Key Moments
- Philip Morris International forecast full-year 2026 adjusted EPS of $8.38 to $8.53, topping the $8.33 analyst consensus cited from LSEG data.
- U.S. volumes of Zyn nicotine pouches grew 19% in the fourth quarter, backed by a broad range of commercial initiatives.
- Shares of Philip Morris traded about 1% lower in premarket action, after prior concerns around one-off promotions affecting Zyn profitability.
Growth Outlook Driven by Smoke-Free Products
Philip Morris International forecast a stronger-than-anticipated annual profit on Friday, pointing to robust demand for its nicotine pouch brand Zyn as a key driver, even as it works to maintain market share amid intensifying competition.
The company, described as the world’s largest tobacco business by market capitalization and the seller of Marlboro outside the United States, is viewed as being ahead of its peers in shifting its revenue base toward smoke-free offerings, including vapes and nicotine pouches, in response to declining smoking rates in certain markets.
Zyn’s Role in the Smoke-Free Portfolio
Within Philip Morris’ portfolio of alternatives to traditional cigarettes, Zyn has swiftly established itself as a standout product, ranking just behind the flagship heated tobacco system IQOS. The performance of Zyn has been underpinned by rapid expansion in the important U.S. market.
However, this momentum is being challenged by intensifying rivalry. Competing products such as British American Tobacco’s Velo are securing a growing share of the U.S. nicotine pouch segment, posing a direct competitive threat.
#PhilipMorris International $PM, Q4-25.
Results:
📊 Adj. EPS: $1.70 🟢
💰 Revenue: $10.36B 🔴
📈 Net Income: $3.37B
🔎 Smoke-free products drove growth, accounting for more than half of quarterly net revenues. pic.twitter.com/zdviYBLS8J— EarningsTime (@Earnings_Time) February 6, 2026
Fourth-Quarter Performance and Commercial Activities
During the fourth quarter, Philip Morris reported that U.S. volumes of Zyn increased by 19%. The company attributed this growth to “a wide range of commercial activities.”
In the preceding third quarter, large one-off promotions and related initiatives had weighed on investor sentiment, as market participants questioned the impact of such tactics on the long-term profitability of Zyn.
Market Reaction and Earnings Guidance
In premarket trading on Friday, shares of Philip Morris were down about 1%, despite the upbeat earnings outlook tied to its smoke-free products strategy.
For the full year 2026, Philip Morris expects adjusted earnings per share in a range of $8.38 to $8.53. This projection is above the $8.33 estimate from analysts, based on data compiled by LSEG.
For the most recent fourth quarter, the company reported adjusted earnings of $1.7 per share, a result that matched analysts’ expectations.
Guidance and Recent Results Snapshot
| Metric | Period | Figure | Context |
|---|---|---|---|
| Adjusted EPS guidance | Full year 2026 | $8.38 – $8.53 | Above $8.33 analyst estimate (LSEG) |
| Analyst EPS estimate | Full year 2026 | $8.33 | Based on data compiled by LSEG |
| Adjusted EPS | Fourth quarter | $1.7 per share | In line with analyst expectations |
| Zyn U.S. volume growth | Fourth quarter | 19% | Supported by “a wide range of commercial activities” |
| Share price move | Premarket trading on Friday | Down about 1% | Following earlier concerns around one-off promotions |
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