Philip Morris reports record revenue amid smoke-free growth

Philip Morris International achieved record quarterly revenue of $11.438 billion in the third quarter of 2026, representing a 5.5% increase. While net profit attributed to the company fell 4.7% to $3.313 billion due to accounting adjustments regarding equity investments, operating profit rose 14.1% to $4.886 billion.

The company’s smoke-free product division continues to expand, accounting for 40% of net sales in the third quarter and 42% for the year-to-date. IQOS led this segment, with shipment volumes increasing 1.5% to 41.5 billion units. Traditional combustible tobacco products also saw revenue growth of 6.4%, reaching $6.812 billion.

Looking ahead to the full year 2026, Philip Morris expects net revenue growth between 5% and 7%, leaning toward the higher end of that range. However, the company has ruled out share buybacks for the year and warned of cost pressures stemming from geopolitical tensions, including rising energy costs in the Middle East and supply chain disruptions caused by the war in Ukraine.