Altria Group Inc. MO posted first-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Management pointed to a solid first quarter, with earnings growth supported by strong cash flows that allowed continued shareholder payouts and ongoing investment. The smokeable segment remained the primary profit driver, with Marlboro holding up well in the premium category, while the oral segment stayed competitive, aided by on!’s performance and broader rollout of on! PLUS.
Altria’s first-quarter adjusted earnings were $1.32 per share, up 7.3% year over year and beating the Zacks Consensus Estimate of $1.24. This was driven by elevated adjusted operating companies' income (“OCI”) and reduced share count.
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 $5,428 million, reflecting a 3.2% year-over-year increase. This was driven by an increase in net revenues in the smokeable products segment. Revenues, net of excise taxes, increased 5.3% to $4,758 million. The top line beat the consensus mark, which was pegged at $4,558 million.
Decoding Altria’s Segment-Wise Results
Smokeable Products: Net revenues in the category gained 2.9% year over year to $4,758 million, driven by higher pricing, partially offset by increased promotional investments, lower shipment volumes and an unfavorable volume mix shift toward discount products. Revenues net of excise taxes rose 5.2%.
Domestic cigarette shipment volumes tumbled 2.4% due to the industry’s decline rate, impacted by discretionary income pressures on adult nicotine consumers. This was partially offset by trade inventory movements and retail share gains. Altria’s reported cigar shipment volumes decreased 0.2%.
Adjusted OCI in the segment increased 6.3% to $2,676 million, driven by higher pricing and 2026 refunds of taxes and duties on imported cigarettes. These gains were partially offset by increased promotional investments, lower shipment volumes, an unfavorable volume mix and higher manufacturing costs. The adjusted OCI margins expanded 0.7 percentage points to 65.1%.
Oral Tobacco Products: Net revenues of the segment increased 2.3% to $669 million. This upside was driven by increased pricing, which was partially offset by the reduced shipment volume, increased promotional investments and an unfavorable product mix shift toward on! relative to moist smokeless tobacco. Revenues, excluding excise taxes, increased 2.9%.
Domestic shipment volumes fell 3.1%, due to retail share losses. This was partly negated by the industry’s growth rate and trade inventory movements. Excluding the impact of trade inventory movements, shipment volumes were estimated to decrease approximately 8.5%.
Adjusted OCI in the segment increased 0.2%, supported by pricing, but largely offset by lower shipment volumes, higher costs, increased promotional spending and unfavorable product mix. Adjusted OCI margins declined 1.8 percentage points to 67.4%.
Altria Stock: Other Updates
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $3,531 million, long-term debt of $24,060 million and a total stockholders’ deficit of $3,211 million.
In the first quarter of 2026, the company bought back 4.5 million shares, totaling $280 million. As of March 31, $720 million remained available under the $2 billion share repurchase program, which expires on Dec. 31, 2026.
Altria paid dividends worth $1.8 billion in the first quarter.
What to Expect From MO in 2026
The company expects 2026 adjusted earnings per share (EPS) in the range of $5.56 to $5.72, indicating year-over-year growth of 2.5% to 5.5% from a base of $5.42 in 2025. Following strong first-quarter performance, the company now anticipates a more balanced distribution of adjusted diluted EPS growth between the first and second halves of the year.
Shares of MO have gained 10% in the past three months against the industry’s 6.7% decline.
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Stocks to Consider
Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Smithfield Foods, Inc. SFD produces packaged meats and fresh pork in the United States and internationally. It carries a Zacks Rank #2 at present. Smithfield Foods delivered a trailing four-quarter earnings surprise of 12%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 1.1% and 7.5%, respectively, from the prior-year levels.
Tyson Foods, Inc. TSN operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4%, from the prior-year reported levels.
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Altria Group, Inc. (MO): Free Stock Analysis Report
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