Philip Morris International Inc. (PMI) released its financial results for the third quarter and the first nine months of 2026 on October 21, 2026. The company reported a quarterly record for net revenue, gross profit, and operating income.
For the third quarter of 2026, net revenues increased by 5.5% to $11.4 billion, with organic growth of 7.1%. Gross profit grew by 6.7%, and operating income increased by 14.1%. Reported diluted EPS declined by 4.9% to $2.12, primarily due to a non-cash fair value adjustment for equity security investments. Adjusted diluted EPS grew by 5.4% to $2.36, which was also a quarterly all-time high, excluding a one cent unfavorable currency impact.
Shipments increased by 0.6% in the quarter, driven by a 2.7% increase in smoke-free products (SFP). The company noted that smoke-free products now account for more than 40% of total net revenues in the third quarter, with the category available in 110 markets. Specific highlights include IQOS HTU shipments of 41.5 billion units and a 1.5% increase in adjusted in-market sales (IMS). In the U.S., ZYN shipments grew by 4.2% to 3.2 billion pouches.
Regarding the first nine months of 2026, net revenues were $32.8 billion, an increase of 8.2% compared to the prior year. Adjusted diluted EPS for the period was $6.52, representing an 11.8% increase.
PMI updated its full-year 2026 forecast. The company now expects reported diluted EPS to range between $7.11 and $7.26, with Adjusted Diluted EPS expected to be $7.26. This forecast assumes only currency fluctuations and excludes the impact of restructuring charges, impairments, and other non-recurring items.
The company also announced a dividend increase. The regular quarterly dividend was raised by 8.8% to $1.60 per share, resulting in an annualized dividend of $6.40 per share.
