Philip Morris International (PM) Q3 2026 earnings summary

Executive summary

• Q3 net revenues rose 5.5% reported and 7.1% organically to $11.438B; adjusted operating income increased 9.6% reported and 10.5% organically, with record adjusted diluted EPS of $2.36.

• Smoke-free momentum and resilient combustibles performance supported results despite difficult comparisons, higher costs and increased investment.

• Total shipment outlook was raised to growth, supporting a sixth consecutive year of volume growth; smoke-free products generated over 40% of Q3 revenue and were available in 110 markets.

Financial highlights

• Q3 shipments totaled 206.2B equivalent units, up 0.6%; adjusted gross profit was $7.854B, up 8.3% organically.

• Q3 operating income increased 14.1% reported; adjusted operating income was $5.12B, up 9.6% reported and 10.5% organically.

• Adjusted diluted EPS rose 5.4% to a record $2.36, or 5.8% excluding currency; reported diluted EPS declined 4.9% to $2.12.

• First-nine-month net revenues reached $32.776B, up 8.2% reported and 5.9% organically; adjusted operating income was $14.1B, up 10.6% reported and 7.7% organically.

• First-nine-month adjusted diluted EPS was $6.52, up 11.8% reported and 8.4% excluding currency; reported diluted EPS fell 7.0% to $5.48.

Outlook and guidance

• FY26 organic net revenue growth guidance remains 5%–7%; organic operating income growth is 7%–9%.

• Adjusted diluted EPS guidance is $8.29–$8.44, including a favorable $0.18 currency impact; currency-neutral EPS is $8.11–$8.26, with growth of 7.5%–9.5%.

• Total cigarette and smoke-free shipments are expected to grow; smoke-free shipment growth is forecast at high-single digits, with cigarette shipments declining near the YTD trend.

• FY26 operating cash flow is expected to reach ~$13.5B; capex guidance is $1.4B–$1.6B, predominantly for smoke-free capacity.

• FY26 effective tax rate is estimated at ~21.5%, excluding discrete tax events; year-end net debt/adjusted EBITDA is targeted near 2.0x.