Finance
Philip Morris Cuts Annual Profit Forecast
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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Philip Morris International trimmed its 2026 adjusted EPS guidance slightly—from $8.38–$8.53 to $8.36–$8.51—citing intensifying competition in nicotine pouches and regulatory uncertainty around its Zyn brand.
Philip Morris trims annual profit forecast amid nicotine pouch uncertainty
Philip Morris International's Financial Performance and Regulatory Challenges
April 22 (Reuters) - Philip Morris International cut its annual profit forecast on Wednesday amid regulatory uncertainty over its Zyn nicotine pouches and rising competition in tobacco products.
Market Reaction and First-Quarter Results
Still, its shares rose nearly 3% in premarket trade after the company beat expectations for first-quarter sales and profit.
Diversification Efforts and Competitive Landscape
Philip Morris, which sells Marlboro outside the U.S., has stepped up efforts to diversify beyond cigarettes, but has faced rivalry from brands such as British American Tobacco's Velo and regulatory delays in authorizing new versions of Zyn.
Regulatory Uncertainty for Nicotine Pouches
Popular nicotine pouch products have yet to be cleared for sale in the U.S. despite a fast-track Food and Drug Administration scheme, as agency scientists hesitate to authorize them due to potential risks to new users, including children, Reuters reported earlier this month.
Updated Profit Forecast and Analyst Expectations
Philip Morris expects full-year adjusted earnings per share of $8.36 to $8.51, compared with its previous forecast of $8.38 to $8.53.
The midpoint of the profit forecast is 4 cents above analysts' expectations, according to data compiled by LSEG.
Impact of Geopolitical Events
The company said it has factored in a small impact from the Middle East conflict in its forecast, but does not expect a prolonged effect.
Revenue and Product Performance
Philip Morris reported first-quarter revenue of $10.15 billion, compared with analysts' average expectation of $9.91 billion. Quarterly adjusted profit of $1.96 per share also beat the estimate of $1.83.
Smoke-Free Product Growth and Zyn Volumes
Revenue from smoke-free products rose 12.4% in the quarter, slowing from 15% growth a year earlier, while Zyn shipment volumes in the U.S. fell 23.5%.
Reporting Credits
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
Key Takeaways
- •Profit guidance eased marginally as full-year adjusted EPS range narrowed to $8.36–$8.51 from $8.38–$8.53 (finance.yahoo.com)
- •Growing competitive pressure and promotional costs in the U.S. nicotine pouch market weigh on margins (nicotineinsider.com)
- •Regulatory uncertainty—particularly FDA scrutiny of new Zyn variants—and potential state-level restrictions add further risk to growth outlook (finance.yahoo.com)
References
Frequently Asked Questions about Philip Morris cuts annual profit forecast
1What is the new expected earnings per share for Philip Morris?
Philip Morris now expects full-year adjusted earnings per share of $8.36 to $8.51, down from its previous forecast of $8.38 to $8.53.
2What regulatory issues is Philip Morris facing?
Philip Morris is dealing with regulatory uncertainty over its Zyn nicotine pouches, impacting the company’s financial outlook.
