Philip Morris International Inc. reported a mixed first half of 2026, with strong revenue growth from its smoke-free and international pricing momentum offset by several non-cash and tax-related items that reduced reported earnings. For the six months ended June 30, 2026, PMI posted net revenues of $21.3 billion, up $1.9 billion, or 9.8%, from the prior-year period. Excluding currency effects and acquisitions/divestitures, net revenues rose 5.3%, driven mainly by favorable pricing in international combustibles, partially offset by unfavorable volume/mix in international combustibles and the U.S., despite higher international smoke-free volumes. For the second quarter ended June 30, 2026, PMI reported net revenues of $11.2 billion, up $1.1 billion, or 10.4%, from the comparable 2025 quarter. Excluding currency and acquisitions/divestitures, quarterly net revenues increased 7.6%, reflecting favorable pricing, again led by international combustibles, and favorable volume/mix from international smoke-free products, partly offset by adverse mix in international combustibles. Reported diluted earnings per share for the first six months of 2026 were $3.36, down 8.4% from $3.67 in the first half of 2025. PMI said operations added $0.21 per share, supported by favorable volume/mix and pricing in International Smoke-Free and favorable pricing in International Combustibles. Currency added $0.22 per share, interest added $0.02, and a lower tax rate added $0.11. These gains were more than offset by several 2026 items, including a $0.33 per-share charge tied to an impairment of PMI’s RBH equity investment, a $0.25 per-share charge for amortization of intangibles, a $0.16 per-share loss from fair value adjustments on equity security investments in India and Sri Lanka, and a $0.06 per-share tax impact associated with Swedish Match acquisition financing. The most significant specific action disclosed was PMI’s second-quarter 2026 non-cash impairment charge related to its investment in RBH. In May 2026, RBH provided an annual business plan to its Plan Administrator under its court-approved plan of compromise and arrangement, including updated five-year financial projections reflecting current industry dynamics. Based on those projections, PMI concluded that the estimated fair value of its RBH investment was below its carrying value and recorded a $511 million impairment charge, reducing diluted EPS by $0.33. PMI also recorded $30 million of pre-tax restructuring charges during the first six months of 2026, equal to $24 million after tax and a $0.01 per-share EPS impact. The charges related to a series of footprint optimization initiatives in the U.S. That compares with $243 million of pre-tax restructuring charges in the first half of 2025, tied to the end of combustible tobacco production at two factories in Germany. The company disclosed a favorable tax-related development in Egypt. After earlier recording a charge related to assessments for general sales tax deducted on imported cutfiller for 2014 through 2016, PMI pursued relief under Egyptian tax amnesty legislation enacted in December 2024. In May 2026, court approval was obtained for a settlement covering the 2016 year, making that settlement effective. As a result, PMI recorded a favorable sales tax settlement adjustment of $18 million net of income tax in the second quarter of 2026, adding $0.01 to diluted EPS. The report also highlights PMI’s organizational realignment effective January 1, 2026. The company replaced its prior four geographic segments with three reportable segments.