London, June 18, 2026, 14:04 BST
- Shares of BAT dropped nearly 1% to 4,426 pence, bringing its two-day loss to roughly 3.5%. The FTSE 100 moved lower too, off about 1.1%.
- Reynolds American sent $18 million to MAGA Inc., according to new reporting, which is raising questions about political risk for BAT’s U.S. vape push.
- BAT kept its 2026 guidance for revenue and adjusted operating profit at the low end of its 3%-5% and 4%-6% targets. The company said new nicotine product growth picked up, but it left guidance unchanged.
British American Tobacco lost about 1% in London trading Thursday afternoon. The stock fell for a second straight session as the FTSE 100 also slipped 1%. The Bank of England kept rates steady at 3.75%.
BAT shares dropped 2.55% to 4,471 pence on Wednesday, while the FTSE 100 finished up 0.14%. The stock didn’t track the wider market. Investors appeared to take a chunk out of its U.S. growth premium.
BAT’s Reynolds American again faced questions about political spending as pressure picked up. The Wall Street Journal reported that a Reynolds unit donated $5 million to MAGA Inc. in April, shortly before U.S. regulators relaxed some rules on flavored vapes. The Journal said the donation’s timing does not prove it changed the decision.
Regulators could pass on some licensing reviews if companies meet set conditions under the “enforcement discretion” policy. That may put some vapes and nicotine pouches on shelves before full approval. Six Senate Democrats, among them Dick Durbin and Elizabeth Warren, are calling for Reynolds and Altria to hand over info on political donations, lobbying, and discussions with the administration. Reuters
BAT says it reviews Reynolds’ political donations under its internal guidelines and that those donations are legal. The company, in answers out before its April annual meeting, said it won’t talk about any specific political contributions. BAT added that what Reynolds spends in the U.S. is separate from BAT’s policy, which bars political donations in the UK.
BAT is sticking with its operating view. The company said this month its “New Categories” revenue—vapes, nicotine pouches and heated-tobacco products—should grow at a mid-teens rate in 2026. But BAT left its overall group revenue growth guidance at the low end of 3%-5%. Adjusted profit from operations, with some exceptional items excluded, is also set to remain at the lower end of 4%-6%. “Full-year delivery remains firmly on track,” Chief Executive Tadeu Marroco said. BAT
Marroco told analysts the U.S. illicit vape market is about £7 billion. “The size of the prize is very high,” he said. BAT is aiming to roll out new flavoured Vuse products in the third quarter. An updated Velo pouch is coming in August or September. Barclays analyst Pallav Mittal said some investors were looking for higher revenue guidance from BAT, but described the outlook as cautious. Reuters
Imperial Brands fell 0.8% in London Thursday, building on Wednesday’s 1.1% loss. BAT lost about 3.5% across two sessions, a heavier slide. Ongoing political and regulatory debate continues to hit the sector.
Investors aren’t treating better U.S. product access as a sure thing for earnings, market action shows. BAT must still convince the market that Vuse and Velo can pick up the slack as cigarette sales decline and heated tobacco stays weak. Investors are waiting before factoring the regulatory change into their pricing.
BAT’s outlook is still on the line. Success with new launches and an easy FDA could lift U.S. sales. The £1.3 billion buyback stands to boost EPS. But all of that could unwind if policy gets stuck in politics, cigarette volumes fall more, or BAT misses its second-half profit goals.
BAT is due to post half-year results on July 30. The focus is on U.S. New Category sales and any updates from the company on profit. Most of the year’s growth is expected in the second half. Investors will watch for any movement toward BAT’s leverage target.
