# Philip Morris Stock Q3 2026: Revenue Up 5.5% as IQOS, ZYN and Pricing Lift Profit
> Philip Morris stock Q3 2026: revenue up 5.5% to $11.4bn, operating income up 14%, IQOS and ZYN growth, 2026 guidance, dividend and PM valuation risks.

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## Facts
- Ticker: PM
- QSILabs fair value: $146.56 USD
- Price: $208.79 (as of 2026-10-30)
- As of: Q3 2026 results (quarter ended 2026-09-30); price as of 2026-10-30 close
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/philip-morris-stock-q3-2026-earnings-iqos-zyn/

## Short answer
Philip Morris stock Q3 2026 coverage starts with a strong quarter. Philip Morris International (NYSE: PM) grew net revenues 5.5% to $11.4bn in the three months to 30 September 2026, or 7.1% on an organic basis, and operating income rose 14.1% to $4.87bn. Price increases on cigarettes did most of the work: international combustibles pricing rose 8.9%, while smoke-free volumes grew a slower 2.7% as heated tobacco shipments to Japan lapped a tough comparison. In the US, ZYN nicotine pouch shipments rose 4.2% and segment revenue jumped 22.7%. Adjusted diluted EPS rose 5.4% to $2.36 and PMI now expects 2026 adjusted EPS of $8.29 to $8.44. Our discounted cash flow model puts Philip Morris at $146.56 a share, against a $208.79 close on 30 October 2026. The business is growing and highly cash generative; the question is how much of that growth the share price, up about 44% in a year, already assumes.

## Key takeaways
- Revenue and profit up. Q3 2026 net revenues were $11,438m, up 5.5% from $10,845m (7.1% organic). Operating income rose 14.1% to $4,866m, a GAAP operating margin of 42.5% against 39.3% a year earlier. PMI described revenue, gross profit and operating income as a new quarterly high for the group.
- Pricing carried the quarter. Of the $593m rise in net revenues, pricing contributed $739m and volume and mix $36m, while currency cost $155m and divestitures $27m. International combustibles pricing rose 8.9%.
- Smoke-free grew more slowly. Smoke-free shipments rose 2.7% to 48.2bn units, and smoke-free products were more than 40% of net revenues (about 42% year to date). IQOS heated tobacco unit shipments rose 1.5% to 41.5bn; VEEV e-vapor shipments rose 61.6%.
- ZYN kept growing in the US. US ZYN shipments rose 4.2% to 3.2bn pouches and US segment revenue rose 22.7% to $845m, but segment operating income fell 3.3% as PMI stepped up marketing.
- EPS split. Reported diluted EPS fell 4.9% to $2.12, mainly on a non-cash fair value adjustment to equity investments; adjusted diluted EPS rose 5.4% to $2.36.
- Guidance held except for currency. PMI expects 2026 adjusted diluted EPS of $8.29 to $8.44, up 9.9% to 11.9%, organic revenue growth of 5% to 7% and operating cash flow of about $13.5bn, with no share buybacks.
- Our value: $146.56 a share, about 30% below the $208.79 close on 30 October 2026, as of 2 November 2026. A two-stage cross-check gives $145.00; analysts' average price target is $211.47.

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