Altria Reports $6.1B Q3 Revenue Amid 8.2% Decline in Cigarette Volumes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Revenue Overview: Altria generated approximately $6.1 billion in revenue in Q3 2025, with its tobacco business contributing about $5.4 billion, highlighting the company's heavy reliance on this segment, while the ongoing decline in tobacco volumes poses a significant threat to future growth.
- Volume Decline: The company's cigarette volumes fell by 8.2% year-over-year in Q3 2025, with a 10.6% drop over the first nine months, indicating severe challenges in its core business that force it to raise prices to offset the impact of declining sales.
- Strategic Missteps: Altria's decision to spin off its international operations to Philip Morris International resulted in losing its most lucrative market while simultaneously creating a new competitor, reflecting significant errors in strategic decision-making.
- Investment Risks: Altria's investments in the vaping and marijuana sectors have both resulted in losses, particularly with Juul and Cronos Group, leading to substantial charges for shareholders, which exacerbates the company's difficulties in finding long-term growth avenues.
Analyst Views on MO
Wall Street analysts forecast MO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MO is 65.60 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
2 Hold
1 Sell
Moderate Buy
Current: 58.540
Low
57.00
Averages
65.60
High
72.00
Current: 58.540
Low
57.00
Averages
65.60
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.
