PM · 10-Q · 2026Q3 · Full report
U.S. Revenue and Margin Trends
Philip Morris International Inc. · 2026-10-23 · Importance 53 · Surprise 48 · In source text
U.S. third-quarter net revenues increased 22.7%, both in total and excluding currency and acquisitions/divestitures, primarily reflecting 4.2% growth in ZYN shipments, favorable price comparisons against prior-year promotions, and growth in the Wellness business and cigars. Third-quarter gross profit increased 24.2%, or 24.1% excluding currency and acquisitions/divestitures, with higher manufacturing costs from footprint expansion partly offsetting the revenue drivers. For the nine months ended September 30, 2026, U.S. net revenues decreased 5.2% to $2.324 billion and gross profit fell 14.8% to $1.473 billion. The nine-month revenue decline reflected first-quarter ZYN volume pressure from distributor and trade inventory movements, partly offset by favorable price comparisons; higher manufacturing costs also contributed to the gross-profit decrease.
Key facts
- The can transition's short-term retail support and manufacturing-capacity expansion will affect fourth-quarter 2026 net revenues; PMI expects an abnormally low level of U.S. profitability in that quarter. source
- U.S. quarterly net revenues increased 22.7%, excluding currency and acquisitions/divestitures, primarily reflecting 4.2% ZYN shipment growth and favorable price variance against prior-year promotions, supported by Wellness and cigar growth. source
- For the nine months ended September 30, 2026, U.S. gross profit decreased 14.8%; excluding currency and acquisitions/divestitures, it decreased 14.7%, due to the revenue factors and higher manufacturing costs. source
- U.S. quarterly gross profit increased 24.2%; excluding currency and acquisitions/divestitures, it increased 24.1%, partly offset by higher manufacturing costs linked to footprint expansion. source
- For the nine months ended September 30, 2026, U.S. net revenues decreased 5.2%; excluding currency and acquisitions/divestitures, they decreased 5.5%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | unclear | probable | — | The can transition's short-term retail support and manufacturing-capacity expansion will affect fourth-quarter 2026 net revenues; PMI… |
| operating_income | negative | probable | — | The can transition's short-term retail support and manufacturing-capacity expansion will affect fourth-quarter 2026 net revenues; PMI… |
| revenue | positive | realized | — | U.S. quarterly net revenues increased 22.7%, excluding currency and acquisitions/divestitures, primarily reflecting 4.2% ZYN shipment… |