Philip Morris International Reports Strong Q1 Adjusted EPS Growth, Driven by Smoke-Free Products, and Updates Full-Year Guidance
PM is trading near its 52-week low of $142.11 (7.8% above the low).
Summary
Philip Morris International reported strong Q1 2026 adjusted diluted EPS growth of 16.0% (5.3% ex-currency), driven by its smoke-free business, and updated its full-year adjusted EPS guidance to a 7.5% to 9.5% increase excluding currency.
Key Events · Earnings and Guidance · PM
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Strong Q1 Adjusted EPS Growth
Reported adjusted diluted EPS increased by 16.0% to $1.96, or 5.3% excluding currency, surpassing expectations for the quarter ended March 31, 2026.
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Updated Full-Year EPS Guidance
The company updated its full-year 2026 adjusted diluted EPS forecast (excluding currency) to a projected increase of 7.5% to 9.5% over 2025, with a reported range of $7.56 to $7.71.
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Smoke-Free Business Drives Revenue
Net revenues increased by 9.1% (2.7% organically) to $10.1 billion, with the smoke-free business accounting for 43% of total net revenues and growing 12.4% (5.3% organically).
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IQOS Leads Growth
IQOS continued to be the primary growth engine, with double-digit volume growth and becoming the #1 nicotine 'brand' in markets where present, surpassing Marlboro.
Analysis · PM · Manufacturing
Philip Morris International's Q1 2026 results demonstrate robust performance, particularly in its smoke-free product segment, which now accounts for 43% of total net revenues. The 16.0% increase in adjusted diluted EPS (5.3% excluding currency) significantly exceeded expectations, driven by strong IQOS sales and pricing power. While reported diluted EPS declined, this was attributed to a non-cash fair value adjustment, not operational weakness. The company's updated full-year adjusted EPS guidance, projecting a 7.5% to 9.5% increase excluding currency, reinforces a positive outlook. This filing confirms the news reported earlier today and highlights the successful execution of the company's strategic shift towards smoke-free alternatives, as previously outlined in its 2025 annual report.
At the time of this filing, PM was trading at $153.20 on NYSE in the Manufacturing sector, with a market capitalization of approximately $238.8B. The 52-week trading range was $142.11 to $191.30. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.