Philip Morris International Q3 2026 results and guidance

Revenue for the quarter ended 30 Sep 2026 was USD 11,438 million, 5.5% more than the USD 10,845 million of Q3 2025, by our calculation. Philip Morris International's operating margin, operating income as a share of revenue, was 42.5% by our calculation, 3.2 percentage points more than in Q3 2025.

Net income attributable to Philip Morris International was USD 3,313 million, against USD 3,478 million a year earlier, 4.7% lower by our calculation. Against Q2 2026, the quarter before, operating income was up from USD 4,530 million and diluted EPS from USD 1.80 per share.

The release's reconciliation of reported to adjusted diluted EPS names the items that separate the two measures.^[2] For Q3 2026 it lists amortization of intangibles, the equity security investments adjustment and a Swedish Match AB financing tax impact.^[2] It also lists a loss on transferring a Dutch pension plan's obligations to an insurer.^[2] For Q3 2025 it lists amortization and the equity security investments adjustment too.^[2] Its other Q3 2025 items are a Germany excise tax litigation charge, a Wellness equity investment impairment, tax items and an RBH (Canada) plan credit.^[2]

The release also reports adjusted diluted EPS, a non-GAAP measure that excludes such items, and it rose from Q3 2025.^[2]

By our calculation, gross margin, gross profit as a share of revenue, was 68.7% in Q3 2026 and 68.4% in Q2 2026. The results table's Q3 2025 gross margin, marked R, rests on gross profit as re-presented in the Q3 2026 Form 10-Q; Philip Morris International stock fundamentals explains the cost-of-sales reclassification.

From Q4 2024 to Q4 2025 the rates were 7.3%, 5.8%, 7.1%, 9.4% and 6.8%, in that order, each our calculation. The Q3 2026 revenue of USD 11,438 million is measured against a Q3 2025 base that had itself risen 9.4% from Q3 2024, by our calculation.

Revenue of USD 9,706 million for Q4 2024 and USD 10,362 million for Q4 2025 is our calculation. For each, we take the full year in the Form 10-K and subtract the nine months to 30 Sep in that year's Q3 Form 10-Q.

The release's bridge from Q3 2025 to Q3 2026 net revenues shows a positive price variance, partly offset by currency and by acquisitions and divestitures.^[2] It says organic growth mainly reflected a favorable pricing variance driven by international combustibles and the U.S. segment.^[2] Net revenues grew in all three of its segments, International Smoke-Free, International Combustibles and U.S.^[2] Its growth rate for total net revenues is the same as ours.^[2]

The release calls this an update of its full-year adjusted diluted EPS forecast for currency only.^[2] According to the release, that forecast includes a favorable currency impact of USD 0.18 per share, at prevailing exchange rates. The release gives the earlier currency figure in parentheses beside it.^[2]

Against adjusted diluted EPS for 2025, the release states a projected increase of 9.9% to 11.9%. Excluding currency, the release's forecast is USD 8.11 per share to USD 8.26 per share, a projected increase of 7.5% to 9.5%. Adjusted diluted EPS is a non-GAAP measure, while the USD 2.12 per share of Q3 2026 is reported diluted EPS under US GAAP.

In the release's forecast table, the 2025 column shows reported diluted EPS equal to the top of the 2026 reported range.^[2] Between the reported and adjusted 2026 ranges, the table lists adjustments that include amortization of intangibles, the RBH equity investment impairment and the equity security investments adjustment.^[2]

The release assumes capital expenditures of USD 1.4 billion to USD 1.6 billion, which it describes as predominantly supporting its smoke-free business. It also assumes growing total cigarette and smoke-free shipment volume, previously broadly stable to slightly growing, and broadly stable net financing costs.^[2]

The release says organic net revenue growth has a greater likelihood to be in the middle or upper half of its range.^[2] For organic operating income growth it says the middle or lower half, citing the cost impacts of ongoing geopolitical tensions and the previously communicated step-up in U.S. growth investments.^[2]

The release says actual results could vary materially from its forward-looking statements.^[2] These ranges are the company's statements, not a StockFactsheet forecast.

The Form 10-Q's cash flow statement covers 1 Jan to 30 Sep 2026 in one column. To isolate the quarter, we subtract the first half as the Q2 2026 Form 10-Q reports it.

Over the 4 quarters to 30 Sep 2026, a span of 365 days, our sums are USD 15.2 billion of cash from operations and USD 1,559 million of capital expenditure. That leaves free cash flow of USD 13.6 billion, against dividends paid of USD 9.2 billion, also our sums.

Free cash flow here is cash from operations less capital expenditure. In Q3 2026 and over the 4 quarters alike, it was larger than dividends paid.

The release reports an increase in the regular quarterly dividend, and its 2026 assumptions include no share repurchases.^[2] The Philip Morris International financial statements page lists these cash flow lines for each of the 8 quarters.