Philip Morris International Reports 9.1% Q1 Revenue Growth

By Chris Stiles • Wednesday, April 22 10:28 • Permanent Link

Philip Morris International’s first-quarter net revenues rose 9.1% from a year earlier to $10.1 billion, with organic growth of 2.7%. Gross profit climbed 10.1% to $6.9 billion, while operating income increased 9.8% to $3.9 billion. Adjusted diluted EPS advanced 16.0% to $1.96, or 5.3% excluding currency, but reported diluted EPS fell 9.3% to $1.56.

The smoke-free business remained the main growth engine. International smoke-free net revenues jumped 24.7% to $3.8 billion, with organic growth of 15.8%. Gross profit in that segment rose 28.6% to $2.7 billion. Shipment volume increased 11.9% to 44.1 billion equivalent units.

Within smoke-free, heat-not-burn shipments rose 11.3% to 41.3 billion equivalent units. Oral smoke-free volume fell 5.1% to 1.6 billion equivalent units, while e-vapor shipments reached 1.29 billion equivalent units, up 94.8%. Smoke-free products made up 43% of total net revenues, up 1.3 percentage points from the prior year.

International combustibles net revenues increased 6.8% to $5.7 billion, with organic growth of 1.0%, even as shipment volume declined 5.1% to 137.3 billion equivalent units. Gross profit in combustibles rose 9.8% to $3.8 billion. Cigarette category volume share slipped 0.6 percentage points to 24.8%, while Marlboro’s share rose 0.4 percentage points to a first-quarter record 10.7%.

The U.S. segment moved the other way. Net revenues fell 30.8% to $622 million, with organic revenue down 31.6%. Total smoke-free shipment volumes in the U.S. dropped 21.2%, and Zyn shipments fell 23.5% to 2.3 billion pouches, or 155 million cans. U.S. adjusted gross profit declined 44.1% organically, and adjusted OCI dropped 75.3%.

For the full year, Philip Morris now expects adjusted diluted EPS of $8.36 to $8.51, up 10.9% to 12.9% from 2025. Excluding currency, that implies growth of 7.5% to 9.5% to a range of $8.11 to $8.26. The company previously reported 2025 adjusted diluted EPS of $7.54. Following these announcements, the company's shares moved -1.82%, and are now trading at a price of $162.49. For more information, read the company's full 8-K submission here.

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