Philip Morris International (PM) Q3 2026 Earnings
Reported diluted EPS of $2.12 includes $0.06/share non-cash fair value adjustment for equity security investments, $0.13/share amortization of intangibles, $0.04/share Dutch pension plan buy-out loss, and $0.01/share income tax impact associated with Swedish Match AB financing
How Did PM Stock React to Q3 2026 Earnings?
Did PM Beat Earnings? Q3 2026 Results
Yes. Philip Morris International reported Q3 2026 earnings of $2.36 a share on Oct 21, 2026, beating the $2.34 consensus estimate by 0.7%. Revenue was $11.4B against a $11.4B estimate.
Philip Morris International posted a clean beat across the board in Q3 2026, with adjusted diluted EPS of $2.36 edging past the $2.34 consensus estimate by 0.75%, extending the company's streak of beating EPS expectations to six consecutive quarters. Revenue of $11.44 billion topped estimates by 0.72% and grew 5.5% year over year, powered by 7.1% organic net revenue growth and a standout performance from the smoke-free portfolio, which now exceeds 40% of total net revenues across 110 markets. ZYN pouches were a notable bright spot in the U.S., with shipments climbing 4.2% to 3.2 billion pouches and segment net revenue rising 22.7%, while IQOS HTU adjusted in-market sales grew 7.1% internationally. Adjusted operating income margin expanded 1.6 percentage points to 44.7%, underscoring the earnings leverage in the business mix shift. The company updated its 2026 adjusted diluted EPS outlook to $8.29 to $8.44, a revision driven solely by a reduced favorable currency tailwind, and raised its quarterly dividend 8.8% to $1.60 per share.
- Strong combustible pricing of 8.9% in international markets
- IQOS HTU adjusted IMS growth of 7.1%, 10% excluding Japan and Poland
- VEEV e-vapor shipments grew 61.6%
- ZYN U.S. shipments grew 4.2% to 3.2 billion pouches
- Favorable pricing comparisons in U.S. segment against prior year promotional activities
- Favorable restructuring of distribution terms in certain international combustible markets
- Adjusted operating income margin expanded 1.6 percentage points to 44.7%
- Operating cash flow grew 19.9% to $5.35 billion in the quarter
- Net debt to adjusted EBITDA improved to 2.17x from 2.53x at year-end 2025
“We delivered another excellent quarter, with growing total volumes, double-digit organic operating income growth and robust margin expansion.”
Philip Morris International CEO, on the earnings call
What Is Philip Morris International's Outlook?
PMI updated its 2026 full-year adjusted diluted EPS forecast to $8.29–$8.44 (9.9%–11.9% growth), revised only for currency, with favorable currency impact reduced to $0.18 from $0.24. Excluding currency, growth is projected at 7.5%–9.5%. The company expects growing total shipment volumes (upgraded from broadly stable), with high single-digit SFP shipment growth; organic net revenue growth of 5%–7% with greater likelihood in the middle or upper-half; organic operating income growth of 7%–9% biased toward middle or lower-half given geopolitical cost impacts and U.S. investment ramp-up. Operating cash flow is expected around $13.5 billion, with capital expenditures of $1.4–$1.6 billion. PMI targets net debt to adjusted EBITDA close to 2.0x by year-end 2026 and plans no share repurchases.
PM YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $11.4B | $10.8B | +5.5% |
| Gross Profit | $7.9B | $7.4B | +6.7% |
| Operating Income | $4.9B | $4.3B | +14.1% |
| Net Income | $3.3B | $3.5B | −4.7% |
PM Revenue by Segment
PM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.