Philip Morris Q1'26 sales strong; alternative products now 43% of revenue, EPS guidance confirmed.

Philip Morris International reported strong financial results for Q1 of fiscal year 2026, with alternative tobacco products like ZYN and IQOS now making up 43% of total revenues. The company confirmed its adjusted earnings per share (EPS) guidance for the full year 2026, excluding currency impacts, highlighting growth driven by non-traditional tobacco products and emerging markets. Despite trading at a premium valuation compared to peers, the stock was upgraded to hold due to promising EPS and dividend growth prospects linked to its emerging market exposure. This positions Philip Morris as a reliable income investment with an expected payout of about 73% of adjusted EPS this year.