Philip Morris International Inc. (NYSE: PM) shares rose more than 1% intra-day on Friday after the company reported fourth-quarter results that largely aligned with analyst expectations.
The tobacco company posted adjusted earnings per share of $1.70, in line with consensus estimates, while revenue reached $10.4 billion, marginally above expectations of $10.39 billion.
Philip Morris said its smoke-free business remained the primary growth driver, with smoke-free shipment volumes rising 8.5% in the quarter, while traditional cigarette volumes declined 2.2%. For the full year 2025, the company delivered adjusted diluted EPS of $7.54, representing growth of 14.8% year over year, or 14.2% on a currency-neutral basis.
Smoke-free products accounted 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 continued to strengthen its competitive position, ranking as the second-largest nicotine brand in markets where it is available and holding the top volume share in 13 markets.
Looking ahead, Philip Morris guided for fiscal 2026 adjusted EPS of $8.38 to $8.53, exceeding the analyst consensus of $8.33. The company also introduced new growth targets for 2026–2028, including organic net revenue growth of 6% to 8%, organic operating income growth of 8% to 10%, and adjusted diluted EPS growth of 9% to 11%, excluding currency effects.
