PM · Philip Morris International Inc.

Philip Morris International delivered a strong first quarter in 2026, with adjusted diluted EPS growing 16.0% to $1.96, significantly outperforming the reported diluted EPS of $1.56 which was impacted by a non-cash fair value adjustment related to a minority shareholding in India. The company's performance was driven by its smoke-free business, which generated 43% of total net revenues. Net revenues rose 9.1% to $10.1 billion, supported by strong pricing and mix benefits. The International Smoke-Free segment was the primary growth engine, posting 24.7% net revenue growth and 28.6% gross profit growth, reflecting the increasing profitability of the portfolio. IQOS achieved a milestone, surpassing Marlboro to become the number one nicotine brand in markets where it is present. Conversely, the U.S. segment faced headwinds, with smoke-free shipment volumes declining 21.2% due to inventory normalization and challenging comparisons, although ZYN offtake grew 10%. Management raised the full-year 2026 adjusted diluted EPS forecast to a range of $8.36 to $8.51, representing 10.9% to 12.9% growth, citing broad-based momentum in the international smoke-free business. The company also noted a small impact from the Middle East conflict on shipments to Global Travel Retail and certain markets but does not assume a prolonged impact in its forecast.