MO relies on aggressive pricing to counter soft cigarette volumes, helping protect smokeable profits and margins amid persistent industry headwinds.
Zacks.com users have recently been watching Altria (MO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
MO is now rated Hold due to limited upside at current valuation and slow smoke-free transition progress. MO's smokeable segment, still 87.5% of revenue, continues to decline, with Marlboro's share dropping below 40% in Q4 2025. Smoke-free initiatives show incremental progress but remain financially immaterial; oral tobacco grew less than 1% year-over-year.
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Altria Group, Inc. NYSE: MO stock is off to a strong start in 2026, up more than 7.3%. However, MO stock was down nearly 3% in midday trading on Jan. 29, as the company's earnings were flat year-over-year (YOY).
MO and PM ramp up smoke-free growth, using pricing power and innovation to counter falling cigarette demand and reshape tobacco's future.
Altria stock (NYSE: MO) dropped 5% after a Q4 earnings miss. Although revenue (excluding excise taxes) surpassed expectations at $5.08 billion compared to the $5.02 billion estimate, the adjusted EPS of $1.30 fell short of the $1.32 consensus.
Altria (MO) is rated strong sell due to deteriorating fundamentals and an overvalued stock price. MO's premium Marlboro volumes crashed 12.6% in Q4, with overall cigarette volumes declining faster than the industry. Smokeless segment growth is insufficient to offset steep declines in the core cigarette business, with on! losing market share in Q4.
U.S.-focused tobacco company Altria Group, Inc. reported its results for the fourth quarter and full-year 2025 yesterday. Altria remains a premium cigarette powerhouse, delivering extremely robust profitability despite a 10% decline in cigarette shipments and persistent smoke-free segment weakness. MO's pricing power and operational efficiency drove all-time high adjusted operating margin, with price elasticity still very manageable and Marlboro retaining a dominant 59.2% share in the premium segment.
MO's fourth-quarter results miss earnings estimates as cigarette volumes slid, with smokeable revenue declines weighing on profits despite pricing gains.
Altria Group, Inc. (MO) Q4 2025 Earnings Call Transcript