Philip Morris International raised its annual profit forecast for the third time this year after strong performance from its smoke-free products, including the popular nicotine pouch Zyn and the IQOS heated tobacco system.
Shares of the world’s largest publicly traded tobacco company rose around 4% in premarket trading following the announcement.
The company has leaned heavily on its expanding range of smoke-free alternatives to offset the ongoing global decline in traditional cigarette sales from brands like Marlboro and Chesterfield.
CEO Highlights Growth in Non-Combustible Products
“Our global smoke-free portfolio is outgrowing the industry by a clear margin, driving positive total volumes, strong top-line growth and impressive margin expansion,” CEO Jacek Olczak said.
With regulatory pressure and public health campaigns continuing to discourage cigarette use, major tobacco firms have been investing heavily in non-combustible nicotine delivery systems such as pouches, vapes, and heated tobacco devices.
Zyn Regains Momentum After Pricing Adjustments
While Zyn has established itself as the leading nicotine pouch brand in the U.S., its recent sales had lagged expectations amid increased competition, economic pressures, and criticism from health advocates.
However, Philip Morris recently adjusted pricing for Zyn, helping the brand regain momentum in the third quarter.
“While this had an impact on Americas Region Q3 net revenue and operating income growth, we expect U.S. Zyn to remain best-in-class in terms of profitability for the group, reinforcing the attractive outlook for the category,” the company stated.
Profit Forecast Raised as Q3 Results Beat Estimates
Philip Morris now expects adjusted annual earnings per share in the range of $7.46 to $7.56, up slightly from its prior guidance of $7.43 to $7.56.
Analysts surveyed by LSEG anticipate a full-year adjusted profit of $7.53 per share.
For the third quarter, the company reported adjusted earnings of $2.24 per share, exceeding analyst expectations of $2.09 per share.
The strong results highlight the success of Philip Morris’s transformation strategy as it continues to transition away from cigarettes toward reduced-risk nicotine alternatives.
As consumer habits evolve and regulatory scrutiny intensifies, Philip Morris appears to be solidifying its position as a leader in the next generation of tobacco products — one less dependent on traditional smoking and more aligned with changing public health trends.