Philip Morris 1Q Sales Rise on International Growth -- Update

Published: 2026-04-22 08:25:33 ET PM

Published on 04/22/2026 at 08:25 am EDT

By Katherine Hamilton

Philip Morris International logged higher revenue in the first quarter, as growth in its international business outweighed sluggish U.S. sales.

The tobacco company on Wednesday posted a profit of $1.56 a share in the first quarter, compared with $1.72 a share a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $1.96, ahead of the $1.83 anticipated by analysts, according to FactSet.

Revenue rose 9.1% to $10.15 billion in the quarter. Analysts surveyed by FactSet forecast revenue of $9.91 billion.

Philip Morris's sales in its smoke-free unit rose 12.4%, while the combustibles segment--which includes cigarettes--saw sales rise 6.7%. Smoke-free accounted for 43% of total revenue, the company said.

Internationally, smoke-free revenue rose 25%, fueled by volume growth. Combustibles had lower volume growth, but revenue still rose almost 7% due to higher overall pricing.

IQOS, which heats tobacco instead of burning it, is the primary growth engine for international smoke-free, with double-digit growth in shipment volume. IQOS surpassed Philip Morris's cigarette brand Marlboro as the number one nicotine brand in markets where it is present.

In the U.S., total volumes, revenue and profit fell. Smoke-free shipment volumes slid 21%.

Philip Morris said it is investing more into its Zyn nicotine pouches, as it aims to gain a better competitive edge with more flavor segments and other offerings. While industry data shows consumer demand for Zyn is increasing, shipments of the product fell almost 24% in the quarter, Philip Morris said.

The conflict in Iran had a small impact on the business in the first quarter, which affected shipments to global travel retail and certain markets in the region. The company is not assuming a prolonged impact in its guidance, but it factored in some increases in energy and transport costs.

It expects full-year adjusted earnings per share to be $8.36 to $8.51. Analysts are forecasting $8.38 a share. The outlook assumes revenue growth of 5% to 7% on an organic basis.

Shares were up 2.8% to $157.50 in premarket trading.

Write to Katherine Hamilton at [email protected]

(END) Dow Jones Newswires

04-22-26 0824ET