Altria Earnings Fall Short Amid Declining Cigarette Sales

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Altria, the maker of Marlboro cigarettes, reported flat earnings in the fourth quarter due to declining cigarette sales and challenging competition for its newer nicotine products. The company's revenue slid 2% to $5.8 billion, mainly driven by lower cigarette sales, as tobacco companies continue to manage shrinking sales of their main product category.

Why it matters

Altria's struggles highlight the broader challenges facing the tobacco industry, as consumers increasingly turn to alternative nicotine products like unauthorized disposable e-cigarettes, which often come in fruit and candy flavors. The company's efforts to diversify into next-generation products like e-cigarettes and nicotine pouches have also faced setbacks, underscoring the competitive pressures in these emerging markets.

The details

Altria reported adjusted net income of $1.30 per share, falling short of Wall Street expectations of $1.32 per share. The company's nicotine pouches brand, on! Plus, saw its market share shrink to about 13%, down from around 18% in the prior year, as it faced pricing competition from Philip Morris International's dominant Zyn brand. Altria also took a $1.3 billion charge on the value of its vaping business after international trade regulators ruled that the company's NJOY Ace products infringed on patents held by Juul.

• Altria reported its fourth-quarter earnings on January 29, 2026.
• In December 2025, the FDA officially authorized Altria's on! Plus nicotine pouches in several flavors.

What they’re saying

What’s next

Altria plans to expand its on! Plus nicotine pouches at the regional and then national level later this year, with the company saying it will use various introductory price promotions as part of its strategy.