British American Tobacco (NYSE:BTI) Posts Earnings Results

British American Tobacco (NYSE:BTI) announced its quarterly earnings results on Thursday. The company reported $125.53 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $8.93 billion for the quarter. British American Tobacco updated its FY 2026 guidance to 4.920-4.920 EPS.

Here are the key takeaways from British American Tobacco’s conference call:

• Company achieved strong smokeless momentum—adding 4.7 million new smokeless consumers (Modern Oral up ~48%) and VELO+ delivered >300% growth in the U.S., with BAT claiming global volume share leadership in Modern Oral.
• 2025 results landed at the top end of guidance (group revenue +2.1%, adjusted profit +3.4%, adjusted EPS +3.4%) and management expects to return to its Midterm Algorithm in 2026, but guidance is weighted to the lower end of the target ranges and H2‑weighted.
• Shareholder returns and balance‑sheet flexibility were strengthened with a 2% dividend increase and a rise in the 2026 share buyback to £1.3 billion, while net debt is trending toward the 2.0–2.5x adjusted EBITDA target.
• Productivity program progress underpins margins—BAT has delivered ~£1.2 billion of savings since 2023 and targets a further £2.0 billion by 2030, plus an incremental £600 million of Fit to Win savings by 2028 (with ~£500m of associated costs).
• Significant headwinds remain in vapor and parts of APMEA—vapor revenue declined ~9% (illicit product pressure in U.S./Canada) and APMEA revenue fell ~7.2% driven by regulatory/fiscal issues in Bangladesh and Australia, creating ongoing execution and regulatory risk.

British American Tobacco Stock Performance

BTI stock traded down $1.01 during midday trading on Friday, reaching $59.60. The company’s stock had a trading volume of 2,689,564 shares, compared to its average volume of 4,616,550. The business’s 50-day simple moving average is $57.99 and its 200-day simple moving average is $55.84. The company has a debt-to-equity ratio of 0.68, a current ratio of 0.87 and a quick ratio of 0.55. British American Tobacco has a 52 week low of $37.31 and a 52 week high of $63.03.

British American Tobacco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 12th. Investors of record on Friday, March 27th will be issued a $0.8349 dividend. This is an increase from British American Tobacco’s previous quarterly dividend of $0.74. This represents a $3.34 annualized dividend and a yield of 5.6%. The ex-dividend date is Friday, March 27th.

Institutional Investors Weigh In On British American Tobacco

Institutional investors have recently made changes to their positions in the stock. Capital International Investors lifted its stake in British American Tobacco by 0.5% in the fourth quarter. Capital International Investors now owns 64,389,481 shares of the company’s stock valued at $3,645,500,000 after buying an additional 332,062 shares during the period. Capital Research Global Investors raised its position in shares of British American Tobacco by 1.2% in the 4th quarter. Capital Research Global Investors now owns 22,333,402 shares of the company’s stock valued at $1,264,512,000 after acquiring an additional 264,511 shares during the period. Orbis Allan Gray Ltd boosted its stake in British American Tobacco by 20.7% during the 2nd quarter. Orbis Allan Gray Ltd now owns 14,503,968 shares of the company’s stock worth $686,473,000 after acquiring an additional 2,482,737 shares during the last quarter. Capital World Investors grew its holdings in British American Tobacco by 0.5% during the fourth quarter. Capital World Investors now owns 9,518,567 shares of the company’s stock valued at $538,935,000 after purchasing an additional 47,858 shares during the period. Finally, Bank of America Corp DE raised its holdings in British American Tobacco by 29.5% in the third quarter. Bank of America Corp DE now owns 6,934,792 shares of the company’s stock worth $368,099,000 after purchasing an additional 1,578,860 shares during the period. 16.16% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Citigroup reissued a “buy” rating on shares of British American Tobacco in a report on Friday, November 28th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of British American Tobacco in a report on Friday, November 28th. Kepler Capital Markets initiated coverage on shares of British American Tobacco in a research report on Friday, December 12th. They set a “buy” rating on the stock. Morgan Stanley restated an “underweight” rating on shares of British American Tobacco in a research report on Wednesday, December 10th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of British American Tobacco in a research note on Wednesday, January 21st. Seven analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $51.00.

British American Tobacco News Summary

Here are the key news stories impacting British American Tobacco this week:

• Positive Sentiment: Q4 results and profitability beat — BTI posted strong quarterly results (reported EPS and revenue ahead) and a jump in pretax profit, supporting near-term upside in the stock. MarketBeat Earnings & Call
• Positive Sentiment: Shareholder returns boosted — BTI raised its quarterly dividend ~13% to $0.8349 (annualized yield ~5.5%) and increased its 2026 buyback by £1.3bn, which supports cash-return dynamics and is helping investor demand. Proactive: Buyback/Results
• Positive Sentiment: Analyst upgrade on renewed growth — a sell-side upgrade to Buy cites stronger FY2025 results, a recovery in Vuse/US performance and double-digit guidance for New Category, boosting sentiment for future revenue mix and margin improvement. Seeking Alpha: Rating Upgrade
• Positive Sentiment: AI-driven cost reshaping and strategic exit — management is pursuing AI-led productivity initiatives and exiting South Africa to reshape costs; the company and analysts highlight multi‑year savings (management targets material efficiency gains), supporting margins. Yahoo Finance: AI Push & South Africa Exit
• Neutral Sentiment: Conference materials and call — the full Q4 earnings presentation and call transcript are available for details on segment trends and guidance modeling; useful for investors building inputs but not new headline news. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Revenue guidance misses consensus — BTI set FY2026 EPS at 4.920 but guided revenue of ~$35.1bn versus Street ~36.0bn, which tempers the upside and explains some cautious positioning despite the other positives.
• Negative Sentiment: Growth outlook tempered — while smokeless/new-product momentum is improving, management phrased FY2026 growth expectations more cautiously, which could limit re-rating until sustained top-line momentum is visible. WSJ: Pretax Profit Coverage

British American Tobacco Company Profile

British American Tobacco plc (BTI) is a multinational tobacco manufacturer and nicotine products company headquartered in London. Founded in 1902 as a joint venture to commercialize tobacco products outside the United States, the company has grown into one of the world’s largest tobacco firms with a long history in manufacturing and global distribution of combustible tobacco products.

BAT’s core business remains the manufacture and sale of cigarettes and other tobacco products under a portfolio of well-known consumer brands, including Dunhill, Lucky Strike, Pall Mall, Kent and Rothmans.