Shares of Philip Morris International Inc. (NYSE:PM) slipped 2.8% after the tobacco group reported fourth-quarter results that broadly matched market expectations, leaving investors focused on valuation rather than upside surprises.
For the quarter, Philip Morris posted adjusted earnings per share of $1.70, exactly in line with analyst forecasts, while revenue totaled $10.4 billion, marginally above the $10.39 billion consensus. The company said its smoke-free portfolio remained the main growth engine, with shipment volumes for smoke-free products rising 8.5% in the fourth quarter, while traditional cigarette volumes declined by 2.2%.
For the full year 2025, the group delivered adjusted diluted EPS of $7.54, representing growth of 14.8% compared with 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.
Philip Morris said its smoke-free business now accounts for 41.5% of total net revenues and nearly 43% of total gross profit, increases of 2.8 and 3.2 percentage points respectively compared with full-year 2024. IQOS, the company’s heat-not-burn product, continued to strengthen its market position, ranking as the second-largest nicotine brand in markets where it is sold and holding the number-one volume share in 13 markets.
Looking ahead, the company issued fiscal 2026 adjusted EPS guidance of between $8.38 and $8.53, above the analyst consensus of $8.33. Philip Morris also outlined new medium-term targets for 2026–2028, including organic net revenue growth of 6–8%, organic operating income growth of 8–10%, and adjusted diluted EPS growth of 9–11%, excluding currency effects.