What was released
Imperial Brands announced a £1.5bn share-buyback programme for FY2027 in its pre-close trading update on 8 October. It expects to complete the programme no later than 29 October 2027, after completing the £1.45bn FY2026 buyback.
The company said it remained on track for full-year guidance: adjusted operating-profit growth of 3% to 5%, high-single-digit adjusted earnings-per-share growth, and free cash flow above £2.2bn. The growth guidance is stated at constant currency.
The update precedes annual results scheduled for 17 November. The projected profit and cash-flow figures therefore should not be described as final reported results.
Imperial Brands: FY2026 pre-close trading update (PDF), released 8 October 2026.
The Apolifina view
Analysis
A buyback can reduce the number of shares outstanding. That can support earnings per share even where the growth in total company profit is smaller, so investors comparing the two measures need to keep the distinction visible.
For an income-focused shareholder, dividends and buybacks also work differently. A dividend is a cash distribution per share; a buyback purchases shares from sellers. Neither establishes that a business is attractively valued or that distributions will continue.
Tobacco exposure raises a separate screening question for investors whose funds apply ethical exclusions. An announcement about shareholder distributions does not resolve whether the business fits those criteria.
What remains uncertain
The outlook is forward-looking. Regulation, consumer demand, exchange rates and execution can affect the eventual result. The £1.5bn programme is an announced plan, not a guaranteed gain for each shareholder.
Primary source and verification
The buyback amounts and expected completion date were checked against page 1 of the company’s live PDF. Guidance and the constant-currency qualification were checked on pages 1 and 2; the annual-results date appears on page 2.
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