Phillip Morris Q1 2026 results
Based on Q1 2026 reporting, Philip Morris International (PMI) expects strong growth, with revenue reported at $10.15 billion. The $10.15 billion revenue result exceeded the analyst consensus estimate of approximately $9.91 billion, despite slightly missing some higher-end estimates.
PMI continues to shift towards smoke-free products like their electronic tobacco heat-not-burn pens (IQOS) and nicotine pouches (ZYN) and e-vapor pens (VEEV) to drive growth.
Reported Diluted EPS declined by 9.3% to $1.56. While the reported EPS declined 9.3%, the adjusted diluted EPS grew by 16.0% to $1.96, highlighting that the underlying business operations were strong.
Net revenues increased by 9.1% on a reported basis and 2.7% organically. The gap between 9.1% and 2.7% highlights that currency exchange rates had a major positive impact on earnings.
Smoke-free surge
International smoke-free net revenues surged 24.7% (15.8% organically) to $3.8 billion, driven by the expansion of IQOS and ZYN.
The company is navigating a mixed environment for traditional combustibles, reporting “increasingly profitable smoke-free progress,”according to their investor relations report. IQOS users were measured to be over 35 million, Oral tobacco users around 7 million and VEEV over 1million.
The company appears to be experiencing some headwinds trying to break into India, which has banned vapes and e-cigarettes.
PMI's performance highlights
Smoke-free products (SFP), such as IQOS, continue to be the main driver, with net revenues for this segment rising by 12.4% (5.3% organically).
Despite an expected volume decline in combustible tobacco (traditional cigarettes), strong pricing power allowed the combustible business to contribute, growing 6.7% (0.9% organically).
PMI’s higher-margin products and cost management helped the company deliver a higher adjusted operating income.
