British American Tobacco (BAT) raised its 2026 revenue growth forecast for new categories to the mid-teens. This projection increases from a previous low-double-digit target. The upgrade covers products including Vuse vapes and Velo nicotine pouches. CEO Tadeu Marroco attributed the shift to strong U.S. demand and a recent FDA policy change on enforcement.
BAT maintained its overall group guidance for the year despite the improved outlook for next-generation products. The company expects results at the lower end of its 3-5% revenue growth target. The firm also anticipates adjusted profit growth at the lower end of its 4-6% range. Traditional combustible cigarettes experienced a decline in market share. BAT remains on track to deliver full-year guidance, supported by U.S. performance.