✦ IQOS ILUMA and the American LaunchThin moat

Philip Morris International (PM) — the future bets

IQOS ILUMA has waited for an FDA decision since March 2024, while 25 million American smokers buy no PMI cigarettes.

PMI's biggest American opportunity is waiting on a regulator. The company submitted applications for IQOS ILUMA, the version of the device it sells internationally, to the FDA on 20 October 2023; they were accepted for review in March 2024 and remain pending1. Until the FDA decides, PMI sells only the older IQOS 3.0, and only in Austin, Texas, since 27 March 20252.

IQOS ILUMA in the United States20 Oct 2023applicationssubmittedMar 2024acceptedfor review27 Mar 2025IQOS 3.0launched in Austin17 Apr 2026IQOS ordersrenewed to 2031Sep 2026ILUMA stillpendingPMI Form 10-Q Q2 2026
Waiting on the regulator.

The prize is large. PMI notes that "approximately 25 million adults continue to smoke cigarettes" in the United States3, and PMI sells none of them cigarettes. Every American who switches to IQOS is new revenue, not a conversion from Marlboro.

PMI has done this before. The FDA authorised IQOS 2.4 in 2019 and IQOS 3.0 in 2020, and on 17 April 2026 renewed their exposure-modification orders to April 20314. The ILUMA review is a larger step, because the device heats differently.

A national launch would change the American business. At present the U.S. segment is mostly ZYN, and its adjusted operating income fell 50.2% organically in the first half of 2026 to $379 million5. A second product line would reduce that dependence.

The bet is binary on the decision and gradual on the launch. The figure that will show it working is U.S. adjusted operating income; a return above its 2025 level of $1,124 million6 with IQOS contributing would say the American heated market has opened.

Moat trajectory: Holding steady

Applications pending; Austin-only roll-out.

The number that tests this moat
Reported
U.S. adjusted operating companies income, latest half
$379M, -50.2% organic (H1 2026)

The American business the launch would diversify; a return above $1,124M a year with IQOS contributing would prove the market.

Source: PMI Q2 2026 results release ↗
References
  1. ReportedThe company submitted applications for IQOS ILUMA, the version of the device it sells internationally, to the FDA on 20 October 2023; they were accepted for review in March 2024 and remain pending.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  2. ReportedUntil the FDA decides, PMI sells only the older IQOS 3.0, and only in Austin, Texas, since 27 March 2025.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  3. ReportedPMI notes that "approximately 25 million adults continue to smoke cigarettes" in the United States, and PMI sells none of them cigarettes.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  4. ReportedThe FDA authorised IQOS 2.4 in 2019 and IQOS 3.0 in 2020, and on 17 April 2026 renewed their exposure-modification orders to April 2031.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  5. ReportedAt present the U.S. segment is mostly ZYN, and its adjusted operating income fell 50.2% organically in the first half of 2026 to $379 million.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
  6. ReportedThe figure that will show it working is U.S. adjusted operating income; a return above its 2025 level of $1,124 million with IQOS contributing would say the American heated market has opened.
    Philip Morris International Form 8-K exhibit 99.1 - 2025 and 2024 results recast into the new segments International Smoke-Free, International Combustibles and U.S. — FY2025 · publ. 13 March 2026 · source ↗
Sources
Generated September 26, 2026