Forecast and market reaction
Altria Group Inc. projected full-year adjusted earnings for 2026 that sit above the consensus estimate, attributing the outlook to price increases on its cigarette and oral tobacco products. The announcement came as Altria shares were trading about 2% lower in premarket sessions. Over the course of 2025, the stock has fallen roughly 10%.
Financial guidance and recent results
The company provided a 2026 adjusted earnings range of $5.56 to $5.72 per share. The midpoint of that range is slightly higher than the analysts' average estimate of $5.58, according to LSEG data. For the fourth quarter, Altria reported adjusted earnings of $1.30 per share, a touch below the consensus estimate of $1.32 per share.
Volume and revenue trends
Altria disclosed continuing declines in volumes for its traditional tobacco business. Smokeable product revenue fell 2.7% in the quarter, while cigarette shipment volumes were down 7.9% versus the comparable period.
New product categories and competitive dynamics
The company and its industry peers have pursued alternatives to combustible cigarettes - including e-cigarettes and nicotine pouches - as public health concerns and changing consumer preferences have weighed on conventional cigarette consumption. Those transitions have been uneven. Altria's attempt to expand into some of these newer categories has encountered obstacles, highlighted most recently by an import block on its NJOY e-cigarette brand tied to a patent dispute. Altria does not expect NJOY to return to the market in 2026.
The company also expects only limited impact from regulatory and enforcement efforts aimed at cracking down on an expanding market for unregulated vaping products in the United States - a factor that has damaged sales for both cigarettes and e-cigarettes at Altria and its competitors. Meanwhile, demand growth for its nicotine pouch brand On! has slowed amid intensifying competition, notably from rival products such as British American Tobacco's Velo.
Margin management
With sales of traditional tobacco products in decline and challenges growing for newer product lines, Altria has relied on price increases as a primary tool to protect margins. The company indicated those pricing actions are central to its ability to preserve profitability in the near term.
Leadership transition
Altria said Chief Executive Officer Billy Gifford will retire in May after more than five years leading the company. Finance chief Salvatore Mancuso is slated to succeed Gifford as CEO.
Note: This article reports the company's own guidance, recent quarterly results, product performance details, competitive references and leadership changes as disclosed by Altria.