Philip Morris International lifted its 2026 profit outlook after adding a new non-cash impairment charge tied to its Canadian affiliate, while still pointing to double-digit earnings growth.
The company now expects reported diluted EPS of $7.18 to $7.33 for 2026, down from the prior adjusted framework because of a $500 million impairment on its RBH investment. That charge is equal to 33 cents per share. PMI said the remaining carrying value of RBH is expected to be less than $100 million.
After stripping out a total of $1.13 per share in adjustments, PMI’s adjusted diluted EPS forecast is now $8.31 to $8.46, up 10.2% to 12.2% from $7.54 in 2025. At prevailing exchange rates, excluding a favorable currency impact of 20 cents per share, the company sees adjusted EPS of $8.11 to $8.26, which would be 7.5% to 9.5% above last year.
PMI also narrowed its second-quarter adjusted diluted EPS forecast to $1.97 to $2.02, now including an estimated 3-cent unfavorable currency hit. The company said that forecast is unchanged apart from currency.
The earnings update came as PMI highlighted momentum in its smoke-free business, especially IQOS, and new U.S. expansion plans for Zyn. This month, PMI is launching Zyn Ultra in 9mg and 11mg moist variants in a 20-pouch can. The new format will carry a lower list price per pouch than the 15-pouch dry “flagship” portfolio, which PMI said is part of a broader effort to optimize Zyn’s price premium.
PMI also pointed to Japan’s heated tobacco market, where it said April offtake was affected by pantry de-loading after the April 1 excise tax increase, while IQOS kept a strong category share. The market has reacted to these announcements by moving the company's shares 0.69% to a price of $173.855. For the full picture, make sure to review Philip Morris International's 8-K report.
