Philip Morris International is executing a successful transition to smoke-free products, with revenue growth accelerating to 10.4% YoY in 2026Q2 and gross margins expanding 470 basis points to 68.4% since 2024Q1. The company's pricing power and operating lever...
Price trend, volume and key moving averages
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Revenue growth accelerated to 10.4% YoY in 2026Q2, with gross margin expanding to 68.4% and operating margin reaching 40.5%, reflecting strong pricing power and cost discipline.
Philip Morris is successfully transitioning towards smoke-free products, with IQOS and ZYN leading the charge, showing organic growth and market share gains.
The majority of Wall Street analysts have a 'Buy' or 'Strong Buy' rating on PM stock, with a consensus price target suggesting potential upside.
The stock is currently considered undervalued based on a Discounted Cash Flow (DCF) model, indicating potential for price appreciation.
Increased competition and regulatory uncertainties, particularly concerning newer nicotine pouch products, could negatively impact margins.
Some analysts suggest the stock's current valuation may be too high, trading at a higher P/E ratio compared to the industry average.
While international growth is strong, the U.S. segment has experienced declines, and growth in key drivers like ZYN has slowed.
Trailing total returns as of 9/10/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $2.20+7.3% vs $2.05 | $11.2B+5.6% vs $10.6B |
Q2 2026 Apr 22, 2026 | $1.96+5.4% vs $1.86 | $10.1B+1.9% vs $10.0B |
Q1 2026 Feb 6, 2026 | $1.70+0.0% vs $1.70 | $10.4B-0.4% vs $10.4B |
Q4 2025 Oct 21, 2025 | $2.24+7.2% vs $2.09 | $10.8B+2.0% vs $10.6B |
Philip Morris International is downgraded to Hold as valuation reaches the high end of its historical range. PM's growth is driven by smoke-free products, now 42% of net revenue, with strong execution in international markets. U.S. expansion, especially with IQOS and ZYN, remains a key growth catalyst, but regulatory risks and competitive pressures persist.
The campaign centers on the "click" as a signature brand cue, rolling out across digital, out-of-home, and live cultural moments in 2026 STAMFORD, Conn., Sept. 3, 2026 /PRNewswire/ -- Philip Morris International's U.S. businesses (PMI U.S.) today announced the national rollout of "When It Clicks," ZYN's new brand campaign inspired by the universal moment when effort, timing, and confidence align.
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It successfully pivoted from declining cigarettes toward higher-growth, higher-margin smoke-free products. Strong second quarter results show that this transformation is turning into solid financial performance.
Benchmark PM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Philip Morris International Inc. (PM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $185.71 | $289.45B | 25.58 | 7.31% | 27.92% | — | 2.98% | |
| $67.91 | $113.39B | 16.52 | -1.49% | 36.46% | — | — | |
| $54.33 | $117.52B | 11.50 | -0.99% | 18.56% | 19.71% | — | |
| $2.13 | $735.11K | -0.04 | -40.66% | -41.26% | -20.47% | — | |
| $5.18 | $210.3M | 4.25 | 55.25% | 45.97% | 10.97% | — | |
| $45.40 | $1.13B | 34.92 | -0.77% | 0.67% | 1.29% | — |
Philip Morris International Inc. (PM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Philip Morris International Inc. (PM) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 22, 2026·SEC
Jul 9, 2026·SEC
Jun 29, 2026·SEC
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Philip Morris International Inc. (PM) stock FAQ — growth, dividends, profitability & financials explained
Philip Morris International Inc. (PM) reported $42.55B in revenue for fiscal year 2025. This represents a 27% increase from $33.39B in 2003.
Philip Morris International Inc. (PM) grew revenue by 7.3% over the past year. This is steady growth.
Yes, Philip Morris International Inc. (PM) is profitable, generating $10.87B in net income for fiscal year 2025 (27.9% net margin).
Yes, Philip Morris International Inc. (PM) pays a dividend with a yield of 2.98%. This makes it attractive for income-focused investors.
Philip Morris International Inc. (PM) generated $12.72B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
