PM
Q1 came in hot
Philip Morris International kicked off 2026 with a quarter that sounded a lot better than the usual earnings-season throat-clearing. The company said performance beat its own expectations, thanks in part to a strong IQOS contribution and broad momentum across its smoke-free lineup.
The business is doing its thing
The real headline for investors is the mix: PMI said adjusted diluted EPS grew 16% in the quarter, which suggests the smoke-free transition is still doing its job. That matters because this is the kind of growth story investors keep paying attention to — not just cigarettes in a slower lane, but a bigger push into next-gen products.
But the currency monster showed up anyway
PMI also updated its 2026 full-year adjusted diluted EPS forecast, and the only tweak mentioned was currency. Translation: the business may be humming, but foreign exchange can still sneak in like an uninvited guest and shave off some of the fun.
Why you should care
If you own PM, this is one of those earnings reports where the core operating story looks solid, but macro noise still matters. Strong IQOS momentum can keep the bull case intact — yet FX reminds you that multinational cash flows don’t live in a vacuum.
Big picture: PMI is still trying to prove the smoke-free pivot can carry the stock, and this quarter gives that argument a little more fuel.