Philip Morris International Inc. has raised its full-year profit guidance, now projecting adjusted earnings per share to reach as high as $7.56, up from a previous estimate of $7.49. This upward revision is primarily driven by the robust sales of Zyn nicotine pouches and IQOS heated tobacco sticks, which have shown significant growth in the market. The company reported a strong performance in the second quarter, despite net revenue falling short of analyst expectations, indicating a focus on product innovation and market expansion.

In the first quarter of 2025, Philip Morris sold 223.4 million cans of Zyn, marking a 53% year-over-year increase. This surge in sales aligns with the FDA's approval of all Zyn pouches marketed in the U.S., which has likely contributed to the product's growing popularity. The strong performance of Zyn and IQOS suggests a shift in consumer preferences towards reduced-risk products, positioning Philip Morris favorably in the evolving tobacco landscape.