Philip Morris International (PM) is higher today after the company’s April 22, 2026 first-quarter earnings report delivered a clear profit beat and reinforced investor confidence in the smoke-free transition. The move follows stronger-than-expected adjusted earnings, solid top-line growth, and improved outlook metrics tied to IQOS and other smoke-free products.

For Q1 2026, PMI reported net revenues of about $10.15 billion (+9.1% year over year) and adjusted diluted EPS of $1.96 (+16%), beating the market’s adjusted EPS expectations (commonly cited around $1.83). Management also increased its full-year 2026 adjusted diluted EPS forecast to $8.36–$8.51, signaling confidence that smoke-free mix and profitability can continue to expand through the year.

PMI’s rally is being fueled by evidence that smoke-free products are becoming a larger and more profitable part of the business. Smoke-free products accounted for about 43% of total net revenues in the quarter, and the International Smoke-Free segment showed strong net revenue and gross profit growth—supporting the market narrative that earnings durability is improving even as traditional cigarette volumes trend down in many markets.

Investors will be focused on whether smoke-free volume growth and pricing stay strong into Q2, and whether margin gains can offset any regional headwinds. PMI’s Q2 adjusted EPS outlook (provided alongside the Q1 report) and any incremental commentary on IQOS and oral nicotine momentum will be key drivers of whether today’s post-earnings move holds.