EarningsQ2 2026 Earnings Report
MX:PM Q2 2026 EPS Results
Actual EPS$37.71
Consensus EPS$35.16
Beat/MissBeat by +$2.55
One Year Ago EPS$32.74
MX:PM Q2 2026 Revenue Results
Actual Revenue$191.32B
Expected Revenue$181.73B
Beat/MissBeat by +$9.59B
YoY Revenue Growth+10.19%
Earnings Announcement Details
QuarterQ2 2026
Date07/22/2026
TimeBefore Open
Conference CallWednesday, July 22, 2026
MX:PM Upcoming Earnings
Philip Morris's next earnings date is estimated for October 20, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:PM Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong set of operational and financial results driven by robust smoke‑free momentum (IQOS, VEEV, ZYN), significant margin expansion and cost savings, and confident full‑year guidance with capacity to invest—tempered by identifiable near‑term headwinds (Japan excise volatility, European flavor bans, U.S. pouch competition, and planned H2 SG&A). Management emphasized durable smoke‑free economics, multi‑category growth, and continued cash generation while taking targeted investments to address competitive gaps.Company Guidance
Strong Q2 Top-Line and Profitability
Q2 organic net revenue growth of +7.6% (management cited +8% headline), adjusted operating income up ~+11% organically to $4.8B, and adjusted diluted EPS up +15% year-over-year to $2.20 (includes a $0.03 favorable currency impact). Quarterly net revenues exceeded $11B for the first time.
Robust First Half Performance
H1 organic net revenue +5.3%, adjusted operating income +6.1% organically (or +11% in dollar terms) to $8.9B, and H1 adjusted diluted EPS reached $4.16 (+9.4% excluding currency, +15.6% in dollar terms).
Smoke-Free Momentum (IQOS, VEEV, ZYN)
Smoke‑free shipments grew +7.5% in Q2 and +8.3% in H1. IQOS adjusted in‑market sales volume +5.1% in Q2 (+8% H1), excluding Japan and Poland IQOS Q2 growth was +10.2%. VEEV e‑vapor shipments surged +55% in Q2 and +72% in H1. ZYN international shipments grew +6% H1 (+32% ex‑Nordics); ZYN U.S. shipments were 2.9B pouches (+2% y/y).
Gross Margin Expansion and Cost Savings
Adjusted gross profit grew +8.7% organically in Q2; H1 gross margin expanded (e.g., international smoke‑free gross margin expanded ~190 basis points to ~70% for the segment). Delivered >$300M gross cost savings in H1 and cumulative savings above $1.8B toward a $2B 2024–2026 target.
Combustible Business Outperformance
Cigarette shipments increased +1.1% in Q2 (H1 cigarette volumes down -1.9%). Combustible pricing variance ~+9.2% in H1 (almost +10% in Q2); international combustible gross profit grew +6.1% organically with Q2 up ~+8%.
Updated Full‑Year Financial Targets
2026 targets maintained: organic net revenue growth +5% to +7%, organic operating income growth +7% to +9%, currency‑neutral adjusted diluted EPS growth +7.5% to +9.5%. Dollar EPS guidance raised to $8.26–$8.41 (includes a ~$0.15 currency tailwind).
U.S. Strategic Investment and Product Pipeline
Announced stepped‑up U.S. investment for ZYN (new variants including ZYN Ultra and planned 1.5mg/8mg formats) and preparation for IQOS ILUMA launch (subject to FDA). Plans for a major new ZYN marketing campaign and expanded commercial activity in H2.
Geographic Breadth and Brand Recognition
International business represented ~93% of H1 net revenues; IQOS maintained ~76% share of heat‑not‑burn category globally in H1 and was named among Kantar’s top 100 most valuable global brands for the first time.
Cash Generation and Shareholder Returns
Operating cash flow expected around $13.5B for 2026, supporting continued investment and progressive dividend policy.
MX:PM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed