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Can Altria Sustain EPS Growth Momentum Through 2026?
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Key Takeaways
Altria guides 2026 adjusted EPS of $5.56-$5.72, up about 2.5-5.5%.
MO offsets 10% shipment drop with price hikes, keeping margins above 60%.
$1B buybacks and smoke-free investments shape Altria's EPS path through 2026.
As Altria Group, Inc. (MO - Free Report) moves further into 2026, the sustainability of its earnings per share (EPS) growth is drawing close attention. The company expects adjusted EPS of $5.56 to $5.72, representing growth of about 2.5% to 5.5%. While that outlook indicates steady performance, the path to achieving it implies careful balancing between declining cigarette volumes and disciplined financial management.
One of the biggest supports for earnings remains pricing power. Cigarette shipment volumes dropped roughly 10% in 2025, continuing a long-term downward trend. To counter this, Altria has leaned on price increases, helping maintain strong profitability and adjusted operating margins above 60%. Going forward, a key consideration will be the extent to which further pricing increases can be absorbed without materially affecting purchasing behavior or market dynamics.
Share repurchases also play a meaningful role in EPS growth. With $1 billion remaining under its repurchase authorization through the end of 2026, the company can enhance per-share earnings by reducing shares outstanding, even if overall profit growth remains modest. This capital allocation approach continues to support per-share performance.
At the same time, Altria is investing in smoke-free products, including its on! nicotine pouch portfolio and NJOY e-vapor offerings. These categories are expanding but require ongoing investment, which may limit their near-term contribution to earnings.
Overall, Altria’s EPS growth in 2026 appears attainable, with results likely to be supported more by pricing actions and capital allocation measures.
MO vs. PM and TPB: A 2026 EPS Growth Comparison
In 2026, Philip Morris International Inc. (PM - Free Report) is positioned to sustain strong earnings momentum, projecting adjusted EPS growth of 11.1-13.1%. This outlook is supported by the continued expansion of its smoke-free business, which now contributes more than 40% of Philip Morris' revenues. With IQOS leading the heat-not-burn category and ZYN gaining traction in nicotine pouches, Philip Morris expects ongoing volume growth and margin improvement to support long-term value creation.
Turning Point Brands, Inc. (TPB - Free Report) is positioned to support steady EPS growth in 2026 through a combination of pricing discipline, cost control and expansion in modern oral nicotine products. Turning Point Brands continues to benefit from resilient demand for Zig-Zag and Stoker’s while investing to scale its nicotine pouch portfolio. For Turning Point Brands, sustained earnings growth will largely depend on maintaining margin stability and the pace of modern oral category expansion.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 8.9% in the past month compared with the industry’s growth of 6.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 12.02X, down from the industry’s average of 16.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings per share has inched down 1 cent to $5.57 and up 4 cents to $5.75, respectively, in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Altria Sustain EPS Growth Momentum Through 2026?
Key Takeaways
As Altria Group, Inc. (MO - Free Report) moves further into 2026, the sustainability of its earnings per share (EPS) growth is drawing close attention. The company expects adjusted EPS of $5.56 to $5.72, representing growth of about 2.5% to 5.5%. While that outlook indicates steady performance, the path to achieving it implies careful balancing between declining cigarette volumes and disciplined financial management.
One of the biggest supports for earnings remains pricing power. Cigarette shipment volumes dropped roughly 10% in 2025, continuing a long-term downward trend. To counter this, Altria has leaned on price increases, helping maintain strong profitability and adjusted operating margins above 60%. Going forward, a key consideration will be the extent to which further pricing increases can be absorbed without materially affecting purchasing behavior or market dynamics.
Share repurchases also play a meaningful role in EPS growth. With $1 billion remaining under its repurchase authorization through the end of 2026, the company can enhance per-share earnings by reducing shares outstanding, even if overall profit growth remains modest. This capital allocation approach continues to support per-share performance.
At the same time, Altria is investing in smoke-free products, including its on! nicotine pouch portfolio and NJOY e-vapor offerings. These categories are expanding but require ongoing investment, which may limit their near-term contribution to earnings.
Overall, Altria’s EPS growth in 2026 appears attainable, with results likely to be supported more by pricing actions and capital allocation measures.
MO vs. PM and TPB: A 2026 EPS Growth Comparison
In 2026, Philip Morris International Inc. (PM - Free Report) is positioned to sustain strong earnings momentum, projecting adjusted EPS growth of 11.1-13.1%. This outlook is supported by the continued expansion of its smoke-free business, which now contributes more than 40% of Philip Morris' revenues. With IQOS leading the heat-not-burn category and ZYN gaining traction in nicotine pouches, Philip Morris expects ongoing volume growth and margin improvement to support long-term value creation.
Turning Point Brands, Inc. (TPB - Free Report) is positioned to support steady EPS growth in 2026 through a combination of pricing discipline, cost control and expansion in modern oral nicotine products. Turning Point Brands continues to benefit from resilient demand for Zig-Zag and Stoker’s while investing to scale its nicotine pouch portfolio. For Turning Point Brands, sustained earnings growth will largely depend on maintaining margin stability and the pace of modern oral category expansion.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 8.9% in the past month compared with the industry’s growth of 6.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 12.02X, down from the industry’s average of 16.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings per share has inched down 1 cent to $5.57 and up 4 cents to $5.75, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.