Altria Group (MO) Q1 2026 earnings summary

Executive summary

• Adjusted diluted EPS grew 7.3% year-over-year in Q1 2026 to $1.32, reflecting strong operational performance and disciplined capital allocation.

• Net revenues increased 3.2% to $5.43 billion, driven by higher pricing in smokeable products despite volume declines.

• Reported net earnings more than doubled to $2.18 billion, with diluted EPS rising to $1.30, due to higher operating income and the absence of prior-year impairment charges.

• Significant shareholder returns through $1.8 billion in dividends and $280 million in share repurchases.

• Strong performance in smokable and oral tobacco segments, with Marlboro expanding its premium segment share and ON!/On+ nicotine pouches achieving national distribution.

Financial highlights

• Adjusted OCI for smokable products grew 6.3% to $2.68 billion, with margins up 0.7 points to 65.1%.

• Oral tobacco segment adjusted OCI was $436 million, with margins at 67.4%, down 1.8 points year-over-year.

• Operating income increased 65.3% to $2.96 billion, primarily due to the absence of a prior-year $873 million e-vapor impairment.

• Net price realization in smokables was 6.3%.

• Cash flow from operations was $2.32 billion, supporting dividends and share repurchases.

Outlook and guidance

• Full-year 2026 adjusted diluted EPS guidance reaffirmed at $5.56–$5.72, representing 2.5%–5.5% growth from 2025.

• Guidance reflects moderated e-vapor growth, macroeconomic uncertainty, and planned investments in manufacturing and cost savings.

• EPS growth expected to be more balanced between the first and second halves of 2026.

• Excludes impact of non-recurring items such as litigation, restructuring, and acquisition-related charges.

• Progressive dividend growth target maintained through 2028, with sufficient liquidity expected.