Financial Performance - Total net revenues for 2025 reached $30 billion, representing a 5% organic growth year-over-year[6] - Total PMI revenues for 2025 were $40,648 million, representing a 7.3% increase from $37,878 million in 2024[25] - The company reported a significant increase in Net Earnings for 2025, totaling $11,848 million, up 57.9% from $7,503 million in 2024[64] - Net earnings attributable to PMI for 2025 reached $2,141 million, compared to a loss of $(579) million in 2024, resulting in a net earnings for basic and diluted EPS of $11,316 million in 2025, up from $7,034 million in 2024[17] - Basic Earnings Per Share for 2025 was $7.27, a 60.5% increase from $4.53 in 2024[64] - 2025 diluted EPS increased to $1.37, a 100% change from $(0.38) in 2024, with a yearly increase to $7.26 from $4.52, representing a 60.6% growth[19] Revenue Breakdown - Total smoke-free net revenues for 2025 were $4,354 million, a 12.0% increase from $3,887 million in 2024, with significant growth in SSEA, CIS & MEA at 33.2%[22] - Total net revenues for combustible tobacco reached $23,794 million in 2025, a 2.5% increase from $23,218 million in 2024[25] - Total net revenues for smoke-free products amounted to $16,854 million in 2025, reflecting a 15.0% growth compared to $14,660 million in 2024[25] - Total combustible tobacco net revenues for 2025 were $6,008 million, a 3.2% increase from $5,819 million in 2024, with Europe showing a 6.5% growth[22] Operating Income and Margins - The adjusted operating income margin for 2025 was 40%, up from 38% in 2024, indicating improved operational efficiency[6] - Total reported operating income for 2025 was $14,892 million, an increase of 11.1% compared to $13,402 million in 2024[53] - Adjusted operating income for 2025 reached $3,129 million, reflecting an 8.6% increase year-over-year[56] - Adjusted operating income excluding currency and acquisitions/divestitures for the total PMI was $16,243 million, an increase of 10.6% from $14,688 million in 2024[53] Product Performance - The number of total IQOS users increased to 20 million, with a 15% growth in user adoption compared to 2024[11] - PMI's e-Vapor product line saw a 25% increase in sales volume, contributing significantly to overall revenue growth[12] - The wellness segment within smoke-free products saw a decline of 17.2% in net revenues, dropping to $72 million from $87 million in 2024[22] - The company plans to launch three new smoke-free products in 2026, aiming to capture an additional 5% market share in the smoke-free segment[9] Debt and Financial Position - The company reported a net debt of $15 billion, with a debt-to-equity ratio of 1.2, indicating a stable financial position[6] - Total Debt as of December 31, 2025, was $48,835 million, up from $45,695 million in 2024[70] - Net Debt at the end of 2025 was $43,963 million, an increase from $41,479 million in 2024[70] Future Outlook - The company anticipates adjusted earnings per share (EPS) to grow by 8% in 2026, driven by continued expansion in smoke-free product offerings[8] - The company plans to continue expanding its smoke-free product offerings, with a focus on increasing market share in emerging markets[22] - The company anticipates continued growth in smoke-free product revenues, driven by increased market penetration and product innovation[25] Regional Performance - The SSEA, CIS & MEA region reported a significant operating income increase of 19.5%, reaching $4,096 million in 2025 compared to $3,429 million in 2024[36] - In Europe, reported operating income for 2025 was $7,165 million, up 9.4% from $6,547 million in 2024[53] - The Americas region saw a decline in operating income, dropping to $505 million in 2025, a decrease of 7.8% from $548 million in 2024[36] Adjusted Financial Metrics - Adjusted EBITDA for 2025 was $17,375 million, compared to $15,580 million in 2024, indicating a strong growth trajectory[70] - Adjusted gross profit for smoke-free products increased by 19.9% to $11,688 million in 2025, compared to $9,719 million in 2024[33] - Total adjusted gross profit for PMI in 2025 was $27,282 million, an 11.0% increase from $24,549 million in 2024[33]

Earnings Report - Philip Morris International Inc. is set to release its fourth-quarter earnings on February 6, with analysts expecting earnings of $1.70 per share, up from $1.55 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $10.4 billion, an increase from $9.71 billion reported in the previous year [1] Modified-Risk Tobacco Product - On January 23, Philip Morris urged a U.S. regulator to support a modified-risk label for its ZYN nicotine pouches, presenting scientific findings to the FDA's Tobacco Products Scientific Advisory Committee [2] Dividend Information - Philip Morris has an annual dividend yield of 3.26%, translating to a quarterly dividend of $1.47 per share, or $5.88 annually [3] - To earn $500 monthly from dividends, an investment of approximately $183,998 or around 1,020 shares is required, while $100 monthly would need about $36,800 or 204 shares [3] Stock Price Movement - Shares of Philip Morris rose by 1.9% to close at $180.39 on Wednesday [6]

Core Insights - The Consumer Staples sector is currently underperforming, ranking among the bottom 32% of Zacks classified sectors, with earnings expected to decline in the upcoming reports [2][3]. Industry Overview - U.S. consumer stocks are facing challenges such as weakening consumer confidence, persistent inflation, and pressure on discretionary spending, which are squeezing margins and making earnings growth difficult [3]. - Global demand uncertainty, inflationary pressures, weather volatility, and geopolitical concerns are further constraining margins and limiting near-term earnings growth [3]. Earnings Performance - As of now, 26.7% of Consumer Staples companies have reported earnings, with a year-over-year earnings decline of 3.7% and a revenue drop of 1.1% [5]. - For the December quarter, earnings are expected to decline by 2.4% year-over-year, while revenues are projected to rise by 2.4% [6]. Company-Specific Insights - **Estee Lauder Companies Inc. (EL)**: Expected to report revenue of $4.22 billion, a 5.3% increase year-over-year, with earnings estimated at 83 cents per share, reflecting a 33.9% growth [8]. The company is benefiting from its Profit Recovery and Growth Plan [9]. - **Hershey Company (HSY)**: Anticipated to report revenues of $3 billion, a 4% increase, but earnings are expected to decline by nearly 48% to $1.40 per share [10][11]. Continued demand in its core portfolio is expected to support results despite margin pressures [11]. - **Newell Brands Inc. (NWL)**: Expected to see a revenue decline to $1.89 billion, a 3.3% drop, while earnings are projected to grow by 12.5% to 18 cents per share [12]. The company is facing challenges from inflation and geopolitical volatility [12]. - **Coty Inc. (COTY)**: Projected to report revenues of $1.66 billion, a slight decline of 0.3%, with earnings expected to increase by 63.6% to 18 cents per share [13]. The company is experiencing revenue constraints due to a highly promotional market and tariff pressures [13]. - **Philip Morris International Inc. (PM)**: Expected to report revenues of $10.4 billion, a 7.3% increase, with earnings stable at $1.67 per share, reflecting a 7.7% growth [14]. The company is benefiting from strong pricing power and a growing smoke-free product portfolio [14].

Core Insights - Philip Morris International Inc. (PM) is expected to show growth in both revenue and earnings for Q4 2025, with revenue estimates at approximately $10.4 billion, reflecting a 7.3% increase year-over-year [1][9] - The earnings consensus remains steady at $1.67 per share, indicating a 7.7% increase from the previous year [2][9] Revenue and Earnings Performance - The anticipated revenue growth is supported by the company's shift towards a smoke-free product portfolio, which accounted for over 42% of gross profit in Q3 2025, driven by strong sales of IQOS, ZYN, and VEEV [3][9] - Smoke-free shipment volumes rose by 16.6%, and organic smoke-free revenues increased by 13.9%, indicating a favorable product mix and pricing strategy [4] Margin and Profitability - Pricing discipline and cost efficiencies have been significant contributors to margin expansion, with notable adjusted operating margin growth in Q3, supported by strong gross margins across both smoke-free and combustible categories [5] - Ongoing productivity initiatives and benefits from smoke-free growth are expected to continue supporting profitability, despite high commercial investments [5] Challenges and Headwinds - The company faces challenges from declining combustible cigarette volumes and foreign exchange volatility, with cigarette shipment volumes decreasing at a low-single-digit rate in Q3 [6] - These structural industry pressures are likely to persist into Q4, potentially impacting overall performance [6] Earnings Prediction Model - The current earnings prediction model does not indicate a strong likelihood of an earnings beat for Philip Morris, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]

Group 1 - Philip Morris International Inc. (NYSE:PM) is recognized as a long-term low volatility investment option, with recent developments regarding its ZYN nicotine pouch products aimed at obtaining a Modified Risk Tobacco Product designation from the FDA [1] - The FDA designation would enable the company to inform U.S. adult cigarette smokers that switching to ZYN may reduce their risk of smoking-related diseases [1] - Stifel Nicolaus has reiterated a Buy rating for Philip Morris with a price target of $180, while Jefferies downgraded the stock from Buy to Hold, lowering its price target from $220 to $180, citing limited re-rating potential and competitive pressures from British American Tobacco and Japan Tobacco [2] Group 2 - Philip Morris operates as a holding company focused on delivering products for a smoke-free future, with geographical segments including Europe, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa, East Asia, Australia, and the Americas [3]

Core Insights - Philip Morris International Inc. (PM) is a leading global tobacco and nicotine company with a market cap of $279.3 billion, transitioning from traditional cigarettes to smoke-free alternatives like the IQOS heated tobacco system [1] Performance Summary - PM stock has outperformed the broader market over the past 52 weeks, surging 37.7% compared to the S&P 500 Index's 14.3% gain [2] - Year-to-date, PM shares are up 11.9%, while the S&P 500 has only increased by 1.4% [2] - PM stock has also outpaced the State Street Consumer Staples Select Sector SPDR Fund (XLP), which saw a 4.7% increase over the past 52 weeks [3] Dividend and Earnings Outlook - On December 22, PM shares rose by 1.8% following the announcement of a quarterly dividend of $1.47 per share [5] - For FY2025, analysts project PM's earnings per share (EPS) to grow by 14.3% year-over-year to $7.51, with a strong earnings surprise history [5] - The consensus rating among 14 analysts covering PM is a "Moderate Buy," consisting of eight "Strong Buy" ratings, two "Moderate Buys," and four "Holds" [5] Analyst Ratings and Price Targets - Recently, Jefferies analyst Edward Mundy downgraded PM from "Buy" to "Hold" and reduced the price target from $220 to $180 [7] - The mean price target of $183.33 suggests a potential upside of 2.2%, while the highest price target of $200 indicates an upside of 11.5% from the current price [7]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - Key sectors showing gains include telecommunications (+9.0%) and technology hardware (+4.6%) while software and services fell by 6.9%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, a significant drop from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media and entertainment (+$39.5 million) while software and services experienced outflows of -$106.0 million[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - Notable upward revisions were in technology hardware (+5.6%) and automotive (+3.2%) sectors, while energy saw a downward revision of -2.7%[3] Risk Factors - Economic fundamentals, international political uncertainties, U.S. fiscal policy, and Federal Reserve monetary policy present significant risks[3]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - 13 sectors saw gains, while 10 sectors experienced losses, with telecommunications leading at +9.0%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, down from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media & entertainment (+$39.5 million)[2] - Significant outflows occurred in software & services (-$106.0 million) and healthcare equipment & services (-$57.7 million)[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - 21 sectors had upward revisions, with technology hardware & equipment seeing the largest increase at +5.6%[3] - Energy sector saw a downward revision of -2.7%[3] Risks - Economic fundamentals, international political situations, U.S. fiscal policies, and Federal Reserve monetary policies present uncertainties[3]

Group 1: Institutional Investment Activity - National Pension Service increased its stake in Philip Morris International by 2.7% in Q3, owning 3,810,514 shares valued at $618,065,000 after acquiring an additional 98,450 shares [2] - WCM Investment Management LLC significantly raised its position by 24,968.0% in Q2, now holding 11,275,606 shares worth $2,041,223,000 after purchasing 11,230,626 shares [3] - Vanguard Group Inc. increased its holdings by 1.6% in Q2, owning 142,857,055 shares valued at $26,018,555,000 after acquiring 2,235,380 shares [3] - DZ BANK AG increased its stake by 69.0% in Q2, now owning 4,512,311 shares worth $821,826,000 after buying 1,842,754 shares [3] - Prudential Financial Inc. grew its position by 88.9% in Q2, now holding 2,138,118 shares valued at $389,415,000 after purchasing 1,006,014 shares [3] - Panagora Asset Management Inc. raised its stake by 142.2% in Q2, now owning 1,512,514 shares valued at $275,474,000 after buying 888,148 shares [3] - Institutional investors collectively own 78.63% of Philip Morris International's stock [3] Group 2: Analyst Ratings and Price Targets - Stifel Nicolaus set a price target of $180.00 for Philip Morris International [4] - Barclays lowered its target price from $220.00 to $180.00 while maintaining an "overweight" rating [4] - Wall Street Zen downgraded the stock from a "buy" to a "hold" rating [4] - Goldman Sachs reiterated a "buy" rating for the stock [4] - Weiss Ratings restated a "buy (b)" rating for Philip Morris International [4] - Eleven analysts rated the stock as a "Buy" and two as "Hold," with a consensus rating of "Moderate Buy" and an average target price of $184.56 [4] Group 3: Stock Performance and Financial Metrics - Philip Morris International's stock opened at $179.42, with a market cap of $279.29 billion [5] - The stock has a price-to-earnings ratio of 32.50, a PEG ratio of 1.92, and a beta of 0.40 [5] - The 12-month low for the stock is $128.25, and the 12-month high is $186.69 [5] - The company's 50-day moving average is $161.53, and the 200-day moving average is $161.56 [5] Group 4: Dividend Information - Philip Morris International announced a quarterly dividend of $1.47 per share, paid on January 14th [6] - The annualized dividend amounts to $5.88, resulting in a yield of 3.3% [6] - The dividend payout ratio is 106.52% [6] Group 5: Company Overview - Philip Morris International Inc. is a global tobacco company that manufactures and sells cigarettes and smoke-free alternatives [7] - The company was established as an independent entity following a separation from Altria in 2008 [7] - Philip Morris International focuses on international markets outside the United States [7] - The product mix includes traditional combustible cigarettes and smoke-free offerings such as heated tobacco systems [8]

Investment Activity - Berman McAleer LLC purchased 2,965 shares of Philip Morris International Inc. valued at approximately $481,000 in Q3 [2] - Legacy Investment Solutions LLC and Traub Capital Management LLC each acquired new stakes worth $25,000 in Q2 [3] - Marquette Asset Management LLC increased its holdings by 1,677.8% in Q3, now owning 160 shares valued at $26,000 after buying an additional 151 shares [3] - Briaud Financial Planning Inc raised its position by 266.7% in Q2, now owning 165 shares worth $30,000 after an additional purchase of 120 shares [3] - Institutional investors own 78.63% of the company's stock [3] Analyst Ratings - Wall Street Zen downgraded Philip Morris International from "buy" to "hold" [4] - Goldman Sachs Group maintained a "buy" rating with a target price of $175.00 [4] - Eleven analysts rated the stock as "Buy" and two as "Hold," with a consensus rating of "Moderate Buy" and an average price target of $184.56 [4] Stock Performance - Shares opened at $179.42, with a 52-week low of $128.25 and a high of $186.69 [5] - The market cap is $279.29 billion, with a PE ratio of 32.50 and a PEG ratio of 1.92 [5] Dividend Information - A quarterly dividend of $1.47 was declared, representing an annualized dividend of $5.88 and a yield of 3.3% [6] - The payout ratio is 106.52% [6] Company Overview - Philip Morris International Inc. is a global tobacco company focused on manufacturing and selling cigarettes and smoke-free alternatives [7] - The company has a product mix that includes traditional combustible cigarettes and reduced-risk products [8]