Altria Group (MO) raised its 2026 full-year adjusted diluted earnings-per-share outlook after third-quarter adjusted EPS growth accelerated to 4.8%, from 2.8% in the second quarter.

The tobacco company now expects 2026 adjusted diluted EPS of $5.66 to $5.74, or 4.5% to 6.0% growth from a $5.42 base in 2025. About three months earlier it had narrowed the range to $5.61 to $5.72, or 3.5% to 5.5% growth. Chief Executive Officer Sal Mancuso said strong performance through the first nine months and confidence in the full-year plan allowed the raise.

Net revenues increased 1.0% to $6.13 billion, after a 0.1% increase in the second quarter. Revenues net of excise taxes rose 3.6% to $5.44 billion. Reported diluted EPS was $1.51. The company said the adjusted EPS increase was driven primarily by higher adjusted operating companies income and higher adjusted earnings from its investment in ABI.

Smokeable products remained the earnings engine. Segment net revenues increased 0.8% to $5.43 billion, with higher pricing offset by higher promotional investments, lower shipment volume and a higher share of discount volume. Revenues net of excise taxes rose 3.7% to $4.76 billion. Adjusted OCI increased 3.9% to $3.07 billion, and adjusted OCI margins rose 0.1 percentage points to 64.5%. The company attributed the OCI increase primarily to higher pricing and higher refunds of taxes and duties on imported cigarettes.

Domestic cigarette shipment volume decreased 2.9% to 15.73 billion sticks. Marlboro volume fell 6.4% to 13.32 billion sticks. Discount volume rose 40.5% to 1.70 billion sticks. When adjusted for trade inventory movements, the company estimated segment volume declined 4% and total industry volume declined 5%. Marlboro retail share of the total cigarette category was 39.5%, down 1.0 percentage points versus the prior year and unchanged sequentially. Marlboro share of the premium segment was 60.0%. Industry discount retail share was 34.1%, which the company said reflected continued discretionary-income pressures on adult smokers.

Oral tobacco products were the offset. Net revenues decreased 0.1% to $688 million. Adjusted OCI decreased 3.7% to $443 million, and adjusted OCI margins fell 2.8 percentage points to 66.4%. The company cited lower shipment volume, higher costs and higher promotional investments, partially offset by higher pricing. Domestic shipment volume decreased 4.3% to 170.6 million cans. Copenhagen fell 10.1% to 79.8 million cans and Skoal fell 12.6% to 27.1 million cans. on! volume rose 13.3% to 47.8 million cans. on! retail share of the oral tobacco category was 8.3%. on! share of the nicotine pouch category was 13.5%.

Helix expanded on! PLUS nationwide in 12-milligram nicotine and introduced Blueberry Mint and Mango Pineapple at retail. The company said it plans to add Watermelon Mint in the fourth quarter in select retail locations.

Cash returns continued. In the third quarter Altria repurchased 5.9 million shares at an average price of $68.52, for $400 million. The board authorized a $1 billion expansion of the existing share-repurchase program, which now expires December 31, 2027. The company paid dividends of $1.7 billion in the quarter. In August the board raised the regular quarterly dividend 4.7%, the 61st increase in 57 years, to an annualized $4.44 a share. Altria said it maintains a progressive dividend goal targeting mid-single-digit dividend-per-share growth annually through 2028.

Full-year guidance still contemplates moderated e-vapor industry growth, macroeconomic uncertainty for adult nicotine consumers, contract-manufacturing investments, no 2026 return of NJOY ACE, reinvestment of Optimize & Accelerate savings, and Vision spending. The range excludes special items that management said it cannot estimate on a forward-looking basis.