By Timothy S. Donahue

Top Takeaways:

• Higher Guidance: Altria raised its 2026 adjusted EPS outlook to $5.66–$5.74.
• Cigarette Profits: Smokeable adjusted operating income rose 3.9% despite declining cigarette shipments.
• Pouch Competition: on! shipments grew 13.3%, but its nicotine pouch market share fell 1.3 percentage points.

Altria is selling fewer cigarettes, earning more from them, and fighting to keep pace in nicotine pouches. That combination helped lift third-quarter earnings and prompted the company to raise its full-year outlook.

The Richmond, Virginia-based tobacco company reported on Oct. 29 that third-quarter net revenues increased 1% to $6.13 billion, while revenues excluding excise taxes rose 3.6% to $5.44 billion. Adjusted diluted earnings per share increased 4.8% to $1.52, and reported EPS climbed 7.1% to $1.51.

Altria raised its 2026 adjusted EPS guidance to $5.66–$5.74, reflecting 4.5% to 6% growth over 2025. The company also announced a $1 billion expansion of its share repurchase program, which now extends through December 2027.

“Altria delivered strong financial performance in the third quarter, growing adjusted diluted earnings per share by 4.8%, while continuing to invest in our Vision and building on our foundation for the future,” said CEO Sal Mancuso.

The company’s smokeable products business continued to generate higher profits despite declining cigarette consumption. Adjusted operating companies’ income increased 3.9% to $3.07 billion, supported by higher pricing and increased refunds of taxes and duties paid on imported cigarettes.

“In smokeable products, PM USA grew operating companies income through its data-driven, total portfolio approach, with Cowboy Cut strengthening Marlboro’s premium position and Basic continuing to gain share in discount,” Mancuso said.

The company’s smoke-free business presented a more complex picture.

Shipments of on! nicotine pouches increased 13.3% to 47.8 million cans, up from 42.2 million a year earlier. However, on!’s share of the nicotine pouch category fell 1.3 percentage points to 13.5%, including a 0.9-point sequential decline.

Nicotine pouches accounted for 61.2% of the broader U.S. oral tobacco category, up 5.8 percentage points from a year earlier, underscoring the category’s continued expansion even as Altria’s share declines.

Helix, Altria’s nicotine pouch subsidiary, expanded PLUS 12-milligram products nationwide during the quarter and introduced Blueberry Mint and Mango Pineapple flavors in 6-, 9-, and 12-milligram strengths. A Watermelon Mint extension is planned for select retailers in the fourth quarter.

“In smoke-free, Helix made meaningful progress by expanding on! PLUS 12-milligram nationwide, investing in brand-building initiatives and preparing for its next wave of innovation,” Mancuso said.

Altria’s broader oral tobacco segment, which includes Copenhagen and Skoal, continued to face pressure. Third-quarter shipments declined 4.3% to 170.6 million cans, and adjusted operating income fell 3.7% to $443 million.

Copenhagen shipments declined 10.1%, and Skoal volumes fell 12.6%, more than offsetting on!’s gains.

Altria estimated that total U.S. oral tobacco industry volume increased by 5.5% over the six months ended September 30, driven primarily by nicotine pouch growth.

The company also reiterated that its full-year guidance assumes NJOY ACE will not return to the U.S. market in 2026. The product remains subject to U.S. International Trade Commission orders that restrict its importation and sale.

For the first nine months of 2026, Altria generated $17.67 billion in net revenue, up 1.4%, while adjusted diluted EPS increased 5.1% to $4.33.

Shareholder returns remained a priority. Altria repurchased $400 million of shares in the quarter and paid $1.7 billion in dividends. Its August dividend increase raised the annualized payout to $4.44 per share.

“Our highly cash-generative businesses supported significant returns to shareholders through dividends and share repurchases, while we continued to invest in support of our Vision,” Mancuso said.

The company’s raised guidance reflects confidence in its earnings performance despite continued declines in cigarette volume, intensifying competition in nicotine pouches, and the absence of NJOY ACE.

“Our strong performance through the first nine months and confidence in our full-year plan allowed us to raise our earnings guidance for the year,” Mancuso said.

For Altria, the immediate financial formula remains effective: higher cigarette prices are supporting earnings as the company invests in smoke-free products. The longer-term challenge is converting rising nicotine pouch demand into sustained market-share gains.

The department said the operation reflects ongoing cooperation among law enforcement and regulatory agencies to address illegal tobacco distribution and counterfeit merchandise in Los Angeles.