Altria Group Inc. (NYSE:MO) stock rose on Thursday after the company reported better-than-expected third-quarter results and raised its outlook.

Management expressed confidence in achieving the revised outlook through continued investments.

Quarterly Highlights

Altria Group reported adjusted earnings per share of $1.52, beating the analyst consensus estimate of $1.51.

Quarterly sales rose 1% to $6.13 billion, topping the Street's view for $5.31 billion.

Sales were primarily driven by higher net revenues in the smokeable products segment. Revenues net of excise taxes increased 3.6% to $5.4 billion.

Adjusted diluted earnings per share increased 4.8% to $1.52, primarily driven by higher adjusted operating companies income and higher adjusted earnings from its investment in ABI.

As of Sept. 30, the company had cash and equivalents worth $2.7 billion.

Segment Highlights

In the Smokable Products segment, net revenues increased 0.8% to $5.4 billion, primarily driven by higher pricing, partially offset by higher promotional investments, lower shipment volume and a volume mix change.

The segment reported domestic cigarette shipment volume decreased 2.9%, primarily driven by the industry's decline rate.

Shipment volumes for Marlboro fell 6.4%.

However, despite economic pressures, Marlboro maintained its strong position in the premium cigarette segment, strengthened by the introduction of Cowboy Cut, which helped increase its share in the premium segment to 60%.

Marlboro retail share of the total cigarette category decreased 1.0 share point to reach 39.5%.

The Oral Tobacco Products' net revenues declined 0.1% year over year to $688 million as lower shipment volume and higher promotional investments mostly offset higher pricing.

The segment reported domestic shipment volume decreased 4.3%, primarily driven by retail share losses and trade inventory movements.

On! retail share of the oral tobacco category was 8.3%, an increase of 0.1 share point versus the prior year, driven by solid shipment volume growth.

Returns to Shareholders

Altria repurchased 5.9 million shares for $400 million and paid dividends of $1.7 billion during the quarter.

The company's board authorized a $1 billion expansion of its existing share-repurchase program, expiring on Dec. 31, 2027.

In August, the company increased its quarterly dividend by 4.7% to $1.11 per share, marking its 61st dividend increase.

Portfolio Highlights and Management Commentary

The company expanded its nicotine pouch category with new flavors and a national rollout of on! PLUS 12 milligram products, contributing to a 13.3% increase in shipment volume for the on! brand in the quarter.

Management said persistent inflation and elevated gasoline prices continue to pressure consumer spending. However, cigarette volume declines have moderated as fewer consumers migrate to illicit e-vapor products.

In a statement, CEO Sal Mancuso highlighted PM USA's data-driven portfolio strategy, which helped increase operating income, with Marlboro Cowboy Cut strengthening the brand's premium position and Basic gaining share in the discount segment.

Raises Outlook

Altria Group raised its 2026 adjusted EPS guidance to $5.66 to $5.74, up from the prior range of $5.61 to $5.72. Analysts expect EPS of $5.67.

Management continues to factor in macroeconomic uncertainty facing adult nicotine consumers, moderated e-vapor industry growth, investments in smoke-free products and the assumption that NJOY ACE will not return to the market during 2026.

Regulatory challenges continue as Altria, through Helix and NJOY, filed a lawsuit against the FDA to demand a more efficient product authorization process, aligning with the company's focus on harm reduction and market regulation.

MO Price Action: Altria Group shares were up 3.63% at $75.64 on Thursday. The stock is approaching its 52-week high of $77.06, according to market data.