Philip Morris International reported six consecutive years of total volume growth and reaffirmed its medium-term target of low double-digit to low-teens earnings-per-share growth at the Barclays 19th Annual Global Consumer Conference on September 8, 2026.
CEO Jacek Olczak described the company's smoke-free transition as an "attainable algorithm" shaped over an 11-year strategy that began roughly a decade ago. Despite the shift, combustible cigarettes still account for about 60% of PMI's business, underscoring the scale of the transition ahead.
Olczak emphasized that the United States remains the most significant untapped opportunity. "Unlike companies going from the U.S. and trying to search for growth in some other markets outside, in our case we have growth internationally, but the unaddressed—until today—to a large extent—opportunity is the U.S.," he said. PMI expects FDA authorization for IQOS in the U.S. market "sooner than later," a milestone analysts view as critical to unlocking further growth.
In the U.S. oral nicotine segment, ZYN continues to expand its portfolio. PMI launched more than 20 new stock-keeping units over approximately two months, adding higher and lower nicotine strengths of 1.5 mg, 9 mg, and 11 mg alongside core strengths of 3 mg and 6 mg. The company is also transitioning ZYN packaging from 15-count to 20-count cans. Olczak called the performance of ZYN Ultra "as assumed" and projected the broader oral nicotine category will sustain growth above 20% long term.
Internationally, Japan serves as a benchmark for the heated-tobacco transition. About a year prior to the conference, the heated tobacco category had exceeded 50% of total nicotine-market volume in Japan. The country implemented an excise tax increase effective April 1, 2024, with another scheduled for April 1, 2025, and major players registered a second stage of price increases ahead of an October hike. Marketing spending for ZYN in the U.S. is set to rise in the second half of 2024.
On capital allocation, PMI is approaching its 2x leverage target, expected to be reached by the end of 2024. Share repurchases are under board discussion for 2027. The company has raised its dividend for 18 straight years, according to InvestingPro data cited in the report.
For currency impacts, PMI revised its full-year guidance, projecting a favorable foreign-exchange effect of approximately $0.24 per share at current spot rates, with a positive 1-cent impact expected in the third quarter.
