Philip Morris grows adjusted EPS 5.4% to a record $2.36 as smoke-free sales top 40% of revenue

Philip Morris International posted record quarterly revenue, gross profit and operating income in the third quarter, as its smoke-free products made up more than 40% of net revenue.

Adjusted diluted earnings rose 5.4% to $2.36 a share, an all-time quarterly high, according to its earnings release filed with an 8-K on Wednesday. Reported diluted EPS fell 4.9% to $2.12, mainly because of a non-cash fair value adjustment on equity investments, the company said.

Net revenue increased 5.5% to $11.4 billion, or 7.1% on an organic basis. Operating income climbed 14.1%. Total shipments rose 0.6%, with smoke-free volumes up 2.7%.

"We delivered another excellent quarter," Chief Executive Jacek Olczak said in the release.

Smoke-free and cigarettes

IQOS heated tobacco unit shipments grew 1.5% to 41.5 billion units. Modern oral pouch volume rose 20.6% to 0.5 billion, and the company said ZYN is now sold in 62 international markets. VEEV e-vapor shipments jumped 61.6%.

Combustibles had what the company called an exceptional quarter. Net revenue in that segment rose 6.5% on 8.9% pricing, with cigarette shipments broadly flat. PMI said part of the gain came from restructured distribution terms that are not expected to recur at the same level.

Forecast

PMI updated its full-year forecast for currency only. It now expects 2026 adjusted diluted EPS of $8.29 to $8.44, up 9.9% to 11.9% from $7.54 in 2025, including a favorable currency impact of $0.18. Excluding currency, the range is $8.11 to $8.26. Reported diluted EPS is forecast at $7.11 to $7.26.

By the numbers

• Net revenue: $11.4 billion, up 5.5% (7.1% organic)
• Adjusted diluted EPS: $2.36, up 5.4%
• Reported diluted EPS: $2.12, down 4.9%
• Operating income: up 14.1%
• 2026 adjusted diluted EPS forecast: $8.29 to $8.44

Sources

1. Philip Morris International Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release, filed Oct. 21, 2026, accession 0001628280-26-066596

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