Philip Morris International Inc. · PM · FY2025 Q2 · Calendar Q3 2025

Smoke-free growth drives higher guidance despite regulatory risks

The supplied analysis supports a constructive operating thesis: continued smoke-free adoption, pricing and capacity investment are supporting growth and margin expansion. The evidence is not one-sided, because regulatory changes, product-approval timing, ZYN normalization, currency and declining combustible volumes could limit the pace or durability of that growth.

Reported Before market openNYSEConsumer Defensive $292.18B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.91 Consensus $1.86
EPS surprise +2.7% Reported versus consensus
Reported revenue $10.14B Consensus $10.32B
Revenue surprise -1.7% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -8.4% Event window
SPY move +0.0% Same window
Abnormal move -8.4% Stock minus SPY
Volume 4.1× Versus trailing sessions
Subsequent drift +2.1% Up to 20 sessions
PMSPY benchmark

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Transcript intelligence

What changed

Versus the prior-quarter analysis, management moved from maintaining guidance to raising full-year adjusted diluted EPS growth guidance. The current analysis also highlights continued smoke-free expansion, higher capacity investment and a clearer focus on EU excise proposals and the US FDA approval timeline for Illuma.

Guidance delta

Management raised full-year adjusted diluted EPS growth guidance to 13%-15%, or 11.5%-13.5% on a currency-neutral basis.

Key takeaways

  • Smoke-free products remained the main growth engine, led by IQOS and ZYN.
  • Full-year adjusted diluted EPS growth guidance was raised to 13%-15%.
  • Combustible volumes are expected to decline about 2% year over year, while pricing and cost efficiencies support margins.
  • Capacity investment and regulatory milestones remain central to the outlook.

Management priorities

  • Expand IQOS, ZYN and VEEV across additional markets
  • Increase ZYN production capacity and support new-territory launches
  • Maintain gross-margin expansion through pricing discipline and cost efficiencies
  • Continue deleveraging while targeting operating cash flow of about $11.5 billion in 2026

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Earnings History

Estimate Beat Miss Match
PM EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $1.41 Q1 '24 actual $1.50, beat Q2 '24 estimate $1.57 Q2 '24 actual $1.59, beat Q3 '24 estimate $1.82 Q3 '24 actual $1.91, beat Q2 '25 estimate $1.86 Q2 '25 actual $1.91, beat Q3 '25 estimate $2.09 Q3 '25 actual $2.24, beat Q4 '25 estimate $1.70 Q4 '25 actual $1.70, match Q1 '26 estimate $1.86 Q1 '26 actual $1.96, beat Q2 '26 estimate $2.05 Q2 '26 actual $2.20, beat Q3 '26 estimate $2.30 Q4 '26 estimate $1.97 Q1 '27 estimate $2.08 Q2 '27 estimate $2.43
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Analyst Consensus ?

ConsensusBuy25 ratings
Bullish1768.0%
Neutral728.0%
Bearish14.0%

Analyst 52W Price Targets

$187.46Previous close
$99Low
$158.92Average
$225High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 5, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
UBS Neutral NeutralMaintainSep 23, 2026
Citigroup Buy BuyMaintainJul 30, 2026
Barclays Overweight OverweightMaintainJul 29, 2026
Stifel Buy BuyMaintainJul 23, 2026
Needham Buy BuyMaintainJul 23, 2026
Show 20 more rating actions

Named analyst price targets

Upside is calculated against the persisted previous close $187.46. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
UBSFaham Baig$192$190.23 +2.4%Sep 23, 2026
BarclaysPallav Mittal$225$200.17 +20.0%Jul 29, 2026
BTIGAnalyst unavailable$221$191.12 +17.9%Jul 24, 2026
Stifel NicolausAnalyst unavailable$205$194.3 +9.4%Jul 23, 2026
NeedhamGerald Pascarelli$215$194.3 +14.7%Jul 23, 2026
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Company context

Snapshot as of publication

Philip Morris International Inc. functions as a prominent tobacco enterprise, actively working toward a smoke-free future. The company is strategically diversifying its long-term product range to incorporate items beyond traditional tobacco and nicotine. Its primary business involves both conventional cigarettes and an expanding array of smoke-free alternatives, such as innovative heat-not-burn devices, vapor products, and oral nicotine solutions. These offerings are distributed in markets worldwide, with the exception of the United States.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T10:40:43.606205+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T10:40:43.603339+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-05. For educational purposes only; not investment advice.