Why it matters
- Philip Morris International said Wednesday, Oct. 21, that third-quarter net revenue rose 5.5% to $11.44 billion, or 7.1% organically, and operating income rose 14.1% to $4.87 billion. Adjusted diluted EPS rose 5.4% to $2.36, while reported diluted EPS fell 4.9% to $2.12.
- The company now forecasts 2026 adjusted EPS of $8.29 to $8.44, including an 18-cent favorable currency effect, and said the update reflected currency only. It now expects operating income growth in the middle or lower half of its 7% to 9% organic range, citing geopolitical cost pressures and U.S. investment in ZYN.
- Philip Morris shares traded at about $193.51 at 8:53 a.m. ET, down about 3.2% from Tuesday's close of $199.90, according to Yahoo Finance data.
Philip Morris International shares fell about 3% in premarket trading Wednesday, Oct. 21, after the tobacco company reported third-quarter adjusted earnings of $2.36 a share, up 5.4% from a year earlier, and said its full-year operating profit growth would more likely land in the middle or lower half of its forecast range. The stock traded at about $193.51 at 8:53 a.m. ET, down from Tuesday's close of $199.90, according to Yahoo Finance data.
Net revenue rose 5.5% to $11.44 billion, or 7.1% on an organic basis, and operating income rose 14.1% to $4.87 billion, the company said in its earnings release, filed with the Securities and Exchange Commission at about 7:04 a.m. ET. Philip Morris said net revenue, gross profit and operating income were all quarterly records. Reported diluted EPS fell 4.9% to $2.12, mainly because of a non-cash fair value adjustment for equity security investments.
How did Philip Morris stock react to earnings?
It fell after the release. Philip Morris traded at about $198 in early premarket trading and slid to about $194.36 by 7:35 a.m. ET, Yahoo Finance data show. Its five-minute readings reached a low of about $192.58 before 9 a.m. ET. The company did not comment on the share move, and premarket prices can change before the 9:30 a.m. ET open.
Philip Morris third-quarter 2026 results at a glance
| Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net revenue | $11.44 billion | $10.85 billion | +5.5% |
| Operating income | $4.87 billion | $4.26 billion | +14.1% |
| Adjusted operating income margin | 44.7% | 43.1% | +1.6 pts |
| Reported diluted EPS | $2.12 | $2.23 | -4.9% |
| Adjusted diluted EPS | $2.36 | $2.24 | +5.4% |
| Total shipments | 206.2 billion units | — | +0.6% |
Source: Philip Morris International third-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K).
Smoke-free products, led by IQOS heated tobacco, ZYN nicotine pouches and VEEV e-vapor, made up more than 40% of net revenue in the quarter, the company said. Smoke-free shipments rose 2.7%, and IQOS heated tobacco unit shipments rose 1.5% to 41.5 billion units. Cigarette shipments were flat at 158.0 billion units, and Marlboro reached a record 11.4% category share.
In the U.S., ZYN shipments rose 4.2% to 3.2 billion pouches and segment net revenue rose 22.7%. But U.S. operating companies income fell 3.3% as Philip Morris stepped up spending on ZYN, and the company said it plans to increase that investment further in the fourth quarter.
What is Philip Morris's outlook for 2026?
Philip Morris now forecasts 2026 adjusted EPS of $8.29 to $8.44, including an 18-cent favorable currency effect. It said the update was for currency only; excluding currency, the range was unchanged at $8.11 to $8.26.
| 2026 forecast | Oct. 21 | Change |
|---|---|---|
| Adjusted diluted EPS | $8.29 to $8.44 | Currency only, per the company |
| Adjusted EPS, excluding currency | $8.11 to $8.26 | Unchanged |
| Reported diluted EPS | $7.11 to $7.26 | $7.19 to $7.34 |
| Organic net revenue growth | 5% to 7% | 5% to 7% |
| Organic operating income growth | 7% to 9% | 7% to 9% |
The company now sees revenue growth more likely in the middle or upper half of its range, but operating income growth more likely in the middle or lower half. It cited the cost of geopolitical tensions and its planned step-up in U.S. growth spending. Philip Morris said energy-related inflation tied to the Middle East conflict added cost pressure in the third quarter and is expected to weigh slightly more in the fourth. It also raised its quarterly dividend 8.8% to $1.60 a share.
For more earnings news, read about Netflix's third-quarter results and lower ad revenue forecast and PepsiCo's cut to its 2026 profit forecast. Follow more results in our companies section.
Sources
- Philip Morris International, Third-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K, Oct. 21, 2026)
- SEC EDGAR, Philip Morris International Form 8-K filing index, Oct. 21, 2026
- Philip Morris International, Second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K, July 22, 2026)
- Yahoo Finance, chart data for Philip Morris (PM), premarket and daily closes
