PM Filings — Philip Morris International Inc. - FilingSpy
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Philip Morris International Inc.
A major international tobacco company that makes Marlboro cigarettes and is pushing hard into smoke-free products like IQOS heated-tobacco devices, ZYN oral nicotine pouches, and VEEV e-vapor. It began in 1847 when a British tobacconist named Philip Morris opened a shop on London's Bond Street, and the modern company was spun off as its own firm in 2008. A fun quirk: the original storefront sign read "Philip Morris, Esq., Tobacconist and Importer of Fine Seegars."
Q2 2026 revenue rose 9.1% to $10.1B but diluted EPS fell 9.3% to $1.56 on investment losses
The U.S. stayed weak while international smoke-free volume carried the quarter. rose 9.1% to $10.1B and widened 0.6 points to 68.1%, but fell 9.3% to $1.56 on fair-value losses on equity investments. The business is growing on pricing and international volume, with earnings pressured by non-cash investment marks.
Key takeaways
rose 9.1% to $10.1B in Q2 2026, with International Smoke-Free up 24.7% on higher and e-vapor volumes and International Combustibles up 6.8% on pricing, while the U.S. declined 30.8% from lower volumes tied to distributor and trade movements.
fell 9.3% to $1.56, hit by a $0.22 per share loss from on equity security investments in India and Sri Lanka.
widened 0.6 points to 68.1% and rose 9.8% to $3.89B, with up 0.3 points to 38.4%.
Section summaries
Management's Discussion and Analysis
PMI's Q2 2026 net revenues rose 10.4% to $11.2B, driven by pricing and international smoke-free volume growth, partly offset by U.S. segment weakness.
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Consolidated net revenues for the six months ended June 30, 2026, increased 9.8% to $21.3B, with a 5.3% organic increase driven by favorable pricing, mainly in international combustibles.
was a use of $399M in Q1 2026 and the half-year figure was $5.1B, up from $3.1B, driven by lower needs including the prior year's $0.8B German excise tax payment.
Total smoke-free shipment volume increased 9.1%, led by growth of 11.3% and e-vapor growth of 94.8%, while oral smoke-free volume declined 16.1%.
What changed
The FY2025 10-K flagged the 2026 realignment into International Smoke-Free, International Combustibles, and U.S.; Q1 and Q2 2026 report under that structure, with U.S. net revenues down 30.8% in Q1 and the half down 16.1% on comparisons.
FY2025 flagged resolution of the $176M German excise tax litigation charge; the Q2 2026 10-Q risk factors restate it as pending and unchanged from the 2025 annual report, so no resolution was reported.
FY2025 flagged Americas (now U.S.) recovery after a Q3 2025 drop of 76.6%; Q1 2026 shows U.S. net revenues down 30.8% on volume, so recovery had not occurred by Q2.
The $2.3B that cut 2024 did not repeat in FY2025, but Q2 2026 half-year was hit by a $511M non-cash RBH impairment, reappearing as a current-period charge.
Full-year 2025 smoke-free base of 179.1B was flagged to watch for 2026; Q2 2026 shows growth of 11.3% and e-vapor up 94.8%, against that base.
What to watch
Q3 2026 against the ~$13.5B full-year guide after the $399M Q1 use and $5.1B half-year print.
U.S. recovery as distributor and trade movements normalize.
Resolution of the $176M German excise tax litigation charge and any further accrual.
Full-year 2026 smoke-free product volume against the 179.1B 2025 base as and oral pouch growth continue.
International Smoke-Free net revenues grew 19.2% for the half, fueled by higher heated tobacco unit and e-vapor volumes and favorable pricing.
International Combustibles net revenues rose 8.4% for the half, as favorable pricing more than offset unfavorable volume/mix.
U.S. net revenues fell 16.1% for the half, reflecting unfavorable volume comparisons due to prior-year distributor movements and low promotional activity.
decreased 8.4% to $3.36 for the half, primarily due to a $511M non-cash on the equity investment and unfavorable fair value adjustments on equity securities.
Net was $5.1B for the half, up from $3.1B, driven by lower needs, including the prior year's $0.8B German excise tax payment.
See Note 9. Contingencies of the Notes to the Condensed Consolidated Financial Statements included in Part I – Item 1 of this Form 10-Q for a discussion of legal proceedings pending against Philip Morris International Inc. and its subsidiaries.
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See Note 9. Contingencies of the Notes to the Condensed Consolidated Financial Statements included in Part I – Item 1 of this Form 10-Q for a discussion of legal proceedings pending against Philip Morris International Inc. and its subsidiaries.
Information regarding Risk Factors appears in “Management's Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Factors That May Affect Future Results,” in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A. Risk Factors of our Annual Rep…
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Information regarding Risk Factors appears in “Management's Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Factors That May Affect Future Results,” in Part I – Item 2 of this Form 10-Q and in Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025.
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