Q2 2026 Earnings

HTU adjusted in-market sales volume growth

5.1%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

HTU adjusted in-market sales volume growth excluding Japan and Poland

10.0%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

VEEV Europe closed pod market position

1

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

Marlboro cigarette category share

11.0%

In the second quarter, our cigarette shipment volume in the International Combustibles segment increased by 1.1% to 156.9 billion units, with notable increases in Turkey, Indonesia and Egypt. Our cigarette category volume share stood at 25.3% (flat versus the prior year) despite adverse market mix. Marlboro continued to gain share (up by 0.3 percentage points) matching its record category share of 11.0%. For the six months year-to-date, our cigarette shipment volume in the International Combustibles segment decreased by 1.9% to 294.2 billion units, with notable decreases in Russia, Mexico and Germany.

PMI international cigarette category volume share

25.3%

In the second quarter, our cigarette shipment volume in the International Combustibles segment increased by 1.1% to 156.9 billion units, with notable increases in Turkey, Indonesia and Egypt. Our cigarette category volume share stood at 25.3% (flat versus the prior year) despite adverse market mix. Marlboro continued to gain share (up by 0.3 percentage points) matching its record category share of 11.0%. For the six months year-to-date, our cigarette shipment volume in the International Combustibles segment decreased by 1.9% to 294.2 billion units, with notable decreases in Russia, Mexico and Germany.

Estimated industry cigarette and HTU volume growth excluding China and U.S.

0.8%

During the quarter, estimated industry volume (excluding China and the U.S.) for cigarettes and HTUs increased by 0.8%.

Cigarette shipment volume

156.9

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

E-vapor shipment volume

1.3

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

Heated tobacco unit shipment volume

41.8

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

International Smoke-Free shipment volume

44.7

International Smoke-Free Shipment Volume (in billion equivalent units) 44.7 41.4 88.8 80.8 Q2 2026 Q2 2025 June YTD 2026 June YTD 2025 Heated Tobacco Units: 41.8 38.8 83.0 75.9 Oral Smoke-Free Products: 1.6 1.7 3.2 3.5 E-Vapor: 1.3 0.9 2.6 1.5

International e-vapor shipment volume

1.3

International Smoke-Free Shipment Volume (in billion equivalent units) 44.7 41.4 88.8 80.8 Q2 2026 Q2 2025 June YTD 2026 June YTD 2025 Heated Tobacco Units: 41.8 38.8 83.0 75.9 Oral Smoke-Free Products: 1.6 1.7 3.2 3.5 E-Vapor: 1.3 0.9 2.6 1.5

International heated tobacco unit shipment volume

41.8

International Smoke-Free Shipment Volume (in billion equivalent units) 44.7 41.4 88.8 80.8 Q2 2026 Q2 2025 June YTD 2026 June YTD 2025 Heated Tobacco Units: 41.8 38.8 83.0 75.9 Oral Smoke-Free Products: 1.6 1.7 3.2 3.5 E-Vapor: 1.3 0.9 2.6 1.5

International modern oral shipment volume

0.6

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

International oral smoke-free product shipment volume

1.6

International Smoke-Free Shipment Volume (in billion equivalent units) 44.7 41.4 88.8 80.8 Q2 2026 Q2 2025 June YTD 2026 June YTD 2025 Heated Tobacco Units: 41.8 38.8 83.0 75.9 Oral Smoke-Free Products: 1.6 1.7 3.2 3.5 E-Vapor: 1.3 0.9 2.6 1.5

Oral smoke-free product shipment volume

5.1

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

Smoke-free product shipment volume

48.2

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

Total shipment volume

205.2

Total Shipment Volume Our shipment volume for cigarettes and smoke-free products is shown in the table below: Shipment Volume (equivalent units in billions) For the Three Months Ended June 30, 2026 | | 2025 | | Change Total | | | | | 205.2 | | | 200.1 | | | 2.5 | | % Cigarettes | | | | | 156.9 | | | 155.2 | | | 1.1 | | % Smoke-Free Products | | | | | 48.2 | | | 44.8 | | | 7.5 | | % HTU | | | | | 41.8 | | | 38.8 | | | 7.6 | | % Oral SFP | | | | | 5.1 | | | 5.2 | | | (1.2) | | % E-vapor | | | | | 1.3 | | | 0.9 | | | 55.1 | | % Note: Amounts may not foot due to rounding. Oral smoke-free products conversion: 1 pouch equals 1 unit. E-vapor products conversion: one milliliter of e-vapor liquid is equivalent to 10 units.

U.S. ZYN shipment volume

2.9

In the second quarter, our U.S. smoke-free product shipment volume increased by 1.8%. Our U.S. oral smoke-free products shipment volume increased by 1.8% to 3.5 billion equivalent units, including a 1.8% increase in ZYN shipments to 2.9 billion pouches, despite an inventory tailwind in the second quarter of 2025. ZYN offtake volumes were flat to slightly growing versus the prior year in a growing category, largely as a result of the uneven competitive landscape. In June, we expanded the ZYN portfolio with the first shipments of ZYN ULTRA (9mg and 11mg moist variants at a lower price-per-pouch), as well as additional flavors within the ZYN dry flagship lineup. To support the newly expanded ZYN portfolio, we intend to accelerate U.S. investments in the second half to maximize the long-term value of the brand and also prepare for the future launch of IQOS ILUMA. For the six months year-to-date, our U.S. smoke-free product shipment volume decreased by 10.0%. Our U.S. oral smoke-free products shipment volume decreased by 10.1% to 6.3 billion equivalent units, including a 11.2% decline in ZYN shipments to 5.2 billion pouches.

U.S. oral smoke-free product shipment volume

3.5

U.S. Oral Smoke-Free Shipment Volume (in billion equivalent units) 3.5 3.4 6.3 7.0 Q2 2026 Q2 2025 June YTD 2026 June YTD 2025 Oral Smoke-Free Products

IQOS shipment volume growth

7.6%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

International Smoke-Free shipment volume growth

8.0%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

International modern oral volume growth

14.7%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

International modern oral volume growth excluding Nordics

26.3%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

International total oral SFP volume growth

-7.0%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.

U.S. ZYN shipment volume growth

1.8%

In the second quarter, our U.S. smoke-free product shipment volume increased by 1.8%. Our U.S. oral smoke-free products shipment volume increased by 1.8% to 3.5 billion equivalent units, including a 1.8% increase in ZYN shipments to 2.9 billion pouches, despite an inventory tailwind in the second quarter of 2025. ZYN offtake volumes were flat to slightly growing versus the prior year in a growing category, largely as a result of the uneven competitive landscape. In June, we expanded the ZYN portfolio with the first shipments of ZYN ULTRA (9mg and 11mg moist variants at a lower price-per-pouch), as well as additional flavors within the ZYN dry flagship lineup. To support the newly expanded ZYN portfolio, we intend to accelerate U.S. investments in the second half to maximize the long-term value of the brand and also prepare for the future launch of IQOS ILUMA. For the six months year-to-date, our U.S. smoke-free product shipment volume decreased by 10.0%. Our U.S. oral smoke-free products shipment volume decreased by 10.1% to 6.3 billion equivalent units, including a 11.2% decline in ZYN shipments to 5.2 billion pouches.

U.S. oral smoke-free product shipment volume growth

1.8%

In the second quarter, our U.S. smoke-free product shipment volume increased by 1.8%. Our U.S. oral smoke-free products shipment volume increased by 1.8% to 3.5 billion equivalent units, including a 1.8% increase in ZYN shipments to 2.9 billion pouches, despite an inventory tailwind in the second quarter of 2025. ZYN offtake volumes were flat to slightly growing versus the prior year in a growing category, largely as a result of the uneven competitive landscape. In June, we expanded the ZYN portfolio with the first shipments of ZYN ULTRA (9mg and 11mg moist variants at a lower price-per-pouch), as well as additional flavors within the ZYN dry flagship lineup. To support the newly expanded ZYN portfolio, we intend to accelerate U.S. investments in the second half to maximize the long-term value of the brand and also prepare for the future launch of IQOS ILUMA. For the six months year-to-date, our U.S. smoke-free product shipment volume decreased by 10.0%. Our U.S. oral smoke-free products shipment volume decreased by 10.1% to 6.3 billion equivalent units, including a 11.2% decline in ZYN shipments to 5.2 billion pouches.

U.S. smoke-free product shipment volume growth

1.8%

In the second quarter, our U.S. smoke-free product shipment volume increased by 1.8%. Our U.S. oral smoke-free products shipment volume increased by 1.8% to 3.5 billion equivalent units, including a 1.8% increase in ZYN shipments to 2.9 billion pouches, despite an inventory tailwind in the second quarter of 2025. ZYN offtake volumes were flat to slightly growing versus the prior year in a growing category, largely as a result of the uneven competitive landscape. In June, we expanded the ZYN portfolio with the first shipments of ZYN ULTRA (9mg and 11mg moist variants at a lower price-per-pouch), as well as additional flavors within the ZYN dry flagship lineup. To support the newly expanded ZYN portfolio, we intend to accelerate U.S. investments in the second half to maximize the long-term value of the brand and also prepare for the future launch of IQOS ILUMA. For the six months year-to-date, our U.S. smoke-free product shipment volume decreased by 10.0%. Our U.S. oral smoke-free products shipment volume decreased by 10.1% to 6.3 billion equivalent units, including a 11.2% decline in ZYN shipments to 5.2 billion pouches.

VEEV shipment volume growth

55.1%

In the second quarter, our International Smoke-Free shipment volume increased by 8.0% to 44.7 billion equivalent units, with broad based growth across markets, notably Taiwan, Romania and Greece. In the heat-not-burn category, IQOS grew shipment volumes by 7.6%. HTU adjusted in-market sales (IMS) volume grew by 5.1%, reflecting broad-based growth notwithstanding the expected pantry de-loading and initial consumer adjustment following the April 1 excise-driven price increase in Japan, and the impact of the characterizing flavor ban in Poland. Excluding Japan and Poland, adjusted IMS grew by 10%. In the Oral Smoke-Free category, modern oral volume growth of 14.7% (26.3% excluding the Nordics) to 0.6 billion pouches was more than offset by continued declines in the legacy snus business in the Nordics, resulting in a total oral SFP volume decrease of 7.0%. In the E-vapor category, VEEV quarterly shipments grew by 55.1%. VEEV now holds the #1 closed pod position in Europe, with continued growth across a range of markets, notably Germany, Romania and Greece.