Altria Reaffirms 2026 EPS Guidance of $5.56 to $5.72
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Should l Buy MO?
Altria Group is participating in the Consumer Analyst Group of New York Conference in Orlando, Florida. "We reaffirm our guidance to deliver 2026 full-year adjusted diluted earnings per share in a range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025. We expect 2026 adjusted diluted EPS growth to be weighted to the second half of the year, reflecting a progressive increase in cigarette import and export activity over the course of the year. Our guidance contemplates: (i) planned investments to support our contract manufacturing capabilities; (ii) limited impact on combustible and e-vapor product volumes from illicit enforcement efforts; and (iii) that NJOY ACE does not return to the marketplace in 2026."
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Analyst Views on MO
Wall Street analysts forecast MO stock price to fall
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 66.540
Low
57.00
Averages
65.00
High
72.00
Current: 66.540
Low
57.00
Averages
65.00
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Performance Comparison: Since February 2021, Altria's total return has reached 128.6%, far exceeding the S&P 500's 85.8% and outperforming Coca-Cola and Procter & Gamble, showcasing its strong performance in the consumer goods sector despite challenges in industry innovation.
- Dependence on Tobacco Products: While Altria generates around 88% of its revenue from smokeable products, its competitor Philip Morris International has successfully derived 41.5% of its revenue from smoke-free products, highlighting Altria's lag in adapting to market changes, which could impact future growth potential.
- Future Growth Potential: Altria is expected to continue offsetting declining cigarette volumes through price increases, and if it can successfully launch smokeless products, it could significantly enhance its valuation, with a current price-to-earnings ratio of only 12 times, indicating its attractiveness as a long-term investment.
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- Superior Investment Returns: Over the past five years, Altria has generated annualized returns nearing 18%, significantly outperforming the S&P 500's 13%, indicating that despite lagging in industry innovation, Altria can still deliver substantial returns to investors.
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- Philip Morris' Transformation: Philip Morris has pivoted to smoke-free products, which now account for 41% of its sales across 100 global markets, significantly expanding its distribution network following the $16 billion acquisition of Swedish Match in 2022, enhancing its competitive edge.
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- Dividend Yield Advantage: Altria Group currently boasts a 6.3% dividend yield, and over the past five years, shareholders have achieved nearly 18% annualized returns through reinvested dividends, significantly outperforming the S&P 500's 13%, indicating its continued appeal among dividend investors.
- Market Performance Comparison: Since February 2021, Altria's total return has reached 128.6%, far exceeding the S&P 500's 85.8% and outperforming Coca-Cola and Procter & Gamble, showcasing its strong performance in the consumer goods sector despite challenges in industry innovation.
- Dependence on Tobacco Products: While Altria generates around 88% of its revenue from smokeable products, its competitor Philip Morris International has successfully derived 41.5% of its revenue from smoke-free products, highlighting Altria's lag in adapting to market changes, which could impact future growth potential.
- Future Growth Potential: Altria is expected to continue offsetting declining cigarette volumes through price increases, and if it can successfully launch smokeless products, it could significantly enhance its valuation, with a current price-to-earnings ratio of only 12 times, indicating its attractiveness as a long-term investment.
See More
Altria Group Raises Dividend for 56th Consecutive Year
- Dividend Growth: Altria Group has raised its dividend for 56 consecutive years, achieving Dividend King status with a current forward yield of 6.3%, which not only boosts investor confidence but also provides a stable cash flow for the company.
- Superior Investment Returns: Over the past five years, Altria has generated annualized returns nearing 18%, significantly outperforming the S&P 500's 13%, indicating that despite lagging in industry innovation, Altria can still deliver substantial returns to investors.
- Dependence on Tobacco Products: Although Altria has made slow progress in transitioning to smoke-free products, it still derives around 88% of its revenue from combustible products; however, successful future launches of smoke-free products could significantly enhance the company's valuation and market performance.
- Acquisition Potential: To bolster its smokeless product line, Altria may consider acquiring smaller competitors like Turning Point Brands, which could not only enhance earnings growth but also drive valuation expansion, as Altria currently trades at a forward P/E of just 12 times, well below competitors' 22 times.
See More
Coca-Cola and Altria: Defensive Investment Choices
- Coca-Cola's Market Adaptation: Despite declining soda consumption, Coca-Cola has successfully expanded its portfolio with bottled water, juices, and other non-carbonated drinks, achieving a 5% organic revenue growth in 2025 and expecting 4%-5% growth in 2026, thereby solidifying its position in a turbulent market.
- Stable Dividend Returns: With a forward dividend yield of 2.6% and 63 consecutive years of dividend increases, Coca-Cola demonstrates the advantages of its capital-light business model, ensuring stable margins and ample cash flow to support dividend payments.
- Altria's Transformation Strategy: In response to historic lows in U.S. smoking rates, Altria is enhancing its EPS through price increases, cost cuts, and share buybacks, while aiming for at least $5 billion in smoke-free product revenues by 2028, showcasing its adaptability in the tobacco industry.
- Strong Dividend Appeal: Altria offers a forward dividend yield of 6.3% and has raised its dividend 60 times over the past 56 years, with adjusted EPS growth anticipated at 2.5%-5.5% in 2026, making it a reliable safe-haven stock.
See More
Consumer Staples Appear Expensive: Explore Clorox and Other High-Yield Stocks with Strong Dividends.
- Market Shift: There is a significant rotation from software stocks to safer investments like consumer staples.
- Investor Sentiment: Investors are concerned that advancements in AI, such as ChatGPT, may negatively impact service-oriented businesses while benefiting manufacturers of household products.
See More
Coca-Cola and Philip Morris: Dividend Investment Value
- Importance of Dividends: According to S&P Global, dividends have accounted for 31% of total stock market returns since 1926, highlighting their crucial role in long-term investing, allowing investors to focus on fundamentals while ignoring stock price fluctuations.
- Coca-Cola's Stability: As a blue-chip stock, Coca-Cola continues to deliver dividends with a third-quarter revenue growth of 5% year-over-year to $12.5 billion, demonstrating its strong resilience and profitability amid economic fluctuations.
- Philip Morris' Transformation: Philip Morris has pivoted to smoke-free products, which now account for 41% of its sales across 100 global markets, significantly expanding its distribution network following the $16 billion acquisition of Swedish Match in 2022, enhancing its competitive edge.
- Dividend Yield Comparison: Coca-Cola offers a dividend yield of 2.71%, while Philip Morris boasts a yield of 3.3%, both exceeding the S&P 500 average of 1.14%, showcasing their strong capabilities in returning value to investors.
See More
Emerging Markets Drive Transformation in Energy Products
- Market Growth Potential: The global nicotine pouch market is projected to reach $25.4 billion by 2030, indicating a rapid shift in consumer demand towards portable, liquid-free formats, thus providing significant market opportunities for related companies.
- Doseology Innovation: Doseology Sciences began pilot production of nicotine-free caffeine energy pouches in January 2026, utilizing a portable design to meet health-conscious consumers' demand for functional products, which is expected to significantly enhance its market competitiveness.
- Altria Financial Performance: Altria Group reported full-year net revenues of $23.3 billion for 2025, with a 4.4% growth in adjusted diluted EPS, returning $8 billion to shareholders through dividends and buybacks, showcasing its ongoing growth and strong financial health in the smoke-free product sector.
- GURU New Product Launch: GURU Organic Energy launched a new zero-sugar flavor containing 140 mg of natural caffeine, further expanding its product lineup to meet consumer demand for healthy beverages while enhancing brand visibility through digital marketing campaigns.
See More
