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BAT Lifts Payouts as Smokeless and U.S. Combustibles Drive 2025 Gains

Story Highlights
  • BAT grew 2025 revenue modestly as U.S. combustibles and Velo Plus offset regional headwinds.
  • Smokeless products gained share, profits jumped and BAT raised returns while guiding to lower-end 2026 growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
BAT Lifts Payouts as Smokeless and U.S. Combustibles Drive 2025 Gains

Meet Samuel – Your Personal Investing Prophet

British American Tobacco ( (GB:BATS) ) has shared an update.

British American Tobacco reported a modest 2.1% rise in constant-currency revenue to £25.6 billion for 2025, as strong U.S. combustibles and rapid growth in its Velo Plus oral nicotine brand lifted performance, even as APMEA faced fiscal and regulatory headwinds. Smokeless products now generate 18.2% of group revenue, New Categories contributions jumped more than 77%, and profit from operations surged on a Canadian provision movement, allowing the group to lift its dividend, launch a £1.3 billion buy-back and reaffirm mid‑term growth targets, albeit expecting 2026 to land at the lower end of its guidance amid FX headwinds and continued investment in its transformation.

The most recent analyst rating on (GB:BATS) stock is a Buy with a £49.00 price target. To see the full list of analyst forecasts on British American Tobacco stock, see the GB:BATS Stock Forecast page.

Spark’s Take on GB:BATS Stock

According to Spark, TipRanks’ AI Analyst, GB:BATS is a Outperform.

British American Tobacco’s overall score is driven by strong technical indicators and positive corporate events, including share buybacks and executive share acquisitions. While financial performance shows robust cash flow, concerns about earnings volatility and a high P/E ratio slightly temper the outlook. The company’s strategic initiatives in innovation and digital transformation are promising, but challenges in specific markets require attention.

To see Spark’s full report on GB:BATS stock, click here.

More about British American Tobacco

British American Tobacco is a global tobacco and nicotine company whose core business remains combustible cigarettes, complemented by a growing portfolio of smokeless and so‑called New Category products. Its main brands span vapour, heated tobacco and modern oral nicotine, with a particular push in the U.S. and across its AME and APMEA regions as it seeks to shift revenue toward reduced-risk offerings.

Average Trading Volume: 4,168,312

Technical Sentiment Signal: Strong Buy

Current Market Cap: £96.66B

See more insights into BATS stock on TipRanks’ Stock Analysis page.

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