Altria Reports $6.1B Q3 Revenue Amid 8.2% Decline in Cigarette Volumes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 10 2026
0mins
Should l Buy MO?
Source: Fool
- Revenue Overview: Altria generated approximately $6.1 billion in revenue in Q3 2025, with its tobacco business contributing about $5.4 billion, highlighting the company's heavy reliance on this segment, while the ongoing decline in tobacco volumes poses a significant threat to future growth.
- Volume Decline: The company's cigarette volumes fell by 8.2% year-over-year in Q3 2025, with a 10.6% drop over the first nine months, indicating severe challenges in its core business that force it to raise prices to offset the impact of declining sales.
- Strategic Missteps: Altria's decision to spin off its international operations to Philip Morris International resulted in losing its most lucrative market while simultaneously creating a new competitor, reflecting significant errors in strategic decision-making.
- Investment Risks: Altria's investments in the vaping and marijuana sectors have both resulted in losses, particularly with Juul and Cronos Group, leading to substantial charges for shareholders, which exacerbates the company's difficulties in finding long-term growth avenues.
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Analyst Views on MO
Wall Street analysts forecast MO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MO is 65.60 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 65.390
Low
57.00
Averages
65.60
High
72.00
Current: 65.390
Low
57.00
Averages
65.60
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Coca-Cola's Stability: As a blue-chip stock, Coca-Cola continues to deliver dividends with a third-quarter revenue growth of 5% year-over-year to $12.5 billion, demonstrating its strong resilience and profitability amid economic fluctuations.
- Philip Morris' Transformation: Philip Morris has pivoted to smoke-free products, which now account for 41% of its sales across 100 global markets, significantly expanding its distribution network following the $16 billion acquisition of Swedish Match in 2022, enhancing its competitive edge.
- Dividend Yield Comparison: Coca-Cola offers a dividend yield of 2.71%, while Philip Morris boasts a yield of 3.3%, both exceeding the S&P 500 average of 1.14%, showcasing their strong capabilities in returning value to investors.
See More
Emerging Markets Drive Transformation in Energy Products
- Market Growth Potential: The global nicotine pouch market is projected to reach $25.4 billion by 2030, indicating a rapid shift in consumer demand towards portable, liquid-free formats, thus providing significant market opportunities for related companies.
- Doseology Innovation: Doseology Sciences began pilot production of nicotine-free caffeine energy pouches in January 2026, utilizing a portable design to meet health-conscious consumers' demand for functional products, which is expected to significantly enhance its market competitiveness.
- Altria Financial Performance: Altria Group reported full-year net revenues of $23.3 billion for 2025, with a 4.4% growth in adjusted diluted EPS, returning $8 billion to shareholders through dividends and buybacks, showcasing its ongoing growth and strong financial health in the smoke-free product sector.
- GURU New Product Launch: GURU Organic Energy launched a new zero-sugar flavor containing 140 mg of natural caffeine, further expanding its product lineup to meet consumer demand for healthy beverages while enhancing brand visibility through digital marketing campaigns.
See More
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- Market Growth Potential: The global nicotine pouch market is projected to reach $25.4 billion by 2030, with a 29.6% annual growth rate, indicating a rapid shift in consumer demand towards portable, liquid-free formats, thereby providing significant market opportunities for related companies.
- Doseology Innovation: Doseology Sciences began pilot production of caffeine-based energy pouches in January 2026, launching the Feed That Brain brand to meet consumer demand for sugar-free, portable energy products, with a small direct-to-consumer test expected to gather feedback and drive subsequent commercialization.
- Altria Financial Performance: Altria Group reported an adjusted diluted EPS of $5.42 for the full year 2025, representing a 4.4% growth, while returning $8 billion to shareholders through dividends and share repurchases, showcasing the company's strategic progress and strong financial performance in the smoke-free product sector.
- GURU New Product Launch: GURU Organic Energy launched a new zero-sugar flavor, GURU Zero Dragon Fruit Cherry Sorbet, featuring 140 mg of natural organic caffeine, further expanding its product lineup to meet consumer demand for healthy beverages while enhancing brand visibility through digital marketing campaigns.
See More
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- Webcast Announcement: Altria will host a webcast on February 18, 2026, during the Consumer Analyst Group of New York conference in Orlando, Florida, starting at approximately 1:00 p.m. Eastern Time, showcasing its business strategies.
- Executive Participation: The webcast will feature presentations by CEO Billy Gifford and CFO Sal Mancuso, highlighting the company's future business direction and financial performance, aimed at bolstering investor confidence.
- Registration Requirement: Attendees must register in advance to listen to the webcast, with registration details posted on Altria's official website, ensuring transparency and convenience for participants.
- Replay Availability: After the live event, Altria will provide an archived version of the webcast on its website, allowing investors who could not attend in real-time to access the information, further enhancing communication efficiency between the company and its investors.
See More
Investors Shift to Defensive Stocks Amid Market Volatility
- Walmart Market Cap Milestone: Walmart's market capitalization surpassed $1 trillion for the first time, indicating strong consumer demand for affordable food and household essentials, which enhances its market position and future growth potential.
- Telecom Recovery: Under new CEO Dan Schulman, Verizon expects its free cash flow to grow by about 7% to over $21 billion by 2026, driven by nearly 1 million new retail postpaid phone subscribers, showcasing a recovery in its market competitiveness.
- Tobacco Industry Challenges: Despite declining smoking rates in the U.S., Altria paid $7 billion in dividends to shareholders in 2025 and projects adjusted earnings per share growth of up to 5.5% in 2026, demonstrating resilience in adversity.
- Market Risk Aversion: Amid significant declines in tech stocks and growing concerns over a bubble in AI stocks, investors are increasingly turning to defensive dividend stocks to reduce portfolio volatility and ensure stable cash flow, reflecting heightened sensitivity to market risks.
See More
Investors Shift to Stable Dividend Stocks Amid Market Volatility
- Market Volatility: The Nasdaq Composite Index fell 1.4% due to a sell-off in tech stocks, leading to a decrease in investor risk appetite and prompting a shift towards more stable investment options, particularly dividend stocks.
- Walmart Milestone: Walmart's market capitalization surpassed $1 trillion for the first time, indicating strong consumer demand for affordable food and household essentials, which further solidifies its market position as a discount retail giant.
- Telecom Recovery: Under new CEO Dan Schulman, Verizon expects its free cash flow to grow by about 7% to over $21 billion by 2026, driven by nearly 1 million new retail postpaid phone subscribers, showcasing its potential for market recovery.
- Tobacco Industry Challenges: Despite facing declining smoking rates in the U.S., Altria paid $7 billion in dividends to shareholders in 2025 and projects adjusted earnings per share growth of up to 5.5% in 2026, demonstrating resilience in challenging conditions.
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