- Philip Morris confirms its status as a global industry leader, exceeding expectations in terms of revenue, margins, and portfolio transformation efficiency
- However, the company's share price is mixed before the stock market opens. Despite initial gains of up to 3%, the company's shares are currently trading nearly 1.5% lower
- Philip Morris confirms its status as a global industry leader, exceeding expectations in terms of revenue, margins, and portfolio transformation efficiency
- However, the company's share price is mixed before the stock market opens. Despite initial gains of up to 3%, the company's shares are currently trading nearly 1.5% lower
Philip Morris International (PM.US) has published its results for the third quarter of 2025, once again clearly exceeding analysts' expectations in terms of both profit and revenue. The company continues to consistently transform its business towards reduced-risk (smoke-free) products, mainly through the dominance of IQOS and strong sales growth of ZYN in the United States. However, the company's share price is mixed before the stock market opens. Despite initial gains of up to 3%, the company's shares are currently trading nearly 1.5% lower than yesterday's close. This may indicate that despite the strong results, investors had expected them and largely priced them in earlier.
In the third quarter, Philip Morris reported revenues of $10.85 billion (consensus: $10.68 billion), and adjusted earnings per share (EPS) of $2.24 (forecast: $2.09–2.11), representing increases of 9.4% and 17.3% year-on-year, respectively—excluding the currency effect, EPS improved by 13.1%. The smoke-free segment now accounts for 41% of revenue and over 42% of gross profit, with smoke-free product shipments up 16.6% and organic revenue growth of 13.9%. The company raised its quarterly dividend by 8.9% to USD 1.47 per share, leaving the recalibration of its buyback policy until future quarters.
Philip Morris confirms its status as a global industry leader, exceeding expectations in terms of revenue, margins, and portfolio transformation efficiency – the coming quarters will be under pressure to meet the targets set for the smoke-free business and maintain a high rate of conversion to reduced-risk products.
Philip Morris forecasts for 2025:
- Adjusted EPS for the full year: $7.46–7.56 (previously $7.43–7.56)
- Expected organic revenue growth for 2025: +8% (market forecast +7.47%)
- ZYN US sales volume (nicotine pouches): 800-840 million cans (+38-45% y/y)
- CAPEX: $1.6 billion, mainly for smoke-free product development
- Expected organic operating profit growth: 11-12.5%
- Debt to EBITDA ratio: further improvement towards 2x by the end of 2026
- No share buybacks throughout 2025
- Higher effective tax rate: 22-23%
- Expected continued dynamic expansion of IQOS and ZYN, with a significant focus on the EU, Japan, and the US
Despite strong results, the company's shares are losing ground just before the opening of Wall Street. The price is falling below the 200-day EMA, which has so far been a key support point for the long-term upward trend.
Source: xStation
Palo Alto - after Earnings
Chart of the day: US100 (20.11.2025)
NVIDIA Beats Expectations: The AI Powerhouse Saving the Future
Daily Summary: Market attempts recovery, all hope in Nvidia
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
