Philip Morris International (PM) Tops Q3 EPS by 6c, Beats on Revenue

Philip Morris International (NYSE: PM) reported Q3 EPS of $2.36, $0.06 better than the analyst estimate of $2.30. Revenue for the quarter came in at $11.4 billion versus the consensus estimate of $11.32 billion.

2026 Full-Year Forecast Assumptions

Growing (previously broadly stable to slightly growing) total PMI cigarette and SFP shipment volume, with high single-digit SFP shipment growth, led by high single-digit SFP adjusted IMS growth, and a cigarette shipment volume decline at a similar level to the year-to-date trend (previously around 2% to 3%);
Net revenue growth of 5% to 7% on an organic basis; with a greater likelihood to be in the middle or upper-half of the range, supported by a fourth-quarter reacceleration in international smoke-free;
Organic operating income growth of 7% to 9%; with a greater likelihood to be in the middle or lower-half of the range, with a corresponding flow through to our EPS forecast range, given the cost impacts of ongoing geopolitical tensions and the previously communicated step-up in U.S. growth investments;
Full-year amortization of acquired intangibles of $0.50 per share;
Broadly stable net financing costs;
An effective tax rate, excluding discrete tax events, of around 21.5%;
Operating cash flow around $13.5 billion at prevailing exchange rates, subject to year-end working capital requirements;
Capital expenditures of $1.4 to $1.6 billion, predominantly supporting the smoke-free business;
Further net debt to adjusted EBITDA ratio improvement as we target a ratio of close to 2.0x by the end of 2026, at prevailing exchange rates; and
No share repurchases.

For earnings history and earnings-related data on Philip Morris International (PM) click here.

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