Philip Morris Reaffirms 2026 EPS Forecast Amid Smoke-Free Push
Event summary
- PMI reaffirmed its 2026 full-year reported diluted EPS forecast of $7.87 to $8.02, representing an 11.1% to 13.1% increase over 2025.
- Smoke-free products accounted for 41.5% of PMI’s total net revenues in 2025, with over 43 million users globally.
- PMI highlighted its FDA authorizations for IQOS devices and Swedish Match’s General snus and ZYN nicotine pouches.
- The company emphasized its long-term ambition to expand into wellness areas beyond tobacco and nicotine.
The big picture
PMI is doubling down on its smoke-free strategy, aiming to transition away from traditional cigarettes. The company’s reaffirmed EPS forecast signals confidence in its ability to navigate regulatory hurdles and capitalize on growing demand for alternative nicotine products. However, the success of this pivot hinges on sustained innovation and favorable regulatory outcomes.
What we're watching
- Smoke-Free Transition
- The pace at which PMI can sustain its smoke-free product growth amid regulatory and competitive pressures.
- Regulatory Headwinds
- How evolving tobacco regulations will impact PMI’s ability to commercialize its smoke-free products globally.
- Execution Risk
- Whether PMI can successfully integrate and realize benefits from recent transactions and acquisitions in the wellness sector.
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