NEW YORK, Feb 11, 2026, 3:37 PM EST — Regular session
- Philip Morris shares climbed roughly 2% during afternoon trading, beating a flat S&P 500 proxy.
- India confirmed it has no plans to revise its 2019 ban on e-cigarettes and heated tobacco products.
- Investors are now eyeing the management’s appearance at the CAGNY conference on Feb. 18.
Philip Morris International shares climbed roughly 2% to $186.30 in afternoon trading Wednesday, after briefly hitting $188.28. This gain outperformed a flat S&P 500 ETF, while consumer staples showed strength; tobacco rivals Altria jumped 2.2% and British American Tobacco added 0.8%.
Shares climbed as investors absorbed a regulatory hit in India, where the health ministry confirmed no plans to ease the 2019 ban on e-cigarettes, which also bans heated tobacco products. This keeps PMI’s IQOS—a “heat-not-burn” device that heats rather than burns tobacco—off a market that sells over 100 billion cigarettes annually. Jefferies analyst Andrei Andon-Ionita called India’s entry “the next leg of the growth story” as other markets slow down. CEO Jacek Olczak slammed the ban as “illogical,” pointing out that traditional cigarettes remain legal. Euromonitor data shows PMI’s cigarette market share in India jumped to 7.6% in 2024, up from 1.75% in 2019. 1
The India headline arrives as PMI doubles down on smoke-free products to fuel growth. In its Feb. 6 earnings report, the company revealed full-year net revenue of $40.6 billion, with $16.9 billion coming from its smoke-free segment. It also projected adjusted earnings per share for 2026 between $8.38 and $8.53, a figure that excludes certain one-time items. 2
Wednesday’s action on the tape came across as a steady bid rather than a sharp headline-driven spike. Tobacco shares, known for their defensive qualities, held firm alongside a solid consumer-staples sector.
India isn’t just a footnote in the broader narrative. PMI has been betting on smoke-free products as their next big growth driver, but India’s approach highlights how much policy can shape access alongside consumer demand.
That upside, however, isn’t without hurdles. Regulators could clamp down fast, taxes might alter buying habits, and any new products must clear approvals before they gain traction.
Investors must also weigh how sustainable the smoke-free growth will be as competition heats up, particularly in sectors like nicotine pouches and heated tobacco where rivals are heavily investing.
Next week marks a key moment. PMI announced that Olczak and CFO Emmanuel Babeau will present at the Consumer Analyst Group of New York conference on Feb. 18 at 10 a.m. ET. 3
