Philip Morris International 8-K
PositiveEarningsGuidance loweredImpairment / charge
Smoke-free products drove growth, while a non-cash RBH investment impairment pushed reported EPS lower.
Filed 2026-07-22 07:02 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with a full-year forecast update. Net revenues and operating income grew, with smoke-free products driving much of the momentum; reported diluted EPS fell after a non-cash impairment of the RBH equity investment, while adjusted diluted EPS increased. PMI lowered its expected favorable currency contribution to full-year adjusted EPS to $0.15 from $0.20.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net revenues | $11.2B | $10.1B | 10.4% |
| Operating income | $4.53B | $3.71B | 22.0% |
| Net earnings attributable to PMI | $2.82B | $3.04B | (7.3)% |
| Diluted EPS | $1.80 | $1.95 | (7.7)% |
| Adjusted diluted EPS, non-GAAP | $2.20 | $1.91 | 15.2% |
- Revenue growth was 7.6% organically; shipments rose 2.5%, led by 7.5% growth in smoke-free products. Adjusted diluted EPS was $2.17 excluding a $0.03 favorable currency impact.
- The RBH investment impairment was a non-cash $511M charge, or $0.33 per diluted share; the investment’s remaining carrying value was $51M at 6/30/2026.
- First-half net revenues were $21.3B (+9.8%); operating income was $8.42B (+16.1%); net earnings attributable to PMI were $5.26B ((8.3)%); diluted EPS was $3.36 ((8.4)%) and adjusted diluted EPS was $4.16 (+15.6%). Operating cash flow was $5.49B in Q2 (+61.0%) and $5.09B for the first half (+66.3%). Cash was $6.00B and total debt was $49.1B at 6/30/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported diluted EPS | FY2026 | $7.19-$7.34 | — | — |
| Adjusted diluted EPS, non-GAAP; growth vs FY2025 adjusted EPS of $7.54 | FY2026 | $8.26-$8.41; 9.5%-11.5% | — | — |
| Adjusted diluted EPS excluding currency, non-GAAP; growth vs FY2025 adjusted EPS of $7.54 | FY2026 | $8.11-$8.26; 7.5%-9.5% | — | — |
| Favorable currency impact on adjusted diluted EPS | FY2026 | $0.15 | $0.20 | Lowered |
| Total PMI cigarette and smoke-free product shipment volume | FY2026 | Broadly stable to slightly growing | Broadly stable | Raised |
| Cigarette shipment volume | FY2026 | Decline of 2%-3% | Decline of around 3% | Lowered decline |
| Smoke-free product shipment volume | FY2026 | High-single-digit growth | — | — |
| Organic net revenue growth | FY2026 | 5%-7% | — | — |
| Organic operating income growth | FY2026 | 7%-9% | — | — |
| Operating cash flow | FY2026 | ≈$13.5B | — | — |
| Capital expenditures | FY2026 | $1.4B-$1.6B | — | — |
| Net debt to adjusted EBITDA target | FY2026 | Close to 2.0x by year-end | — | — |
| Adjusted diluted EPS, non-GAAP; estimated unfavorable currency impact | Q3 2026 | $2.20-$2.25; $0.08 | — | — |
Investor Takeaways
- Q3 adjusted diluted EPS of $2.20-$2.25 and the full-year EPS ranges are the near-term tests of whether first-half momentum carries through.
- Watch smoke-free growth and U.S. performance: PMI plans further U.S. investment in the second half and additional ZYN dry variants in Q3.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3