Marlboro Maker Philip Morris Says Smoke-Free Growth Will More Than Offset Cigarette Declines
Philip Morris International Inc. (NYSE: PM ) shares rose Wednesday after the tobacco company reported second-quarter 2026 results that beat Wall Street estimates on both earnings and revenue, driven by continued growth in its smoke-free products business. Adjusted diluted earnings per share increased to $2.20, topping the analyst estimate of $2.04. Net revenue rose 10.4% year over year to $11.19 billion, exceeding expectations of $10.64 billion. Organic revenue grew 7.6%. Philip Morris Earnings And Margins Reported diluted EPS declined 7.7% to $1.80, primarily due to a $511 million noncash impairment charge related to PMI’s investment in RBH, equal to 33 cents per share. Operating income increased 22% to $4.53 billion, while adjusted operating income rose 12.4% to $4.77 billion. Adjusted operating margin expanded to 42.6% from 41.9%. Adjusted gross profit climbed 11.5% to $7.67...
Philip Morris International Inc. (NYSE: PM ) shares rose Wednesday after the tobacco company reported second-quarter 2026 results that beat Wall Street estimates on both earnings and revenue, driven by continued growth in its smoke-free products business. 04. 64 billion.
6%. 80, primarily due to a $511 million noncash impairment charge related to PMI’s investment in RBH, equal to 33 cents per share. 77 billion. 9%.
5%. 2 billion equivalent units. 1% increase in e-vapor products. 1%.
5 percentage points from a year earlier, and were available in 109 markets. 1%. 1%, or 10% excluding Japan and Poland. 3% excluding the Nordic markets.
46 billion, supported by 10% pricing growth. Marlboro maintained a record 11% share of the international cigarette category. S. S.
9 billion pouches. The company launched ZYN ULTRA and plans additional product variants and higher marketing investment in the second half of the year. On the earnings call, management said it left full-year guidance largely unchanged despite a strong first half to support increased second-half investment behind ZYN. Executives said early consumer response to ZYN ULTRA has been encouraging, although launch data remains limited.
The company also said it continues to prioritize IQOS volume growth over near-term pricing. Management expects volatility in Japan ahead of an October excise tax increase but believes the worst of the earlier tax-related disruption has passed. Executives added that the conflict in the Middle East has had only a minor impact so far, mainly through higher transportation, energy and other input costs. Outlook Philip Morris said smoke-free products should continue driving growth and largely offset declines in cigarette volumes.
Management now expects total shipment volume to be stable to slightly positive for the full year, supported by high-single-digit smoke-free growth, while cigarette shipments are forecast to decline about 2% to 3%. Executives said the performance and long-term potential of IQOS, ZYN and VEEV reinforce confidence in the company’s smoke-free strategy. 78. 41.
43. PMI maintained its guidance for 5%-7% organic revenue growth and 7%-9% organic operating income growth. 6 billion, primarily to support smoke-free products. 0 times by year-end and does not plan to repurchase shares in 2026.
21 at the time of publication on Wednesday. 90, according to Pro data. Photo via Shutterstock Read Also: FDA Authorizes Lower Disease Risk Claim for Select Philip Morris Zyn Nicotine Pouches