British American Tobacco (BAT) has reaffirmed its financial outlook for fiscal year 2026, projecting adjusted diluted earnings per share growth of 5% to 8% and revenue growth of 3% to 5%. This confirmation comes as the company continues its strategic pivot towards smokeless nicotine products, aiming to reshape its portfolio for long-term sustainability and harm reduction.
British American Tobacco has reiterated its commitment to its previously announced fiscal year 2026 guidance. The company anticipates adjusted diluted earnings per share (EPS) growth to be between 5% and 8%, with revenue growth projected to be in the range of 3% to 5%. Management expects performance to be at the lower end of these constant-currency ranges, indicating a steady but measured growth trajectory.
BAT is actively pursuing a strategy to transition from traditional tobacco products to a new generation of smokeless alternatives. This includes brands such as Vuse (vapour), glo (heated products), and Velo (modern oral nicotine pouches). The company aims for these smokeless products to constitute 50% of its group revenue by 2035, with a target of reaching 50 million adult consumers by 2030. As of the end of 2025, these smokeless brands were already utilized by over 31 million adult consumers worldwide, contributing 18.2% to the group’s revenue.
As a leading global consumer goods company, BAT’s operations span across various regions. In 2024, the group sold approximately 505 billion cigarettes, supported by a portfolio of over 200 brands. Geographically, net sales are distributed with the United States accounting for 45%, followed by the Americas and Europe at 36.4%, and Asia/Pacific/Middle East/Africa at 18.6%. The company employs over 47,000 people and generated £25.6 billion in revenue in 2025.
Beyond its product portfolio transformation, BAT is emphasizing its commitment to scientific capabilities, including systems toxicology, clinical and behavioral research, and post-market studies. The company has also focused on reducing its environmental footprint, receiving a Triple A rating from CDP for its disclosures on Climate Change, Water Security, and Forests in 2025. This multifaceted approach underscores BAT’s dedication to long-term sustainability and harm reduction.