British American Tobacco delivered a modest top-line beat for its 2025 financial year, with organic sales growth of 2.1% slightly exceeding the 1.9% consensus. The tobacco giant also reported adjusted EBIT growth of 2.3% and earnings per share of 340.5 pence, up 0.8% from expectations.

Regionally, the U.S. remained the key growth driver, posting 5.5% organic sales growth led by strong performance in Modern Oral products, which surged 310% organically. The AME region contributed 3.3% growth, while APMEA lagged with a 7.2% decline in organic sales, primarily due to volume drops in Bangladesh and Australia.

For fiscal year 2026, BAT reiterated guidance at the lower end of its medium-term framework, targeting 3-5% revenue growth and 4-6% adjusted EBIT growth. The company extended its annual cost savings program to approximately £600 million and maintained its dividend growth at 2%. Bank of America analysts reaffirmed their Buy rating, citing confidence in margins and share buybacks, while raising their price target to 4,700 pence from 4,500 pence.