$PM · Philip Morris International Inc.
Philip Morris International filed an 8-K with Exhibit 99.2 containing Q3 2026 financial results and non-GAAP reconciliations. Reported diluted EPS fell 4.9% YoY to $2.12, while adjusted diluted EPS rose 5.4% to $2.36. Total net revenues reached $11.44B (+5.5% reported, +7.1% organic). The quarter included a $0.33 impairment related to the RBH equity investment and a $0.22 fair value adjustment for equity security investments.
- Q3 2026 reported diluted EPS of $2.12, down 4.9% YoY from $2.23, driven by $0.33 RBH equity impairment and $0.22 fair value adjustment on MQ
- Adjusted diluted EPS of $2.36 beat prior-year $2.24 by 5.4%, but adjusted EPS ex-currency grew only 5.8%
- Total PMI net revenues of $11.44B (+5.5% reported, +7.1% organic) with International Smoke-Free at $3.87B, up just 0.7% reported
- Nine-month reported diluted EPS of $5.48, down 7.0% YoY from $5.89; adjusted nine-month EPS of $6.52, up 11.8%
- U.S. segment net revenues of $845M (+22.7% YoY), driven by smoke-free products including wellness at $74M (+29.6%)
Extended-hours trading shows PMI at $193.50, down 3.20% from the $199.91 regular close, indicating the market is reacting negatively to the reported EPS decline and the gap between reported and adjusted results.
The 4.9% reported EPS decline and near-flat International Smoke-Free revenue growth (+0.7%) challenge the core investment thesis that PMI's smoke-free pivot can sustain earnings momentum.
PMI's smoke-free transition narrative faces scrutiny as International Smoke-Free revenue growth decelerated to just 0.7% reported (3.4% organic) in Q3, while combustible revenue grew 6.5% — suggesting the pivot away from cigarettes is not yet self-sustaining at scale.
$0.33 impairment related to the RBH (Canada) equity investment and $0.22 fair value adjustment for equity security investments (India/Sri Lanka) signal ongoing balance-sheet risk from emerging-market exposures. International Smoke-Free revenue grew only 0.7% reported, raising concerns about the core
Get filings like this before the market reacts.
Real-time SEC filing alerts, AI summaries, and a free daily digest — plus portfolio tracking that ties filings to your positions.