activity in the second half than in the first half. It expects that benefit to be more balanced between the third and fourth quarters.
MO’s Volume and Cost Pressures Could Limit ProgressDomestic cigarette shipment volume declined 3.2% in the second quarter, or an estimated 4.5% after adjusting for trade inventory movements. Oral Tobacco Products revenues fell 5.3%, while adjusted operating companies income declined 8% as lower volume and higher promotional investment weighed on results.
Capital expenditure expectations increased to $375-$450 million from $300-$375 million. Peer execution also raises the competitive bar. Philip Morris International Inc. (PM - Free Report) said smoke-free products generated about 42% of first-half 2026 net revenues, while British American Tobacco p.l.c. (BTI - Free Report) reported 18% growth in first-half New Category revenues.
Altria’s Second-Half Estimates Set the Next TestThe Zacks Consensus Estimate calls for third-quarter earnings of $1.50 per share and fourth-quarter earnings of $1.40. The full-year 2026 earnings estimate stands at $5.67 per share.
The consensus sales estimates are $5.33 billion for the third quarter and $5.09 billion for the fourth quarter. Those figures provide the next operating benchmarks as investors assess whether pricing and second-half benefits are offsetting volume and spending pressure.
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MO’s Signals Keep the Guidance Reset in PerspectiveThe narrowed guidance provides a clearer 2026 earnings range, but the operating path still depends on pricing, margin discipline and the timing of second-half benefits. Volume pressure and weaker oral tobacco profitability leave less room for execution slippage.
MO currently carries a Zacks Rank #3 (Hold), a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D. The Style Score framework favors A and B grades, particularly alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while a Zacks Rank #3 can still support holding an existing position. MO’s C and D scores point to a more mixed near-term setup. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cigaretový byznys Altria ve 2. čtvrtletí klesl méně než trh: upravený objem spadl o 4,5 % proti odhadu 5 % v odvětví. Díky cenám vzrostl upravený provozní zisk o 2,4 % na 3,018 miliardy USD.
Key Takeaways Altria's adjusted cigarette volume fell 4.5% in Q2, compared with an estimated 5% decline for the industry.Basic gained retail share while Marlboro held 59.6% of the premium segment and edged up sequentially.Smokeable price realization reached 4.5%, helping lift adjusted operating companies income 2.4%. Altria Group, Inc.’s MO cigarette business is showing resilience despite continued pressure on U.S. smokers. In the second quarter of 2026, reported domestic cigarette shipment volume fell 3.2%. After adjusting for trade inventory movements, the decline was an estimated 4.5%, compared with an estimated 5% drop for the overall domestic cigarette industry. For the first half, Altria’s adjusted decline was about 4% compared with 5% for the industry.
The moderation was primarily tied to reduced cross-category movement between cigarettes and illicit-flavored disposable e-vapor products, even as inflation, elevated gas prices and other pressures continued to influence cigarette purchasing. The industry’s discount retail share rose 2.6 percentage points year over year in the second quarter. Against that backdrop, Basic’s retail share increased 2.3 points year over year and 0.3 points sequentially. Marlboro, meanwhile, held a 59.6% share of the premium segment, unchanged from a year earlier and up 0.1 point sequentially.
Pricing also helped offset volume pressure. Smokeable price realization was 4.5% in the quarter, supported by strong Marlboro pricing, while Marlboro’s retail price was about 7% higher year over year. Smokeable-products net revenues increased 0.7%, while revenues net of excise taxes rose 2%. Adjusted operating companies income advanced 2.4% to $3,018 million, with margin expanding 30 basis points to 64.8%, helped by higher pricing and higher refunds of taxes and duties on imported cigarettes. The combination of relatively better volume performance, stable premium-segment share and strong pricing helped Altria’s cigarette business limit the impact of continued industry-wide volume pressure.
Altria’s Cigarette Resilience Stands Out Against PeersPhilip Morris International Inc. (PM - Free Report) also showed resilience in its cigarette business, with international combustible cigarette volume increasing 1.1% in the second quarter of 2026. While Marlboro gained 0.3 percentage points to a record 11% share, Philip Morris’s cigarette category volume share remained stable at 25.3%. Philip Morris also delivered 10% pricing in international combustibles, supporting 9.8% net revenue growth.
Turning Point Brands, Inc. (TPB - Free Report) also showed strength in nicotine products as cigarette consumption shifts. In the second quarter of 2026, Turning Point Brands’ Modern Oral net sales jumped 128% year over year to $68.4 million, while gross sales rose 149%. Turning Point Brands’ Modern Oral business accounted for 48% of total revenues, up from 26% a year earlier, reflecting strong growth in nicotine pouches.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 10.9% in the past three months compared with the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.37X, down from the industry’s average of 15.31X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altria rozšířila on! PLUS asi do 120 tisíc obchodů, což pokrývá zhruba 90 % objemu nikotinových produktů. Retailový podíl on! ve 2. čtvrtletí vzrostl na 8,6 %.
Key Takeaways Altria expanded on! PLUS to about 120,000 stores, covering roughly 90% of nicotine product volume.On! retail share reached 8.6% in Q2, up sequentially and year over year, driven by on! PLUS.Altria plans national 12-mg expansion in Q3 and new on! PLUS flavors across three strengths in Q4. Altria Group, Inc.’s (MO - Free Report) smoke-free strategy is increasingly centered on nicotine pouches, with on! PLUS emerging as a key part of that effort. In the second quarter of 2026, Helix expanded on! PLUS to about 120,000 stores, covering roughly 90% of nicotine product volume. The rollout is being supported by a broader retail program and additional line extensions.
The underlying category is also expanding. In the second quarter, the nicotine pouch category grew 8.1 share points and represented nearly 60% of the total oral tobacco category. For on!, reported shipment volume was 49.9 million cans, down 4.2% year over year, although first-half shipment volume rose 5.1%. The company attributed the second-quarter comparison partly to trade inventory movements and promotional activity in the prior-year period.
Retail performance offered another measure of the rollout. On! retail share reached 8.6% in the second quarter, up 0.8 percentage points sequentially and 0.3 percentage points from a year earlier, with the gain driven by on! PLUS. The next phase involves expanding product choice. 12-milligram on! PLUS shipments resumed in three states during the quarter, with national expansion planned for the third quarter. Additional flavors across 6-milligram, 9-milligram and 12-milligram strengths, starting with Blueberry Mint and Mango Pineapple, are planned for the fourth quarter.
Together, these developments show a smoke-free strategy built around wider distribution, a growing nicotine pouch category and a broader on! PLUS offering.
MO’s Nicotine Pouch Strategy Evolves Alongside PM and TPBPhilip Morris International Inc. (PM - Free Report) is also expanding its smoke-free portfolio through nicotine pouches, with ZYN now available in 60 markets. In the second quarter of 2026, Philip Morris reported ZYN shipments rose 1.8% to 2.9 billion pouches, while new 9mg and 11mg ZYN ULTRA variants began shipping. Philip Morris plans additional 1.5mg and 8mg dry variants in the third quarter.
Turning Point Brands, Inc. (TPB - Free Report) is also expanding its smoke-free portfolio through nicotine pouches, with Modern Oral net sales up 128% year over year to $68.4 million in the second quarter of 2026. While Modern Oral accounted for 48% of total revenues, up from 26% a year earlier, Turning Point Brands expanded retail distribution for FRE and ALP. Turning Point Brands expects chain-store count to increase 70% year over year by year-end.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have fallen 0.4% in the past three months against the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.81X, down from the industry’s average of 15.55X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.8% and 3.2%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altria ve 2. čtvrtletí 2026 zvýšila čisté tržby z tabákových produktů o 0,7 % a upravený OCI o 2,4 %, i když domácí dodávky cigaret klesly meziročně o 3,2 %. Růst táhly vyšší ceny Marlboro.
Key Takeaways Altria's domestic cigarette shipments fell 3.2% in Q2, or 4.5% excluding trade inventory moves.Higher pricing lifted smokeable net revenues 0.7% and adjusted OCI 2.4% despite lower volumes.Marlboro pricing drove gains, partly offset by smokers trading down to the lower-priced Basic brand. Altria Group, Inc. (MO - Free Report) continues to rely on pricing to support its smokeable products business as cigarette volumes continue to decline. The second quarter of 2026 showed that this strategy remained effective, even as lower shipment volumes continued to weigh on the business.
The smokeable products segment reported domestic cigarette shipment volume fell 3.2% year over year in the second quarter. Excluding trade inventory movements, the decline was estimated at 4.5%, compared with an estimated 5% decline for the overall U.S. cigarette industry. Despite lower shipments, smokeable products net revenues increased 0.7%, while net revenues net of excise taxes rose 2%, driven by higher net pricing.
Adjusted operating companies income (“OCI”) increased 2.4% and adjusted OCI margin expanded 30 basis points to 64.8%. The benefits of higher pricing and refunds of taxes and duties on imported cigarettes more than offset the effects of lower shipment volumes, increased promotional investments, a greater mix of discount products and higher costs.
Pricing remained an important support for Altria's smokeable business during the quarter. Smokeable price realization was 4.5%, driven by strong net pricing for Marlboro. However, the benefit was partly offset by a greater mix of the lower-priced Basic brand as some adult smokers traded down amid discretionary income pressures.
Overall, the quarter demonstrated that pricing continued to help offset the financial impact of lower cigarette shipment volumes. Although changing consumer purchasing patterns and a growing mix of discount products remain challenges, higher pricing continued to support revenue growth and profitability in the smokeable products business.
How Altria Compares With Philip Morris and TPBPhilip Morris International Inc. (PM - Free Report) also demonstrated the strength of pricing in its combustible business in the second quarter of 2026. While helping international combustibles net revenues grow 6.4% organically despite unfavorable geographic mix, Philip Morris reported nearly 10% pricing variance in the quarter. Strong pricing, coupled with stable category share, supported profitability, highlighting how Philip Morris continues to offset mix-related pressures through disciplined pricing.
Turning Point Brands, Inc. (TPB - Free Report) continues to rely on disciplined margin management to navigate a changing tobacco landscape. In the first quarter of 2026, Turning Point Brands expanded Zig-Zag gross margin by 300 basis points through favorable product mix despite weaker sales. Turning Point Brands also offset part of its cost pressures through tariff refunds, helping support overall profitability.
Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 4.9% in the past six months compared with the industry’s growth of 3.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.78X, down from the industry’s average of 15.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 5.2% and 3%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Altria expanded on! PLUS availability to 120,000 stores and highlighted smoke-free growth plans.MO raised 2026 adjusted EPS guidance to $5.61-$5.72 after strong first-half execution.Altria reported smokeable products adjusted OCI rose 2.4% with margin expanding to 64.8%. Altria Group, Inc. (MO - Free Report) used its second-quarter earnings call to highlight progress in smoke-free products, disciplined tobacco portfolio management and shareholder returns. Management narrowed its 2026 earnings outlook after strong first-half execution.
Executives focused on on! PLUS expansion, cigarette portfolio strategy and regulatory developments affecting nicotine categories. Analyst questions centered on consumer pressure, volume trends and the timing of second-half benefits.
MO Advances Smoke-Free PortfolioCEO Salvatore Mancuso said that Helix expanded on! PLUS availability to 120,000 stores nationwide and continued trial-generating activities. The company plans additional product extensions across nicotine strengths and flavors later in 2026.
Mancuso also said that nicotine pouches remain a key growth area, with the category representing nearly 60% of the oral tobacco category. He noted that on! retail share reached 8.6% in the second quarter.
Management also highlighted FDA actions affecting nicotine products. Mancuso said that increased regulatory clarity and enforcement against illicit products could support legal smoke-free alternatives.
Altria Balances Tobacco PortfolioAltria emphasized its total portfolio approach in smokeable products, using premium and discount brands to manage changing consumer behavior. Marlboro maintained its premium leadership while Basic gained traction among value-focused consumers.
The company reported smokeable products adjusted operating companies income increased 2.4% in the second quarter, supported by pricing and tax refund benefits. Adjusted OCI margin expanded to 64.8%.
Management said domestic cigarette volume declines moderated, with industry declines estimated at 5% after adjusting for trade inventory movements. Executives attributed the trend partly to reduced movement into illicit disposable e-vapor products.
MO Discusses Consumer PressuresDuring Q&A, a Stifel analyst asked about second-half expectations after Altria raised the lower end of guidance. Mancuso said that consumer financial pressure remains an important factor, including elevated inflation and gas prices.
Mancuso also addressed Cowboy Cut, saying the product provides another tool for engaging value-sensitive Marlboro smokers while supporting the broader revenue growth management strategy.
A Goldman Sachs analyst questioned cigarette volume trends and pricing dynamics. Management said that discount growth reflected consumer trade-down behavior, while premium remained the most profitable segment.
Altria Updates Financial OutlookAltria raised the lower end of its 2026 adjusted diluted EPS guidance range and now expects $5.61-$5.72, representing growth of 3.5-5.5% from the 2025 base.
Second-quarter adjusted EPS was $1.48, up 2.8% year over year, while revenues net of excise taxes increased 1.2% to $5.356 billion. The company’s adjusted EPS and revenues missed the Zacks Consensus Estimate of $1.5 and $5.362 billion, respectively.
CFO Heather Newman said that first-half performance reflected strong smokeable products execution and disciplined financial management. Altria returned nearly $3.9 billion to shareholders through dividends and share repurchases.
MO Highlights Capital AllocationMO continued shareholder returns during the quarter, including $1.8 billion in dividend payments and $55 million in share repurchases. The company had $665 million remaining under its current buyback authorization at quarter-end.
Management said that its balance sheet remained strong, with debt-to-EBITDA of 1.9X as of June 30. Executives reiterated their focus on maintaining shareholder value through capital returns.
Altria also discussed investment priorities, including increased capital expenditures tied to consolidating manufacturing operations. The company expects 2026 capital expenditures of $375-$450 million.
Altria Maintains Strategic FocusThe company’s leadership emphasized continued investment in smoke-free products while protecting profitability in traditional tobacco businesses. Management pointed to on! PLUS expansion and brand execution as key priorities.
Mancuso said competitive activity in nicotine pouches is increasing, but Helix is positioned with product differentiation and a broader portfolio. The company expects additional launches later in the year.
The quarter showed management balancing growth investments with near-term consumer challenges. Altria’s outlook reflects confidence in execution while recognizing pressure across nicotine categories.
MO’s Zacks SignalsMO carries Zacks Rank #2 (Buy) at present. The Zacks Rank is driven by earnings estimate revisions and is designed to help identify stocks with stronger potential performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of C, a Growth Score of D, a Momentum Score of B and a VGM Score of D. The Zacks Style Score uses grades from A to F to measure value, growth, momentum and combined characteristics, with higher scores indicating stronger attributes.
The Zacks Rank and Style Score can change as analysts update earnings estimates and market conditions evolve following the latest results.
Altria Group, Inc. (MO) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Mac Livingston - Vice President of Investor Relations
Salvatore Mancuso - CEO & Director
Heather Newman - Executive VP & CFO
Conference Call Participants
Matthew Smith - Stifel, Nicolaus & Company, Incorporated, Research Division
Bonnie Herzog - Goldman Sachs Group, Inc., Research Division
Pallav Mittal - Barclays Bank PLC, Research Division
Eric Serotta - Morgan Stanley, Research Division
Mirza Faham Baig - UBS Investment Bank, Research Division
Damian McNeela - Deutsche Bank AG, Research Division
Presentation
Operator
Good day, and welcome to the Altria Group 2026 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations. Please go ahead, sir.
Mac Livingston
Vice President of Investor Relations
Thanks, Olivia. Good morning, and thank you for joining us. This morning, Sal Mancuso, Altria's CEO; and Heather Newman, our CFO, will discuss Altria's 2026 second quarter business results. Earlier today, we issued a press release providing our results. The release, presentation and quarterly metrics are all available at altria.com. During our call today, unless otherwise stated, we're comparing results to the same period in 2025.
Our remarks contain forward-looking statements, including projections of future results. Please review the forward-looking and cautionary statements section at the end of today's earnings release for various factors that could cause actual results to differ materially from projections. Future dividend payments and share repurchases remain subject to the discretion of our Board of Directors. We report our financial results in accordance with U.S. generally accepted accounting principles.
Today's call will contain various operating results on both a reported and adjusted basis. Adjusted results exclude special items that affect comparisons with reported results. Descriptions of these non-GAAP financial measures and reconciliations to the most comparable
Altria Group klesá o 9,27 % poté, co vyšší náklady tlačí kuřáky k levnějším cigaretám a snižují poptávku po Marlboro. Tržby v segmentu kouřitelných produktů vzrostly jen o 0,7 %, zatímco objem dodávek Marlboro klesl o 7,4 %.
• Altria Group stock is taking a hit today. What’s pressuring MO stock?.
Quarterly DetailsIn the Smokable Products segment, net revenues increased 0.7%. The segment reported domestic cigarette shipment volume decreased 3.2%, primarily driven by the industry’s decline rate. Shipment volumes for Marlboro fell 7.4%.
The Oral Tobacco Products unit slid 5.3% year over year. The segment reported domestic shipment volume decreased 8.5%, primarily driven by retail share losses and trade inventory movements.
Quarterly operating income fell 2.9% year over year to $3.14 billion.
As of June 30, the company had cash and equivalents worth $2.37 billion.
Consumer Pressure Hits Premium DemandHigher fuel and everyday living costs pressured consumer spending, making price a bigger factor for tobacco buyers. Altria had already warned in April that costs tied to the Middle East conflict were hurting discretionary spending and encouraging some smokers to switch to lower-priced cigarettes, Reuters reported on Thursday.
That down-trading hurt demand for Marlboro, even as Altria leaned on discount brands such as Basic to soften the impact.
Alternatives Remain a Growth FocusAltria has continued shifting toward cigarette alternatives, including On! nicotine pouches and NJOY vapes, as traditional cigarette volumes face pressure.
However, macroeconomic uncertainty also affected demand for premium cigarettes and nicotine pouches in the quarter, contributing to the earnings miss and sending Altria shares lower.
OutlookAltria Group raised its 2026 adjusted EPS guidance to $5.61-$5.72 (up from prior range of $5.56–$5.72), in line with the $5.69 analyst estimate.
MO Price Action: Altria Group shares are trading lower by 9.27% to $67.99 at publication on Thursday.
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Altria (MO - Free Report) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.33%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.24 per share when it actually produced earnings of $1.32, delivering a surprise of +6.45%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Altria, which belongs to the Zacks Tobacco industry, posted revenues of $5.36 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $5.29 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Altria shares have added about 29.9% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Altria?While Altria has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Altria was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $5.31 billion in revenues for the coming quarter and $5.70 on $20.55 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Tobacco is currently in the bottom 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Universal Corp. (UVV - Free Report) , has yet to report results for the quarter ended June 2026.
This leaf tobacco merchant is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -34.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Universal Corp.'s revenues are expected to be $587 million, down 1.1% from the year-ago quarter.
Key Takeaways MO is expected to post Q2 revenues of $5.36 billion and earnings of $1.50 per share.Pricing strength and premium brands may help offset lower cigarette shipment volumes.Nicotine pouch growth may support oral tobacco, though competition could pressure margins. Altria Group, Inc. (MO - Free Report) is likely to register growth in both top and bottom lines when it reports second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter revenues is pinned at $5.36 billion, indicating a 1.4% increase from the same period last year. Meanwhile, the consensus mark for earnings has remained unchanged in the past 30 days at $1.50 per share, indicating 4.2% growth from the year-ago quarter’s reported figure. Altria has a trailing four-quarter average earnings surprise of 2.9%.
Things to Consider About Altria’s Upcoming ResultsAltria’s second-quarter performance is likely to have been supported by continued pricing strength across its smokeable products business, despite an industry environment marked by declining cigarette volumes. Strong net price realization, disciplined revenue management and resilient demand for premium brands are likely to have helped offset lower shipment volumes. However, persistent macroeconomic pressures and consumer downtrading toward discount offerings might have remained a drag on overall volume and product mix.
The company’s oral tobacco business is likely to have remained a key area of support, driven by continued momentum in nicotine pouches. The nationwide rollout of on! PLUS, broader retail availability and sustained consumer interest in smoke-free alternatives are likely to have supported shipment growth during the quarter. However, heightened competition in the nicotine pouch category, along with higher promotional spending and product mix pressures, is likely to have weighed on segment margins. The Zacks Consensus Estimate indicates a decrease of 1.7% in the Oral Tobacco Products revenues.
The Smokeable Products segment is likely to have remained the primary contributor to quarterly performance. Cigarette shipment volumes are likely to have continued declining year over year, although the pace of decline might have remained more moderate amid reduced cross-category movement to illicit disposable e-vapor products. Strong pricing, stable premium brand performance and disciplined portfolio execution are likely to have supported revenues and earnings, partially offsetting the impact of volume softness and a value-seeking consumer environment. The Zacks Consensus Estimate implies an increase of 1% in the Smokeable Products revenues.
Earnings Whispers for MO StockOur proven model doesn’t conclusively predict an earnings beat for Altria this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Altria currently has a Zacks Rank #2 and an Earnings ESP of -1.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +11.52% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.27, which implies a 36.6% rise year over year. The consensus estimate for ADM’s quarterly revenues is pinned at $22.38 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, indicating a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.42 billion, which indicates 14.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which implies a 13.5% increase year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
Altria zvýšila provozní marži u kouřitelných výrobků na 65,1 % a díky cenové síle udržuje dividendu s výnosem 5,73 %. Společnost letos vyplatila 7,0 miliardy USD na dividendách při provozním výsledku 9,899 miliardy USD.
Altria has become a magnet for income-focused capital this year, with the stock climbing 32.55% year-to-date as retirees hunt for inflation hedges while the Fed has cut its target rate to 3.75%. Altria (NYSE:MO | MO Price Prediction) sells Marlboro, Copenhagen, Skoal, on! nicotine pouches and NJOY e-vapor, and its smokeable engine just posted a 65.1% operating margin. The question is whether the dividend is actually as bulletproof as the bulls claim.
Dividend Snapshot Metric Value Annual Dividend $4.24 per share Dividend Yield 5.73% Consecutive Years of Increases 60 increases in 56 years Most Recent Increase 3.9% (August 2025) Aristocrat-Class Status Yes (commonly recognized) Payout Ratios Leave Real Room Despite Volume Drag Altria earned $5.42 in adjusted diluted EPS for 2025 and pays $4.24 annually, putting the earnings payout ratio at 78.2%. That is elevated by general standards but normal for a mature tobacco operator. Cash coverage is what matters here. The company paid $7.0 billion in dividends in 2025 against operating income of $9.899 billion, with capex of only $175 to $225 million.
Metric TTM Value Assessment Earnings Payout Ratio 78.2% Elevated but Manageable FCF Payout Ratio (est.) ~76% Healthy 2026 EPS Guidance $5.56 to $5.72 Lowers Payout Further Negative Equity Reflects Buybacks, Not Distress Signals Altria carries negative shareholders’ equity of $3.211 billion, a function of years of aggressive buybacks. EBITDA of $15.79 billion against the debt load keeps leverage manageable, and cash sits at $3.531 billion. The smokeable margin expansion to 65.1% confirms pricing power is offsetting the 5% industry volume decline.
20 Years of Increases and Counting Year Annual Dividend 2026 (run rate) $4.24 2025 $4.16 2024 $4.08 2023 $3.92 2022 $3.68 2021 $3.52 The 5-year dividend CAGR runs roughly 3.8%, in line with management’s mid-single-digit growth target through 2028.
Management’s Tone: Confident, Not Hedging CEO Billy Gifford told investors on the Q1 2026 call: “We delivered a strong start to the year, growing adjusted diluted EPS by 7.3% in the first quarter. Our highly cash-generative businesses supported significant returns to shareholders through dividends and share repurchases.” On the prior call, he noted the company “returned $8 billion to shareholders through dividends and share repurchases combined” in 2025. That tone reflects confidence.
Verdict: Safe, With Pricing Power Doing the Heavy Lifting Dividend Safety Rating: Safe. The 78% earnings payout is the only number I would flag, but 2026 guidance of $5.56 to $5.72 mechanically eases it. I would be comfortable owning Altria for income if you accept that pricing power drives the thesis. I would be cautious if Marlboro share losses accelerate past current declines or if regulators target menthol and nicotine caps more aggressively. For now, the dividend looks intact.
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