Altria Group Inc. MO posted second-quarter 2026 results, wherein both top and bottom lines missed the Zacks Consensus Estimate, while both increased from the year-ago period’s actuals.
Altria reported adjusted earnings of $1.48 per share, up 2.8% year over year but missing the Zacks Consensus Estimate of $1.50. Higher adjusted operating companies income and a lower share count supported earnings growth.
Altria Group, Inc. Price, Consensus and EPS Surprise
Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote
The company posted net revenues of $6,111 million, reflecting a 0.1% year-over-year increase. This was driven by growth in the smokeable products segment and the all-other category, which reflected acquisition-related items in 2025, and was offset by weakness in oral tobacco products. Revenues, net of excise taxes, increased 1.2% to $5,356 million. The metric missed the consensus mark, which was pegged at $5,362 million.
Decoding Altria’s Segment-Wise Results
Smokeable Products: Net revenues in the category gained 0.7% year over year to $5,392 million. Higher pricing aided the segment, partially offset by greater promotional investments, lower shipment volume and an unfavorable shift toward discount products. Revenues net of excise taxes advanced 2% to $4,660 million.
Adjusted operating companies income (OCI) rose 2.4% to $3,018 million. Higher pricing and increased refunds of taxes and duties on imported cigarettes more than offset volume pressure, promotional spending and elevated costs. The adjusted OCI margin expanded 30 basis points to 64.8%.
Domestic cigarette shipment volumes fell 3.2% to 15,554 million sticks. Excluding trade inventory movements, management estimated that shipment volume decreased 4.5%, compared with an estimated 5% contraction for the overall domestic cigarette industry. Altria’s reported cigar shipment volumes increased 5%.
Oral Tobacco Products: Net revenues of the segment decreased 5.3% to $713 million. Lower shipment volume and increased promotional investments outweighed higher pricing. Revenues net of excise taxes fell 5.2% to $690 million.
Adjusted OCI declined 8% to $460 million, and the adjusted OCI margin contracted 200 basis points to 66.7%.
Domestic shipment volume dropped 8.5% to 181.7 million cans. Copenhagen and Skoal volumes fell 10.9% and 13.7%, respectively, while on! volume decreased 4.2%.
Altria's Nicotine Pouch Position Shows Mixed Trends
The nicotine pouch category accounted for 59.9% of the oral tobacco category, up 810 basis points year over year. on!’s share of the overall oral tobacco market increased 30 basis points to 8.6% and improved 80 basis points sequentially.
However, on!’s share of the nicotine pouch category declined 170 basis points year over year to 14.4%, despite gaining 100 basis points sequentially.
Altria Stock: Other Updates
This Zacks Rank #2 (Buy) company ended the quarter with cash and cash equivalents of $2,367 million, long-term debt of $22,893 million and a total stockholders’ deficit of $2,668 million.
In the second quarter of 2026, Altria repurchased 0.8 million shares, spending $55 million. Through the first half, the company bought back 5.3 million shares for $335 million, leaving $665 million under its repurchase authorization.
MO also paid $1.8 billion in dividends during the second quarter.
What to Expect From MO in 2026
Altria narrowed its 2026 adjusted earnings guidance to $5.61-$5.72 per share from the prior range of $5.56-$5.72. The updated outlook implies growth of 3.5-5.5% from adjusted earnings of $5.42 per share in 2025.
Management continues to expect a greater benefit from cigarette import and export activity in the second half. Capital expenditure expectations increased to $375-$450 million from $300-$375 million.
Shares of MO have gained 0.5% in the past three months compared with the industry’s 15.5% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2. US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.
Darling Ingredients Inc. DAR develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients holds a Zacks Rank of 2. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 13.2% and 685.3%, respectively, from the year-ago figures.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Altria Group, Inc. (MO): Free Stock Analysis Report
Darling Ingredients Inc. (DAR): Free Stock Analysis Report
United Natural Foods, Inc. (UNFI): Free Stock Analysis Report
US Foods Holding Corp. (USFD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).