Strong Q2 Performance: Philip Morris International (PMI) reported a significant increase in net revenues, reaching over $10 billion, a first for the company in quarterly net revenues. The company achieved a 20% growth in adjusted diluted earnings per share (EPS) to $1.91, driven by robust growth in its smoke-free product portfolio, notably IQOS, ZYN, and VEEV.

Guidance for H2 2025: PMI raised its full-year adjusted diluted EPS growth forecast to between 13% to 15% in dollar terms, reflecting strong business fundamentals and improving tax rates. The company anticipates continued double-digit growth from smoke-free products, although overall PMI volumes may see modest declines due to challenges in combustible sales, particularly in key markets like Turkey and Indonesia.

Challenges with Combustibles: Q2 witnessed a slight decline in cigarette volumes, attributed to supply chain issues in Indonesia and Turkey, alongside a broader shift towards smoke-free alternatives. PMI expects combustible volumes to decline about 2% year-on-year, citing a forecast dip of 3% to 4% in H2, particularly impacted by high prior-year comparisons.