Philip Morris (PM) Q3 2026 Earnings Report
MX:PM Q3 2026 EPS Results
- Actual EPS
- MXN 44.28
- Consensus EPS
- MXN 42.90
- Beat/Miss
- Beat by +MXN 1.38
- One Year Ago EPS
- MXN 41.85
MX:PM Q3 2026 Revenue Results
- Actual Revenue
- MXN 212.92B
- Expected Revenue
- MXN 211.45B
- Beat/Miss
- Beat by +MXN 1.47B
- YoY Revenue Growth
- +5.24%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 21, 2026
MX:PM Upcoming Earnings
Philip Morris's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:PM Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record Q3 operating income and EPS, broad-based smoke-free growth, resilient combustibles performance, expanding margins, strong cash generation, and maintained full-year growth guidance. The main challenges were geopolitical and inflationary cost pressures, a substantial temporary investment cycle and profitability decline in U.S. ZYN during Q4, excise-related headwinds in Japan and Poland, and ongoing cigarette volume declines. Overall, the positive operating and financial trends significantly outweighed the explicitly stated challenges.
Company Guidance
For 2026, PMI expects growing total shipment volumes, +5% to +7% organic net revenue growth, organic operating income growth of 7%-9%, and currency neutral adjusted diluted EPS growth of 7.5%-9.5%; with a favorable currency impact at prevailing exchange rates of approximately $0.18, adjusted diluted EPS is expected at $8.29-$8.44, representing growth of approximately +10% to +12% in dollar terms, with full-year delivery more likely to be at the midpoint or lower half of both brackets. Smoke-free adjusted IMS volumes and shipments are expected to show high single-digit growth, full-year cigarette volumes to decline by a similar level, full-year pricing to be above 8%, and operating cash flow to reach approximately $13.5 billion. For Q4, PMI expects HTU shipment volumes of 39.5 billion-40.5 billion units, strong international net revenue and OCI performance including a re-acceleration in smoke-free performance, U.S. ZYN shipment volumes broadly in line to modestly above Q3 levels, U.S. adjusted OCI around zero or slightly negative, and an exceptional sequential increase of around 10% in U.S. segment SG&A.
- Strong Q3 Revenue and Operating Income GrowthQ3 organic net revenue grew +7.1% to $11.4 billion, while adjusted operating income increased +10.5% organically and +9.6% in dollar terms. Gross profit grew organically by more than +8%, supported by strong top-line growth and effective cost management despite accelerated growth investments.
- Record Quarterly Adjusted EPS and Operating IncomeQ3 adjusted operating income exceeded $5 billion for the first time, with adjusted operating margin reaching close to 45%. Adjusted diluted EPS increased +5.4% to a record quarterly level of $2.36, or +6% excluding currency.
- Sixth Consecutive Year of Shipment Growth on TrackManagement said the company is firmly on track for a sixth consecutive year of total shipment growth. Q3 shipment volume increased +0.6%, outperforming a broadly stable industry despite unfavorable comparisons on heated tobacco units.
- Strong Year-to-Date Financial PerformanceYear-to-date shipment volume grew +0.5%, organic net revenue increased +5.9% to nearly $33 billion, and reported net revenue grew +8.2%. Adjusted operating income increased +7.7% organically and +10.6% in dollar terms to more than $14 billion. Adjusted diluted EPS reached $6.52, up +8.4% excluding currency and +11.8% in dollar terms.
- Smoke-Free Portfolio Continued to ExpandSmoke-free shipments increased +2.7% in Q3 and +6.4% year-to-date, driven by IQOS. Management continues to expect high single-digit growth in smoke-free adjusted IMS volumes and shipments for the year, with shipments subject to year-end inventory movements.
- IQOS Delivered Broad-Based GrowthIQOS adjusted IMS volume growth increased to +7.1% in Q3 and reached +7.7% year-to-date. Excluding Japan and Poland, growth was around +10% in Q3 and almost +11% year-to-date. IQOS HTU shipments reached 41.5 billion units in Q3, with year-to-date growth of +6.7%. Strong double-digit progression was reported in Germany, Greece, Spain, Indonesia, the U.K., the Netherlands, and global travel retail.
- IQOS Market Share and Geographic Diversification ImprovedThe international smoke-free portfolio outgrew the comparable industry by approximately 1 percentage point, increasing share to 62%. International market share of cigarettes and HTUs exceeded 30% in the quarter for the first time. IQOS increased national category share to more than 80% in Mexico, Indonesia, and Taiwan, while established markets including Italy, Greece, Spain, Germany, Japan, Romania, the Netherlands, and the U.K. recorded share gains.
- VEEV Growth Accelerated SharplyVEEV shipment growth stepped up to +62% in Q3 and +68% year-to-date, reaching 4.0 billion equivalent units. VEEV continued to build its leading position in Europe and was described as the number one closed pod brand in the region, with additional growth in Egypt, Malaysia, global travel retail, and South Korea.
- International ZYN Momentum ImprovedInternational ZYN shipment volumes reached 1.5 billion pouches year-to-date, up +6.3% on a like-for-like basis, with Q3 growth accelerating to +7%. Strong double-digit progression was reported in Poland, global travel retail, and Mexico. ZYN's year-to-date ex-Nordics IMS growth reached +30%, outperforming the industry and growing ahead of shipments.
- U.S. ZYN Volume and Share Trends ImprovedU.S. ZYN shipments increased +4.2% in Q3 to 3.2 billion pouches, or +13% excluding the impact of one-off promotions in September 2025. Shipments increased 10% sequentially versus Q2. ZYN category offtake share increased an estimated 1.4 points from June to September following the rollout of new variants.
- U.S. ZYN Portfolio Expansion Received Positive Initial FeedbackThe first wave of ZYN expansion, including the higher-nicotine ZYN Ultra range and additional dry portfolio flavors, was approaching full distribution. Management said initial consumer reaction was overwhelmingly positive, with reported inflows from legal-age smokers, competitor users, and former ZYN users who had moved to higher-nicotine competitor products. The second wave of introductions began shipping in Q3, including new 1.5 mg and 8 mg variants.
- Combustibles Delivered Exceptional PerformanceCombustible shipments were flat in Q3 despite strong pricing, outperforming an industry decline of 1.1%. International combustible pricing reached +8.9% in Q3 and +9.1% year-to-date, while international category share increased 0.4 points to 25.9%. Marlboro reached an all-time record-high share of 11.4%, and international combustible gross profit increased +9.8% in Q3 and +7.4% year-to-date.
- Margins Expanded Despite Continued InvestmentAdjusted operating margin expanded organically by +130 basis points in Q3 and +60 basis points year-to-date, reaching almost 45% in Q3. Gross margin expansion contributed +80 basis points in both periods, supported by pricing, favorable smoke-free mix, increasing scale benefits, and manufacturing productivity gains.
- Productivity Program Exceeded Its Three-Year ObjectiveThe productivity program generated more than $2 billion of cumulative gross cost savings across cost of goods sold and SG&A since 2024, achieving the company's three-year objective ahead of schedule.
- International Business Remained the Primary Growth EngineInternational operations represented 93% of year-to-date net revenues. International smoke-free net revenue grew almost 10% year-to-date and gross profit increased +12%, driving 120 basis points of gross margin expansion to 70%. International smoke-free and combustible businesses together generated +7% organic net revenue growth, +9.1% gross profit growth, and +140 basis points of gross margin expansion to 68.8%.
- Full-Year Outlook Maintained with Growth Expected Across Key MetricsManagement continues to forecast +5% to +7% organic net revenue growth, 7%-9% organic operating income growth, and 7.5%-9.5% currency-neutral adjusted diluted EPS growth. The adjusted diluted EPS range remains $8.29-$8.44, representing approximately +10% to +12% growth in dollar terms. The company now expects growing total shipment volumes for the year.
- Strong Cash Generation and Shareholder ReturnThe company expects approximately $13.5 billion of operating cash flow, described as a record level. In September, PMI raised its dividend for the 19th consecutive year to $6.40 per share, an increase of almost 9%.
- Japan IQOS Category Share Remained ResilientJapan IQOS HTUs returned to growth in Q3, increasing +3.4%. Excluding the favorable pantry-loading impact ahead of the October price increase, underlying growth was +1.3%. Adjusted heat-not-burn category share remained stable at approximately 68% despite IQOS taking more pricing than competitors in April.
- New Heating Platforms Expanded the Addressable Consumer BaseThe expansion of BONDS by IQOS was described as resonating with harder-to-reach, entrenched smokers in initial launch areas. Management said consumers were moving from cigarettes to BONDS and BLENDS, while existing HTU users were less likely to switch to those products because they considered them too strong.
MX:PM Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2026 (Q4) | 34.53- | 31.76 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 42.9044.28 | 41.85 | 5.80% (+2.43) | |
| Jul 22, 2026 | 2026 (Q2) | 38.3241.10 | 35.69 | 15.18% (+5.42) | |
| Apr 22, 2026 | 2026 (Q1) | 34.7036.62 | 31.58 | 15.98% (+5.04) | |
| Feb 06, 2026 | 2025 (Q4) | 31.7631.76 | 28.96 | 9.68% (+2.80) | |
| Oct 21, 2025 | 2025 (Q3) | 39.1241.85 | 35.69 | 17.28% (+6.17) | |
| Jul 22, 2025 | 2025 (Q2) | 34.7135.69 | 29.71 | 20.13% (+5.98) | |
| Apr 23, 2025 | 2025 (Q1) | 30.1231.58 | 28.03 | 12.67% (+3.55) | |
| Feb 06, 2025 | 2024 (Q4) | 28.0128.96 | 25.41 | 13.97% (+3.55) | |
| Oct 22, 2024 | 2024 (Q3) | 34.0435.69 | 31.2 | 14.37% (+4.48) |
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
