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

British American Tobacco (NYSE:BTI) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share 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 Trading Down 1.8%

Shares of NYSE BTI opened at $59.50 on Friday. British American Tobacco has a 52 week low of $37.31 and a 52 week high of $63.03. The stock’s fifty day moving average is $58.04 and its 200 day moving average is $55.90. 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 Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, February 8th. Stockholders of record on Tuesday, December 29th will be issued a dividend of $0.8349 per share. This represents a $3.34 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date of this dividend is Tuesday, December 29th.

Analyst Ratings Changes

A number of brokerages recently issued reports on BTI. Weiss Ratings reissued a “hold (c+)” rating on shares of British American Tobacco in a research note on Wednesday, January 21st. Citigroup reissued a “buy” rating on shares of British American Tobacco in a report on Friday, November 28th. Morgan Stanley reaffirmed an “underweight” rating on shares of British American Tobacco in a research note on Wednesday, December 10th. 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. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of British American Tobacco in a report on Friday, November 28th. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $51.00.

Key British American Tobacco News

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

• Positive Sentiment: Raised dividend and higher yield — BTI declared a quarterly cash dividend of $0.8349 (a 13% increase from the prior quarterly payout), implying a ~5.6% yield; the raise supports income-focused investor demand and signals board confidence in returns to shareholders.
• Positive Sentiment: Expanded buyback and results modestly beat — management increased the 2026 share buyback by £1.3bn and FY2025 results came in slightly ahead of forecasts (adjusted operating profit +2.3%), underpinning cash returns and EPS support. British American Tobacco edges past forecasts
• Positive Sentiment: Smokeless/vapor growth driving profit — demand for vapor and other smoke‑free products boosted pretax profit, supporting the company’s strategic shift away from combustible products. British American Tobacco Posts Pretax Profit Jump
• Positive Sentiment: Cost program and AI initiatives — management is reshaping costs (AI productivity push) and exiting South Africa to lift margins, plus a target of ~£2bn savings through 2030, which should help long‑term profitability. British American Tobacco Reshapes Costs With AI Push And South Africa Exit
• Positive Sentiment: Analyst upgrade — at least one analyst reversed stance and upgraded BTI to a Buy, citing renewed growth in the New Category (smokeless) and improving operational leverage. I Was Wrong, Growth Is Back (Rating Upgrade)
• Neutral Sentiment: Re‑rating discussion after strong run — some commentary is reassessing BTI’s valuation after a >50% one‑year return, which could cap further multiple expansion unless growth continues. Reassessing British American Tobacco’s Valuation
• Negative Sentiment: Revenue guidance below Street — FY2026 revenue guidance was updated to $35.1B vs. consensus around $36.0B, a miss that likely pressured the stock as it implies softer top‑line momentum.
• Negative Sentiment: Cash‑flow concern — analysts flagged a 37% YoY drop in operating cash flow for 2025, raising questions about the sustainability of continued dividend increases and buybacks if cash conversion doesn’t recover. British American Tobacco 2025 Earnings: Battleground United States

Hedge Funds Weigh In On British American Tobacco

Several institutional investors and hedge funds have recently added to or reduced their stakes in BTI. Cary Street Partners Financial LLC bought a new position in shares of British American Tobacco in the 2nd quarter worth about $30,000. Binnacle Investments Inc increased its holdings in British American Tobacco by 163.2% in the third quarter. Binnacle Investments Inc now owns 750 shares of the company’s stock worth $40,000 after purchasing an additional 465 shares in the last quarter. Triumph Capital Management bought a new position in shares of British American Tobacco during the 3rd quarter worth approximately $51,000. Kelleher Financial Advisors acquired a new stake in shares of British American Tobacco during the 3rd quarter worth approximately $83,000. Finally, CIBC Private Wealth Group LLC increased its stake in shares of British American Tobacco by 21.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,977 shares of the company’s stock valued at $158,000 after acquiring an additional 526 shares in the last quarter. 16.16% of the stock is currently owned by institutional investors and hedge funds.

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.