Philip Morris International Q3 Revenues Surge 5.5%

By Ahmed Jamerson • Wednesday, October 21 16:09 • Permanent Link

Philip Morris International reported third-quarter net revenues of $11.4 billion, up 5.5% from a year earlier, or 7.1% organically, as shipment volume rose 0.6% to 206.2 billion equivalent units.

Gross profit increased 6.7% to $7.9 billion, while operating income climbed 14.1% to $4.9 billion. Adjusted diluted EPS rose 5.4% to $2.36, or 5.8% excluding currency, while reported diluted EPS fell 4.9% to $2.12 from $2.23.

Smoke-free products accounted for more than 40% of total third-quarter net revenues. Smoke-free net revenues increased 4.1% to $3.9 billion, and combustible net revenues increased 6.4% to $6.7 billion.

By segment, international smoke-free volume rose 2.7% to 44.5 billion units, with net revenues up 0.7% to $3.9 billion and gross profit up 0.8% to $2.7 billion. International combustibles shipped 158.0 billion units, flat year over year, while net revenues climbed 6.5% to $6.7 billion and gross profit rose 8.6% to $4.6 billion. In the U.S., Zyn shipments increased 4.2% to 3.2 billion pouches, with segment net revenues up 22.7% to $0.8 billion and gross profit up 24.2% to $0.5 billion.

For the first nine months, shipment volume increased 0.5% to 595.6 billion equivalent units. Net revenues rose 8.2% to $32.8 billion, gross profit increased 9.4% to $22.4 billion, and operating income grew 15.4% to $13.3 billion. Adjusted diluted EPS advanced 11.8% to $6.52, while reported diluted EPS declined 7.0% to $5.48 from $5.89.

Within the nine-month period, smoke-free shipment volume increased 7.4% to 133.3 billion units, while combustibles fell 1.2% to 452.2 billion units. Smoke-free net revenues rose 12.3% to $11.6 billion, compared with a 7.7% increase in combustibles to $18.9 billion.

The company raised its regular quarterly dividend 8.8% to $1.60 per share, or $6.40 annualized.

For full-year 2026, Philip Morris now expects adjusted diluted EPS of $8.29 to $8.44, up from $7.54 in 2025, or $8.11 to $8.26 excluding currency. The company had previously indicated a stronger currency benefit of $0.24 per share; it now expects $0.18. The market has reacted to these announcements by moving the company's shares -0.57% to a price of $199.90. Check out the company's full 8-K submission here.

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