Altria Group Q2 Earnings Call Highlights

Altria raised its 2026 adjusted EPS guidance to $5.61–$5.72, after adjusted EPS rose 2.8% year over year to $1.48 in the second quarter. Results were supported by cigarette pricing, despite declining volumes and inflation-driven consumer pressure. Smokable-products profit increased 2.4% to $3 billion, while cigarette volumes fell as consumers shifted toward discount products. Marlboro’s retail share declined, but discount brand Basic gained share. Nicotine pouches remained a key growth area: on! PLUS expanded to 120,000 stores, and on! retail share rose to 8.6%. Altria also plans a broader national rollout, new flavors and a disciplined reentry into e-vapor with NJOY ACE.

Altria Group NYSE: MO reported higher adjusted earnings for the second quarter and first half of 2026, supported by pricing in its smokable-products business, growth in its nicotine pouch portfolio and continued shareholder returns. The company raised the lower end of its full-year adjusted earnings guidance while citing ongoing pressure on nicotine consumers from inflation and elevated gas prices. Adjusted diluted earnings per share rose 2.8% year over year to $1.48 in the second quarter and increased 4.9% to $2.80 for the first six months of 2026, Chief Financial Officer Heather Newman said during the company’s earnings call.

Altria now expects 2026 adjusted diluted EPS of $5.61 to $5.72, compared with prior guidance that had a lower starting point. The updated range represents growth of 3.5% to 5.5% from adjusted EPS of $5.42 in 2025.

Adjusted operating companies income in Altria’s smokable-products segment increased 2.4% to $3 billion in the second quarter and rose 4.2% to $5.7 billion in the first half. Adjusted OCI margins reached 64.8% for the quarter and 64.9% for the first half.

Reported domestic cigarette volumes declined 3.2% in the second quarter and 2.8% in the first half. Adjusting for trade inventory movements, Altria estimated its domestic cigarette volumes fell 4.5% in the quarter and 4% in the first half. The company estimated that industry cigarette volumes, adjusted for the same factor, declined 5% in both periods. Newman said the industry’s moderated volume declines marked the fourth consecutive quarter of improvement, primarily reflecting reduced movement from cigarettes into illicit flavored disposable e-vapor products. However, economic pressure continued to drive consumers toward discount cigarette products. Discount retail share increased 2.6 percentage points in both the second quarter and first half, according to the company. Marlboro’s retail share declined 1.5 percentage points from a year earlier, though its premium-segment share held at 59.6% and increased one-tenth of a point sequentially. Basic, Altria’s discount offering, gained 2.3 share points year over year and three-tenths of a point sequentially. CEO Sal Mancuso said the company is using targeted revenue-growth-management tools to participate in the discount segment without seeking to accelerate the segment’s growth. Smokable price realization was 4.5% in the quarter, reflecting strong Marlboro pricing that was partly offset by the mix effect of higher Basic volumes. Mancuso said Marlboro’s retail price was up about 7% year over year in the second quarter.

In oral tobacco, Altria said nicotine pouches continued to drive category growth. The company estimated that oral tobacco-category volume increased 6% over the past six months, while nicotine...