Altria Shares Surge to New Peak Amid Strategic Pivot

Altria stock surges to new high, up 20% YTD. Company reaffirms 2026 EPS guidance of $5.56-$5.72 and maintains strong 6.1% dividend yield while pivoting to smoke-free products.

Shares of tobacco giant Altria Group Inc. reached a significant milestone, closing at a new 52-week high of $69.27 on February 24, 2026. The stock has demonstrated remarkable strength, posting gains exceeding 11% over the preceding 30-day period and climbing more than 20% year-to-date, positioning it as a standout performer within its sector. The company's current market valuation stands at approximately $115.7 billion.

Management Confidence and Financial Outlook

A key driver behind the recent investor confidence is the reaffirmed financial guidance from Altria's leadership. During the February Consumer Analyst Group of New York conference, executives confirmed the full-year 2026 adjusted earnings per share (EPS) forecast. The company anticipates EPS in the range of $5.56 to $5.72, representing projected growth of 2.5% to 5.5% compared to the prior year's result of $5.42.

This guidance follows the company's fourth-quarter 2025 performance, which reported revenue of $5.08 billion and earnings per share of $1.30. The confirmation of annual targets signals to the market that Altria is navigating regulatory challenges effectively. Looking further ahead, some analysts project the company could achieve revenue of $20.3 billion and profit of $9.1 billion by 2028.

Capital Return: A Dual Approach

Altria continues to appeal to income-focused investors through its substantial dividend. The annual payout is set at $4.24 per share, which translates to a dividend yield of roughly 6.1% at recent price levels.

Complementing this, the company is actively executing a substantial share repurchase initiative. In 2025, Altria allocated $1 billion to buy back 17.1 million of its own shares at an average price of $58.50. An additional $1 billion remains authorized for share repurchases under the current program, which is valid through the end of 2026.

Strategic Shift to Smoke-Free Future

The core of Altria's long-term strategy is an accelerated pivot toward smoke-free products. Significant investments are being channeled into oral nicotine pouches and related categories. Efforts to bolster contract manufacturing capabilities and combat the illicit trade in tobacco products have been viewed positively by the investment community.

Challenges persist in the e-vapor segment, however. Management has confirmed that the NJOY ACE product will not re-enter the market in 2026. Despite this regulatory setback, the company's maintained profit outlook indicates that robust growth in oral tobacco products and strong pricing power within its traditional cigarette business are expected to offset near-term pressures.