Philip Morris International (PM) Q1 2025 Earnings
How Did PM Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +8.16%.
Did PM Beat Earnings? Q1 2025 Results
Yes. Philip Morris International reported Q1 2025 earnings of $1.69 a share on Apr 23, 2025, beating the $1.61 consensus estimate by 4.8%. Revenue was $9.3B against a $9.1B estimate.
Philip Morris International opened 2025 with a strong first quarter, posting earnings per share of $1.69 against a consensus estimate of $1.61, a beat of 4.79%, while revenue of $9.30 billion topped the $9.14 billion estimate by 1.71% and climbed 5.8% year over year. The standout driver behind the outperformance was the company's smoke-free business, which now accounts for 42% of total net revenues and delivered organic revenue growth exceeding 20% in the period, with U.S. ZYN nicotine pouch shipments surging 53% to exceed 200 million cans as expanded production capacity came online ahead of schedule. IQOS continued to gain ground internationally, reaching a record 32.2% adjusted market share in Japan and 11.4% in Europe. With momentum firmly in place, PMI raised its full-year adjusted diluted EPS guidance to $7.36 to $7.49, representing growth of 12% to 14%, and projected operating cash flow exceeding $11.00 billion for the year, reinforcing confidence in the company's ongoing shift toward smoke-free products.
- Smoke-free business organic net revenue growth of over 20% and organic gross profit growth of over 33%
- IQOS HTU adjusted IMS volume grew 9.4% globally
- ZYN U.S. shipments grew 53%, exceeding 200 million cans, beating initial expectations
- Strong combustible pricing contributing to favorable pricing variance
- Adjusted operating income margin expanded 2.5 percentage points to 40.7%
- IQOS market share gains in Japan (up 3.0pp to record 32.2%) and Europe (up 1.2pp to record 11.4%)
- VEEV e-vapor shipment volumes more than doubled
“We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion.”
Philip Morris International CEO, on the earnings call
What Was Philip Morris International's Outlook in Q1 2025?
PMI raised its 2025 full-year adjusted diluted EPS forecast for currency only to $7.36–$7.49, representing 12.0%–14.0% growth versus $6.57 in 2024. Excluding currency, growth is projected at 10.5%–12.5%. Reported diluted EPS is forecast at $7.01–$7.14. Key assumptions include: organic net revenue growth of 6%–8%; organic operating income growth of 10.5%–12.5%; smoke-free product volume growth of 12%–14%; U.S. nicotine pouch shipments of 800–840 million cans (38%–45% growth); total shipment volume growth of up to 2%; operating cash flow exceeding $11 billion; capital expenditures of around $1.5 billion; effective tax rate of 22.5%–23.5%; no share repurchases in 2025. Q2 adjusted diluted EPS is guided at $1.80–$1.85 including 6 cents favorable currency impact. Q2 restructuring charges of approximately EUR 200 million (~$230 million) are expected related to German manufacturing optimization.
PM YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $9.3B | $8.8B | +5.8% |
| Gross Profit | $6.3B | $5.6B | +11.8% |
| Operating Income | $3.5B | $3.0B | +16.4% |
| Net Income | $2.7B | $2.1B | +25.2% |
PM Revenue by Segment
PM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.