PM's second quarter results are likely to benefit from strong pricing and sustained smoke-free momentum despite currency pressures.
Philip Morris International (NYSE:PM) is set to disclose its earnings on Tuesday, July 22, 2025. Reviewing the data from the past five years, Philip Morris stock has demonstrated positive one-day returns following earnings reports in 60% of cases.
Philip Morris might have touched all-time highs recently, but there's still a case to upgrade it to buy. At a time when macroeconomic uncertainty could well drag on, the stock can be a portfolio stabilizer and offer continued passive income. Its seemingly effortless pivot towards non-combustibles is another point in its favor, putting it ahead of peers.
Beyond analysts' top-and-bottom-line estimates for Philip Morris (PM), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
Philip Morris (PM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Philip Morris (PM) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
PM's strong pricing and premium product mix fuel profit growth and margin gains in the nicotine category.
PM is gaining ground with smoke-free products and cost cuts, but regulatory and currency risks call for caution.
Philip Morris' smoke-free shift gained momentum in the first quarter of 2025 as high-margin products drove profit growth and strengthened its portfolio mix.
We initiate Philip Morris International Inc. at Hold with a $170 target, citing strong smoke-free momentum but stretched valuation versus peers. Operational execution—especially ZYN and IQOS scaling—drives above-consensus EPS forecasts, with cost savings and mix shift fueling margin expansion. Supply chain constraints and regulatory risks could cap upside, making capacity execution and policy developments key swing factors for the stock.
Philip Morris has outperformed the market and tech giants over 5 years, driven by strong growth in smoke-free products like ZYN and IQOS. Despite impressive financial results and a successful smoke-free transition, I am downgrading my rating to neutral, due to limited upside and a lower dividend yield. PM now trades at a premium valuation with a sub-3% yield, making alternatives like MO, VZ, and growth stocks more attractive for new capital allocation.
Philip Morris International's transformation to smoke-free products like ZYN and IQOS drives strong growth, higher margins, and outperformance, versus traditional tobacco peers. Despite a lower dividend yield than competitors, PM's capital appreciation and consistent dividend growth make it a superior long-term investment. Valuation is elevated at a 25.8x P/E, but justified by double-digit EPS growth, industry-leading profitability, and a future-proof product portfolio.