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Philip Morris’ 72% VEEV Surge — Why Is U.S. ZYN Growth Stalling?

Philip Morris International Inc. reported solid second quarter and first half 2026 results, driven by strong performance across its smoke-free products (SFP) portfolio, resilient combustible volumes, and effective cost management. The company demonstrated organic net revenue growth of +8% in Q2 and +5.3% for the first half, supported primarily by international SFPs, which exhibited high single-digit volume growth and double-digit top-line increases. The heat-not-burn brand IQOS remains the core growth driver, with adjusted in-market sales volumes increasing +5.1% in Q2 despite headwinds such as a significant excise tax hike in Japan and flavor bans in certain European countries. Excluding these markets, IQOS growth was robust at over +10%, reflecting broad geographic strength, including in emerging markets like Mexico and Taiwan. In parallel, the e-vapor brand VEEV recorded substantial shipment growth of +72% in H1, consolidating its leading position in Europe and global travel retail.