10-QPeriod: Q2 FY2026

ALTRIA GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 30, 2026For Securities:MO

Summary

Altria Group, Inc. (MO) reported its financial results for the quarter and six months ended June 30, 2026. For the six months, net earnings increased by 29.7% to $4.48 billion, or $2.67 per diluted share, up from $3.46 billion, or $2.04 per diluted share, in the prior year. This growth was driven by higher operating income, largely due to favorable comparisons from prior-year impairment charges and improved performance in its smokeable products segment. The company continues to execute its "Moving Beyond Smoking®" strategy, focusing on transitioning adult smokers to smoke-free alternatives and exploring new growth opportunities. Despite an overall increase in reported net earnings, the company's revenue growth was modest, with a 1.6% increase in net revenues for the six months to $11.54 billion. This was supported by higher pricing in its smokeable products segment, although this was partially offset by declining shipment volumes across most product categories, influenced by consumer discretionary income pressures and evolving preferences. The oral tobacco products segment experienced a 1.8% decline in net revenues, primarily due to lower shipment volumes. The company highlighted ongoing efforts to manage costs and navigate a challenging business environment characterized by regulatory scrutiny, excise taxes, and evolving consumer behaviors.

Key Highlights

  • 1Reported net earnings for the six months ended June 30, 2026, increased 29.7% to $4.48 billion, or $2.67 per diluted share, compared to $3.46 billion, or $2.04 per diluted share, in the same period last year.
  • 2Net revenues for the six months ended June 30, 2026, increased 1.6% to $11.54 billion, driven by higher pricing in the smokeable products segment, partially offset by declining shipment volumes.
  • 3The smokeable products segment's operating companies income (OCI) increased by 4.0% for the six months ended June 30, 2026, reflecting higher pricing and tax refunds, despite a decrease in shipment volume.
  • 4The oral tobacco products segment saw a 1.8% decrease in net revenues for the six months ended June 30, 2026, due to lower shipment volumes, with reported OCI declining by 12.4%.
  • 5Altria maintains a strong liquidity position with $2.4 billion in cash and cash equivalents and $3.0 billion in availability under its revolving credit agreement as of June 30, 2026.
  • 6The company returned $3.6 billion to shareholders through dividends in the first six months of 2026, maintaining its progressive dividend growth target.
  • 7Significant litigation expenses and asset impairment charges in the prior year contributed to the year-over-year increase in reported net earnings for the current period.

Frequently Asked Questions

For the six months ended June 30, 2026, Altria reported a significant increase in net earnings of 29.7% to $4.48 billion, or $2.67 per diluted share, compared to $3.46 billion, or $2.04 per diluted share, in the same period of 2025. This improvement was primarily driven by higher operating income, benefiting from favorable comparisons to prior-year asset impairment charges and solid performance in its smokeable products segment. Net revenues saw a modest increase of 1.6% to $11.54 billion.

The smokeable products segment showed resilience with a 1.7% increase in net revenues to $10.15 billion and a 4.0% rise in reported Operating Companies Income (OCI) to $5.62 billion, driven by higher pricing. However, shipment volumes declined. The oral tobacco products segment experienced a 1.8% decrease in net revenues to $1.38 billion, primarily due to lower shipment volumes, leading to a 12.4% drop in reported OCI.

Altria is executing its 'Moving Beyond Smoking®' strategy, aiming to transition adult smokers to smoke-free products, compete vigorously in smoke-free categories, and explore new growth opportunities beyond the United States and beyond nicotine. The company is focusing on its smoke-free products like oral nicotine pouches ('on!') and e-vapor, while managing its core combustible products through pricing and efficiency initiatives.

Altria faces several challenges, including ongoing litigation, evolving consumer preferences leading to declining cigarette volumes, regulatory actions by the FDA, excise tax increases, and competition from illicit and alternative nicotine products. The company also notes macroeconomic factors like inflation and geopolitical risks impacting consumer discretionary income.