British American Tobacco's investment thesis hinges on its ability to navigate a structural decline in combustibles while scaling New Categories, yet recent financials reveal a company under strain.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue has been flat (TTM growth -1.0%), with gross margins resilient at 83.4% in 2025Q4 but operating margin compressing to 38.2% in 2026Q2 from 42.0% a year earlier, reflecting an 80% jump in SG&A to $2.7B.
BTI's forward P/E of 11.40 suggests the stock may be undervalued relative to future earnings potential.
The company offers a range of tobacco and nicotine products including vapour, heated, and modern oral products, positioning it for evolving consumer preferences.
BTI operates across multiple regions including Americas, Europe, and Asia-Pacific, providing geographic diversification.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 30, 2026 | $2.25+1.8% vs $2.21 | $16.4B+0.0% vs $16.4B |
Q1 2026 Feb 12, 2026 | $2.55+2.0% vs $2.50 | $18.4B+3.4% vs $17.8B |
Q3 2025 Jul 31, 2025 | $2.79+24.6% vs $2.24 | $16.4B+1.3% vs $16.2B |
Q1 2025 Feb 13, 2025 | $2.50+2.5% vs $2.44 | $17.7B+0.0% vs $17.7B |
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Global Fund A Shares (without sales charge) posted a return of 2.10% in third quarter 2026. Leading contributors in the First Eagle Global Fund this quarter included Workday, Inc. Class A, Meta Platforms, Inc. Class A, Salesforce.com, Inc., Becton, Dickinson and Company and gold bullion. The leading detractors in the quarter were LVMH Moet Hennessy Louis Vuitton SE, Samsung Life Insurance Co., Ltd., Weyerhaeuser Company, British American Tobacco p.l.c. and IPG Photonics Corporation.
Benchmark BTI against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for British American Tobacco p.l.c. (BTI)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $60.89 | $131.71B | 13.07 | -0.99% | 30.32% | 15.82% | 5.11% | |
| $76.12 | $127.11B | 15.65 | -1.49% | 38.1% | — | 5.45% | |
| $197.88 | $308.42B | 28.88 | 7.31% | 24.82% | — | 2.8% | |
| $65.88 | $1.28B | 29.81 | 28.39% | 8.78% | 11.35% | 0.45% | |
| $39.41 | $982.32M | -403.79 | -0.77% | -0.09% | -0.17% | 8.19% | |
| $1.55 | $5.59K | -0.00 | -40.66% | -41.26% | -20.47% | — |
British American Tobacco p.l.c. (BTI) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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British American Tobacco p.l.c. (BTI) stock FAQ — growth, dividends, profitability & financials explained
British American Tobacco p.l.c. (BTI) reported $25.61B in revenue in fiscal year 2025. That is 254% more than the $7.24B of fiscal year 1996.
British American Tobacco p.l.c. (BTI) revenue fell by 1.0% in fiscal year 2025, compared with the prior fiscal year.
Yes. British American Tobacco p.l.c. (BTI) earned $7.76B in net income in fiscal year 2025 (a 30.3% net margin).
Yes. British American Tobacco p.l.c. (BTI) pays a dividend that yields 5.11% at the current price, a high yield.
British American Tobacco p.l.c. (BTI) had a return on equity (ROE) of 15.8% in fiscal year 2025. That is above the market's typical 10-15%.
British American Tobacco p.l.c. (BTI) generated $5.79B in free cash flow in fiscal year 2025.
