Philip Morris's first quarter 2026 results beat expectations as strong international IQOS growth offset a decline in U.S. ZYN shipments.

Philip Morris International reported first quarter 2026 net revenues of $10.1 billion, up 9.1% year-over-year, and adjusted diluted EPS of $1.96, a 16.0% increase. The results exceeded analyst expectations, driven by strong performance in the international smoke-free business which offset weakness in U.S. ZYN shipments against a tough prior-year comparison.

Key Highlights

• IQOS surpassed Marlboro to become the #1 nicotine brand where present, reaching a 10.9% share of combined cigarette and heated tobacco unit (HTU) volumes, an increase of 1.7 percentage points.
• U.S. ZYN nicotine pouch shipments declined 23.5% to 155 million cans, which the company attributed to the normalization of channel inventories, despite a 10% growth in consumer offtake volumes.
• The International Smoke-Free segment delivered strong results with net revenue growing 15.8% organically, fueled by an 11.3% increase in heated tobacco unit shipment volume.
• The combustible cigarettes segment saw volumes decline 5.1% as expected, but strong pricing of 8.5% drove a 1.0% organic increase in the segment's net revenue.