London, June 17, 2026, 11:02 BST
- British American Tobacco shares dropped roughly 1.7% in delayed London trade, lagging the wider UK market.
- BAT’s U.S. arm Reynolds American sent $18 million to pro-Trump Super PAC MAGA Inc., a report said, putting a spotlight on U.S. vape regulation.
- BAT sticks to its 2026 outlook, guiding for revenue and adjusted profit growth at the low end of its medium-term targets. Vapes and nicotine pouches are growing quicker.
Shares of British American Tobacco dropped in London on Wednesday, lagging the broader UK market. The company faces new political pressure tied to its U.S. vape arm, and investors questioned how far the latest growth upgrade for its non-smoking segment can go.
British American Tobacco shares were last quoted at roughly 4,510 pence, down 78p or 1.7%. Intraday, the stock moved between 4,500p and 4,581p. AJ Bell listed the shares in normal trading, valuing BAT at about 97.5 billion pounds. Davy’s delayed feed at 10:43 a.m. BST showed close to the same pricing.
BAT’s U.S. business is under focus now as the country remains its top profit driver and regulation there is even more important for investors. The Times reported that Reynolds American, the BAT-owned company, gave $18 million to MAGA Inc., a super PAC backing Trump, with $5 million sent in April before the administration eased rules on flavored vapes and nicotine pouches. A super PAC can take and spend unlimited money but can’t coordinate with campaigns.
BAT is pushing to gain traction in what it calls “New Categories,” meaning vapes, nicotine pouches and heated tobacco, with cigarette sales falling. In May, the U.S. Food and Drug Administration said it won’t focus enforcement on some unauthorised e-nicotine and pouch products while their applications are still being reviewed. That shift could help companies with open filings. U.S. Food and Drug Administration
BAT CEO Tadeu Marroco told analysts this month “the size of the prize is very high,” citing BAT’s $7 billion estimate for unlicensed vape sales in the U.S. BAT has flavoured Vuse products aimed for the third quarter and plans to roll out a new Velo nicotine pouch by late summer, Reuters reported. Reuters
Still, BAT held group guidance steady. The company said on June 2 it’s now looking for mid-teens revenue growth from New Categories in the first half and for the full year. For 2026, BAT said group revenue growth and adjusted operating profit growth should land at the low end of its 3%–5% and 4%–6% ranges. Adjusted operating profit is profit after cutting out what BAT calls one-offs or items outside normal business.
The gap is what’s bothering investors. Barclays analyst Pallav Mittal told Reuters some investors were hoping BAT would lift its revenue outlook after the U.S. policy shift, but the company held back because it’s uncertain how fallout from the Iran war could play out.
Morningstar’s Kristoffer Inton said in a note after the update that BAT is still heading for the low end of its guidance, though he pointed to weaker results from heated tobacco. Inton kept his fair value estimate at 4,350p, which is still below the delayed quote from Wednesday.
London’s peer read-across looked patchy, tending to the downside. Imperial Brands, BAT’s closest UK tobacco rival, dropped 1.14% to 2,777p/2,779p on lagging Fidelity data. The FTSE All-Share slipped 0.13%. Philip Morris International and Altria both traded up in early U.S. pricing.
BAT gets a smoother U.S. route to market under new regulations, but that same shift risks drawing heavier political and public-health attention. Last month, Reuters said ex-FDA tobacco chief Mitch Zeller described political meddling at the agency as “really bad for public health” and public trust. If there’s a reversal, more lawsuits, or stricter enforcement, BAT’s U.S. vape and pouch lineup could see delays, while the cigarette business keeps shrinking. Reuters
