London, Feb 13, 2026, 07:58 GMT — Premarket
- BAT slipped 0.5% to finish at 4,404p on Thursday, just before London’s Friday open
- After reporting full-year numbers, the company signaled it may cut jobs as part of a drive to boost productivity using AI.
- Attention shifts to cost-cutting moves, how the buyback plays out, and what the U.S. plans to do about illegal disposable vapes.
Shares of British American Tobacco p.l.c. (BATS.L) slipped 0.5% to close at 4,404 pence on Thursday, after moving in a range from 4,278 to 4,484 pence. The company flagged to investors that its push for productivity through AI might lead to job reductions, keeping attention on the stock before Friday’s session. 1
Here’s why it’s worth paying attention: BAT is under pressure to deliver fatter profits from traditional cigarettes, even as it nudges customers over to newer nicotine options. Shareholders want their payouts, sure, but they’re also watching for any stumbles as the company pivots.
Tension has only grown after the stock’s solid performance this past year. Sceptics remain when it comes to “modern oral” and vaping—those doubts haven’t faded. And, once again, the U.S. illicit trade story isn’t going away.
Interim CFO Javed Iqbal acknowledged the productivity push “will have an impact on the size of the organisation,” but declined to specify how many jobs might be affected. The company remains in the consultation process. 2
BAT posted full-year revenue of 25.61 billion pounds for 2025, slipping 1.0% on a reported basis but climbing 2.1% at constant exchange rates — that metric smooths out currency effects. Adjusted operating profit rose 2.3% to 11.279 billion pounds, with adjusted diluted EPS up 3.4% to 340.5 pence, according to the report. 3
BAT reaffirmed its mid-term growth targets for 2026, steering guidance toward the lower end. The company bumped its dividend up by 2.0%, setting it at 245.04 pence per share, and rolled out plans for a £1.3 billion buyback in 2026. “I am pleased with our accelerating momentum through 2025,” CEO Tadeu Marroco said in the results statement. 4
Broker opinions split. Jefferies’ Andrei Andon-Ionita stuck with a buy call and left his 5,200 pence target unchanged, a note seen on MarketScreener showed. 5
RBC stuck to its sell rating, holding the target at 3,600 pence. JP Morgan, on the other hand, stayed neutral with a 4,150 pence target, according to MarketScreener’s note summaries. 6
Investors across the industry are keeping an eye on how aggressively U.S. regulators target disposable vapes. BAT flagged that a possible U.S. import ban on unauthorized products might slash the unregulated market by as much as a third. The company figures about 70% of U.S. e-cigarette sales come from unregulated devices. Still, Marroco played down the risk, saying any blow likely wouldn’t count as a “material impact” until supply-chain inventories run down. 7
BAT reported picking up 129,826 shares on Feb. 11, paying between 4,390 and 4,450 pence apiece, with plans to cancel the lot. The buybacks have helped prop up the stock—especially as investors continue to look for solid proof that BAT’s newer categories can deliver growth without relying on steep discounts. 8
But plenty could still sour here. Dragged-out consultations on job cuts, or a tougher-than-expected crackdown on the illicit vape market, could rattle sentiment fast — especially with 2026 growth already pegged at the low end.
On Friday, all eyes turn to BAT as London trading resumes, with investors keen for more specifics on job cuts and the buyback schedule. Attention is also fixed on the looming U.S. International Trade Commission ruling, due in March, followed by a 60-day presidential review—a sequence BAT calls out as the next major milestone. 9
