Philip Morris International (NYSE:PM) Issues Quarterly Earnings Results, Meets Estimates

Philip Morris International (NYSE:PM) announced its earnings results on Friday. The company reported $1.70 earnings per share for the quarter, meeting the consensus estimate of $1.70, FiscalAI reports. The company had revenue of $10.36 billion for the quarter, compared to the consensus estimate of $10.40 billion. Philip Morris International had a negative return on equity of 122.14% and a net margin of 9.33%.The company’s revenue was up 6.8% on a year-over-year basis. During the same period last year, the business posted $1.55 EPS. 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 Trading Down 0.0%

Shares of Philip Morris International stock traded down $0.01 during trading hours on Friday, reaching $181.99. The stock had a trading volume of 4,853,908 shares, compared to its average volume of 5,730,500. The firm has a market capitalization of $283.30 billion, a price-to-earnings ratio of 33.06, a P/E/G ratio of 1.94 and a beta of 0.39. Philip Morris International has a 1 year low of $142.11 and a 1 year high of $186.69. The firm has a 50 day simple moving average of $163.48 and a two-hundred day simple moving average of $161.53.

Philip Morris International Announces Dividend

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on PM shares. The Goldman Sachs Group reissued a “buy” rating on shares of Philip Morris International in a research note on Wednesday, October 22nd. JPMorgan Chase & Co. dropped their target price on shares of Philip Morris International from $190.00 to $185.00 and set an “overweight” rating for the company in a report on Wednesday, November 26th. Barclays dropped their price target on Philip Morris International from $220.00 to $180.00 and set an “overweight” rating for the company in a research report on Monday, November 17th. Stifel Nicolaus set a $180.00 price target on shares of Philip Morris International in a report on Tuesday, October 21st. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Philip Morris International in a report on Thursday, January 22nd. Eleven analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $184.56.

Key Philip Morris International News

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

• Positive Sentiment: Q4 EPS beat year?ago levels and topped a Zacks consensus (reported $1.70 vs Zacks est. $1.67), showing continued margin strength and underlying earnings growth. Philip Morris (PM) Q4 Earnings Top Estimates
• Positive Sentiment: Company set FY?2026 EPS guidance slightly above consensus (8.380–8.530 vs ~8.33), and released 2026–2028 growth targets and strong full?year 2025 adjusted EPS growth — supportive for longer?term outlook. Philip Morris International Reports 2025 Fourth-Quarter & Full-Year Results
• Neutral Sentiment: Revenue grew 6.8% year?over?year to $10.36B, broadly in line with underlying growth trends but marginally shy of consensus ($10.40B), leaving headline top?line momentum ambiguous. Press Release / Slide Deck
• Negative Sentiment: Q1 2026 EPS guidance (1.800–1.850) came in below the consensus (~1.89), prompting near?term concern about volume/pricing or product mix that may pressure the next quarter. Philip Morris Posts Higher Profit, Revenue; Forecasts Continued Growth
• Negative Sentiment: Market commentary flagged the softer?than?expected revenue and guidance nuance, which led some outlets to report a share drop after the print — a sign of short?term investor caution despite the strong full?year messaging. Philip Morris Stock Drops. Why Earnings Are a Drag for the Tobacco Giant.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Measured Wealth Private Client Group LLC acquired a new position in Philip Morris International during the third quarter valued at approximately $32,000. McIlrath & Eck LLC acquired a new position in shares of Philip Morris International during the 2nd quarter valued at $36,000. WFA of San Diego LLC purchased a new stake in Philip Morris International during the 2nd quarter worth $41,000. Osterweis Capital Management Inc. boosted its position in 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 purchasing an additional 342 shares during the period. Finally, Darwin Wealth Management LLC acquired a new stake in Philip Morris International in the 2nd quarter valued at $82,000. Hedge funds and other institutional investors own 78.63% of the company’s stock.

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.