Key Points
- Imperial Brands expects double-digit FY26 NGP net revenue growth, with share gains across heated tobacco, vape and modern oral.
- The company highlighted Pulze 3.0 and new iD sticks in heated tobacco, the blu kit range in vape, and Zone and Skruf in modern oral.
- Acquisitions of Black Buffalo in the U.S. and Helwit in Sweden have expanded Imperial Brands' modern oral portfolio.
- Tobacco net revenue is expected to grow at a low-single-digit rate for a sixth consecutive year, despite a low-single-digit decline in Group tobacco volumes.
- FY26 Group adjusted operating profit is expected to rise 3% to 5%, with high-single-digit adjusted EPS growth and free cash flow above £2.2 billion.
- Imperial Brands has completed its £1.45 billion FY26 buyback and announced a £1.5 billion FY27 programme. Its issued share capital has fallen by more than 21% since buybacks began in October 2022.
2Firsts
October 9, 2026
According to Imperial Brands' pre-close trading update released on October 8, the company expects double-digit FY26 net revenue growth from next-generation products, with market share gains across all three NGP categories: heated tobacco, vape and modern oral. Tobacco net revenue is expected to post low-single-digit growth for a sixth consecutive year. Imperial Brands also announced a £1.5 billion share buyback for FY27. Unless otherwise stated, the company's growth rates are presented at constant currency.
Imperial Brands reaffirmed guidance for 3% to 5% growth in Group adjusted operating profit, high-single-digit adjusted earnings-per-share growth and more than £2.2 billion of free cash flow for FY26. Full-year results for the period ended September 30 will be released on November 17.
NGP Revenue Seen Growing Double Digits With Share Gains Across All Three Categories
Imperial Brands expects double-digit NGP net revenue growth for FY26 and market share gains across each of its three NGP categories.
In heated tobacco, the company cited momentum from Pulze 3.0 and new iD sticks. In vape, it said the blu kit range continued to perform well. Its modern oral portfolio includes Zone and Skruf and has been expanded through the acquisitions of Black Buffalo in the U.S. and Helwit in Sweden.
Imperial Brands reported NGP net revenue growth of 7.5% in the first half of FY26, including increases of 15.3% in Europe and 60.0% in the Asia, Africa, Australasia and Central & Eastern Europe region, with share gains in all three NGP categories. Its October update continues to forecast double-digit NGP net revenue growth for the full year.
Tobacco Net Revenue Set for Sixth Consecutive Year of Growth as Volumes Decline
Imperial Brands expects tobacco net revenue to grow at a low-single-digit rate in FY26, driven by robust pricing and share gains in target segments in the U.S. and Germany. Group tobacco volumes are expected to decline at a low-single-digit rate.
The expected increase would mark a sixth consecutive year of tobacco net revenue growth, rather than volume growth.
In the first half of FY26, tobacco net revenue increased 1.5%, with the company saying pricing more than offset volume declines.
Free Cash Flow Seen Above £2.2 Billion as FY27 Buyback Rises to £1.5 Billion
Imperial Brands has completed the £1.45 billion FY26 share repurchase programme announced in October 2025.
It has now announced a further £1.5 billion buyback for FY27, which it expects to complete no later than October 29, 2027.
The company's annual buyback programmes have increased over the past three fiscal years:
| Fiscal Year | Share Buyback |
|---|---|
| FY25 | £1.25 billion |
| FY26 | £1.45 billion |
| FY27 | £1.50 billion |
Imperial Brands completed the £1.25 billion FY25 programme and generated £2.7 billion of free cash flow that year.
From FY21 through FY26, Imperial Brands said it returned close to £13 billion to shareholders through dividends and share repurchases. Its issued share capital has been reduced by more than 21% since the buyback programme began in October 2022.
The company expects FY26 free cash flow of more than £2.2 billion and year-end leverage at the lower end of its 2.0-2.5 times net debt-to-EBITDA range.
Adjusted Operating Profit Seen Up 3%-5% as 2030 Savings Target Remains at £320 Million
Imperial Brands maintained its FY26 guidance for 3% to 5% growth in Group adjusted operating profit and high-single-digit growth in adjusted earnings per share.
Under its 2030 transformation programme, the company said it remains confident of delivering at least £320 million of annual savings by 2030. Manufacturing programmes delivered during FY26 are expected to underpin a future reduction of around £100 million in overhead costs, alongside continued investment in data and technology.
Imperial Brands will report its FY26 full-year results on November 17, 2026.
Follow 2Firsts for coverage of global tobacco, vaping, heated tobacco, modern oral and tobacco-company capital-market developments.
Cover Image: Imperial Brands
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
