MO · Altria Group, Inc.

Altria delivered a strong Q1 2026 performance with adjusted diluted EPS rising 7.3% to $1.32, fueled by higher adjusted operating companies income (OCI) and reduced shares outstanding from repurchases. CEO Billy Gifford highlighted growth in smokeable products, where Marlboro bolstered its premium segment position amid disciplined portfolio execution by PM USA, alongside solid on! performance and Helix expansion in oral tobacco. Smokeable products drove net revenues up 2.9% to $4,758 million (net of excise $4,110 million, +5.2%), with adjusted OCI up 6.3% to $2,676 million and margins expanding 70 basis points to 65.1%, supported by pricing gains and 2026 tax refunds despite volume declines and higher promotions. Domestic cigarette shipments fell 2.4% (adjusted -4%), with Marlboro at 39.7% total share (-1.4 pp) but 59.5% premium share (+0.1 pp); discount share rose to 33.3%. Oral tobacco net revenues grew 2.3% to $669 million (net of excise $647 million, +2.9%), but adjusted OCI edged up only 0.2% to $436 million with margins contracting 180 basis points to 67.4% due to volume drops (-3.1%, adjusted -8.5%), higher costs, and mix shift toward on! (up 17.6%). Reported EPS surged over 100% to $1.30, aided by absence of 2025's $873 million e-vapor goodwill impairment and NJOY-related costs. Altria reaffirmed full-year adjusted EPS guidance at $5.56-$5.72 (2.5%-5.5% growth from 2025's $5.42), now expecting more balanced H1/H2 growth amid moderated e-vapor dynamics, macro pressures on adult nicotine consumers, no NJOY ACE return, and investments in manufacturing and Vision initiatives. Strong cash generation enabled $1.8 billion dividends and $280 million share repurchases (4.5 million shares at $62.33 average), with $720 million left in the $2 billion program.