London, June 11, 2026, 11:07 BST
- British American Tobacco was last at about 4,606p in London, up from a 4,566p finish on Wednesday.
- BAT’s U.S. vape and nicotine pouch play stays in focus after the FDA changed its policy.
- Investors are looking at stronger “New Category” growth but see 2026 group guidance holding steady and cigarette volumes slipping.
British American Tobacco traded up in London on Thursday, building on gains from the previous session. Shares moved higher as investors shifted away from concerns about steady 2026 guidance and zeroed in on quicker sales growth from vapes and nicotine pouches. The stock hovered near 4,606p after a 4,566p close on Wednesday. In Thursday’s session shares changed hands between 4,561p and 4,609p.
BAT is in focus as investors look to see if Big Tobacco names can keep earnings rising even as cigarette sales keep falling. BAT shares climbed 2.03% Wednesday, beating out the FTSE 100’s 0.27% move, according to MarketWatch.
BAT didn’t release any significant new trading update on Thursday. Shares are still moving off the June 2 pre-close statement, when BAT said it sees mid-teens revenue growth in New Categories like vapour, modern oral nicotine pouches and heated tobacco for the first half and full year.
That was the upside. But BAT kept its group forecast unchanged. The company still sees 2026 revenue growth tracking at the bottom of its 3%–5% medium-term range, and eyes adjusted profit from operations rising at the low end of its 4%–6% range. Adjusted profit from operations is BAT’s profit before certain items like financing costs and tax.
BAT shares dropped 4% on June 2 after some investors, expecting an upgrade thanks to a U.S. policy shift that boosted prospects for nicotine alternatives, were disappointed. Barclays analyst Pallav Mittal said investors were hoping for at least a revenue bump, but BAT kept its outlook cautious citing uncertainty from the Iran war and possible fallout on consumer spending.
The U.S. is driving the sharper debate. BAT, which owns Reynolds American, sells Vuse vapes and Velo nicotine pouches. Both are key to its strategy to move beyond cigarettes. Reuters said the U.S. Food and Drug Administration has indicated it will use “enforcement discretion” for some unlicensed vapes and nicotine pouches if applications meet given standards. This could help companies like BAT access the market. Reuters
Chief Executive Tadeu Marroco told analysts the U.S. market is big, calling it “The size of the prize is very high.” BAT puts unlicensed vape sales in the U.S. around £7 billion, according to Reuters. Reuters
BAT said Marroco welcomed the FDA’s prioritisation guidance in its own update, and added that New Category revenue growth is picking up pace. BAT also said Velo did well across all three regions, and Vuse’s U.S. performance improved. Vuse remains the global value-share leader in tracked channels.
Cash returns are helping BAT’s pitch to investors. The company said it’s still set to cut leverage, measured as net debt to adjusted EBITDA, into its 2.0–2.5 times target by year-end. BAT is keeping its progressive dividend and plans £1.3 billion in buybacks for 2026. Buybacks shrink shares outstanding and can boost earnings per share if profit stays steady.
Cigarettes remain BAT’s drag. The company now sees global cigarette industry volumes dropping about 2.5% in 2026, cutting its old view for a 2% fall. BAT also pointed to share losses in main combustible markets. In the U.S., both value and volume share slipped, as deep-discount brands pressed harder.
Regulatory risk is still a factor. Six Democratic senators, among them Dick Durbin and Elizabeth Warren, sent public letters to Reynolds American and Altria, pressing them on their donations and lobbying tied to the FDA policy change. Reynolds did not respond to Reuters’ request for comment. If regulators reverse or tighten the rules, the move would hit the U.S. vape and pouch segment that’s been buoying BAT shares.
BAT’s half-year report is the next key event, with Investing.com putting it on July 30, 2026. Investors want to see if stronger Vuse and Velo sales can really make up for falling cigarette numbers, while BAT keeps up buybacks, cuts debt and grows profit all together.
