Philip Morris Cuts 2026 EPS Guidance on $500M RBH Impairment and Forex Headwinds
PM•Philip Morris cut 2026 adjusted EPS guidance to $8.31–$8.46 from $8.36–$8.51 per share, reflecting a Q2 non-cash RBH impairment of ~$500 million (33c EPS impact) and a $0.03 per share currency headwind. Reported diluted EPS outlook was trimmed to $7.18–$7.33, implying 10.2%–12.2% adjusted earnings growth.
1. Guidance Revision Details
Philip Morris narrowed its full-year 2026 adjusted EPS forecast to $8.31–$8.46 from a prior range of $8.36–$8.51 per share, aligning broadly with consensus expectations but marking a reduction at the top end by five cents.
2. RBH Impairment Charge
The company expects a non-cash impairment of approximately $500 million in Q2 related to its Rothmans, Benson & Hedges investment, which will reduce diluted EPS by about $0.33 and leave the remaining carrying value below $100 million.
3. Currency Headwinds and Quarterly Outlook
Foreign-exchange movements are estimated to detract $0.03 per share in Q2 adjusted EPS, prompting a revised quarterly forecast of $1.97–$2.02, down from previous guidance.
4. Underlying Growth Outlook
After excluding a total of $1.13 per share in impairment and currency adjustments, 2026 adjusted EPS still implies 10.2%–12.2% growth over the $7.54 per share delivered in 2025, underscoring management’s confidence in operational performance.
