British American Tobacco (BAT) reported first-half 2026 earnings below expectations. EPS came in at $1.27 vs. forecast $1.38, and revenue at $4.52B vs. $4.68B.
Stock initially rose 1.03% pre-market but closed 1.71% lower at $37.55, near its 52-week low of $35.30.
BAT's pricing strategy, especially in Europe and the U.S., offset volume declines but wasn't enough to meet targets. The tobacco segment saw low single-digit revenue growth.
The NGP segment underperformed due to promotional timing. BAT expects a stronger second half.
The company maintains a dividend yield of 5.71% and has a $1.45B share buyback program. Free cash flow yield stands at 16%.
