Philip Morris International (PM) faced a decline in its stock price on Tuesday following the release of its Q2 2025 earnings report. The company reported adjusted earnings per share (EPS) of $1.91, surpassing Wall Street’s estimate of $1.86 for the quarter, and reflecting a robust year-over-year increase of 20.1% from $1.59.
However, PM’s revenue came in at $10.1 billion, falling short of analyst expectations of $10.32 billion, despite marking a 7.1% increase from the $9.41 billion reported in Q2 2024. Notably, PM’s smoke-free products accounted for 41% of its net revenue, while sales of combustible products experienced a 2.1% growth year-over-year, aided by strong pricing, though this was somewhat offset by adverse mix dynamics.
The market reacted negatively, as PM’s stock dropped 2.82% in pre-market trading, following a 0.98% increase the previous day. Nonetheless, the shares have risen 52.43% year-to-date and 64.73% over the past year.
CEO Jacek Olczak expressed optimism about the company’s performance, stating, “Our business delivered very strong results in the second quarter, with record net revenues and exceptional growth in operating income and adjusted diluted EPS. Given our strong year-to-date performance, we are raising our full-year guidance.” The company now expects its adjusted EPS for the full year to be in the range of $7.43 to $7.56, compared to Wall Street’s average estimate of $7.47, suggesting the potential to exceed this benchmark.
On the analyst front, Philip Morris holds a consensus rating of Strong Buy, with ten buy ratings and one hold rating issued in the past three months. The average price target for PM stock is set at $197.11, indicating a possible upside of 9.21% from current levels.
This update reflects not only PM’s ongoing adjustments to its earnings guidance but also the optimistic outlook from analysts, which may provide some hope for investors despite the immediate stock price dip.