PMI Sees Another Strong Quarter From Smokeless
In the U.S., total Zyn shipments grew by 4.2% to 3.2 billion pouches in Q3 2026.
Oct 26, 2026 | 3 min read
Philip Morris International (PMI) reported its third-quarter 2026 results last week, noting that its smoke-free portfolio accounted for more than 40% of the tobacco company’s total net revenues of $11.4 billion.
The smoke-free business also accounted for around 42% of total net revenues on a year-to-date basis, with more than 30 markets above 50%. PMI smoke-free products are now available in 110 markets, the company said. It noted it continues to expand its Zyn footprint, with Zyn now available in 62 international markets.
"We delivered another excellent quarter, with growing total volumes, double-digit organic operating income growth and robust margin expansion," said Jacek Olczak, group CEO PMI, said in a press release. "With continued strong offtake momentum for our smoke-free brands and the exceptional results of our combustible business, we are in a strong position to continue delivering best-in-class performance, and firmly on track for a sixth consecutive year of volume growth."
The company reported:
- Net revenues increased by 5.5% (7.1% organically) to $11.4 billion, with growth across both smoke-free (up by 4.1%, 6.3% organically) and combustibles (up by 6.4%, 7.7% organically).
- Gross profit increased by 6.7% (8.3% organically), expanding gross margins through strong combustible pricing, scale and SFP mix benefits.
- Operating income increased by 14.1% (10.5% organically).
“This strong financial performance represents a new record quarterly high of net revenue, gross profit and operating income for the group,” PMI said.
In the U.S., total Zyn shipments grew by 4.2% to 3.2 billion pouches, “despite challenging comparisons against a special promotional campaign last year and supported by the ongoing launches of Zyn Ultra, new flagship dry flavors, 1.5mg and 8mg flagship variants.”
The company said these portfolio extensions “enable Zyn to cover a broader range of consumer preferences and compete in the most dynamic growing segments of the category. Segment net revenues grew by 22.7% and gross profit by 24.2% (23.8% organically), driven by volume growth combined with favorable pricing comparisons due to prior year promotional activities.”
PMI has been investing in the production of Zyn and opened a $1 billion manufacturing campus in Colorado over the summer. At the time, PMI U.S. said it planned to expand the site and add production capacity and future capabilities to support the growth of Zyn in the United States as well as increasing opportunities in international markets.
The company said it plans to transition the majority of the Zyn flagship portfolio to 20-pouch cans (from the current 15-pouch cans), a move “designed to align the value proposition across the portfolio and optimize Zyn’s price premium to support future growth in the dynamic U.S. nicotine pouch category.”
The U.S. Food and Drug Administration (FDA) also recently granted modified risk tobacco product authorization on June 30 to the 20 Zyn products it authorized in January 2025. In August, the FDA granted premarket tobacco product application (PMTA) authorization to 11 variants of Zyn Ultra, the company’s higher-nicotine moist offering. Zyn now has PMTA authorization of 31 variants in total, “more than any other nicotine brand on the market.” according to PMI.
Other tobacco
