10-QPeriod: Q1 FY2026

Philip Morris International Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 24, 2026For Securities:PM

Summary

Philip Morris International Inc. (PM) reported a net revenue increase of 9.1% to $10.1 billion for the first quarter of 2026, compared to the same period in 2025. This growth was primarily driven by favorable pricing, particularly in International Combustibles, and a 9.1% increase in smoke-free product shipment volumes. However, diluted Earnings Per Share (EPS) decreased by 9.3% to $1.56, largely due to a significant unfavorable fair value adjustment for equity security investments in India and Sri Lanka, which negatively impacted earnings by $0.22 per share. The company also incurred $24 million in pre-tax restructuring charges related to U.S. operational optimization initiatives. Despite the EPS decline, the International Smoke-Free segment showed strong performance with a 24.7% increase in net revenues, driven by higher HTU and e-vapor volumes. The International Combustibles segment also saw revenue growth of 6.8%, supported by pricing. Conversely, the U.S. segment experienced a significant 30.8% decline in net revenues, primarily attributed to lower ZYN volumes and a challenging comparison due to prior year promotional activity. PMI reaffirms its full-year 2026 outlook for a broadly stable total shipment volume, with high-single digit SFP shipment volume growth.

Financial Highlights

47 data points
Beta

Revenue

$10.15B

0.7% Gross Margin

Net Income

$2.44B

0.2% Net Margin

EPS (Diluted)

$1.56

Total Assets

$68.91B

Cash & Equivalents

$5.45B

Free Cash Flow

-$752.00M

Financial Statements
Beta
Revenue$10.15B
Cost of Revenue$3.24B
Gross Profit$6.91B
Operating Income$3.89B
Net Income$2.44B
EPS (Basic)$1.56
EPS (Diluted)$1.56
Shares Outstanding (Basic)1.56B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Net revenues increased by 9.1% to $10.1 billion, driven by favorable pricing and growth in smoke-free products.
  • 2Diluted EPS decreased by 9.3% to $1.56, primarily due to an unfavorable fair value adjustment on equity investments ($0.22 per share impact).
  • 3International Smoke-Free segment revenue grew by 24.7%, led by higher HTU and e-vapor volumes.
  • 4International Combustibles segment revenue increased by 6.8%, supported by pricing.
  • 5U.S. segment revenue declined by 30.8%, impacted by lower ZYN volumes and promotional comparisons.
  • 6Total shipment volume decreased by 1.9%, with a 5.1% decline in cigarette volumes offset by a 9.1% increase in smoke-free product volumes.
  • 7The company incurred $24 million in pre-tax restructuring charges related to U.S. operational optimization.

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