Key Highlights

  • Adjusted diluted EPS of USD 1.52 edged past the consensus estimate of USD 1.51, while reported EPS was USD 1.51.
  • Revenue net of excise taxes of USD 5.44 billion topped the consensus estimate of USD 5.31 billion.
  • Smokeable adjusted operating companies income grew 3.9% to USD 3.1 billion, with the adjusted Margin at 64.5%.
  • Full year adjusted EPS guidance rose to USD 5.66 to USD 5.74, equal to growth of 4.5% to 6%.

Altria Group, Inc. (NYSE:MO) reported third quarter 2026 adjusted Diluted Earnings per Share of USD 1.52, up 4.8% from USD 1.45 a year earlier and slightly above the consensus estimate of USD 1.51. Reported diluted EPS, the GAAP measure, was USD 1.51 compared with USD 1.41 in the prior year quarter. Net revenues including excise taxes were USD 6.13 billion, and after subtracting USD 691 million of excise taxes, Revenue came to USD 5.44 billion, above the consensus estimate of USD 5.31 billion.

Reported net earnings attributable to Altria were USD 2.52 billion, up 6.0%, and Operating Income rose to USD 3.31 billion from USD 3.23 billion.

Smokeables Lead While Pouches Gain Volume

The smokeable products segment produced adjusted operating companies income of USD 3.1 billion, up 3.9%, and the adjusted margin edged up 0.1 percentage points to 64.5%. Reported domestic cigarette Volume fell 2.9%, and after adjusting for trade inventory movements the decline was about 4%, a little better than the roughly 5% industry decline the company estimated. Marlboro held 60% of the premium segment, up 0.3 points from a year earlier, while the discount segment reached 34.1% of the category.

In oral tobacco, adjusted operating companies income fell 3.7% to USD 443 million at a 66.4% adjusted margin. Shipments of on! nicotine pouches rose 13.3% to 47.8 million cans with retail share of 8.3%, but the segment total declined 4.3% because moist smokeless volume dropped. Chief Executive Officer Salvatore Mancuso said the company is widening the on! PLUS line with a 12-milligram strength and new flavors. Adjusted Equity earnings from the Investment in ABI were USD 191 million, up 21.7%.

Guidance Raise and Regulatory Backdrop

The company now guides to full year 2026 adjusted diluted EPS of USD 5.66 to USD 5.74, representing growth of 4.5% to 6% from a 2025 base of USD 5.42. The prior range called for growth of 2.5% to 5%. The chief financial officer said the range already absorbs investment behind on! PLUS and a consumer facing elevated gas prices and inflation, and that the benefit from Import and export duty refunds is balanced between the third and fourth quarters, with a contract Manufacturing agreement with Philip Morris International beginning in 2027.

On regulation, Helix and NJOY filed legal action against the FDA during the quarter, asking the court to require a premarket review process that meets the 180 day timeframe set by Congress. The agency then announced plans to evaluate changes to its premarket tobacco application framework and to pursue new rulemaking. Management estimates about 20 million adult vapers at the end of September, down 1 million from a year ago, which it attributed mainly to fewer users of illicit products.

Dates and Ratios Worth Tracking

Several items carry specific markers. Watermelon Mint is scheduled to reach select retail locations in November, following the Blueberry Mint and Mango Pineapple launches. The company has called the duty refund benefit balanced across the third and fourth quarters. The Debt to EBITDA ratio stood at 1.9x on September 30 against a target near 2x, and the expanded repurchase program runs through December 31, 2027.