Philip Morris International falls as Q4 results meet expectations

Investing.com -- Philip Morris International Inc. (NYSE: PM) shares fell 2.8% after the tobacco giant reported fourth-quarter results that largely met analyst expectations, with adjusted earnings per share of $1.70 compared to the consensus estimate of $1.70, and revenue of $10.4 billion versus the expected $10.39 billion.

The company reported that its smoke-free business continued to drive growth, with smoke-free product shipment volumes increasing 8.5% in the fourth quarter, while cigarette volumes declined 2.2%. For the full year 2025, the company achieved adjusted diluted EPS of $7.54, representing growth of 14.8% compared to 2024, or 14.2% on a currency-neutral basis.

"We achieved another remarkable year of results in 2025, with a fifth consecutive year of volume growth, net revenues surpassing $40 billion, including close to $17 billion from our smoke-free business, and very good operating margin expansion," said Jacek Olczak, Group CEO of PMI.

The company's smoke-free business now accounts for 41.5% of total net revenues and nearly 43% of total gross profit, up by 2.8 and 3.2 percentage points respectively versus full-year 2024. IQOS, the company's heat-not-burn product, continued to strengthen its position as the second largest nicotine brand in markets where present, with the number one volume share position in 13 markets.

Looking ahead, Philip Morris provided fiscal year 2026 adjusted EPS guidance of $8.38 to $8.53, above the analyst consensus of $8.33. The company also announced new 2026-2028 growth targets, including 6-8% organic net revenue growth, 8-10% organic operating income growth, and 9-11% adjusted diluted EPS growth excluding currency.

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