Philip Morris Q4 EPS Beats at $1.70; Smoke-Free Sales Surge 12%
Philip Morris delivered adjusted Q4 EPS of $1.70, up 9.7% year over year and topping the $1.67 consensus, while revenues rose 6.8% to $10.36 billion. Smoke-free product revenues jumped 12% and accounted for over half of net revenues in three of four regions, and 2026 guidance calls for adjusted EPS of $8.38–$8.53 and organic revenue growth of 5–7%.
1. Q4 Financial Results
Philip Morris posted adjusted earnings of $1.70 per share in the fourth quarter, a 9.7% increase from the prior year that exceeded the $1.67 consensus. Net revenues climbed 6.8% to $10.36 billion, driven by pricing gains and solid volume/mix improvements.
2. Smoke-Free Business Performance
Revenues from smoke-free products rose 12% on a reported basis (8.6% organically), with the segment contributing more than 50% of net revenues in three of the company’s four regions. Total shipment volumes grew 0.1% to 193.8 billion units as smoke-free volumes offset declines in traditional cigarette volumes.
3. 2026 Outlook and Guidance
Management projects adjusted EPS of $8.38–$8.53 for 2026, representing 11.1–13.1% growth, alongside organic net revenue growth of 5–7% and organic operating income growth of 7–9%. Capital expenditures are forecast at $1.4–$1.6 billion to support the expanding smoke-free business.