Altria's nicotine pouch growth slows amid cigarette declines and FDA regulatory delays

Altria Group faces declining cigarette sales but sees growth in its on! nicotine pouch brand, which grew 11% in shipments in 2025. However, FDA delays in approving new nicotine pouch labels and concerns about youth use are slowing innovation and market expansion. Despite these challenges, Altria maintains strong free cash flow and a high dividend yield of 6.43%, with modest EPS growth expected in 2026. Investors are advised to hold shares and watch the rollout of on! PLUS for signs of renewed momentum.