Philip Morris International Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.45%.
Did PM Beat Earnings? Q2 2026 Results
Philip Morris International posted a strong second quarter for 2026, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to five consecutive quarters. Adjusted diluted EPS came in at $2.20, clearing the $2.05 consensus estimate by 7.41%, while revenue of $11.19 billion topped the $10.64 billion forecast by 5.15% and grew 10.4% year over year. The primary engine behind the outperformance was the International Smoke-Free segment, where net revenues climbed 14.2% on 8.0% volume growth as IQOS continued to gain share in the global heat-not-burn category, and VEEV e-vapor shipments grew 55.1%. The quarter also carried a notable regulatory tailwind, with the FDA granting Modified Risk Tobacco Product authorization to 20 ZYN nicotine pouch variants in June, reinforcing PMI's smoke-free portfolio in the U.S. Looking ahead, the company raised its full-year adjusted diluted EPS guidance to $8.26 to $8.41, reflecting 9.5% to 11.5% growth, inclusive of $0.15 in favorable currency impact.
- IQOS-driven international smoke-free volume growth of 8.0%
- Strong combustibles pricing of 10.0% in international markets
- Broad-based IQOS HTU growth across Europe, notably Germany, Romania, Greece, Spain, and Italy
- VEEV e-vapor shipments up 55.1%, securing #1 closed pod position in Europe
- Gross margin expansion through pricing, scale, and smoke-free product mix benefits
- Adjusted gross profit margin expanded 0.7pp to 68.5%
- Operating cash flow surged 61.0% year-over-year in Q2 to $5.49 billion
“We delivered outstanding results in the second quarter, driving net revenues to over $11 billion for the first time with excellent growth across all headline metrics.”
Philip Morris International CEO, on the earnings call
Forward Guidance & Outlook
PMI updated its 2026 full-year forecast for currency only, projecting adjusted diluted EPS of $8.26–$8.41 (9.5%–11.5% growth vs. 2025), including $0.15 favorable currency impact. Excluding currency, adjusted diluted EPS is forecast at $8.11–$8.26 (7.5%–9.5% growth). Key assumptions include: broadly stable to slightly growing total shipment volume with high-single digit SFP volume growth; cigarette shipment volume decline of 2%–3%; organic net revenue growth of 5%–7%; organic operating income growth of 7%–9%; operating cash flow around $13.5 billion; capital expenditures of $1.4–$1.6 billion; effective tax rate around 21.5%; no share repurchases. Q3 2026 adjusted diluted EPS is guided at $2.20–$2.25 including an estimated unfavorable currency impact of $0.08. PMI plans to accelerate U.S. investments in the second half to support the expanded ZYN portfolio and prepare for the future launch of IQOS ILUMA.
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Figures from SEC filings and company reports. Not investment advice.