Can Altria Sustain EPS Growth Momentum Through 2026?

As Altria Group, Inc. MO 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 ComparisonIn 2026, Philip Morris International Inc. PM 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 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 & EstimatesShares of Altria have gained 8.9% in the past month compared with the industry’s growth of 6.8%.Image Source: Zacks Investment ResearchFrom 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 ResearchThe 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 ResearchAltria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks