Philip Morris International (NYSE:PM) shares fell roughly 1% in premarket trading on Tuesday after the tobacco company reduced its full-year adjusted earnings-per-share guidance for 2026.
The company narrowed its adjusted diluted EPS forecast for 2026 to a range of $8.31 to $8.46, down from the prior guidance of $8.36 to $8.51. The new range sits near the Bloomberg consensus estimate of $8.41.
Philip Morris said it expects to recognize a non-cash impairment charge of about $500 million related to RBH in the second quarter of 2026. The company quantified that the charge will equate to 33 cents of diluted EPS. Philip Morris also noted that RBH remains deconsolidated from the group and that the remaining carrying value of RBH is expected to be under $100 million.
To incorporate currency impacts and the non-cash RBH impairment, the company updated its full-year 2026 reported diluted EPS outlook to a range of $7.18 to $7.33. Separately, Philip Morris adjusted its second-quarter adjusted diluted EPS outlook for currency to a range of $1.97 to $2.02, stating that this figure includes an estimated unfavorable currency impact of 3 cents at prevailing exchange rates.
Adjusted-growth context
Philip Morris highlighted how the adjusted outlook translates versus last year after excluding expected adjustments. The company indicated that, excluding a total 2026 adjustment of $1.13 per share, the adjusted diluted EPS forecast range implies a projected increase of 10.2% to 12.2% compared with $7.54 in 2025.
Key implications
- Near-term equity reaction: Shares slipped about 1% in premarket trading following the guidance cut and impairment announcement.
- Financial reporting: The company revised both reported and adjusted EPS ranges for 2026, and updated its Q2 adjusted EPS range to reflect currency headwinds.
- Balance-sheet note: RBH is deconsolidated with a remaining carrying value expected to be below $100 million after a roughly $500 million non-cash impairment in Q2 2026.
Summary of figures provided by the company
- 2026 adjusted diluted EPS forecast: $8.31 - $8.46 (previously $8.36 - $8.51).
- Bloomberg consensus for 2026 adjusted EPS: $8.41.
- Anticipated non-cash RBH impairment: approximately $500 million, representing $0.33 of diluted EPS in Q2 2026.
- 2026 reported diluted EPS forecast (post-impairment and currency): $7.18 - $7.33.
- Q2 adjusted diluted EPS forecast (currency-adjusted): $1.97 - $2.02, including an estimated -$0.03 currency impact at prevailing rates.
- Excluding total 2026 adjustments of $1.13 per share, projected adjusted EPS growth for 2026: 10.2% - 12.2% versus $7.54 in 2025.
Context and limitations
The company’s updated guidance and the one-time accounting charge provide the basis for the market move reported in premarket trading. The outlook and figures above reflect the ranges and estimates stated by the company; where the company references estimated currency impacts or expected carrying values, those remain subject to the company’s own assumptions and subsequent reporting.