◆ Inside the Latest Quarter (Q2 2026)

Philip Morris International (PM) — the variant view

In the second quarter of 2026 PMI's international revenue grew double digits while its American segment still shrank, and a Canadian write-down cut reported earnings.

📈 PM valuation, revenue & earnings — P/E, P/S, revenue, EPS →

PMI's second quarter of 2026 showed the international business accelerating and the American one still weak. Net revenues rose 10.4% to $11,192 million, 7.6% organically12. Operating income rose 22.0% to $4,530 million3, and the adjusted operating margin reached 42.6% against 41.9%4. Adjusted diluted earnings per share were $2.20, up 15.2%5.

Q2 2026 segment revenue growth (%)+14.2International Smoke-Free+9.8International Combustibles-0.7U.S.PMI Form 10-Q, Q2 2026
Two segments up, one down.

Reported earnings went the other way. Diluted earnings per share fell 7.7% to $1.806, because of the $511 million non-cash impairment of the Canadian RBH investment7. Net earnings attributable to PMI were $2,817 million against $3,039 million8.

By segment, International Smoke-Free revenue rose 14.2% to $3,877 million and its gross profit 17.1%9. International Combustibles rose 9.8% to $6,459 million, 6.4% organically10. The U.S. fell 0.7% to $856 million, with gross profit down 9.2%11. Smoke-free products were about 42% of revenue12.

Volumes were healthy. Total shipments rose 2.5% to 205.2 billion units; heated units rose 7.6% and cigarettes 1.1%; e-vapor rose 55.1%13. Marlboro reached a record 11.0% share and IQOS 9.2% of cigarette and heated volume where it is sold14. In Japan an excise-driven price rise cut heated-unit in-market sales by 3.4%15.

Cash was strong: operating cash flow of $5,492 million, up 61.0%, and net debt down to 2.35 times adjusted EBITDA16. In September PMI raised its 2026 adjusted earnings guidance to $8.35 to $8.50, for currency only17, and lifted the quarterly dividend 8.8% to $1.6018.

Smaller items also moved the figures. In the first quarter PMI recorded a non-cash fair value adjustment of its minority shareholding in India19, and in the second it said the conflict in the Middle East had a "minor impact on our business so far"20, mainly through transport, energy and input costs.

The quarter confirms the international engine and leaves the American question open. What to check in the third quarter is U.S. revenue growth: a return to positive growth after the destocking would say the stall was temporary, while another decline would make it structural.

References
  1. ReportedNet revenues rose 10.4% to $11,192 million, 7.6% organically.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  2. ReportedNet revenues rose 10.4% to $11,192 million, 7.6% organically.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - results, margins, operating companies income, cash and 2026 guidance. — Q2 2026 · publ. 22 July 2026 · source ↗
  3. ReportedOperating income rose 22.0% to $4,530 million, and the adjusted operating margin reached 42.6% against 41.9%.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  4. ReportedOperating income rose 22.0% to $4,530 million, and the adjusted operating margin reached 42.6% against 41.9%.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - results, margins, operating companies income, cash and 2026 guidance. — Q2 2026 · publ. 22 July 2026 · source ↗
  5. ReportedAdjusted diluted earnings per share were $2.20, up 15.2%.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - results, margins, operating companies income, cash and 2026 guidance. — Q2 2026 · publ. 22 July 2026 · source ↗
  6. ReportedDiluted earnings per share fell 7.7% to $1.80, because of the $511 million non-cash impairment of the Canadian RBH investment.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedDiluted earnings per share fell 7.7% to $1.80, because of the $511 million non-cash impairment of the Canadian RBH investment.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  8. ReportedNet earnings attributable to PMI were $2,817 million against $3,039 million.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  9. ReportedBy segment, International Smoke-Free revenue rose 14.2% to $3,877 million and its gross profit 17.1%.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  10. ReportedInternational Combustibles rose 9.8% to $6,459 million, 6.4% organically.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  11. ReportedThe U.S. fell 0.7% to $856 million, with gross profit down 9.2%.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  12. ReportedSmoke-free products were about 42% of revenue.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - results, margins, operating companies income, cash and 2026 guidance. — Q2 2026 · publ. 22 July 2026 · source ↗
  13. ReportedTotal shipments rose 2.5% to 205.2 billion units; heated units rose 7.6% and cigarettes 1.1%; e-vapor rose 55.1%.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
  14. ReportedMarlboro reached a record 11.0% share and IQOS 9.2% of cigarette and heated volume where it is sold.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
  15. ReportedIn Japan an excise-driven price rise cut heated-unit in-market sales by 3.4%.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
  16. ReportedCash was strong: operating cash flow of $5,492 million, up 61.0%, and net debt down to 2.35 times adjusted EBITDA.
    Philip Morris International Q2 2026 exhibit 99.2 - non-GAAP schedules, operating cash flow and net debt to adjusted EBITDA. — Q2 2026 · publ. 22 July 2026 · source ↗
  17. ReportedIn September PMI raised its 2026 adjusted earnings guidance to $8.35 to $8.50, for currency only, and lifted the quarterly dividend 8.8% to $1.60.
    Philip Morris International Barclays conference release, 8 September 2026 - 2026 EPS guidance raised for currency. — September 2026 · publ. 8 September 2026 · source ↗
  18. ReportedIn September PMI raised its 2026 adjusted earnings guidance to $8.35 to $8.50, for currency only, and lifted the quarterly dividend 8.8% to $1.60.
    Philip Morris International dividend increase release, 18 September 2026. — September 2026 · publ. 18 September 2026 · source ↗
  19. ReportedIn the first quarter PMI recorded a non-cash fair value adjustment of its minority shareholding in India, and in the second it said the conflict in the Middle East had a "minor impact on our business so far", mainly through transport, energy and input costs.
    Philip Morris International first-quarter 2026 results release, Form 8-K exhibit 99.1 - ZYN destocking, IQOS brand share and Poland's flavour ban. — Q1 2026 · publ. 22 April 2026 · source ↗
  20. ReportedIn the first quarter PMI recorded a non-cash fair value adjustment of its minority shareholding in India, and in the second it said the conflict in the Middle East had a "minor impact on our business so far", mainly through transport, energy and input costs.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - results, margins, operating companies income, cash and 2026 guidance. — Q2 2026 · publ. 22 July 2026 · source ↗
Sources
Generated September 26, 2026