NEW YORK, July 30, 2026, 09:06 EDT – Altria Group Inc NYSE:MO shares dropped as weaker performance from its Marlboro brand was partially offset by gains in discount labels, while sales of its on! nicotine pouch also declined.
- Altria shares were seen down 3.1% at $72.62 ahead of main NYSE trading.
- Shipments in the discount segment surged by 67.3%, compensating for approximately 54% of the decline in premium volume.
- Revised 2026 adjusted earnings outlook was tightened to a range of $5.61 to $5.72 per share.
Altria Group, Inc. shares declined ahead of Thursday’s market open following a slight earnings shortfall. The stock was at $72.62 at 8:11 a.m. EDT, compared with its previous close of $74.92 on Wednesday. NYSE regular trading was scheduled to start at 9:30 a.m. EDT.
The earnings miss was minor, but the change in product mix was significant. Adjusted earnings came to $1.48 per share, missing consensus by two cents. Shipments of discount cigarettes jumped, as Marlboro’s volume declined by 7.4%.
| Second-quarter measure | Altria result | Comparison | Difference |
|---|---|---|---|
| Adjusted EPS | $1.48 | $1.50 consensus | -$0.02 |
| Revenue, net of excise taxes | $5.356 billion | $5.35 billion consensus | Above estimate |
| Reported EPS | $1.37 | $1.41 in Q2 2025 | -2.8% |
| Adjusted EPS growth | 2.8% | Q2 2025 | Increase |
Adjusted numbers do not include designated special items.
Revenue excluding excise taxes climbed 1.2%, slightly beating forecasts. Adjusted earnings per share were also up year-on-year, supported by a lower share count.
Discount brands increased by 598 million sticks, while Marlboro and other premium brands fell by 1.11 billion. Discount growth made up roughly 54% of this drop. The share of discount brands in domestic shipments climbed to 9.6%, up from 5.5%.
| Cigarette group | Q2 shipments, millions | Year-on-year | Retail share | Share change |
|---|---|---|---|---|
| Marlboro | 13,389 | -7.4% | 39.5% | -1.5 points |
| Other premium | 678 | -5.7% | 2.1% | -0.1 point |
| Discount | 1,487 | +67.3% | 3.9% | +1.9 points |
| Total domestic | 15,554 | -3.2% | 45.5% | +0.3 point |
Altria’s reported volumes form the basis for shipment mix calculations. The retail-share figures are company-provided estimates, utilizing Circana and MSAi data.
Higher prices and duty refunds sustained the performance of the cigarette business. Adjusted operating companies income, which Altria uses as a profit metric for its segments, increased by 2.4%. The margin expanded by 0.3 percentage point, reaching 64.8%.
| Segment | Revenue net of excise taxes | Year-on-year | Adjusted segment profit | Year-on-year | Adjusted margin |
|---|---|---|---|---|---|
| Smokeable products | $4.660 billion | up 2.0% | $3.018 billion | up 2.4% | 64.8% |
| Oral tobacco products | $690 million | down 5.2% | $460 million | down 8.0% | 66.7% |
| Margin change | — | — | — | — | +0.3 / -2.0 points |
Of the two divisions, smokeables accounted for about 87% of both revenue and adjusted profit. This dependency highlights why Marlboro’s declines are critical. Gains in the discount segment supported overall cigarette market share, though shifted its composition.
Oral tobacco saw movement in the opposite direction. Shipments of on! dropped by 4.2%. At the same time, nicotine pouches accounted for 59.9% of the oral market, an increase of 8.1 percentage points. on!’s share of the pouch segment fell by 1.7 points to 14.4%.
Philip Morris International Inc. NYSE:PM posted a 2% increase in ZYN shipments in the last quarter. The company also launched a $1.2 billion manufacturing campus in Colorado this week. The move intensifies competition with Altria’s ongoing national rollout of on! PLUS.
Chief Executive Sal Mancuso described the first half as “steady, disciplined execution.” Altria reported that on! PLUS is now available in 120,000 stores across the country. Expanded 12-milligram distribution is set for the third quarter, with additional flavors to launch in the fourth. SEC
Altria raised the lower end of its guidance by five cents. The company now forecasts adjusted 2026 EPS in the range of $5.61 to $5.72. Expectations for increased cigarette import-export gains in the second half remain unchanged.
The capital expenditure outlook increased to $375 million-$450 million, up from the prior $300 million-$375 million range. The raised spending will back the integration of smokeless-tobacco production. Dividends for the first half amounted to $3.6 billion, and share repurchases totaled $335 million. An additional $665 million is still approved for buybacks.
| Preliminary market calculation | July 29 close | July 30 premarket, 8:11 EDT |
|---|---|---|
| Share price | $74.92 | $72.62 |
| Price / 2026 adjusted EPS midpoint | 13.2 times | 12.8 times |
| Annualized dividend yield | 5.66% | 5.84% |
| Change from prior close | — | -3.07% |
Figures are based on the $5.665 guidance midpoint and the presently declared $1.06 quarterly dividend, which equates to $4.24 on an annualized basis. Premarket numbers are provisional.
The drop automatically pushed the indicated dividend yield up to approximately 5.8%. The existing dividend rate represents roughly 75% of the adjusted EPS at the midpoint of guidance. This maintains coverage, but offers less cushion if cigarette performance worsens.
Risks: The outlook is based on NJOY ACE staying off shelves throughout 2026. The forecast also depends on increased import-export gains later in the year. Quicker declines in cigarette sales, losses in oral product share, regulatory action by the FDA, illicit vape activity, or litigation may negatively impact margins and cash distributions.
Thursday’s selloff raises doubts about growth quality, but not the cash generation of the cigarette business. Discount brands have given Altria breathing room. on! now needs to capitalize on this.
