Philip Morris reported a robust set of Q3 2025 earnings, which along with a dividend increase and recent price drop could be plus points for the stock. However, the case for the stock remains weak in the short-term as the forward P/E is still high and the dividend yield isn't competitive against peers. Over the long-term, however, a Buy case gets stronger. Not only is PM's position as a leading smoke-free products providers likely to get cemented, its stock metrics improve too.
Philip Morris beats Q3 estimates as smoke-free products surge, setting the stage for solid 2025 growth and higher EPS guidance.
Philip Morris International Inc. remains a compelling Buy after a market overreaction to Q3 earnings, despite a temporary stock drop. PM's growth is driven by its dominant smoke-free products, including IQOS and Zyn, offsetting declining cigarette volumes. PM stock commands premium valuation metrics due to strong brand power, profitability, and successful transition to innovative nicotine products.
| Tobacco Industry | Consumer Defensive Sector | Jacek Olczak CEO | NYSE Exchange | 718172109 CUSIP |
| US Country | 83,100 Employees | 3 Oct 2025 Last Dividend | - Last Split | 17 Mar 2008 IPO Date |
Philip Morris International Inc. is a globally recognized tobacco company that has embarked on an ambitious journey to lead a smoke-free future. The company is actively transforming its portfolio for the long term by incorporating products that move beyond the traditional tobacco and nicotine industry. With its inception in 1987, Philip Morris International operates from its headquarters in New York, New York, and has taken significant strides in offering a wide array of smoke-free products. Catering primarily to markets outside the United States, its mainstay includes cigarettes alongside innovative smoke-free solutions aimed at reducing the health impact associated with smoking. Embracing modern technology and consumer trends, Philip Morris International Inc. is dedicated to evolving its offerings to meet the diverse needs of adult smokers and to align with its vision of a future without cigarettes.