Philip Morris International (PM) Q3 2025 Earnings
How Did PM Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: −2.79%.
Did PM Beat Earnings? Q3 2025 Results
Yes. Philip Morris International reported Q3 2025 earnings of $2.24 a share on Oct 21, 2025, beating the $2.10 consensus estimate by 6.9%. Revenue was $10.8B against a $10.7B estimate.
Philip Morris International capped a record-setting third quarter with results that cleared Wall Street's expectations on both the top and bottom lines, as the company's accelerating smoke-free transformation drove earnings per share to $2.24, beating the $2.10 consensus by 6.88%, while revenue climbed 9.4% year-over-year to $10.85 billion, ahead of the $10.66 billion estimate by 1.74%. The single most material force behind the beat was smoke-free momentum, with that segment now representing 41% of total net revenues and posting 17.7% net revenue growth, anchored by IQOS volume gains and a 39% offtake acceleration for ZYN nicotine pouches in the U.S. Stifel reiterated a Buy rating on the stock, pointing to the smoke-free portfolio as a durable growth engine relative to consumer staples peers. Management lifted its full-year 2025 adjusted EPS guidance to $7.46 to $7.56, implying growth of 13.5% to 15.1% versus 2024, and said operating cash flow would exceed $11.50 billion for the year.
- Smoke-free product shipment volumes grew 16.6%, driving total PMI volume growth of 0.7%
- ZYN U.S. offtake growth accelerated to 39% in Q3 per Nielsen estimates
- HTU adjusted IMS volume grew 9.0% globally against a strong prior year comparator
- Combustible pricing drove favorable pricing variance of $305 million
- IQOS HTU adjusted market share in Japan increased 1.8pp to 31.7%
- Europe HTU adjusted IMS reached record 15 billion units, growing 7.3%
- VEEV e-vapor shipment volumes grew 91.0%
“In the third quarter, we continued to invest in the growth of our increasingly profitable smoke-free business, while achieving record quarterly smoke-free gross profit and adjusted diluted EPS.”
Philip Morris International CEO, on the earnings call
What Was Philip Morris International's Outlook in Q3 2025?
PMI raised its full-year 2025 adjusted diluted EPS guidance to $7.46-$7.56, representing 13.5%-15.1% growth vs. 2024. Excluding currency, growth is projected at 12.0%-13.5%. The company expects total cigarette and SFP shipment volume growth of ~1%, with smoke-free product volume growth of 12%-14% partially offset by ~2% cigarette volume declines. Organic net revenue growth is forecast at ~6%-8%, with organic operating income growth of 10%-11.5%. Full-year operating cash flow is expected to exceed $11.5 billion, with capital expenditures of ~$1.6 billion. No share repurchases are planned for 2025. The company targets a net debt to adjusted EBITDA ratio of ~2x by end of 2026.
PM YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $10.8B | $9.9B | +9.4% |
| Gross Profit | $7.4B | $6.5B | +12.4% |
| Operating Income | $4.3B | $3.7B | +16.7% |
| Net Income | $3.5B | $3.1B | +12.9% |
PM Revenue by Segment
PM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.