Led by science and innovation, PMI’s goal is to end the sale of cigarettes.
We are delivering smoke-free products that are a better choice for adults than continued smoking.
Our ambition is to become substantially smoke-free by 2030, with our smoke-free business generating over two-thirds of our total global net revenues.
Our progress toward a smoke-free future as of 2025 Q3
-
41
percent
of PMI’s total global net revenues came from our smoke-free business¹.
-
>41 million
estimated total adult users of PMI’s smoke-free products².
-
100
markets
where our smoke-free products are available, providing better alternatives for legal-age adults³.
-
USD >14 billion
invested to develop, scientifically substantiate, and commercialize smoke-free products since 2008⁴.
1 As of September 30, 2025. 2 As of June 30, 2025. 3 As of October 2025. 4 As of December 31, 2024. Important Note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated October 21, 2025, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations pages. “PMI,” “We,” “Our,” and “Us” refers to the entire Philip Morris International family of companies.
We welcome tough questions—and we provide straight answers.
In our “Let’s Talk” series, we’ll answer some of the most-asked questions about our vision for a smoke-free future, our better alternatives to cigarettes, preventing youth from accessing nicotine products, sustainability, and more.
Interviewer asks:
Why wouldn't you just stop making cigarettes?
Nevena Crljenko, Vice President, Public Affairs, Philip Morris International replies:
The bigger problems are the people out there
who are not trying the alternatives to smoking.
Interviewer says:
The majority of these products contain nicotine.
Nevena says:
Nicotine is, I believe,
one of the most misunderstood molecules in the world.
It's part of the problem,
so it needs to be part of the solution too.
Gentle percussion music starts.
Words appear on screen reading:
Let's talk with Nevana.
Interviewer says:
There's a lot of confusion around smoke-free products.
What are they?
Are they really less harmful than cigarettes?
And why are governments banning them completely?
There's a lot to unpack,
but let's begin with what a smoke-free product is.
Nevena says:
Smoke-free products are very different products than cigarettes are,
the most known tobacco product in the world.
Cigarettes are lit and burned,
and the smoker inhales the smoke.
Smoke contains thousands of chemicals,
many of which are harmful.
Your body is exposed to them,
and over time it develops into the disease.
So the first principle we developed was,
let's eliminate the burning process.
We can eliminate the burning process by a couple of things.
We can control the temperature in terms
of how we heat tobacco but not burn it.
That's heated tobacco products.
We can heat the liquid which contains nicotine.
This is e-vapor product.
Or we can create oral products,
such as nicotine pouches,
which basically are not warmed at all.
But the key component,
irrespective how different these products are,
is that they do not contain the burning,
which is the main source of smoking.
smoking-related disease.
Interviewer says:
Why, though, do we need so many different variants?
Nevena says:
Because there's generally no one-size-fits-all approach for anybody.
So different people enjoy different things.
So as long as the smoke-free product is the one that the
smoker is willing to leave the cigarettes behind for,
that's the one that will work for her or for him.
Interviewer says:
Ultimately, if your aim is to stop every smoker out there from smoking,
why wouldn't you just stop making cigarettes?
Nevena says:
If Apple stopped producing iPhones today,
would people stop using phones?
The answer is no.
The equivalent of that is if we stopped making cigarettes,
a smoker goes tomorrow to the shop, they'll buy another brand.
And we don't have to imagine scenarios.
We can look at the countries that actually banned tobacco.
Bhutan did it several years ago, banned the use of cigarettes.
South Africa, in COVID times,
banned temporarily the sale of tobacco products and alcohol.
What happened?
The market was flooded with illicit products.
So if there is demand, there will be a supply.
And we believe it's better to phase out cigarettes, obviously.
And if more people are switching to smoke-free products,
there'll be less demand for cigarettes.
So us stopping selling cigarettes would not stop people from smoking.
Interviewer says:
But the thing is,
the majority of these products contain nicotine.
And if they contain nicotine,
are they really less harmful than a cigarette?
Nevena says:
Nicotine is, I believe,
one of the most misunderstood molecules in the world.
It's not a primary cause of smoking-related diseases.
It's not carcinogenic.
It is conflated in people's minds with cigarettes, with smoking,
with smoking-related diseases.
What it is, is addictive.
So it's part of the problem because it's contained in a cigarette.
So it needs to be part of the solution too.
Because one of the reasons why people smoke is the nicotine.
So obviously the alternatives to smoking
have to contain nicotine as well.
But if we significantly reduce other compounds that
people are consuming while they consume nicotine,
we've created something which is better
alternative to smoking.
Interviewer says:
So we know nicotine is not the primary
cause of smoking-related diseases.
But how do we really know what the
long-term impact of these products is?
Nevena says:
Long-term impact, obviously,
it takes time to assess long-term impact.
However, we can look at the case of Swedish snus.
Nicotine pouches are, let's say,
a newer version of Swedish snus.
It's been in the market in Sweden and
Scandinavian countries for hundreds of years.
And Swedish male population,
which were primarily users of snus versus smoking,
are the population that has by far the least incidence
of smoking-related diseases in the whole Europe.
All the scientific data shows very promising
health outcomes compared to continued smoking.
Interviewer says:
So real-world evidence is showing us that these products
can help lower the number of smoking-related diseases.
But they're still not risk-free.
And as a huge multinational company,
these products are in markets across the world.
What are you doing to stop underage use?
Nevena says:
These products, we produce, are for adults only.
We have very strict controls in terms of
limiting the access of youth to these products.
We develop our communication,
which is clearly geared just to the adults.
In all of our own retail channels,
we have age verification to make sure that it's just
the adult person who has access to these products.
And we work with all our partners,
such as distributors and the others,
to follow the same principles.
Interviewer says:
But ultimately, there's a reason.
There must be a reason why so many
governments are banning these products.
Nevena says:
Well, I think it's a common place that innovation
moves faster than regulation does.
A number of governments are moving the direction of proper regulation.
Proper regulation means give a very strong message that the
strictest regulation applies to the most harmful product,
which everyone can agree is a cigarette,
and regulating differently on products which are smoke-free.
A number of governments, however,
are taking a more conservative approach and banning them.
What's the net effect of that decision?
A person can buy a cigarette anywhere,
but they cannot have access to something
which is a better choice for them.
So either they don't access it,
or they have to turn to illicit markets,
where obviously there is no guarantee what is
the quality of the safety of these products.
That's why we believe a proper regulation,
after careful consideration of available scientific data,
is the right way to proceed,
not only for us as a company, but for smokers,
for the governments and for society as a whole.
Interviewer says:
But everyone needs to have access to the facts.
And even adults who are using these products can be unsure.
So what should people be looking for?
What should people believe when it comes to these products?
Nevena replies:
I think the bigger problems are the people out there who
are confused and not trying the alternatives to smoking.
Because whoever uses these products,
I think, by default, becomes aware of their benefits.
There is a lot of confusion because there
is a lot of misunderstandings about it,
so I encourage people to read available data.
For example, we publish our science transparently on our website.
There have also been a number of regulatory bodies
and agencies that have either reviewed the
science and basically issued their opinion about it.
For example, US Food and Drug Administration,
one of the most reputable health agencies in the world,
has reviewed the science of two of our products and deemed them
to be appropriate for protection and promotion of public health.
So clearly given a signal, the best thing is to quit. If you're a smoker and you will not quit,
it's better for you to switch to these products.
So look at the reputable resources.
I know that as a tobacco executive,
I might not be the most believable person in that respect,
but I think people should look at the
evidence and make sure to keep your eyes open.
Words appear on screen reading: Let's talk with Nevena.
Celebrating 10 years of smoke-free progress
Our “PMI: A Story of Innovation” video series takes a fascinating deep dive into the early days of our transformation, the successes we’ve achieved, and the problems we’ve overcome since launching our leading heated tobacco product a decade ago.
PMI: A story of innovation
André Calantzopoulos, Chairman of the Board, Philip Morris International (PMI), sitting in an office, speaking to camera:
It was a very interesting journey, a very exciting journey with frustrations
from time to time, with setbacks. But I think we did the right thing.
Music rises and graphics appear showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text shows title of video: PMI - A Story of Innovation - #05: Never Stop
Moira Gilchrist, Chief Communications Officer, PMI, sat in an office, speaking to camera:
Being there from the very, very beginning,
since it was just an idea that was sketched out on a flip chart to where we are now.
And that's, a sense of enormous pride at what we've done.
Shea Lih Goh, President, PMI Japan, speaks to camera:
Every function within the company has undergone some sort of transformation.
Lisa Hook, Member of the Board of Directors, PMI, speaks to camera:
It is extraordinary to get to be on this ride.
Video cuts to the PMI office building in Lausanne, Switzerland
André Calantzopoulos speaks:
I have never regretted for a second that we went into this product.
What I regret is we didn't have the knowledge and the understanding,
I can blame myself for that, to avoid certain of the difficulties and the problems we had in the initial years.
Jacek Olczak, CEO of PMI, sat in an office speaking to camera:
Knowledge of anything today and you go back in time, you could do things differently.
But the knowledge today is the result of
experiences you build over the last period.
Graphic shows human brain which changes to stacked cubes with text: Knowledge is the result of experiences you build.
Lisa Hook speaks:
There has never been a moment where the board or the management team
has hesitated to keep pushing forward.
Urs Bringold, VP Content & Owned Media, PMI, speaks:
There was once sort of a visual just to illustrate what one day we would have.
The illustration was: you saw a tobacconist shop and you had a side
that was like ‘cigarettes’ and on the other hand, you had ‘IQOS’ and all that.
And I swear it, a lot of people internally before it launched were like,
'It will never happen' and all that. And now it is, you know.
Graphic shows tobacconist shop and text to the left 'Cigarettes' and to the right 'Smoke-free products'.
Stefano Volpetti, President Smoke-free Inhalable Products & Chief Commercial Officer, PMI, speaks:
The only gift here would be the gift of all the learnings that we had in the last ten years,
have it as of day one. Because that would have accelerated this journey.
André Calantzopoulos speaks:
As executive of a company, you always say, 'If I knew when I started what I know when I finished,
that would be a very different company.'
Video cuts to the PMI office building in Lausanne.
Moira Gilchrist speaks:
So, where do we go from here?
I think now it's about continuing to build on the science.
It's about continuing to listen adults who smoke.
Serge Maeder, Global Head of RRP System Innovation, PMI, sat in open-plan office, speaking to camera:
We have just opened a small door, but I think we have a lot of options to make this product better.
But yes, you're talking to the wrong guy,
you’re to talking to the guy whose job is to improve the product going forward.
Mimi Kurniawan, Chief Diversity Officer, PMI, speaks:
What is the next product, what next innovation? What else?
Graphic shows early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text reads: What is the next product/innovation?
Karlygash Bismeldinova, AGC, Commercial Development Law, PMI, speaks to camera:
Never stop. And this is what I really like about PMI. We're always in the process of progress.
Emmanuel Babeau, CFO of PMI, speaking to camera:
Ten years ago, the level of skepticism, cynicism sometimes, on our ambition to unsmoke the world
and become a smoke-free company was very high.
Ten years after, I believe that nobody today can seriously challenge how genuine we are in delivering this ambition.
Graphic shows a cigarette broken in half and text: 10 years ago/after cynicism of our ambition
Graphic changes to a parcel box and text reads: Nobody today can challenge how genuine we are.
Serge Maeder speaks:
We have a chance, in the next 10 years to go full smoke-free products in PMI.
Stefano Volpetti speaks:
If you take Tokyo, more than 50% of the volume is in smoke-free products.
The direction is set.
Shea Lih Goh speaks:
I think today, as we said, we have many things to be proud of in Japan.
But we are not resting on our laurels. Obviously, we want to do more.
So, I'm very, very sure in the next 10 years, there will be a lot of significant achievements.
Jean-Claude Schneider, Global Head, New Business Opportunities, PMI, sat in open plan office, speaks to the camera:
Innovation is coming. I don't know what we're going to have maybe in three, four, five years.
But I know something is going to be available, that we're going to have a constant evolution.
Moira Gilchrist speaks:
We've made incredible progress, but there's a world still of a billion smokers.
So, we're kind of one smoker at a time.
Stefano Volpetti speaks:
We are sitting on something that can change the trajectory of public health.
Graphic appears showing a speedometer and text reads: Get there faster, help from stakeholders, health regulators
Stefano Volpetti voice over graphic:
We're going to get there faster if society, antis, stakeholders, health regulators help us to go in that direction,
but not because they need to help PMI,
but because we have a responsibility to consumers out there to provide them with better alternatives.
Video cuts to the PMI office building in Lausanne
Bin Li, Chief Product Officer, speaks:
Ten, 15 years ago, we said that, 'We may be able to do it, to replace cigarettes.
To give smokers a better alternative.'
Graphic appears showing a cigarette and an IQOS device.
Text reads: We may be able to replace cigarettes. Better alternative
Scott Coutts, Senior Vice President, Operations:
When we say we want to do something, we can change the industry as we're doing today.
Lisa Hook speaks:
I think it’s the most extraordinary achievement I've ever seen any corporation accomplish.
Mimi Kurniawan speaks:
This is showing that we are achieving the bold vision and the bold milestone that we set for ourselves.
Shea Lih Goh speaks:
I'm just proud to be part of this journey and this beautiful history.
Jacek Olczak speaks:
I have no regrets. There were a lot of hard days. But I have no regrets.
André Calantzopoulos speaks:
All these things have taken lot of time. But are important milestones in your filmography.
It's many happy endings, but still it's many episodes to come.
Jacek Olczak speaks:
This is a great movie. You don't want this movie to finish, I want to see more of this, more of this.
Video cuts to Moira Gilchrist sitting in a chair, filmed by a camera, writing on a notepad.
André Calantzopoulos sitting in a chair, being filmed by a camera crew member, asks:
Female voice behind camera:
Everyone happy? Yeah. Go.
André Calantzopoulos sitting in a chair, being filmed by camera crew members, asks:
What was your question?
Female voice behind camera:
Your proudest moment?
Bin Li sitting in a chair, being filmed by camera crew members, speaks:
Two words come to my mind.
Video shows Jean-Claude Schneider's notepad
Female voice behind camera speaks:
Lowest moment?
Jacek Olczak speaks:
Oh, lowest?
Female voice behind camera speaks:
Yeah.
Jacek Olczak speaks:
You know me very well, I am a born optimist, okay.
Mimi Kurniawan speaks:
Sorry. I changed.
Video shows Karlygash Bismeldinova's notepad.
Karlygash Bismeldinova speaks:
Future is always difficult.
André Calantzopoulos speaks:
What was the toughest moment?
Video shows Lisa Hook's notepad.
Lisa Hook speaks:
Can you give me some ideas?
Jean-Claude Schneider speaks:
That was simple.
Video shows Scott Coutts's notepad.
Scott Coutts speaks:
Our hope for the future.
Shea Lih Goh speaks:
Full name?
Video shows Stefano Volpetti's notepad. Male voice behind camera speaks:
That's wonderful handwriting.
Stefano Volpetti speaks:
Wonderful or terrible?
Urs Bringold speaks:
Oh, no. I have to take a new...
Bin Li speaks:
Do I sign?
Jacek Olczak speaks:
You ready?
Video shows graphics of everyone's notes from their notepads alongside a short video of them writing in their notepads in the following order:
Jacek Olczak, Mimi Kurniawan, Moira Gilchrist, André Calantzopoulos, Jean-Claude Schneider, Shea Lih Goh, Bin Li, Serge Maeder.
Graphic appears: PMI A story of innovation
Jacek Olczak speaks:
I think we did the right thing.
Philip Morris International logo appears with text underneath reading: The End!
We’re accelerating toward our smoke-free ambitions
*Smoke-free business net revenues as of Q3 2014. ** Smoke-free business net revenues as of Q3 2025. Important note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated October 21, 2025, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations pages. “PMI,” “We,” “Our,” & “Us” refers to the entire Philip Morris International family of companies.
Highlights of PMI's Q3 2025 results
Emmanuel Babeau, Chief Financial Officer for Philip Morris International, discusses the highlights of the Q3 2025 earnings reports.
Our third quarter results are out. Following an excellent first half we delivered a very strong performance in Q3. Our results reflect the strength and momentum of our increasingly profitable global smoke-free business combined with the resilience of combustible.
We are especially pleased with the performance of our global smoke-free business, with outstanding volume growth for all three of our flagship brands IQOS, ZYN and VEEV, which together outgrew the global smoke-free industry by a clear margin on the year to date in market sales.
Our smoke-free products are now available in 100 markets. This is a symbolic milestone toward our vision of becoming substantially smoke-free by 2030. Every new market where we launch smoke-free products enables more adult smokers to make a better choice.
Continued double-digit smoke-free top line momentum and further scale and cost benefits enable us to achieve more than $3 billion in quarterly smoke-free gross profit for the first time and an adjusted group operating income margin of over 43%.
The highest in almost four years. This drove +17% growth in adjusted diluted earnings per share to a record $2.24. These impressive results were also delivered in a quarter with elevated commercial spending as we invest in the future growth of our brands.
Our Q3 performance reflects our position as a global category leader, with the ability to drive strong growth and prioritise resources to invest significantly in our leading brands. The increasing overall profitability of our smoke-free business, coupled with cost efficiency measures and combustible resilience, places us well on track for another year of strong performance.
Finally, and importantly, our strong year to date performance put us on track to exceed our 2024-2026 growth targets, which already represent a best in class growth profile within consumer packaged goods.
With such a strong progress already delivered, we look forward with confidence to 2026 and beyond.
We're making progress across our business
Philip Morris International’s heated tobacco product IQOS replaces Marlboro as its leading brand
3 min readThe company’s flagship smoke-free innovation has surpassed our best-selling cigarette brand to become the premium nicotine brand globally, less than a decade since its launch, demonstrating the progress we’re making as we move away from cigarettes.
