Philip Morris Says Global Wars Have Disrupted Its Business and Clouded Earnings Outlook

Philip Morris said the conflicts in Ukraine and the Middle East have disrupted business. (Getty Images)

Key Points

• Philip Morris reports that global conflicts in Ukraine and the Middle East have disrupted its business and clouded its earnings outlook.
• The company says Middle East tensions drove up energy-related inflation and costs, while strikes in Ukraine hit its supply chain.
• Philip Morris adjusts its full-year profit guidance to a range of $8.29 to $8.44 a share, up from its prior outlook of $8.26 to $8.41.

On paper, Philip Morris had a stellar third quarter. But under the surface, global tensions in both the Ukraine and Middle East have had a growing impact on its business—and investors don’t seem too happy.

Management said Wednesday that while the ongoing conflict in the Middle East remains “manageable,” it has had an “increasing effect” on its business due to energy-related inflation driving higher costs.

Philip Morris stock declined 1% to $197.85 in premarket trading Wednesday.

“The long-term situation remains unpredictable, and it is difficult to assess the broader implications for consumers or the global cost environment,” management said.

The Barron’s Daily

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.

Email addressSubscribe

I agree to the Terms of Use, Privacy Notice and Cookie Notice.

I would like to receive updates and special offers from Dow Jones and affiliates.

The situation in Ukraine also has taken a toll on Philip Morris this year. The company has been dealing with weapons strikes on its supply chain and logistics infrastructure in certain locations.

“We expect this disruption to have an impact on our operating income this year,” Philip Morris said.

Philip Morris also tweaked its full-year profit guidance, anticipating a range from $8.29 to $8.44 a share, up from a prior outlook of $8.26 to $8.41 a share. Analysts project that figure to reach $8.36 a share, according to FactSet.

The tobacco giant said its full-year forecast takes into account the rise in energy-related input prices, which will likely have a higher impact in the fourth quarter.

Philip Morris posted third-quarter adjusted earnings of $2.36 a share, beating Wall Street’s calls for $2.30 a share. Revenue grew 5.5% to $11.4 billion, above consensus estimates of $11.32 billion.

Aside from the gloom, Philip Morris said U.S. shipments for its Zyn nicotine pouches, its signature oral smoke-free product, grew by 4.2% to 3.2 billion pouches in the fiscal third quarter. That’s up from a 1.8% in the second quarter and a sharp rebound from a 23% decline in the first.

The tobacco company previously said it has continued to invest in its U.S. business to keep Zyn as the go-to nicotine pouch for Americans. The company shipped new Zyn variants during the second quarter and plans to launch several new products during the rest of the year.

Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8