Philip Morris International Inc. PM is likely to witness top and bottom-line growth when it reports second-quarter 2026 results on July 22. The Zacks Consensus Estimate for revenues is pegged at $10.56 billion, indicating an increase of 4.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings has risen by a penny over the past 30 days to $2.04 a share, which suggests a jump of 6.8% from the figure reported in the year-ago period. PM has a trailing four-quarter surprise of 4.9%, on average.
Philip Morris International Inc. Price, Consensus and EPS Surprise
Philip Morris International Inc. price-consensus-eps-surprise-chart | Philip Morris International Inc. Quote
Factors Likely to Influence PM’s Upcoming Results
The company’s accelerating smoke-free transformation is expected to have remained a key growth driver in the second quarter. Continued momentum in IQOS, supported by wider consumer adoption, market-share gains and ongoing innovation, is likely to have aided revenues. Growing contributions from VEEV and ZYN outside the United States may have also supported a favorable product mix. Management expects another strong quarter from the international business, though IQOS in-market sales growth in Japan is anticipated to have moderated temporarily following excise-driven pricing actions.
Philip Morris is also likely to have benefited from sustained pricing power across smoke-free products and combustible cigarettes. Premium brand strength, disciplined cost management, productivity gains and operating leverage are expected to have supported margins and earnings. Management anticipates healthy organic revenue growth and solid operating-income progression despite continued investment in the smoke-free portfolio.
The international business is expected to have remained resilient, aided by broad-based smoke-free momentum and the rising profitability of reduced-risk products. With U.S. channel inventories largely normalized, ZYN shipments may have tracked underlying consumer demand more closely.
However, elevated commercial spending, slower Japan IQOS growth, regulatory delays in the United States and geopolitical disruptions may have partly constrained the quarterly performance.
Q2 Earnings Whispers for PM
Our proven model doesn’t conclusively predict an earnings beat for Philip Morris this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Philip Morris currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of +0.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Kimberly-Clark Corporation KMB currently has an Earnings ESP of +1.44% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, indicating a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Archer-Daniels-Midland Company ADM currently has an Earnings ESP of +12.50% and a Zacks Rank of 2. The consensus estimate for ADM’s quarterly revenues is pinned at $22.38 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.28, which implies a 37.6% rise year over year. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Monster Beverage Corporation MNST currently has an Earnings ESP of +0.45% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.42 billion, which suggests 14.6% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which implies a 13.5% increase year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
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Philip Morris International Inc. (PM): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Kimberly-Clark Corporation (KMB): Free Stock Analysis Report
Monster Beverage Corporation (MNST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).