EarningsQ2 2026 Earnings Report
MX:BATSN Q2 2026 EPS Results
Actual EPS$40.11
Consensus EPS$38.25
Beat/MissBeat by +$1.87
One Year Ago EPS$38.75
MX:BATSN Q2 2026 Revenue Results
Actual Revenue$292.65B
Expected Revenue$293.32B
Beat/MissMissed by -$661.78M
YoY Revenue Growth+1.38%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:BATSN Upcoming Earnings
British American Tobacco's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented clear positive momentum across New Categories (notably Modern Oral) and a strong U.S. multi-category performance, with solid margin expansion, EPS growth (adjusted EPS +7.9%), and progress on cost transformation and cash returns. Significant regional weaknesses (notably APMEA), declines in Heated Products and Vapour in some markets, regulatory and illicit challenges, and sizeable one-off charges temper the outlook. On balance, achievements (accelerating New Category profitability, upgraded EPS guidance, margin and cash strength, Fit2Win savings visibility) outweigh the regional and category headwinds, supporting a constructive outlook while acknowledging near-term moderation and investment-driven costs.Company Guidance
Group Financial Performance
Group revenue increased 2.9% (constant currency); adjusted gross profit rose 3.8%; adjusted profit from operations grew 3.5%; adjusted diluted EPS up 7.9%. Group operating margin expanded 30 basis points to 43.7% (10 bps at current rates).
New Categories Momentum
New categories revenue accelerated 18% with Modern Oral up 66% and Vapour up 5.3%; New Category contribution increased 55% to GBP 269m and gross profit in New Categories rose by >GBP 120m, reflecting scale benefits and disciplined investment.
U.S. Multi-Category Strength
U.S. total revenue grew 8.5% and adjusted operating profit rose 10.1%; U.S. New Category revenue nearly +60% with Velo Plus >200% growth and Vuse returning to double-digit volume and revenue growth; Vuse value share reached a record 55.9%.
Smokeless Adoption and Scale
Smokeless now represents 19.8% of group revenue (up 160 basis points year-on-year); 4.1 million additional smokeless consumers added in the last 12 months, bringing the total to 35 million; BAT shipped 7.9 billion pouches in H1 and Modern Oral volume share across top markets rose >8 percentage points to 39%.
Fit2Win and Cost Transformation Progress
Identified a further GBP 100m optimization saving and committed to incremental one-off GBP 100m investment; recognized a noncash charge of ~GBP 230m in H1 for manufacturing upgrades; now expect GBP 700m annualized savings by 2028 (GBP 500m by 2027). Total one-off costs GBP 950m (GBP 840m adjusting).
Strong Cash Generation and Capital Returns
On track to be within 2.0–2.5x leverage by year-end; GBP 1.3bn share buyback in 2026 and progressive dividend maintained; guidance to deliver >GBP 50bn free cash flow by 2030; H1 cash conversion strong with confidence to deliver >95% for the full year.
MX:BATSN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed