Q1 26 EPS
$1.96
Q1 26 Revenue
$10.15B
vs S&P Since Q1 26
+6.2%
BEATING MARKET
PM +7.5% vs S&P +1.3%
Market Reaction
Did PM Beat Earnings? Q1 2026 Results
Philip Morris International posted a strong first-quarter beat on Wednesday, with adjusted diluted EPS of $1.96 clearing the $1.89 consensus estimate by 3.70%, extending the company's streak of beating EPS expectations to four consecutive quarters. R… Read more Philip Morris International posted a strong first-quarter beat on Wednesday, with adjusted diluted EPS of $1.96 clearing the $1.89 consensus estimate by 3.70%, extending the company's streak of beating EPS expectations to four consecutive quarters. Revenue climbed 9.7% year-over-year to $10.15 billion, as the company's accelerating transformation toward smoke-free products continued to reframe its growth story. The primary engine behind the outperformance was the International Smoke-Free segment, which delivered net revenue growth of 24.7% to $3.84 billion with gross margins expanding to 70.0%, reflecting surging demand for IQOS heat-not-burn products. International Combustibles also proved resilient, with 8.5% pricing gains offsetting a 5.1% volume decline to generate $5.69 billion in segment revenue. The U.S. Segment was a notable soft spot, with ZYN pouch shipments falling 23.5% amid distributor inventory adjustments, though underlying consumer demand grew roughly 10%. Looking ahead, PMI reaffirmed its full-year adjusted diluted EPS guidance of $8.36 to $8.51, representing growth of 10.9% to 12.9% versus 2025.
Key Takeaways
- • IQOS drove double-digit growth in both shipment volume and adjusted IMS
- • Strong international pricing variance of 8.5% in combustibles
- • International Smoke-Free segment gross profit grew 28.6% with 70.0% adjusted gross profit margin
- • Broad-based IQOS growth across geographies including Italy, Japan, Taiwan, and key European markets
- • VEEV e-vapor exceeded 1 billion equivalent units shipped in a single quarter for the first time
- • Favorable currency impact of $0.18 per share on adjusted diluted EPS
PM Forward Guidance & Outlook
PMI updated its 2026 full-year forecast for currency only. Reported diluted EPS is forecast at $7.56–$7.71. Adjusted diluted EPS is forecast at $8.36–$8.51, representing 10.9%–12.9% growth versus $7.54 in 2025. Excluding a favorable $0.25 currency impact, adjusted diluted EPS growth is projected at 7.5%–9.5%. Key assumptions include: organic net revenue growth of 5%–7%; organic operating income growth of 7%–9%; broadly stable total cigarette and SFP shipment volume with high-single digit SFP volume growth; cigarette shipment volume decline of around 3%; operating cash flow of approximately $13.5 billion; capital expenditures of $1.4–$1.6 billion; effective tax rate around 21.5%; no share repurchases; and Q2 adjusted diluted EPS of $2.02–$2.07 including ~2 cents favorable currency. The company targets a net debt to adjusted EBITDA ratio of close to 2.0x by year-end 2026.
PM YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
PM Revenue by Segment
With YoY comparisons, source: SEC Filings
PM Revenue by Geography
With YoY comparisons, source: SEC Filings
“Our performance exceeded our expectations in the first quarter, with an outstanding delivery from IQOS driving very good growth for the group against a strong prior-year comparison.”
— Jacek Olczak, Q1 2026 Earnings Press Release
PM Earnings Trends
PM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PM EPS Trend
Earnings per share: estimate vs actual
PM Revenue Trend
Quarterly revenue: estimate vs actual
PM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.96 | — | $10.15B | — |
| Q4 25 BEAT FY | $1.70 | $1.70 | +0.00% | $10.36B | -0.59% |
| FY Full Year | $7.55 | $7.54 | -0.08% | $40.65B | -0.02% |
| Q3 25 BEAT | $2.10 | $2.24 | +6.88% | $10.85B | +1.74% |
| Q2 25 BEAT | $1.86 | $1.91 | +2.80% | $10.14B | -1.80% |
| Q1 25 BEAT | $1.61 | $1.69 | +4.79% | $9.30B | +1.71% |