Altria Group, Inc. (MO) shares are trading higher on Thursday after the tobacco giant lit up the first quarter with strong pricing power and steady demand in its core smokeable business. Marlboro's grip on the premium segment held firm, even as shifting nicotine trends and macro pressure linger.
The company reported first-quarter adjusted earnings per share of $1.32, beating the analyst consensus estimate of $1.25. Quarterly sales of $5.428 billion (+3.2% year over year) outpaced the Street view of $4.576 billion.
“Our smokeable products segment generated strong income growth,” said CEO Billy Gifford. “Marlboro strengthened its position in the premium segment, and PM USA continued to execute its total portfolio strategy with discipline. In the oral tobacco products segment, on! performed well in a highly competitive marketplace and Helix expanded on! PLUS nationwide.”
In the Smokable Products segment, net revenues increased 2.9%, primarily driven by higher pricing. The Oral Tobacco Products unit gained 2.3% year over year. Quarterly operating income jumped 65.3% year over year to $2.956 billion. As of March 31, the company had cash and equivalents worth $3.531 billion.
Altria affirmed its 2026 adjusted EPS guidance of $5.56–$5.72, in line with the $5.62 analyst estimate. The company said strong first-quarter results should lead to more balanced adjusted EPS growth across both halves of 2026. It added that reaffirmed guidance reflects slower e-vapor industry growth and rising macroeconomic pressure on adult nicotine consumers.
Altria Group shares are trading higher by 5.70% to $72.03 at publication on Thursday.
