ALTRIA GROUP, INC. Earnings Summary — Q1 2026

• Net income surged 102.7% YoY to $2.18 billion, benefiting from a stabilization in operating expenses compared to recent quarters.
• Revenue grew 5.3% YoY to $4.76 billion, showcasing the company's resilient pricing power in a declining volume market.
• Operating income rose to $2.96 billion, reflecting a significant margin expansion from 39.6% in Q1 2025 to over 62% in Q1 2026.
• The 'Moving Beyond Smoking' vision remains central, with heightened focus on NJOY and 'on!' oral nicotine segment execution.
• Total shares outstanding decreased by 1% YoY, extending the company's aggressive capital return program via repurchases.
• The company maintains a high cash conversion ratio, though the balance sheet remains burdened by prior-year impairment charges.

Management remains committed to its long-term vision of a smoke-free future, emphasizing the scaling of e-vapor and oral nicotine portfolios while leveraging Marlboro's pricing power to maintain cash flows.

Improving

A clean quarterly result without the massive impairment charges seen in late 2025 has restored confidence in the core operational efficiency.

The outlook remains centered on the legal and regulatory landscape regarding menthol bans and the successful national expansion of NJOY. Continued pricing power is expected to defend domestic tobacco margins.