MO · Q2 FY2026
ALTRIA GROUP, INC. Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $6.11B | $6.10B (yr ago) | Beat |
| EPS | $1.37 | $1.41 (yr ago) | Miss |
| Free Cash Flow | $0.66B | $0.17B (yr ago) | Beat |
| Gross Margin | 62.5% | 63.1% (yr ago) | Miss |
| Operating Margin | 51.3% | 52.9% (yr ago) | Miss |
What changed
Q2 FY2026 revenue was effectively flat year over year at $6.11 billion, while EPS declined 2.8% to $1.37. Free cash flow improved by $0.49 billion to $0.66 billion, but gross margin contracted 0.6 percentage points and operating margin declined 1.6 points.
Impact on the investment thesis
The quarter does not justify a material valuation change: stronger cash conversion was offset by lower EPS and margins. With no prior SageNoodle fair value, we establish a $69 base-case value, approximately equal to the current price.