Philip Morris (PM) lifts 2026 EPS outlook while booking $500M RBH charge
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Philip Morris International Inc. updated its 2026 earnings outlook while its CEO addresses investors at the 2026 dbAccess Global Consumer Conference. The company now forecasts full-year reported diluted EPS of $7.18 to $7.33, reflecting currency effects and a non-cash impairment related to its Canadian affiliate RBH.
Excluding total forecast adjustments of $1.13 per share, PMI projects adjusted diluted EPS of $8.31 to $8.46 for 2026, a 10.2% to 12.2% increase versus $7.54 in 2025. The company expects to record an approximately $500 million non-cash impairment charge, or $0.33 per diluted share, in the second quarter of 2026 after reassessing RBH’s fair value.
PMI notes that smoke-free products, led by IQOS and including ZYN nicotine pouches, are driving performance and represented 43% of total net revenues in the first quarter of 2026. The company also highlights expansion of its U.S. ZYN portfolio and reiterates that all other forecast assumptions remain unchanged from prior guidance.
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Insights
Guidance shows double-digit EPS growth despite a non-cash impairment.
PMI reaffirmed confidence in its underlying business by guiding 2026 adjusted diluted EPS to $8.31-$8.46, up 10.2%-12.2% from $7.54 in 2025. This is anchored by momentum in its international smoke-free portfolio and expanding ZYN offerings.
The roughly $500M non-cash impairment to its RBH investment, or $0.33 per share in Q2 2026, reflects updated long-term projections in Canada rather than operating weakness in the core group. RBH remains deconsolidated with a remaining carrying value expected below $100M.
Currency remains a swing factor: the 2026 outlook assumes a favorable $0.20 per-share impact, and Q2 adjusted diluted EPS is now guided to $1.97-$2.02, including a $0.03 headwind at prevailing rates. Subsequent filings may further detail performance relative to these updated ranges.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
2026 reported diluted EPS forecast: $7.18-$7.33 per share
2026 adjusted diluted EPS forecast: $8.31-$8.46 per share
Total 2026 EPS adjustments: $1.13 per share
+5 more
8 metrics
2026 reported diluted EPS forecast
$7.18-$7.33 per share
Full-year 2026 guidance
2026 adjusted diluted EPS forecast
$8.31-$8.46 per share
Full-year 2026, vs $7.54 in 2025
Total 2026 EPS adjustments
$1.13 per share
Amortization, fair value, restructuring, tax, RBH impairment
RBH non-cash impairment
$500 million ( $0.33 EPS )
Expected in Q2 2026 for Canadian affiliate RBH
Q2 2026 adjusted diluted EPS
$1.97-$2.02 per share
Includes $0.03 unfavorable currency at prevailing rates
Smoke-free revenue mix
43% of net revenues
Share of total net revenues in Q1 2026
Consumers using smoke-free products
Over 43 million
Estimated legal-age consumers as of December 31, 2025
Investment in smoke-free products
Over $16 billion
Cumulative investment since 2008
Key Terms
adjusted diluted EPS, non-cash impairment, heat-not-burn, Modified Risk Tobacco Product, +2 more
6 terms
adjusted diluted EPS financial
"the forecast range for adjusted diluted EPS of $8.31 to $8.46 represents a projected increase"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
non-cash impairment financial
"expects to record a non-cash impairment charge of approximately $500 million"
A non-cash impairment is a reduction in a company's asset value that doesn't involve actual money changing hands. It happens when an asset, like equipment or a building, becomes less useful or less valuable than it was before, and the company needs to record that loss in its financial reports. This matters because it shows the true worth of what the company owns and can affect its overall financial health.
heat-not-burn technical
"Recent heat-not-burn category developments broadly in-line with our expectations"
A heat-not-burn product is a consumer device that warms processed tobacco or nicotine material to generate an inhalable aerosol without burning it, similar to how a hot plate steams food instead of frying it. Investors watch these products because they can change demand for traditional cigarettes, face distinct regulatory and legal risks, and influence long-term revenue and public perception in tobacco and nicotine markets.
Modified Risk Tobacco Product regulatory
"obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA"
A modified risk tobacco product is a tobacco or nicotine product that is marketed with claims it reduces health risks or exposure to harmful substances compared with other tobacco products; such claims are typically subject to regulatory review and approval. For investors, this matters because approved modified-risk status can change consumer demand, legal exposure, labeling requirements and market access—similar to how a government-backed “low-risk” label can alter a product’s sales and liability profile.
plan of compromise and arrangement regulatory
"pursuant to its obligation under its court-approved plan of compromise and arrangement ("Plan")"
forward-looking statements regulatory
"This press release contains projections of future results and goals and other forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 2, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant's telephone number, including area code: (203 ) 905-2410
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
| Item 7.01. | Regulation FD Disclosure. | ||||
On June 2, 2026, Jacek Olczak, Group CEO PMI, hosted a live webcast of Philip Morris International Inc.’s (“PMI”) remarks and conducted a question-and-answer session at the 2026 dbAccess Global Consumer Conference. In connection with the webcast, PMI is furnishing to the Securities and Exchange Commission the press release, dated June 2, 2026, attached as Exhibit 99.1 hereto.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.
| Item 9.01. | Financial Statements and Exhibits. | ||||
| (d) | Exhibits. | ||||
| 99.1 | Philip Morris International Inc. Press Release, dated June 2, 2026 (furnished pursuant to Item 7.01). | ||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILIP MORRIS INTERNATIONAL INC. | ||||||||
| By: | /s/ DARLENE QUASHIE HENRY | |||||||
| Name: | Darlene Quashie Henry | |||||||
| Title: | Vice President, Associate General Counsel & Corporate Secretary | |||||||
Date: June 2, 2026
Exhibit 99.1
| PRESS RELEASE |  | |||||||||||||
| Investor Relations: | Media: | |||||||||||||
Email: InvestorRelations@pmi.com | Email: Corey.Henry@pmi.com | |||||||||||||
| Stamford, CT: +1 (203) 905 2413 | Stamford, CT: +1 (203) 905 2410 | |||||||||||||
| Lausanne: +41 582 424 500 | ||||||||||||||
Philip Morris International Participates in 2026 dbAccess Global Consumer Conference;
Updates 2026 Full-Year Diluted EPS Forecast for Currency and Non-Cash Impairment Only
STAMFORD, CT, June 2, 2026 – Philip Morris International Inc.’s (PMI) (NYSE: PM) Group CEO PMI, Jacek Olczak, will address investors today at the 2026 dbAccess Global Consumer Conference in Paris at 11:15 a.m. CET (5:15 a.m. ET), including discussion of the following topics:
•PMI’s continued expectation of a strong full-year performance, notably driven by the broad-based momentum of our international multicategory smoke-free business, led by IQOS.
•Recent heat-not-burn category developments broadly in-line with our expectations, most notably in Japan following the April 1, 2026 excise tax increase, with April offtake impacted by consumer pantry de-loading and IQOS maintaining a strong category share.
•U.S. ZYN portfolio expansion, including the launch of ZYN ULTRA this month in 9mg and 11mg moist variants. Available in a 20-pouch can format, ZYN ULTRA will be positioned at a lower list price-per-pouch than the ‘flagship’ dry ZYN portfolio (15-pouch format), marking an important step in optimizing ZYN’s price premium. Further extensions are planned for ZYN over the remainder of the year.
The live webcast will be available here. The webcast replay will be available at the same link for one year after the event. The webcast may also be accessed on mobile devices by downloading PMI’s Investor Relations App at www.pmi.com/irapp.
2026 Full-Year Forecast
PMI updates its 2026 full-year reported diluted EPS forecast to a range of $7.18 to $7.33 to reflect currency and the non-cash impairment of RBH only. Excluding a total 2026 adjustment of $1.13 per share, the forecast range for adjusted diluted EPS of $8.31 to $8.46 represents a projected increase of 10.2% to 12.2% versus $7.54 in 2025. Excluding a favorable currency impact, at prevailing exchange rates, of $0.20 per share, this represents growth of 7.5% to 9.5%.
In May 2026, pursuant to its obligation under its court-approved plan of compromise and arrangement ("Plan"), PMI's Canadian affiliate, RBH, provided an annual business plan to its Plan Administrator containing updated five-year financial projections reflecting current industry dynamics. As a result, PMI has determined that the estimated fair value of its investment in RBH may be lower than its carrying value and expects to record a non-cash impairment charge of approximately $500 million, representing 33 cents of diluted EPS, in the second quarter of 2026. RBH remains deconsolidated from the PMI group, with the remaining carrying value expected to be less than $100 million.
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The change in forecasted currency impact primarily reflects unrealized transactional foreign exchange effects from deferred tax liabilities associated with the strengthening Russian ruble. These effects are expected to occur in the second quarter, and we also update our Q2 adjusted diluted EPS forecast for currency only to a range of $1.97 to $2.02, now including an estimated unfavorable currency impact of 3 cents at prevailing exchange rates.
All other forecast assumptions remain unchanged from those communicated on April 22, 2026.
Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.
| Full-Year | |||||||||||||||||||||||||||||
2026 Forecast | 2025 | Growth | |||||||||||||||||||||||||||
| Reported Diluted EPS | $7.18 | - | $7.33 | $7.26 | |||||||||||||||||||||||||
| Adjustments | |||||||||||||||||||||||||||||
| Amortization of intangibles | 0.50 | 0.50 | |||||||||||||||||||||||||||
| Fair value adjustment for equity investments | 0.22 | (0.18) | |||||||||||||||||||||||||||
| Restructuring charges | 0.03 | 0.14 | |||||||||||||||||||||||||||
| Income tax impact associated with Swedish Match AB financing | 0.05 | (0.25) | |||||||||||||||||||||||||||
| Non-cash impairment of RBH equity investment | 0.33 | ||||||||||||||||||||||||||||
Other 2025 Adjustments (1) | — | 0.07 | |||||||||||||||||||||||||||
| Total Adjustments | 1.13 | 0.28 | |||||||||||||||||||||||||||
| Adjusted Diluted EPS | $8.31 | - | $8.46 | $7.54 | 10.2% | - | 12.2% | ||||||||||||||||||||||
| Less: Currency | 0.20 | ||||||||||||||||||||||||||||
| Adjusted Diluted EPS, excluding currency | $8.11 | - | $8.26 | $7.54 | 7.5% | - | 9.5% | ||||||||||||||||||||||
| (1) Includes: $0.10 Germany excise tax classification litigation charge; ($0.10) RBH (Canada) Plan Implementation, including dividend income, net; $0.09 Impairment of Wellness business related equity investment; $0.06 Loss on expected sale of consumer accessories and other businesses; $0.03 Impairment of goodwill and other intangibles; ($0.11) Tax items | |||||||||||||||||||||||||||||
Forward-Looking & Cautionary Statements
This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.
PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability affecting
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international trade; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.
PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2025, and the Quarterly Report on Form 10-Q for the first quarter ended March 31, 2026. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.
Philip Morris International: A Global Smoke-Free Champion
Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025 PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.
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FAQ
How did Philip Morris International (PM) change its 2026 EPS forecast?
Philip Morris International now forecasts 2026 reported diluted EPS of $7.18 to $7.33. Excluding total adjustments of $1.13 per share, adjusted diluted EPS is expected between $8.31 and $8.46, implying 10.2% to 12.2% growth versus adjusted diluted EPS of $7.54 in 2025.
What non-cash impairment is Philip Morris International (PM) expecting for RBH?
PMI expects to record an approximately $500 million non-cash impairment charge for its Canadian affiliate RBH in the second quarter of 2026. This represents about $0.33 of diluted EPS and results from updated five-year projections showing RBH’s fair value may be below its carrying value.
How significant are smoke-free products in Philip Morris International’s (PM) revenues?
Smoke-free products are a major growth driver for PMI, accounting for 43% of total net revenues in the first quarter of 2026. These include heat-not-burn products like IQOS and nicotine pouches such as ZYN, now sold in over 105 markets worldwide to legal-age consumers.
What is Philip Morris International’s (PM) updated 2026 EPS outlook excluding currency?
Excluding a favorable 2026 currency impact of $0.20 per share, PMI’s adjusted diluted EPS forecast is $8.11 to $8.26. This range represents expected growth of 7.5% to 9.5% compared with the company’s 2025 adjusted diluted EPS baseline of $7.54 per share.
What guidance did Philip Morris International (PM) give for Q2 2026 EPS?
PMI updated its second-quarter 2026 adjusted diluted EPS forecast to $1.97 to $2.02. This range now includes an estimated unfavorable currency impact of $0.03 per share at prevailing exchange rates, while other key forecast assumptions remain unchanged from April 22, 2026.
What product developments did Philip Morris International (PM) highlight for ZYN in the U.S.?
PMI highlighted expansion of its U.S. ZYN portfolio, including launching ZYN ULTRA in 9mg and 11mg moist variants in a 20‑pouch format. ZYN ULTRA is positioned at a lower list price-per-pouch than the flagship dry ZYN 15‑pouch products, with further extensions planned in 2026.