Philip Morris Gains as Smoke-Free Surge Prompts Strong Q1

• Philip Morris International Inc. (NYSE:PM) surpassed EPS estimates but fell short on revenue expectations in Q2 2025.
• The company's smoke-free segment showed significant growth, contributing to 41% of total revenues.
• Despite strong financial performance, guidance for slower EPS growth in Q3 led to a nearly 4% drop in premarket trading.

Philip Morris International Inc. (NYSE:PM), a leading tobacco company known for its Marlboro cigarettes, reported its second-quarter earnings on July 22, 2025. The company achieved an earnings per share (EPS) of $1.91, surpassing the estimated $1.86. However, its revenue of $10.14 billion fell short of the anticipated $10.32 billion, leading to a mixed market reaction.

Despite the positive EPS, Philip Morris experienced a nearly 4% drop in premarket trading. This decline was primarily due to the revenue shortfall, attributed to decreased cigarette sales and lower-than-expected shipments of ZYN nicotine pouches. The market's negative response highlights the challenges Philip Morris faces in balancing earnings performance with revenue growth.

Philip Morris demonstrated a strong year-over-year revenue increase of 7.8%, reaching $10.14 billion. The company's gross profit surged by 17.6% to $6.9 billion, and operating income rose by 6.2% to $3.71 billion. These figures indicate significant margin growth, showcasing the company's ability to manage costs effectively despite revenue challenges.

The smoke-free segment of Philip Morris showed promising results, with a 15.2% revenue growth and a 23.3% increase in gross profit. This segment now accounts for 41% of the company's total revenues, reflecting a strategic shift towards reduced-risk products. The company raised its full-year adjusted EPS guidance to a range of $7.43 to $7.56, up from the previous forecast, indicating confidence in its future performance.

Philip Morris has a price-to-earnings (P/E) ratio of approximately 36.91, suggesting the price investors are willing to pay for each dollar of earnings. The company's price-to-sales ratio is about 7.33, reflecting the market's valuation of its revenue. Despite these positive metrics, the guidance for the third quarter suggests a slowdown in EPS growth, which may have contributed to the decline in stock price.

Philip Morris International (NYSE:PM) delivered better-than-expected results and raised its full-year earnings outlook, sending shares more than 2% higher in pre-market trading.

The company posted adjusted earnings of $1.69 per share, ahead of analyst expectations of $1.60. Revenue climbed 5.8% year-over-year to $9.3 billion, also topping estimates. Margin expansion and volume gains helped drive the strong performance.

A major growth driver continues to be the company’s smoke-free portfolio, which includes heated tobacco products and oral nicotine pouches. Organic revenue from this segment surged 20.4% and now makes up 42% of total net sales. Heated tobacco shipments rose nearly 12% to 37.1 billion units, while in the U.S., ZYN pouch shipments jumped 53% year-over-year to more than 200 million cans. The company now expects full-year ZYN volumes between 800 and 840 million cans, significantly above earlier projections.

Boosted by favorable currency trends and product momentum, Philip Morris raised its adjusted EPS forecast for 2025 to between $7.36 and $7.49, up from the prior range of $7.04 to $7.17. The company reaffirmed its expectations for organic revenue growth of 6% to 8% and operating income growth of 10.5% to 12.5%.

With a fast-expanding presence in the smoke-free category and rising global demand, Philip Morris is positioning itself for another year of solid growth and profitability.

• Barclays maintains an "Overweight" rating for Philip Morris International Inc. (NYSE:PM), raising its price target from $145 to $155.
• The company reports strong third-quarter earnings with double-digit net revenue growth and increased full-year 2024 guidance.
• Philip Morris's focus on non-traditional products like IQOS and ZYN contributes significantly to its financial success and market capitalization of approximately $204.57 billion.

Philip Morris International Inc. (NYSE:PM) is a leading tobacco company known for its innovative products and global reach. The company is renowned for its non-traditional products like IQOS and ZYN, which are gaining popularity and contributing to its financial success. Philip Morris competes with other major tobacco companies, striving to maintain its market position through strategic developments and product diversification.

On October 30, 2024, Barclays maintained its "Overweight" rating for Philip Morris, indicating confidence in the company's future performance. The stock price at the time was $131.57, reflecting a recent increase of approximately 0.82%. Barclays also raised its price target for Philip Morris from $145 to $155, suggesting potential for further growth.

Philip Morris recently reported a strong third-quarter earnings performance, reaching a new all-time high. The company achieved double-digit net revenue growth and increased its full-year 2024 guidance. This positive outlook is supported by the rapid growth of its non-traditional products, which are outpacing traditional tobacco products and boosting gross profit.

The company's adjusted earnings guidance for fiscal year 2024 anticipates up to a 7.3% year-over-year growth. This optimistic projection has attracted attention from investors and stakeholders, as highlighted by the Zacks Analyst Blog. Additionally, Philip Morris maintains a strong dividend coverage ratio, ensuring continued returns for shareholders.

Philip Morris's market capitalization is approximately $204.57 billion, with a trading volume of 4,402,809 shares. The stock's performance has drawn interest from ETFs with exposure to the tobacco sector, further emphasizing its significance in the market. The company's strategic focus on innovative products and financial stability positions it well for future growth.

• Barclays maintains an "Overweight" rating for Philip Morris International Inc. (NYSE:PM), raising its price target from $145 to $155.
• The company reports strong third-quarter earnings with double-digit net revenue growth and increased full-year 2024 guidance.
• Philip Morris's focus on non-traditional products like IQOS and ZYN contributes significantly to its financial success and market capitalization of approximately $204.57 billion.

Philip Morris International Inc. (NYSE:PM) is a leading tobacco company known for its innovative products and global reach. The company is renowned for its non-traditional products like IQOS and ZYN, which are gaining popularity and contributing to its financial success. Philip Morris competes with other major tobacco companies, striving to maintain its market position through strategic developments and product diversification.

On October 30, 2024, Barclays maintained its "Overweight" rating for Philip Morris, indicating confidence in the company's future performance. The stock price at the time was $131.57, reflecting a recent increase of approximately 0.82%. Barclays also raised its price target for Philip Morris from $145 to $155, suggesting potential for further growth.

Philip Morris recently reported a strong third-quarter earnings performance, reaching a new all-time high. The company achieved double-digit net revenue growth and increased its full-year 2024 guidance. This positive outlook is supported by the rapid growth of its non-traditional products, which are outpacing traditional tobacco products and boosting gross profit.

The company's adjusted earnings guidance for fiscal year 2024 anticipates up to a 7.3% year-over-year growth. This optimistic projection has attracted attention from investors and stakeholders, as highlighted by the Zacks Analyst Blog. Additionally, Philip Morris maintains a strong dividend coverage ratio, ensuring continued returns for shareholders.

Philip Morris's market capitalization is approximately $204.57 billion, with a trading volume of 4,402,809 shares. The stock's performance has drawn interest from ETFs with exposure to the tobacco sector, further emphasizing its significance in the market. The company's strategic focus on innovative products and financial stability positions it well for future growth.

• Deutsche Bank has raised its price target for Philip Morris International (NYSE:PM) to $142 from $135, maintaining a "Buy" rating.
• Philip Morris's shift towards smokeless products and strong quarterly earnings report, with sales rising 8.4% year-over-year to $9.9 billion, have contributed to its stock reaching new heights.
• The company's focus on non-cigarette products, like ZYN nicotine pouches and IQOS heated tobacco devices, has driven significant growth, with ZYN shipments in the U.S. increasing by 41.4%.

On October 22, 2024, Deutsche Bank reaffirmed its "Buy" rating for Philip Morris International (NYSE:PM), setting a new price target of $142, up from $135. At the time, PM's stock was valued at $131.41. This endorsement comes as Philip Morris has shown strong market performance, particularly in the last three months.

Philip Morris has been a standout performer, with its stock price reaching new heights. This resurgence follows a period where tobacco stocks were less favored by institutional investors. The company's strategic shift towards smokeless products, like ZYN nicotine pouches and IQOS heated tobacco devices, has reignited interest in the stock.

The company's recent quarterly earnings report further supports this positive outlook. Philip Morris reported record earnings, with sales rising 8.4% year-over-year to $9.9 billion, surpassing estimates by 2.3%. Earnings per share also exceeded expectations, increasing 14.4% to $1.91. This strong financial performance led to an 8% midday trading surge in PM's stock, reaching all-time highs.

Philip Morris's success is largely driven by the growing demand for its non-cigarette products. Shipments of ZYN nicotine pouches increased by 43.6%, while heated tobacco unit shipments rose by 8.9%. Even traditional cigarette shipments saw a slight increase of 1.3%. These results have prompted the company to raise its full-year earnings outlook.

The company's focus on smokeless alternatives has paid off, with ZYN seeing a 41.4% increase in U.S. shipments. The easing of supply-chain issues has further supported this growth. Additionally, the IQOS device has gained traction in markets like Japan, Europe, and Indonesia. As a result, Philip Morris's stock has seen a significant increase, with a current price of $131.41, marking a 10.47% rise.

Philip Morris International Inc. (NYSE:PM) shares surged more than 10% intra-day today after the company raised its full-year earnings growth outlook following a stronger-than-expected third quarter, fueled by increased cigarette prices and robust sales from its ZYN nicotine pouch brand.

The tobacco giant saw its combustibles division achieve a 5.2% increase in net revenue for the quarter. This growth was driven by high single-digit pricing gains and steady demand within the industry.

ZYN, PMI’s popular nicotine pouch brand, experienced a surge in global shipments as supply chain issues eased and demand strengthened in the U.S. Shipments of ZYN cans jumped 41.4% year-over-year, reaching 149.1 million units.

PMI's IQOS heated tobacco division, a critical component of the company's strategy to diversify revenue, also saw a much-needed resurgence. After underperforming in recent quarters, IQOS showed "reacceleration" in adjusted in-market sales growth, giving investors renewed confidence in the product's long-term potential.

Total shipment volumes across all product categories increased by 2.9%, reaching 203 billion units. Adjusted diluted earnings per share climbed 14.4% to $1.91, outperforming analysts' expectations of $1.81.