Altria Group, Inc. stock research
FY2026 Q1
Altria Group (MO) Gross Margin — Quarter Ended Mar 31, 2026
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue decreased from the prior quarter but increased from a year ago, while cost of revenue declined from the prior quarter and was flat year-over-year, resulting in higher gross profit margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue decreased from the prior quarter but increased from a year ago, while cost of revenue declined from the prior quarter and was flat year-over-year, resulting in higher gross profit margin.
- The strongest observable margin driver was the larger proportional decline in cost of revenue relative to the change in revenue across both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher due to a sharper decline in cost of revenue. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was higher as cost of revenue remained unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.6%
Gross profit
$3.5B
Revenue
$5.4B
Cost of revenue
$1.3B
Quarter-over-quarter change
+2.5 pts
Year-over-year change
+2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $6.1B | $3.9B | $1.4B | 63.1% |
| Sep 30, 2025 | $6.1B | $3.8B | $1.4B | 62.8% |
| Dec 31, 2025 | $5.8B | $3.6B | $1.4B | 62.1% |
| Mar 31, 2026 | $5.4B | $3.5B | $1.3B | 64.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.5 pts
Year-over-year change
Mar 31, 2025
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the larger proportional decline in cost of revenue relative to the change in revenue across both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher due to a sharper decline in cost of revenue. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was higher as cost of revenue remained unchanged.
Monitor the level of finished product inventory, which increased from the prior quarter end, as it may affect future cost of revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Altria Group, Inc. (MO) | 64.6% |