Philip Morris International lifted its 2026 full-year diluted earnings forecast after adding a $500 million non-cash impairment charge tied to its Canadian affiliate RBH and updating currency assumptions.
The company now expects reported diluted EPS of $7.18 to $7.33 for 2026, down from the prior outlook after factoring in the RBH charge and currency effects. Excluding $1.13 per share of total adjustments, PMI raised its adjusted diluted EPS forecast to $8.31 to $8.46, compared with $7.54 in 2025. That implies growth of 10.2% to 12.2%. At prevailing exchange rates, and excluding a $0.20 per share favorable currency impact, the company sees adjusted EPS of $8.11 to $8.26, up 7.5% to 9.5% from 2025.
The RBH impairment alone will reduce diluted EPS by 33 cents in the second quarter. PMI said the remaining carrying value of its RBH investment is expected to be less than $100 million.
For the second quarter, PMI trimmed its adjusted diluted EPS forecast for currency to $1.97 to $2.02, which now includes an estimated 3-cent unfavorable currency impact at prevailing exchange rates. The company said all other assumptions are unchanged from its April 22 outlook.
PMI also pointed to continued momentum in its smoke-free business, led by IQOS, and said recent heat-not-burn category trends have been broadly in line with expectations. In Japan, April off-take was affected by consumer pantry de-loading after the April 1 excise tax increase, though IQOS maintained a strong category share.
In the U.S., PMI is expanding its Zyn nicotine pouch lineup with the launch of Zyn Ultra this month in 9mg and 11mg moist variants. The product will come in a 20-pouch can and be priced below the company’s flagship dry Zyn portfolio, which uses a 15-pouch format. PMI said further Zyn extensions are planned for the rest of the year. Following these announcements, the company's shares moved -2.53%, and are now trading at a price of $172.89. For the full picture, make sure to review Philip Morris International's 8-K report.
