Japan Tobacco posts strong Q1 earnings and affirms guidance after exiting pharma business

Japan Tobacco ( (JP:2914) ) has issued an update.

Japan Tobacco reported robust first-quarter results for 2026, with revenue rising 15.2% year-on-year to ¥923.96 billion and operating profit climbing 24.7% to ¥304.55 billion, driven by solid performance in its continuing operations. Profit attributable to owners of the parent increased 25.1% to ¥197.04 billion, while equity attributable to shareholders remained stable at just over ¥4.08 trillion, underscoring a strong financial position.

The company maintained its full-year 2026 guidance, forecasting revenue of ¥3.697 trillion, operating profit of ¥921 billion and profit attributable to owners of the parent of ¥570 billion, implying an 11.7% gain over the prior year on a reported basis and 14.2% growth versus continuing operations. Japan Tobacco also plans a total dividend of ¥242 per share for 2026, based on a payout ratio of 75.2% after adjusting for litigation-related settlement impacts involving its Canadian subsidiary, signaling continued commitment to shareholder returns despite legal costs.

The most recent analyst rating on (JP:2914) stock is a Buy with a Yen6700.00 price target. To see the full list of analyst forecasts on Japan Tobacco stock, see the JP:2914 Stock Forecast page.

More about Japan Tobacco

Japan Tobacco Inc. is a leading global tobacco company listed on the Tokyo Stock Exchange, focusing on the manufacture and sale of cigarettes and related products. The group has recently streamlined its portfolio by classifying its pharmaceutical operations as discontinued and transferring that business to Shionogi, sharpening its focus on core tobacco operations.

Average Trading Volume: 4,089,860

Technical Sentiment Signal: Buy

Current Market Cap: Yen10446.8B

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