Philip Morris International Stock Earnings Reports

Philip Morris International reported very strong Q3 2025 results driven by accelerated growth in its smoke-free portfolio (IQOS, ZYN, VIVE) and resilient combustible performance. Highlights include: record quarterly smoke‑free gross profit (> $3 billion), adjusted operating income margin above 43% (highest in ~4 years), adjusted diluted EPS of $2.24 (up ~17%), and continued smoke‑free volume growth (+16.6% in Q3). IQOS HTU shipments grew ~15.5% in Q3 and remain on track for double‑digit adjusted IMS growth for H2/2025; ZYN global can shipments accelerated (U.S. +37% in Q3; Nielsen off‑take up to +39% during the quarter and +58% in September driven by renewed commercial activity), and VIVE e‑vapor shipments more than doubled year‑to‑date. Management invested heavily in commercial relaunch activity (notably a one‑off ~$100 million Q3 promotion in the U.S. for ZYN) and expects continued elevated SG&A to support growth. Full‑year outlook: shipments target ~+1% (smoke‑free +12–14%, cigarettes down ~2%), organic net revenue growth +6–8%, adjusted operating income growth +10–11.5%, and adjusted diluted EPS raised to the mid‑to‑upper end of prior currency‑neutral guidance (+12–13.5% currency‑neutral; +13.5–15.1% at current FX). PMI expects further margin expansion, >$11.5 billion operating cash flow, continued deleveraging toward ~2x net debt/EBITDA by 2026, and ongoing multi‑category expansion across 100 markets.