Philip Morris International Inc. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: Philip Morris International delivered strong Q1 2026 top-line growth with revenue up 9.1% YoY to $10.1B and operating income rising 9.8% to $3.9B, though net income declined 9.4% to $2.4B, likely due to higher below-the-line costs, while the company continues to operate with negative stockholders' equity.
Drawn from management commentary in the Q1 2026 10-Q:
Total revenue grew 9.1% YoY from $9.3B to $10.1B in Q1 2026, reflecting PM's continued ability to pass through price increases and benefit from its smoke-free product portfolio expansion. Gross profit rose 10.1% to $6.9B, outpacing revenue growth and indicating favorable product mix.
Gross margin improved modestly to 68.1% from 67.4% YoY, while operating margin edged up to 38.4% from 38.1%, demonstrating disciplined cost management even as cost of revenue increased 6.9% to $3.2B. This suggests PM is achieving operating leverage on its revenue base.
Net income fell 9.4% YoY to $2.4B from $2.7B, and diluted EPS dropped to $1.56 from $1.72, despite strong operating income growth of 9.8%. This divergence points to increased interest expense, currency headwinds, or other below-the-line charges not captured at the operating level.
Revenue
$10.15B
++9.09% YoY
EPS (Basic)
$1.56
-9.30% YoY
Gross Margin
68.1%
++0.64% YoY
Operating Income
$3.89B
++9.85% YoY
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