#Net Revenues Passed $11 Billion For The First Time
Philip Morris International Inc. (NYSE: PM) reported second-quarter 2026 net revenues of $11.2 billion, passing $11 billion for the first time, the company said on July 22 from Stamford, Connecticut.
Net revenues rose 10.4%, or 7.6% on an organic basis, from a year earlier. Both the smoke-free and combustible businesses contributed to the increase.
The smoke-free business accounted for about 42% of total net revenues in the quarter, up 0.5 percentage points from a year earlier. Philip Morris smoke-free products are now available in 109 markets.
#Adjusted EPS Rose 15.2% As Reported EPS Fell On A Canadian Impairment
Adjusted diluted earnings per share rose 15.2% to $2.20, or 13.6% excluding a favorable currency effect. Reported diluted EPS fell 7.7% to $1.80.
The reported figure was reduced by a non-cash impairment of Philip Morris's equity investment in its deconsolidated Canadian affiliate, Rothmans, Benson & Hedges. The charge totaled $511 million, equal to 33 cents of diluted EPS.
Gross profit rose 11.5%, or 8.7% organically, which the company attributed to pricing, scale and product mix. Operating income rose 22%, or 10.7% organically.
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#Smoke-Free Revenue Climbed On IQOS Volume Growth
Net revenues in the international smoke-free segment rose 14.2%, or 11.8% organically, on 8% volume growth. IQOS remained the primary driver, with shipment volumes up 7.6%.
"We delivered outstanding results in the second quarter, driving net revenues to over $11 billion for the first time with excellent growth across all headline metrics," Jacek Olczak, Group Chief Executive, said in the earnings release.
IQOS held about three-quarters of global heat-not-burn volume, according to the company, and reached 9.2% of combined cigarette and heated-tobacco-unit volumes in markets where it is sold. The company flagged transient headwinds in Japan and Poland tied to a price increase and a flavor ban.
In modern oral products, ZYN is now sold in 60 markets. The e-vapor brand VEEV posted a 55.1% rise in quarterly shipments and holds the top closed-pod position in Europe, the company said.
#Combustibles Grew As Marlboro Matched Its Record Share
Cigarette volume rose 1.1% and combustible net revenues rose 9.8%, or 6.4% organically, on 10% pricing. Marlboro matched its record category share of 11%, up 0.3 percentage points.
In the United States, net revenues declined 0.7%. ZYN shipments rose 1.8% to 2.9 billion pouches, and on June 30 the U.S. Food and Drug Administration granted Modified Risk Tobacco Product authorization to 20 variants in the flagship ZYN range.
#Philip Morris Raised Its 2026 EPS Forecast For Currency
Philip Morris updated its full-year adjusted diluted EPS forecast to a range of $8.26 to $8.41, reflecting unfavorable currency movements. The company maintained its underlying currency-neutral earnings outlook. That range represents projected growth of 9.5% to 11.5% over 2025.
For the first six months, net revenues rose 9.8% to $21.3 billion and adjusted diluted EPS rose 15.6% to $4.16. Reported diluted EPS fell 8.4% to $3.36.
Large international tobacco companies have been shifting toward smoke-free products as cigarette volumes decline in many developed markets. Philip Morris said it has invested more than $16 billion in smoke-free products since 2008.
The company said the Middle East conflict has had a minor impact so far, mainly on transport, energy and other input costs, and described the situation as volatile. It cited marketing and regulatory restrictions, excise taxes and geopolitical instability among continuing risks to its projections.
Management guided third-quarter adjusted diluted EPS to a range of $2.20 to $2.25 and said the company is positioned to meet its full-year targets while investing for growth. Regulatory restrictions, tax changes, currency movements and the pace of consumer adjustment in Japan and Poland remain key risks to that outlook.