Philip Morris International reported first-quarter 2026 net revenues of $10.1 billion, up 9.1%, with adjusted diluted EPS rising 16% to $1.96 despite a decline in reported EPS due to a non-cash adjustment. Growth was driven primarily by the company’s smoke-free portfolio, which now accounts for 43% of total revenue and is available in more than 100 markets.
The smoke-free segment delivered strong performance, with revenue increasing 24.7% and shipment volumes up 11.9%. IQOS remained the key growth driver, with double-digit gains and expanding market share, including becoming the top nicotine brand in markets where it is present. E-vapor products also showed rapid growth, while nicotine pouch volumes expanded in several markets despite declines in Nordic snus.
Combustible cigarette volumes declined 5.1% in the quarter, although pricing supported modest revenue growth in the segment. Looking ahead, PMI expects continued momentum in smoke-free products, forecasting adjusted EPS growth of 10.9% to 12.9% for 2026 and organic revenue growth of 5% to 7%, supported by ongoing investment in its reduced-risk portfolio.