PM · 10-Q · 2026Q2 · Full report

Strategic Smoke-Free Transformation

Philip Morris International Inc. · 2026-07-24 · Importance 64 · Surprise 42 · In source text

Since 2008, Philip Morris International has invested more than $16 billion to develop and commercialize smoke-free products, with the long-term goal of ending cigarette sales. The company acquired Swedish Match AB in November 2022, combining the IQOS and ZYN brands and expanding its oral nicotine platform. As of June 30, 2026, smoke-free products were available in 109 markets, while PMI reorganized effective January 1, 2026, into International Smoke-Free, International Combustibles and U.S. reportable segments. PMI also intends to expand into wellness through Aspeya, although cannabinoid-related revenue is expected to remain negligible in the near to medium term.

Key facts

• Philip Morris International Inc. has invested over $16 billion since 2008 to develop, scientifically substantiate and commercialize innovative smoke-free products. source
• As of April 30, 2024, Philip Morris International Inc. holds the full rights to commercialize IQOS in the U.S. source
• PMI announced an agreement with Altria Group, Inc. to end the companies' commercial relationship as of April 30, 2024, with respect to IQOS in the U.S. source
• The Altria Agreement provided PMI full rights to commercialize IQOS in the United States. source
• PMI stated it is judiciously reallocating resources from cigarettes to SFPs and is streamlining its cigarette portfolio. source
• Effective January 1, 2026, Philip Morris International Inc. implemented an organizational model with two primary business units: International and U.S., and realigned reportable segments to International Smoke-Free, International Combustibles, and U.S. source
• PMI said initial market introductions of SFPs typically entail one-on-one consumer engagement and, where applicable, device discounts and that these initial commercialization efforts require substantial investment which PMI believes will moderate over time. source
• Philip Morris International Inc. acquired Swedish Match AB in November 2022. source

Impact estimates