Philip Morris International (PM) Lowers Q2 and FY26 Profit Guidance

Philip Morris International Inc. (NYSE: PM) on Tuesday, June 2, 2026, slashed its earnings forecasts for the second quarter and full year 2026, pointing to adverse currency swings and weaker-than-expected demand for its heated tobacco products. The announcement triggered a premarket sell-off. The tobacco giant now projects full-year adjusted diluted earnings per share well below its prior growth target of 8% to 10% year over year. Management highlighted a stronger U.S. dollar cutting into international sales and intensifying competition in the reduced-risk category. The guidance cut marks a setback for the company’s strategy to pivot toward smoke-free alternatives like IQOS as traditional cigarette volumes remain under pressure from consumer belt-tightening.