Philip Morris: The 6 Most Significant Forces Steering Its Performance into 2026 and Beyond!

Philip Morris International’s third quarter results for 2025 demonstrate strong performance, driven largely by its smoke-free product lines and the resilience of its combustible portfolio. The company reported a quarterly gross profit of over $3 billion from smoke-free products, with flagship brands IQOS, ZYN, and VEEV showing significant volume growth. This performance contributed to an adjusted group operating income margin of over 43%, marking the strongest margin in four years, and achieving a record adjusted diluted earnings per share (EPS) of $2.24, a 17% increase. The company’s investment in its smoke-free portfolio is evident as it continues to expand globally, launching in new markets, including Taiwan. IQOS performance remained strong, particularly in Europe, Japan, and Global Markets, with heated tobacco unit (HTU) shipments growing 15.5%. Meanwhile, ZYN showed a substantial 39% uptake growth in the U.S.