British American Tobacco (NYSE:BTI) Updates FY 2026 Earnings Guidance

British American Tobacco (NYSE:BTI) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 4.920-4.920 for the period. The company issued revenue guidance of $35.1 billion-$35.1 billion, compared to the consensus revenue estimate of $36.0 billion.

British American Tobacco Stock Down 1.7%

BTI traded down $1.05 during trading hours on Friday, hitting $59.56. 2,829,517 shares of the stock were exchanged, compared to its average volume of 4,616,550. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.55 and a current ratio of 0.87. British American Tobacco has a 12 month low of $37.31 and a 12 month high of $63.03. The stock has a 50-day simple moving average of $57.99 and a 200-day simple moving average of $55.84.

British American Tobacco (NYSE:BTI) last released its quarterly earnings data on Thursday, February 12th. The company reported $125.53 earnings per share for the quarter. The business had revenue of $8.93 billion for the quarter. British American Tobacco has set its FY 2026 guidance at 4.920-4.920 EPS. Sell-side analysts anticipate that British American Tobacco will post 4.69 earnings per share for the current fiscal year.

British American Tobacco Increases Dividend

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Kepler Capital Markets started coverage on British American Tobacco in a research note on Friday, December 12th. They set a “buy” rating for the company. Citigroup restated a “buy” rating on shares of British American Tobacco in a research report on Friday, November 28th. Weiss Ratings reiterated a “hold (c+)” rating on shares of British American Tobacco in a research report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of British American Tobacco in a report on Friday, November 28th. Finally, Morgan Stanley restated an “underweight” rating on shares of British American Tobacco in a research report on Wednesday, December 10th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $51.00.

Key British American Tobacco News

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

Institutional Investors Weigh In On British American Tobacco

Several hedge funds and other institutional investors have recently modified their holdings of BTI. Orbis Allan Gray Ltd increased its position in shares of British American Tobacco by 20.7% during the second 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 in the last quarter. Bank of America Corp DE lifted its holdings in shares of 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 valued at $368,099,000 after purchasing an additional 1,578,860 shares in the last quarter. Wells Fargo & Company MN grew its holdings in shares of British American Tobacco by 7.1% during the fourth quarter. Wells Fargo & Company MN now owns 3,847,891 shares of the company’s stock worth $217,868,000 after buying an additional 256,554 shares in the last quarter. Raymond James Financial Inc. raised its position in British American Tobacco by 3.5% in the 3rd quarter. Raymond James Financial Inc. now owns 2,852,780 shares of the company’s stock valued at $151,426,000 after buying an additional 95,221 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of British American Tobacco in the third quarter valued at approximately $47,852,000. Institutional investors and hedge funds own 16.16% of the company’s stock.

About British American Tobacco

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.