London, May 30, 2026, 11:20 (BST)
British American Tobacco is under pressure heading into the new week. London shares dropped each session after the UK bank holiday, finishing Friday at 4,591p, down 2.46% for the day and about 5.8% over the week. Friday’s loss was more than the FTSE 100’s 0.16% dip.
The stock doesn’t have much time to settle before BAT’s pre-close trading update for the first half of 2026, set for Tuesday, June 2. This update gives investors the company’s final guidance before the quiet period. BAT said it will release the statement at 7:00 a.m. BST, with a call for investors afterward at 8:30 a.m., hosted by Chief Executive Tadeu Marroco, interim finance head Javed Iqbal, and investor relations lead Victoria Buxton.
BAT shares saw a tough week as the London Stock Exchange closed on Monday, May 25, for the Spring Bank Holiday. Investors only had four trading days to move positions before the weekend.
BAT spelled it out in February: the group sees 2026 at the lower end of its medium-term targets, with 3%-5% revenue growth, 4%-6% growth in adjusted operating profit, and 5%-8% growth in adjusted diluted EPS. Adjusted numbers leave out unique items; constant currency takes out FX changes.
Marroco’s comments from February are up for review again. Back then he called the recent gains from Vuse, BAT’s vape brand, “encouraging” and said the brand was “well positioned” to gain from tougher U.S. enforcement. He also said Velo nicotine pouches had climbed to No. 2 in U.S. volume and value share. British American Tobacco
Buybacks are giving BAT some support, but selling last week continued anyway. BAT said on May 26 it bought 562,557 ordinary shares between May 18 and May 22 as part of its buyback. The company will cancel the shares, lowering the share count.
U.S. regulatory headlines showed a change in mood, at least in theory. Reuters said the Food and Drug Administration’s softer approach on new vape and nicotine pouch rules could put more products on shelves during review, using what’s called enforcement discretion. That means regulators may let some unauthorized products slide for now. Barclays analyst Pallav Mittal said the move could “catalyse sales” for the sector. Reuters also said Philip Morris International might get a lift from more Zyn nicotine pouch sales, and BAT’s Reynolds American could test flavored versions of Vuse. Reuters
There’s a catch here. Brian King, who used to lead the FDA’s tobacco center, said the move was “a longstanding ask by industry.” Vaughan Rees at Harvard said adult smokers want options. But Mitch Zeller, another former head at the FDA, warned political pressure was “really bad for public health.” For BAT shareholders, easier rules in the U.S. could help sentiment, though it could also bring more legal, political, or public-health backlash.
Europe gives BAT another headache. On May 26, BAT said it started a drive to pull in consumers and retailers as the European Commission reviews its tobacco and nicotine rules. The company said the Commission has signaled it may restrict or ban some smokeless products. If Europe gets tougher while the U.S. eases up, BAT’s smokeless growth could look less valuable to investors.
BAT’s stock could be driven more by Tuesday’s update than Friday’s drop. Investors want to see if U.S. momentum is there, if Vuse shows gains, and if the company’s second half can still deliver enough profit for the 2026 range.
Brokers say a cleaner update won’t erase BAT’s tobacco overhang from regulation, cigarette volume drops, illegal vapes, or tax pressure. But it could remind investors why BAT still gets a look as a big-cap income buy. A softer message may signal last week’s fall is about more than just position moves going into the weekend—it could be the beginning of a new phase.
