PMI’s Smoke-Free Portfolio Remains Strong

Philip Morris International Inc. (PMI) this week  announced its 2026 first quarter results.

The company reported its net revenues increased by 9.1% year over year to $10.1 billion, including both the smoke-free (up by 12.4%, 5.3% organically) and combustibles (up by 6.7%, 0.9% organically) businesses.

PMI said its smoke-free business accounted for 43% of total net revenues, with PMI smoke-free products now available in 108 markets.

Internationally, smoke-free revenue rose 25%, “fueled by volume growth.” Combustibles had lower volume growth, but revenue still rose almost 7% due to “higher overall pricing.” Gross profit increased by 10.1% year over year.

In the U.S., total volumes, revenue and profit fell. Smoke-free shipment volumes slid 21%.

“Our performance exceeded our expectations in the first quarter, with an outstanding delivery from IQOS driving very good growth for the group against a strong prior-year comparison," said Jacek Olczak, group CEO PMI. "Building on excellent broad-based momentum in the international smoke-free business and 16% adjusted diluted EPS growth in Q1, we are well positioned to continue delivering best-in-class performance in 2026.”

PMI said it is investing more into its Zyn nicotine pouches, “as it aims to gain a better competitive edge with more flavor segments and other offerings,”  wrote The Wall Street Journal.

PMI recently  released its Value Report 2025, marking the completion of its 2025 Roadmap that introduced five-year goals in 2020. The report also introduces its Value Plan 2030+, which it said will “guide the company’s continued path to sustainable growth.”

Looking ahead, PMI’s Value Plan 2030+ “focuses on accelerating the growth of its smoke-free product portfolio, working to make cigarettes obsolete and exploring adjacent avenues of growth in wellness, while maintaining responsible sales and marketing practices, investing in human and natural capital, and strengthening the operational resilience that underpins long-term, sustainable value creation,” the company said.

Earlier this week, the U.S. Food and Drug Administration (FDA)  authorized the renewal  of modified risk tobacco product (MRTP) orders previously granted to PMI for two versions of the IQOS device and three variants of the tobacco consumables commercialized under the HEETS brand.

According to PMI, heated tobacco products, such as IQOS, heat tobacco without burning it, significantly reducing the formation of the harmful chemicals created by combustion while delivering real tobacco taste and nicotine satisfaction. The renewed authorization covers the following products:

• IQOS 2.4 System Holder and Charger
• IQOS 3.0 System Holder and Charger
• HEETS: Amber, Green Menthol, Blue Menthol

Tobacco