British American Tobacco (LON:BATS) Releases Quarterly Earnings Results

British American Tobacco (LON:BATS) announced its earnings results on Thursday. The company reported GBX 203.60 earnings per share for the quarter, Digital Look Earnings reports. British American Tobacco had a net margin of 24.99% and a return on equity of 13.38%.

British American Tobacco Stock Up 0.1%

Shares of LON:BATS opened at GBX 4,570 on Friday. The company has a current ratio of 0.84, a quick ratio of 0.47 and a debt-to-equity ratio of 8.31. The stock has a fifty day simple moving average of GBX 4,572.08 and a two-hundred day simple moving average of GBX 4,470.18. British American Tobacco has a 12-month low of GBX 3,677 and a 12-month high of GBX 5,368. The stock has a market capitalization of £92.61 billion, a price-to-earnings ratio of 13.09, a PEG ratio of 3.12 and a beta of 0.13.

British American Tobacco News Summary

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

• Positive Sentiment: BAT reaffirmed its 2026 outlook and said smokeless products remain the main growth engine. Velo nicotine pouches are delivering momentum in the U.S., helping support expectations for improved revenue and profit growth. British American Tobacco Reaffirms 2026 Outlook as Smokeless Products Continue to Drive Growth
• Positive Sentiment: The company reportedly raised its annual profit-growth target, with Velo’s U.S. performance providing evidence that its reduced-risk portfolio can offset declines in traditional cigarettes. BAT lifts annual profit growth target as Velo drives US momentum
• Positive Sentiment: Deutsche Bank reaffirmed its “buy” rating and set a GBX 5,100 price target, implying further upside from recent trading levels and reinforcing analyst confidence in BAT’s earnings transition. Deutsche Bank broker commentary
• Neutral Sentiment: BAT reported quarterly EPS of GBX 203.60, alongside a 16.33% return on equity and 30.23% net margin. The figures provide a profitability update, although the available report does not include comparisons with analyst forecasts or the prior-year period. British American Tobacco quarterly earnings
• Negative Sentiment: BAT Malaysia reported lower second-quarter earnings and profit, highlighting continued pressure in at least one operating market and potentially tempering the group’s overall growth profile. BAT Malaysia posts lower profit in 2Q26
• Negative Sentiment: A U.S. appeals court ruled that BAT must face class-action litigation concerning cigarette labels, creating potential legal costs and uncertainty. BAT must face class-action litigation over cigarette labels
• Negative Sentiment: A valuation indicator cited by Yahoo Finance’s earnings preview estimates roughly 38% downside, signaling that some models view BAT as expensive despite the company’s operational progress. Earnings To Watch: British American Tobacco PLC Q2 2026

Analysts Set New Price Targets

A number of research firms have weighed in on BATS. UBS Group reiterated a “buy” rating and set a GBX 5,750 target price on shares of British American Tobacco in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 5,100 price objective on shares of British American Tobacco in a research report on Friday. Finally, Jefferies Financial Group upped their target price on shares of British American Tobacco from GBX 5,200 to GBX 5,500 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, British American Tobacco currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 4,791.67.

Insider Buying and Selling at British American Tobacco

In other news, insider Serpil Timuray acquired 47 shares of British American Tobacco stock in a transaction on Tuesday, May 26th. The stock was acquired at an average cost of GBX 4,372 per share, for a total transaction of £2,054.84. Also, insider Tadeu Marroco bought 6,036 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was purchased at an average price of GBX 4,426 per share, for a total transaction of £267,153.36. Insiders have bought 11,506 shares of company stock valued at $50,267,032 over the last 90 days. Corporate insiders own 0.12% of the company’s stock.

About British American Tobacco

BAT was founded in 1902 and was first listed on the London Stock Exchange in 1912. A constituent of the FTSE 100 since its creation in 1984, we have evolved, becoming the only truly global company in our sector.

BAT is transforming and is well positioned with a global footprint and multi-category portfolio. Our corporate purpose is to build A Better Tomorrow™, reducing the health impact of our business, by offering adult consumers a greater choice of enjoyable and less risky*† products compared to cigarettes.