Philip Morris International (NYSE:PM) Issues Earnings Results, Hits Expectations

Philip Morris International (NYSE:PM) posted its quarterly earnings results on Friday. The company reported $1.70 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.70, FiscalAI reports. The firm had revenue of $10.36 billion during the quarter, compared to analyst estimates of $10.40 billion. Philip Morris International had a net margin of 9.33% and a negative return on equity of 122.14%. The company’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.55 earnings per share. Philip Morris International updated its Q1 2026 guidance to 1.800-1.850 EPS and its FY 2026 guidance to 8.380-8.530 EPS.

Here are the key takeaways from Philip Morris International’s conference call:

• PMI grew smoke-free shipments by +12.8% in 2025 and smoke-free gross profit +18.7%, helping deliver adjusted diluted EPS growth of ~+15% (currency‑neutral +14%) with IQOS, VEEV and ZYN cited as the main drivers.
• Management renewed medium‑term guidance, forecasting 2026 organic net revenue growth of 5–7%, organic operating income 7–9%, currency‑neutral adjusted EPS 7.5–9.5% (translating to $8.39–$8.54 including a $0.28 FX benefit), and 2026–28 CAGRs of 6–8% revenue, 8–10% OI and 9–11% EPS.
• Strong cash generation underpins capital allocation: PMI expects ~$13.5bn operating cash flow in 2026, targets ~$45bn aggregate operating cash flow for 2026–28, aims to reduce leverage to ~2x by end‑2026, and has dividend payout close to its ~75% objective.
• Near‑term headwinds include Japanese HTU excise increases (April and October 2026) that may depress volumes and cause shipment volatility, U.S. ZYN channel inventory/competitive and regulatory uncertainty (FDA timing for ZYN Ultra/IQOS ILUMA), and large excise hikes in India and Mexico that pressure combustible volumes.
• PMI has expanded its smoke‑free footprint—106 markets, an estimated 43.5 million legal‑age smoke‑free users, and smoke‑free representing ~41.5% of revenues and ~43% of gross profit—supporting long‑term growth but dependent on successful rollouts and regulatory approvals.

Philip Morris International Stock Performance

NYSE PM opened at $182.78 on Friday. The stock has a fifty day moving average of $163.99 and a 200-day moving average of $161.54. The stock has a market capitalization of $284.52 billion, a P/E ratio of 33.11, a price-to-earnings-growth ratio of 1.96 and a beta of 0.39. Philip Morris International has a 52 week low of $142.11 and a 52 week high of $186.69.

Philip Morris International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 14th. Stockholders of record on Friday, December 26th were paid a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Friday, December 26th. Philip Morris International’s dividend payout ratio (DPR) is 106.52%.

Key Philip Morris International News

Here are the key news stories impacting Philip Morris International this week:

• Positive Sentiment: Raised FY‑2026 EPS outlook slightly above Street consensus (8.380–8.530 vs. ~8.33), signaling management confidence in longer‑term earnings power. Philip Morris International Reports 2025 Fourth-Quarter & Full-Year Results
• Positive Sentiment: Q4 EPS showed year‑over‑year improvement (reported $1.70; Zacks notes it beat their consensus), with management citing pricing strength and expansion of smoke‑free products as growth drivers. These factors support margin resilience and medium‑term growth. Philip Morris Q4 Earnings Beat Estimates, Revenues Grow 6.8% Y/Y
• Neutral Sentiment: Top‑line was essentially in line with expectations — revenue $10.36B vs. ~$10.40B consensus and ~+6.8% YoY — leaving overall headline numbers largely as expected and reducing the surprise factor. Philip Morris (NYSE:PM) posts Q4 CY2025 sales in line with estimates
• Negative Sentiment: Q1 2026 EPS guidance (1.800–1.850) came in below the Street view (~1.89), which could pressure near‑term sentiment and expectations for sequential growth. Philip Morris Posts Higher Profit, Revenue; Forecasts Continued Growth
• Negative Sentiment: Some outlets highlight the revenue shortfall and described the results as “soft” or merely meeting expectations, which triggered an early pullback in the stock despite the stronger full‑year guide. Philip Morris Stock Drops. Why Earnings Are a Drag for the Tobacco Giant.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Stifel Nicolaus set a $180.00 price target on Philip Morris International in a research note on Tuesday, October 21st. Barclays reduced their target price on shares of Philip Morris International from $220.00 to $180.00 and set an “overweight” rating on the stock in a research note on Monday, November 17th. Wall Street Zen cut shares of Philip Morris International from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. Morgan Stanley set a $175.00 price target on shares of Philip Morris International and gave the company an “overweight” rating in a research report on Wednesday, October 22nd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Philip Morris International in a report on Wednesday, October 22nd. Eleven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Philip Morris International has an average rating of “Moderate Buy” and an average price target of $184.56.

Hedge Funds Weigh In On Philip Morris International

Hedge funds and other institutional investors have recently bought and sold shares of the business. Measured Wealth Private Client Group LLC acquired a new stake in shares of Philip Morris International during the third quarter worth $32,000. McIlrath & Eck LLC bought a new position in Philip Morris International during the second quarter worth about $36,000. WFA of San Diego LLC bought a new position in Philip Morris International during the second quarter worth about $41,000. Osterweis Capital Management Inc. grew its position in shares of Philip Morris International by 2,280.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 357 shares of the company’s stock worth $65,000 after buying an additional 342 shares during the period. Finally, Darwin Wealth Management LLC bought a new stake in shares of Philip Morris International in the 2nd quarter valued at about $82,000. 78.63% of the stock is owned by institutional investors.

Philip Morris International Company Profile

Philip Morris International Inc (NYSE: PM) is a global tobacco company that manufactures and sells cigarettes, other nicotine-containing products and a growing portfolio of smoke-free alternatives for adult smokers. The firm traces its corporate roots to the 19th century Philip Morris enterprise and was established as an independent, publicly traded company following a 2008 separation from what is now Altria. Since the spin-off, the company has focused on serving international markets outside the United States.

PMI’s product mix includes traditional combustible cigarettes as well as smoke-free offerings such as heated tobacco systems and other reduced-risk products.