Philip Morris Revises 2026 Adj EPS Outlook To $8.31-$8.46 (Vs From Prior Forecast Of $8.36-$8.51)

Philip Morris International Inc.'s (PMI) (NYSE:PM) Group CEO PMI, Jacek Olczak, will address investors today at the 2026 dbAccess Global Consumer Conference in Paris at 11:15 a.m. CET (5:15 a.m. ET), including discussion of the following topics:

• PMI's continued expectation of a strong full-year performance, notably driven by the broad-based momentum of our international multicategory smoke-free business, led by IQOS.
• Recent heat-not-burn category developments broadly in-line with our expectations, most notably in Japan following the April 1, 2026 excise tax increase, with April offtake impacted by consumer pantry de-loading and IQOS maintaining a strong category share.
• U.S. ZYN portfolio expansion, including the launch of ZYN ULTRA this month in 9mg and 11mg moist variants. Available in a 20-pouch can format, ZYN ULTRA will be positioned at a lower list price-per-pouch than the ‘flagship' dry ZYN portfolio (15-pouch format), marking an important step in optimizing ZYN's price premium. Further extensions are planned for ZYN over the remainder of the year.

The live webcast will be available here. The webcast replay will be available at the same link for one year after the event. The webcast may also be accessed on mobile devices by downloading PMI's Investor Relations App at www.pmi.com/irapp.

2026 Full-Year Forecast

PMI updates its 2026 full-year reported diluted EPS forecast to a range of $7.18 to $7.33 to reflect currency and the non-cash impairment of RBH only. Excluding a total 2026 adjustment of $1.13 per share, the forecast range for adjusted diluted EPS of $8.31 to $8.46 represents a projected increase of 10.2% to 12.2% versus $7.54 in 2025. Excluding a favorable currency impact, at prevailing exchange rates, of $0.20 per share, this represents growth of 7.5% to 9.5%.

In May 2026, pursuant to its obligation under its court-approved plan of compromise and arrangement ("Plan"), PMI's Canadian affiliate, RBH, provided an annual business plan to its Plan Administrator containing updated five-year financial projections reflecting current industry dynamics. As a result, PMI has determined that the estimated fair value of its investment in RBH may be lower than its carrying value and expects to record a non-cash impairment charge of approximately $500 million, representing 33 cents of diluted EPS, in the second quarter of 2026. RBH remains deconsolidated from the PMI group, with the remaining carrying value expected to be less than $100 million.

The change in forecasted currency impact primarily reflects unrealized transactional foreign exchange effects from deferred tax liabilities associated with the strengthening Russian ruble. These effects are expected to occur in the second quarter, and we also update our Q2 adjusted diluted EPS forecast for currency only to a range of $1.97 to $2.02, now including an estimated unfavorable currency impact of 3 cents at prevailing exchange rates.

All other forecast assumptions remain unchanged from those communicated on April 22, 2026.

Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.

	Full-Year
	2026 Forecast				2025		Growth
Reported Diluted EPS	$7.18	-	$7.33		$ 7.26
Adjustments
Amortization of intangibles	0.50				0.50
Fair value adjustment for equity investments	0.22				(0.18)
Restructuring charges	0.03				0.14
Income tax impact associated with Swedish Match AB financing	0.05				(0.25)
Non-cash impairment of RBH equity investment	0.33
Other 2025 Adjustments (1)	—				0.07
Total Adjustments	1.13				0.28
Adjusted Diluted EPS	$8.31	-	$8.46		$ 7.54		10.2%	-	12.2%
Less: Currency	0.20
Adjusted Diluted EPS, excluding currency	$8.11	-	$8.26		$ 7.54		7.5%	-	9.5%