Philip Morris International Participates in 2026 Barclays Global Consumer Conference; Raises 2026 Full-Year Diluted EPS Forecast for Currency Only

Philip Morris International (PMI) used the Barclays 19th Annual Global Consumer Conference to showcase its long-term strategy of moving away from cigarettes and towards smoke-free products. CEO Jacek Olczak emphasized that the company's strategy is still generating volume growth and pricing power, despite facing challenges such as currency fluctuations, tax increases, and regulatory delays.

PMI reported that its full-year guidance change was due solely to currency fluctuations, with a positive impact of around $0.24 per share at current exchange rates. The company has delivered six consecutive years of total volume growth, signaling a successful shift away from cigarettes.

PMI's focus remains on the U.S. nicotine market, which it believes offers the greatest potential. The company expects dividend growth to remain its top priority for capital return. Additionally, PMI sees Japan as a major tobacco opportunity, with IQOS and ZYN (a nicotine pouch brand) driving growth. ZYN has recently launched new products, including ZYN Ultra in 9 mg, 11 mg, and a 1.5 mg option, as well as new packaging with larger 20-count cans.

While cigarettes still represent about 60% of PMI's business, the company is optimistic about the future of heated tobacco products. Olczak stated that these products could eventually make up 10% of the combined cigarette and heated tobacco market. The U.S. remains the largest and most profitable nicotine market for PMI, and the company is still awaiting FDA PMTA authorization for the ILUMA version of IQOS, which it plans to launch in the future.

Olczak concluded that while PMI's long-term strategy centers on smoke-free products, cigarettes still play an important role in the company's business and continue to perform better than expected in certain markets.