Philip Morris Shares Rise Despite Lowering 2026 Earnings Forecast
Despite Philip Morris International (NYSE:PM) cutting its adjusted earnings forecast for the third time this year in July 2026, shares rose by over 3% as investors focused on underlying operational strength. The guidance reduction was attributed to a smaller expected currency benefit rather than weaker performance. Strong cigarette sales helped beat revenue and profit estimates, providing financial flexibility for investments in its U.S. ZYN nicotine pouch business. Analysts noted the unusual strength of Philip Morris' combustible segment as a key factor behind investor optimism. The company raised its full-year cigarette volume outlook to a decline of 2%–3%, down from an earlier forecast of around 3%. International smoke-free revenue also grew, supported by IQOS and VEEV products. ZYN showed signs of recovery with increased shipments in the second quarter after a sharp drop previously. The FDA's recent authorization for modified-risk marketing on some ZYN products strengthened its regulatory position.
Topics: cigarette_sales currency_impact stock_movement ZYN_growth