Philip Morris Beats Q1 Estimates As Smoke-Free Products Drive Growth, Shares Rise 3%

Philip Morris International Inc. (NYSE:PM) reported first-quarter results that exceeded analyst expectations, driven by strong demand for its smoke-free product portfolio, particularly IQOS devices. Shares rose over 3% opre-market today following the release.

The company posted adjusted earnings per share of $1.96, surpassing the consensus estimate of $1.83 by $0.13. Revenue reached $10.1 billion, exceeding the $9.89 billion estimate and rising 9.1% from $9.3 billion in the prior-year quarter.

Smoke-free products accounted for 43% of total net revenues, increasing 1.3 percentage points year-over-year.

The International Smoke-Free segment led growth, with revenue increasing 24.7% on a reported basis and 15.8% organically. IQOS unit shipments rose 11.3%, with the brand overtaking Marlboro to become the leading nicotine product in markets where it operates, capturing 10.9% of combined cigarette and heat-not-burn volumes.

For full-year 2026, Philip Morris projected adjusted diluted EPS of $8.36 to $8.51, representing growth of 10.9%–12.9% from $7.54 in 2025. The midpoint of $8.44 exceeded typical analyst expectations. The company also forecast organic net revenue growth of 5%–7% and operating income growth of 7%–9%.

For the second quarter, the company guided adjusted diluted EPS to a range of $2.02 to $2.07, with a midpoint of $2.05.