MO gains 12.8% YTD as smoke-free growth and pricing support earnings, but cigarette declines and oral tobacco weakness temper the outlook.
MO's smoke-free push gains traction as on! PLUS expands distribution, retail share and product choice in a growing nicotine pouch category.
Altria remains a buy, offering a 6.3% yield and a 60-year streak of dividend increases, with another hike expected August 27. MO's payout ratio has fallen to 89%, supporting sustainable, inflation-matching dividend growth, though limited room exists for extraordinary increases. Despite declining cigarette volumes and regulatory risks, MO offsets headwinds with price increases and potential growth in reduced-risk products.
MO's pricing power supports smokeable revenues and profit despite declining cigarette volumes and a growing shift toward discount brands.
Altria Group is poised to announce its 56th consecutive annual dividend increase in August, with a predicted 3.7–4.7% boost to $4.40–$4.44. MO continues its transformation toward non-tobacco nicotine products, targeting mid-single-digit EPS and dividend growth through 2028 despite ongoing cigarette sales declines. Predicted forward yield for MO is 6.44–6.50%, underpinned by a 5-year compounded dividend growth rate of 4.1% and consistent EPS delivery.
Altria Group NYSE: MO reported higher adjusted earnings for the second quarter and first half of 2026, supported by pricing in its smokable-products business, growth in its nicotine pouch portfolio and continued shareholder returns. The company raised the lower end of its full-year adjusted earnings guidance while citing ongoing pressure on nicotine consumers from inflation and elevated gas prices.
MO highlights on! PLUS expansion, smoke-free growth plans and shareholder returns as it narrows 2026 earnings outlook.
Altria Group, Inc. (MO) Q2 2026 Earnings Call Transcript
MO's second-quarter earnings miss estimates as cigarette shipments fall, though higher pricing lifted smokeable products revenues and supported profit growth.
The headline numbers for Altria (MO) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Altria (MO) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.5 per share. This compares to earnings of $1.44 per share a year ago.
Altria Group had virtually flat revenue and lower profit in the second quarter, as lower sales of its nicotine pouches offset some of the growth in its cigarettes business.