Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 24th, 2026

Bank of Nova Scotia lessened its stake in shares of Philip Morris International Inc. (NYSE:PM – Free Report) by 25.3% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,061,473 shares of the company’s stock after selling 359,789 shares during the quarter. Bank of Nova Scotia owned about 0.07% of Philip Morris International worth $175,504,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in PM. Capital International Investors grew its position in Philip Morris International by 13.7% in the 4th quarter. Capital International Investors now owns 101,377,875 shares of the company’s stock worth $16,262,967,000 after purchasing an additional 12,227,004 shares during the period. Capital Research Global Investors raised its stake in Philip Morris International by 25.3% during the 4th quarter. Capital Research Global Investors now owns 54,559,706 shares of the company’s stock valued at $8,751,407,000 after buying an additional 11,013,173 shares during the last quarter. Capital World Investors raised its stake in Philip Morris International by 2.8% during the 4th quarter. Capital World Investors now owns 132,355,726 shares of the company’s stock valued at $21,230,315,000 after buying an additional 3,579,399 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of Philip Morris International by 36.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 9,301,112 shares of the company’s stock valued at $1,491,898,000 after buying an additional 2,475,204 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Philip Morris International by 1.3% during the 4th quarter. Vanguard Group Inc. now owns 145,262,397 shares of the company’s stock valued at $23,300,088,000 after buying an additional 1,793,949 shares during the period. 78.63% of the stock is currently owned by institutional investors.

Philip Morris International News Summary Here are the key news stories impacting Philip Morris International this week:

Positive Sentiment: Philip Morris beat Q2 estimates, reporting adjusted EPS of $2.20 on revenue of $11.19 billion, both above expectations, while smoke-free products like IQOS, ZYN, and VEEV drove growth and margin expansion. Philip Morris Trimmed Guidance, But Its Growth Story Looks Unshaken Positive Sentiment: Several analysts turned more constructive after the earnings release, including Stifel raising its price target to $205, Needham lifting its target to $215, and BTIG upgrading the stock to strong-buy. Analyst updates on Philip Morris price targets Positive Sentiment: The company’s smoke-free business continues to gain traction, with one report noting smoke-free products now make up 42% of revenue, supporting the long-term growth story. Philip Morris: The First $11 Billion Quarter Won’t Be The Last Neutral Sentiment: Management raised investment in ZYN and highlighted strong nicotine pouch momentum, which supports growth but also signals higher spending to sustain it. Philip Morris to lift Zyn investment, cigarette demand drives earnings beat Negative Sentiment: Philip Morris trimmed full-year EPS guidance, citing currency pressure and costs tied to Middle East conflict, which is weighing on enthusiasm despite the strong quarter. Philip Morris Trims Forecast on Currencies, Iran War Costs Wall Street Analysts Forecast Growth PM has been the subject of several research analyst reports. Needham & Company LLC lifted their price objective on Philip Morris International from $200.00 to $215.00 and gave the stock a “buy” rating in a report on Thursday. Weiss Ratings reissued a “buy (b)” rating on shares of Philip Morris International in a report on Wednesday, May 20th. Stifel Nicolaus raised their target price on Philip Morris International from $195.00 to $205.00 and gave the stock a “buy” rating in a research report on Thursday. Morgan Stanley boosted their price target on Philip Morris International from $200.00 to $215.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, BTIG Research started coverage on shares of Philip Morris International in a research report on Tuesday. They set a “buy” rating and a $216.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $201.44.

Read Our Latest Report on PM

Philip Morris International Price Performance Shares of PM stock opened at $191.13 on Friday. The company has a market capitalization of $297.89 billion, a price-to-earnings ratio of 27.46, a PEG ratio of 2.29 and a beta of 0.38. Philip Morris International Inc. has a one year low of $142.11 and a one year high of $199.78. The company’s fifty day moving average price is $182.72 and its 200-day moving average price is $175.34.

Philip Morris International (NYSE:PM – Get Free Report) last issued its earnings results on Wednesday, July 22nd. The company reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.05 by $0.15. Philip Morris International had a net margin of 13.05% and a negative return on equity of 163.41%. The company had revenue of $11.19 billion during the quarter, compared to the consensus estimate of $10.60 billion. During the same quarter in the prior year, the firm posted $1.89 EPS. Philip Morris International’s quarterly revenue was up 10.4% compared to the same quarter last year. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS. Equities research analysts expect that Philip Morris International Inc. will post 8.37 earnings per share for the current fiscal year.

Philip Morris International Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Thursday, June 25th were given a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Thursday, June 25th. Philip Morris International’s payout ratio is presently 82.70%.

Philip Morris International Company Profile (Free Report)

Philip Morris International Inc (NYSE: PM) is a global tobacco company that manufactures and sells cigarettes, other nicotine-containing products and a growing portfolio of smoke-free alternatives for adult smokers. The firm traces its corporate roots to the 19th century Philip Morris enterprise and was established as an independent, publicly traded company following a 2008 separation from what is now Altria. Since the spin-off, the company has focused on serving international markets outside the United States.

PMI’s product mix includes traditional combustible cigarettes as well as smoke-free offerings such as heated tobacco systems and other reduced-risk products.

Featured Stories Five stocks we like better than Philip Morris International Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding PM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Philip Morris International Inc. (NYSE:PM – Free Report).

Receive News & Ratings for Philip Morris International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Philip Morris International and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEGE Vernova (NYSE:GEV) Given New $1,330.00 Price Target at JPMorgan Chase & Co.

NEXT HEADLINE »Bank of Nova Scotia Acquires 183,580 Shares of Wheaton Precious Metals Corp. $WPM

Philip Morris International Today

PM

Philip Morris International

$192.66 -1.64 (-0.85%)

As of 10:00 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$142.11▼

$199.78Dividend Yield3.05%

P/E Ratio26.99

Price Target$201.44

The economy isn’t the stock market, but there are times when the two align. That's one way to look at Philip Morris' NYSE: PM Q2 2026 earnings report. The company delivered a beat on revenue and earnings, driven by strength in its smoke-free business and better-than-expected performance in its legacy nicotine products.

This shouldn’t be a surprise in an uneven economy. Philip Morris sells nicotine products in a category where demand has historically remained resilient, even when consumers are under pressure.

Get PM alerts:

PM climbed after the report, even though the company lowered its earnings-per-share (EPS) outlook for the full year and the current quarter. The company, however, reiterated its outlook for organic revenue growth of 5% to 7%.

Philip Morris Earnings Beat Keeps Growth Story IntactThe headline numbers were solid. Revenue of $11.19 billion beat analysts’ expectations for $10.61 billion and was higher than the $10.14 billion in Q2 2025. Adjusted EPS of $2.20 was also above the estimate of $2.04 and above the $1.91 adjusted EPS from the prior year quarter.

A closer look at the EPS guidance may explain why investors are looking past the report. Philip Morris guided to adjusted EPS between $8.26 and $8.41 per share. That’s down 10 cents from both ends on its prior guidance of $8.26 to $8.51. However, even at the low end, it marks a 7.5% year-over-year (YOY) increase.

That's stronger growth than some models have factored in, suggesting the stock is undervalued. On the other hand, PM is up 20% year-to-date, and skeptics may believe that much of that future earnings growth is priced in.

Smoke-Free Products Keep Doing the Heavy LiftingThe quarter's real story is how much of that growth is coming from products that didn't exist in Philip Morris's portfolio a decade ago. International smoke-free net revenue grew 13.7% organically in the first half, with gross profit up 16.9% and gross margin expanding 190 basis points to 70%.

That's significantly more profitable than its legacy cigarette business, even though combustibles are hardly fading. International combustible gross profit still grew 6.1% organically in H1, with pricing power alone contributing 9.2% growth in the category.

IQOS remains the anchor of that smoke-free push, now sold in 80 markets, with the heated tobacco unit adjusted in-market sales growth of 11.3% in H1, excluding Japan and Poland, two markets facing temporary headwinds. Management pointed to a Kantar BrandZ ranking as one of 2026's most valuable global brands as evidence the platform still has room to run. Meanwhile, VEEV, the company's e-vapor brand, posted 72% shipment growth and became the top closed-pod brand in Europe with a 21.3% share, overtaking both of its nearest competitors during the past year.

ZYN, the nicotine pouch brand at the center of Philip Morris's U.S. growth story, shipped 2.9 billion pouches in Q2, up 25% sequentially from Q1, with a U.S. retail value share of 57.1%. The company is leaning further into that momentum, launching a ZYN Ultra range and new flagship dry flavors in June, with additional nicotine-strength variants due in Q3, backed by a new "When it clicks" ad campaign. ZYN also holds the first and only Modified Risk Tobacco Product authorization in its category, covering 20 SKUs, which the company is using as a differentiator against competitors.

Pricing Power Adds to the Growth StoryOf the 9.8% net revenue growth in the first half of 2026, pricing across both combustibles and smoke-free products contributed 5.9 percentage points. A favorable mix shift toward smoke-free products added another two points internationally.

That means roughly 80% of organic revenue growth is coming from the company charging more and selling a richer mix of products, not simply moving more volume. Total shipment volume was essentially flat in the half at 389.4 billion units, though it returned to positive growth in Q2, up 2.5% year-over-year, with SFP shipments climbing 7.5% in the quarter.

Overall MarketRank™82nd Percentile

Analyst RatingModerate Buy

Upside/Downside3.1% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.91 Insider TradingN/A

Proj. Earnings Growth10.04%

See Full Analysis

This is an important distinction for anyone modeling out the next few years. Pricing power historically compounds more reliably than volume growth for tobacco and nicotine companies, since regulatory and health pressures tend to cap unit growth over the long run. Philip Morris's own guidance for 2026 reflects revenue and EPS that model above the flat-to-low-single-digit volume trends the industry has seen for years.

Management also reiterated its targeting a sixth consecutive year of currency-neutral volume growth, a streak that would have seemed unlikely for a cigarette company a decade ago.

On the U.S. side specifically, sequential improvement was notable, with net revenues climbing 38% from Q1 to Q2 and adjusted gross profit up 46% over the same period, even as the company continues to invest heavily in ZYN's portfolio expansion. Management framed this as an early step in what it called a "substantial U.S. smoke-free opportunity," suggesting more investment — and potentially more short-term margin pressure — is still to come as new product variants roll out through Q3.

Investors should also note management's continued commitment to shareholder returns even amid this reinvestment phase. The company projected roughly $13.5 billion in operating cash flow for the year, underscoring that the company’s growth investments aren't coming at the expense of the balance sheet.

Is Philip Morris Stock Ready to Break Out After Earnings?Investors may feel like it’s Groundhog Day as PM stock is at a level that has provided resistance over the last two years. This pattern of retracing a path back to a level of resistance is usually a bullish sign, but it requires patience, which PM shareholders have had to have.

Nevertheless, the stock looks ready to break out, and at least one analyst agrees. BTIG Research initiated coverage of Philip Morris on July 21, setting a price target of $216. That’s well above the consensus price target of $197.

Investors in Philip Morris also get to enjoy the company’s dividend, which has a yield of 3.03% as of July 21 and has increased its payout for 17 consecutive years. This was the fourth consecutive quarter at the prior payout rate, so it’s likely that there will be an increase in the next quarter or two.

Should You Invest $1,000 in Philip Morris International Right Now?Before you consider Philip Morris International, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Philip Morris International wasn't on the list.

While Philip Morris International currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report

Doubt the Market? 3 Stocks to Rideout Fear, Uncertainty and DoubtPhilip Morris International NYSE: PM reported what management described as a “very strong” second quarter, with growth led by its international smoke-free products business and a better-than-expected performance in combustibles.

Emmanuel Babeau, the company’s group chief financial officer, said Philip Morris generated 8% organic net revenue growth and 11% organic operating income growth in the quarter. Adjusted diluted earnings per share rose 15% in dollar terms to $2.20, including a $0.03 favorable currency impact.

Get PM alerts:

3 Dividend Kings Outshining the Market in 2025Quarterly net revenue exceeded $11 billion for the first time, Babeau said. Adjusted gross profit rose 8.7% organically, while adjusted operating income increased nearly 11% organically to $4.8 billion.

For the first half, Philip Morris reported total shipment volume growth of 0.4%, organic net revenue growth of 5.3% and adjusted operating income growth of 6.1% organically. Adjusted diluted EPS for the first half reached $4.16, up 15.6% in dollar terms.

Smoke-Free Products Remain Key Growth Driver 3 Stocks Lifting 2025 Guidance Despite Market JittersBabeau said the company’s international smoke-free business delivered “outstanding” first-half results, with organic net revenue growth of 13.7% and gross profit growth of 16.9%. Gross margin for the segment expanded 190 basis points to 70%.

IQOS adjusted in-market sales volume rose 5% in the second quarter, including what management called expected transitory headwinds from an April excise increase in Japan and a characterizing flavor ban in Poland. Excluding Japan and Poland, IQOS growth was 10.2% in the quarter and more than 11% in the first half.

Babeau cited strong performance in established IQOS markets such as Italy, Greece and Romania, as well as momentum in newer markets including Saudi Arabia, the Philippines, Mexico and Taiwan. He said IQOS maintained an approximately 76% global share of the heat-not-burn category in the first half.

VEEV also continued to grow, with e-vapor shipments rising 55% in the second quarter and 72% in the first half. Babeau said VEEV is now the leading brand in Europe within closed pod and combined pods and disposables.

International ZYN shipment volume rose 6% in the first half, or 32% excluding the Nordics. Babeau said the brand continued to gain share in small but fast-growing international nicotine pouch markets, including the U.K., Pakistan, Poland, Greece and the Philippines.

U.S. ZYN Business Improves Sequentially In the U.S., Philip Morris reported a significant sequential improvement from a difficult first quarter. Babeau said U.S. net revenue rose 38% sequentially and adjusted gross profit increased 46%, largely reflecting a 25% sequential increase in ZYN shipments and reduced sales promotion ahead of new product launches.

Year over year, U.S. segment net revenue declined nearly 1%, driven by cigar declines and unfavorable phasing in the wellness business, while ZYN net revenue was broadly flat. ZYN shipments rose 2% to 2.9 billion pouches, despite an inventory restocking tailwind in the prior-year period.

Babeau said ZYN remains the “clear premium leader” in the U.S. nicotine pouch category, with a retail value share of around 57%. He said recent category share performance has been affected by competitive gaps in higher-strength and flavor segments, as well as an elevated price premium.

The company has begun addressing those gaps with new products, including ZYN Ultra in nine- and 11-milligram moist variants, which contain 20 pouches per can. Philip Morris also plans to introduce 1.5-milligram and eight-milligram dry formats in the third quarter.

During the question-and-answer session, Babeau told Goldman Sachs analyst Bonnie Herzog that the first two weeks of ZYN Ultra sales were encouraging but cautioned against drawing conclusions too early. He said the 1.5-milligram offering is intended to help smokers try the category “in the most favorable possible condition.”

The company also plans to increase U.S. investment in the second half, including marketing, distribution, in-store execution and preparation for a potential IQOS ILUMA launch, subject to FDA action. Babeau said the new “When it Clicks” ZYN campaign is designed to build brand engagement and consumer relevance.

Combustibles Outperform Expectations Philip Morris’ combustible business exceeded management’s expectations in the quarter. Cigarette shipments rose 1.1% in the second quarter, supported by category share performance, timing factors and more favorable industry dynamics in certain large markets where smoke-free products are banned or limited.

Babeau named Indonesia, Turkey and Egypt as notable contributors, while also citing relative resilience in India and Mexico. For the first half, cigarette volumes declined 1.9%.

The company now expects full-year cigarette volumes to decline around 2% to 3%, compared with its prior expectation of about 3%. Babeau said this remains consistent with the structural evolution of the category.

Combustible pricing added 9.2% in the first half and nearly 10% in the second quarter, with contributions from markets including Turkey, Indonesia, the Philippines and Mexico. Philip Morris now forecasts full-year combustible pricing variance of more than 7%, though Babeau said the benefit is expected to be largely offset by more adverse geographic mix.

Guidance Maintained as U.S. Investment Rises Philip Morris maintained its full-year underlying growth targets. The company continues to expect organic net revenue growth of 5% to 7%, organic operating income growth of 7% to 9% and currency-neutral adjusted diluted EPS growth of 7.5% to 9.5%.

In dollar terms, the company now forecasts a currency tailwind of about $0.15 at prevailing rates, translating to adjusted diluted EPS of $8.26 to $8.41, or growth of 9.5% to 11.5%.

Babeau said the company expects total shipment volume to be stable to slightly positive for the full year, with high single-digit smoke-free product growth broadly offsetting cigarette declines. He said Philip Morris is aiming for its sixth consecutive year of total volume growth.

Asked by Herzog why guidance was not raised after two strong quarters, Babeau said the company is choosing to accelerate U.S. investment in the second half because of the expanded ZYN portfolio, the new marketing campaign and regulatory developments.

For the third quarter, Philip Morris expects HTU shipment volume of around 41 billion units, mid-single-digit organic top-line growth and modest organic margin expansion. The company targets adjusted diluted EPS of $2.20 to $2.25, including an unfavorable currency impact of $0.08.

CFO Transition Announced The call also marked Babeau’s final earnings call as group CFO. He thanked shareholders and analysts for their engagement over the past six years and said he believes Philip Morris will continue to be a standout performer within consumer packaged goods.

Massimo Andolina, currently regional president for Europe, will succeed Babeau as group CFO in August. Andolina said he looks forward to continuing the company’s focus on “delivering superior shareholder returns over the long term.”

About Philip Morris International (NYSE:PM)Philip Morris International Inc NYSE: PM is a global tobacco company that manufactures and sells cigarettes, other nicotine-containing products and a growing portfolio of smoke-free alternatives for adult smokers. The firm traces its corporate roots to the 19th century Philip Morris enterprise and was established as an independent, publicly traded company following a 2008 separation from what is now Altria. Since the spin-off, the company has focused on serving international markets outside the United States.

PMI's product mix includes traditional combustible cigarettes as well as smoke-free offerings such as heated tobacco systems and other reduced-risk products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Philip Morris International Right Now?Before you consider Philip Morris International, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Philip Morris International wasn't on the list.

While Philip Morris International currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report

22.7.2026 16:14, T, AMD, COF, PM, GOOGL, GEV

Index Dow Jones +0,52 % na 52498,58 b. S&P 500 +0,11 % na 7517,66 b. Nasdaq Composite -0,17 % na 25793,08 b.

Wall Street se v úvodu seance obchoduje ve smíšených číslech. Investoři zaujímají opatrný postoj před výsledky technologických společností. Dnes po konci obchodování budou reportovat společnosti Alphabet, Tesla, IBM a ServiceNow.

Investory zaujala rovněž zpráva Wall Street Journal, podle které společnost AMD uzavřela se společností Anthopic kontrakt na dodávku AI serverů v hodnotě několik desítek miliard dolarů.

Dnes před otevřením trhu reportovala výsledky řada společnosti, příkladem je Philip Morris International, GE Vernova a AT&T.

Americká tabáková společnost překonala tržní predikce napříč hlavními ukazateli. Tržby poprvé překonaly hranici 11 mld. USD. Celoroční výhled očištěného zisku na akcii společnost mírně snížila, a to prakticky výhradně kvůli měnovým vlivům.

Co se týče výsledků amerického výrobce energetického zařízení GE Vernova. Její divize energetiky a elektrifikace nadále těží z rychle rostoucí poptávky spojené mimo jiné s výstavbou datových center a modernizací rozvodných sítí, přičemž větrná energetika zůstává ztrátová. Díky silnému přílivu objednávek, expanzi marží a výrazné tvorbě hotovosti společnost navýšila svůj celoroční výhled pro rok 2026.

Telekomunikační operátor AT&T reportoval výsledky za 2Q. Čistý přírůstek postpaid mobilních zákazníků překonal průměrný odhad analytiků. Nad očekávání byl rovněž reportován očištěný zisk na akcii a očištěný zisk EBITDA.

Index S&P 500 +0,11 % na 7517,66 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,5 % Informační technologie -0,4 % Utility +1,4 % Reality 0 % Energie +1,3 % Zdravotní péče +0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Super Micro Computer (SMCI) +23 % TE Connectivity (TEL) -7,3 % Westinghouse Air Brake Technologies Corp (WAB) +11 % GE Vernova (GEV) -6,4 % Dell Technologies (DELL) +9,7 % DoorDash (DASH) -3,9 % CME Group (CME) +7,2 % AppLovin Corp (APP) -3,5 % Hewlett Packard Enterprise (HPE) +6,0 % Datadog (DDOG) -3,5 % Zdroj: Bloomberg

Jakub Němec
Fio banka, a.s.
Prohlášení

Philip Morris International reports better-than-expected second-quarter earnings but lowers full-year profit expectations.

22.7.2026 15:28, PM

Americká tabáková společnost Philip Morris International zveřejnila výsledky hospodaření za druhý kvartál roku 2026. Firma překonala tržní očekávání napříč hlavními ukazateli, tržby poprvé v historii přesáhly hranici 11 mld. USD. Dařilo se bezdýmnému byznysu, který již tvořil zhruba 42 % celkových tržeb. Celoroční výhled očištěného zisku na akcii společnost mírně snížila, a to prakticky výhradně kvůli měnovým vlivům.

Výsledky společnosti Philip Morris International (PM) za 2Q 2026   2Q 2026 Konsensus 2Q 2026 2Q 2025 Tržby (mld. USD) 11,19 10,61 10,14 Očištěný provozní zisk (mld. USD) 4,77 4,45 4,25 Očištěný zisk na akcii (EPS, USD/akcie) 2,20 2,04 1,91 Výsledky za 2Q Tržby společnosti meziročně vzrostly o 10,4 % na 11,19 mld. USD. Organické tržby byly meziročně vyšší o 7,6 %, zatímco trh očekával růst pouze o 4,91 %.

Philip Morris celkově dodal 205,2 mld. jednotek produktů, což představuje meziroční růst o 2,5 %.

Klasické cigarety zaznamenaly meziroční růst dodávek o 1,1 % na 156,9 mld. kusů.

Bezdýmné produkty zvýšily dodávky o 7,5 % na 48,2 mld. kusů (konsensus 48,06 mld.). Zahřívané tabákové náplně dosáhly 41,8 mld. kusů (+7,6 %, konsensus 41,73 mld.), přičemž IQOS zůstává hlavním růstovým motorem. Dodávky ZYN v USA vzrostly o 1,8 % na 2,9 mld. sáčků.

Hrubý zisk meziročně vzrostl o 11,5 % (organicky +8,7 %) na 7,66 mld. USD, k čemuž přispěla silná cenotvorba, efekt rozsahu a příznivější mix bezdýmných produktů.

Očištěná provozní marže činila 42,6 %, meziročně o 0,7 p. b. výše.

Zisk na akcii meziročně klesl o 7,7 % na 1,80 USD, a to vlivem nepeněžního odpisu podílu v kanadské RBH ve výši 511 mil. USD (dopad 0,33 USD na akcii). Očištěný zisk na akcii naopak vzrostl o 15,2 % na 2,20 USD (bez měnového vlivu +13,6 %) a překonal očekávání trhu ve výši 2,04 USD.

Výhled na 3Q Pro třetí kvartál firma očekává očištěný zisk na akcii 2,20 až 2,25 USD (včetně odhadovaného nepříznivého měnového vlivu 0,08 USD), což je pod tržním konsensem ve výši 2,43 USD.

Roční výhled Philip Morris International nadále projektuje růst organických tržeb v rozmezí 5 až 7 % (konsensus +5,7 %) a růst organického provozního zisku o 7 až 9 %. Firma počítá s poklesem dodávek cigaret o 2–3 % a vysokým jednociferným růstem dodávek bezdýmných produktů.

Očištěný zisk na akcii by měl dosáhnout 8,26 až 8,41 USD (konsensus 8,38 USD). Dříve společnost projektovala 8,31 až 8,46 USD. Snížení jde prakticky výhradně za vývojem měnových kurzů, poněvadž příznivý měnový vliv klesl z 0,20 na 0,15 USD na akcii.

Komentář CEO „Ve druhém kvartále jsme dosáhli vynikajících výsledků, tržby poprvé přesáhly 11 mld. USD a všechny klíčové ukazatele zaznamenaly silný růst,“ uvedl generální ředitel Jacek Olczak. „Se silným prvním pololetím za sebou, včetně pokračující dynamiky a dobrých výsledků bezdýmného byznysu, jsme dobře připraveni splnit celoroční cíle a zároveň investovat do budoucího růstu,“ dodal Olczak.

Akcie Philip Morris International Akcie Philip Morris International (PM) v předburzovní fázi obchodování oslabují o 0,93 % na 186,29 USD.

Akcie Philip Morris International (PM) před výsledky na 188,04 USD Ukazatel   Ukazatel   Kapitalizace (mld. USD) 293,1 P/E 26,5 Vývoj za letošní rok (%) +17,2 Očekávané P/E 22,4 52týdenní minimum (USD) 142,1 Prům. cílová cena (USD) 197,8 52týdenní maximum (USD) 194,9 Dividendový výnos (%) 3,1 Zdroj: Philip Morris International, Bloomberg

Michal Bárta, Fio banka, a.s.

Packages of Marlboro cigarettes produced by Philip Morris International are seen at the grocery store in Warsaw, Poland May 29, 2024. REUTERS/Kacper Pempel Purchase Licensing Rights, opens new tab

CompaniesJuly 22 (Reuters) - Philip Morris International (PM.N), opens new tab cut its annual profit ​forecast for the third time this year ‌on Wednesday, hurt by intensifying competition among tobacco products and negative currency swings.

Shares of the company were down 1% ​in premarket trading.

Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.

The company also said it ​seeks to invest in its Zyn nicotine pouches ⁠following recent regulatory approval.

While U.S. regulators have ​recently taken a more favorable stance toward nicotine pouches, including ​allowing certain Zyn products to be marketed as less harmful than cigarettes, increased competition and pricing pressure have raised concerns ​about PMI's ability to maintain its market-leading ​position.

The company expects full-year adjusted earnings per share of $8.26 to $8.41, compared ‌with ⁠its previous forecast of $8.31 to $8.46.

Philip Morris has been investing heavily to diversify beyond cigarettes, but faces mounting competition in the rapidly growing nicotine pouch category ​from products such ​as British ⁠American Tobacco's (BATS.L), opens new tab Velo.

The company launched Zyn Ultra, a higher-strength moist pouch variant, in ​June and priced it below PMI's flagship Zyn products ​on ⁠a per-pouch basis, as the company looks to defend market share.

Its second-quarter revenue rose 10.4% to $11.19 billion, ⁠exceeding ​analysts' estimate of $10.63 billion, according ​to data compiled by LSEG.

Reporting by Neil J Kanatt in Bengaluru ​and Emma Rumney in London; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles., opens new tab

STAMFORD, CT--(BUSINESS WIRE)--Regulatory News: Philip Morris International Inc. (PMI) (NYSE: PM) will host a live audio webcast on Wednesday, July 22, 2026, at 9:00 a.m. ET, to discuss its 2026 second-quarter and first six-months financial results, which will be issued at approximately 7:00 a.m. ET the same day. The webcast can be accessed here. The webcast will be hosted by Emmanuel Babeau, Group Chief Financial Officer, and Massimo Andolina, incoming Group CFO, and will include discussion of.

Wall Street investors are reportedly flooding back into tobacco stocks, erasing years of ethical boycotts as the industry’s aggressive pivot toward smoke-free products blurs old moral lines.

For nearly a decade, pension funds and major endowments blacklisted cigarette makers under strict mandates.

But that taboo is quickly going up in smoke. Tobacco companies generating massive sales from non-combustible alternatives are “rejoining polite society” and earning premium stock market valuations from returning institutional capital, the Wall Street Journal reported Thursday.

Alternative tobacco products have sparked a rethink among investors after nearly a decade of ESG-related concerns. Christopher Sadowski The shift gained fresh momentum when the Food and Drug Administration gave the green light for Philip Morris to market 20 variants of its Zyn nicotine pouches as a less harmful alternative to traditional smoking. The June 30 decision noted a reduced risk of lung cancer, stroke and heart disease for people who use the pouches, which go between one’s gums and cheek but don’t contain tobacco.

The move came just weeks after New York Gov. Kathy Hochul signed a new 75% wholesale tax into law on alternative tobacco products — the so-called “Bro Tax.”

Still, crossing the FDA’s regulatory moat prompted immediate action from major investment banks. Morgan Stanley recently raised its price target on Philip Morris to $200, highlighting the upcoming rollout of Zyn Ultra.

“The developments increase our confidence,” Morgan Stanley analysts wrote in a briefing to clients, adding that they see an increased probability for their $250 bull-case scenario as smoke-free alternatives dominate Philip Morris’ revenue.

Bank of America similarly backed the stock, pushing its target to $209 on high-margin smokeless execution.

British American Toboacco has also been embarking upon a share buyback program in recent months. REUTERS Philip Morris generates about 41% of its sales from non-combustible products, the Journal noted, adding it now trades at a massive 70% premium over rivals still heavily dependent on sales of old-fashioned smokes.

While Philip Morris has captured the premium valuations, rival British American Tobacco, or BATm is executing a sweeping, tech-driven transformation to reclaim market share.

The maker of Lucky Strike and Vuse vapes reportedly plans to eliminate 9,000 global jobs — nearly 19% of its workforce — by outsourcing 3,500 roles to Accenture and deploying artificial intelligence to automate back-office operations.

The workforce cuts aim to harvest $800 million in annual savings by 2028, freeing up capital to aggressively fund BAT’s smokeless product expansion.

Wall Street experts are bullish on tobacco stocks, seeing huge growth potential in alternatives to regular cigarettes and AI-related cost savings. LightRocket via Getty Images Barclays analyst Pallav Mittal noted that the “scale of this workforce reduction is unexpected.”

Nevertheless, the strategic shift keeps analysts bullish.

Experts at Jefferies and UBS recently reiterated buy ratings on BAT, joining a solid majority of Wall Street analysts who rate the stock a strong buy as the firm pushes to double its share of the US oral nicotine market.

As combustible cigarette volumes maintain their decades-long decline, the industry’s rapid evolution appears to be permanently redrawing the boundaries of institutional investing.

“The FDA authorization for Zyn … is a significant positive,” Morgan Stanley analysts concluded in their recent note upgrading the sector. “It provides a clear regulatory pathway and validates the harm reduction potential increasing our confidence in the company’s ability to drive accelerated smoke-free growth.”

3.7.2026 16:25

Akcie na pražské burze převážně rostly, nejvíce se dařilo akciím VIG (+2,66 %), které uzavřely při 1618 Kč, dále rostly akcie ČEZ (+2,21 %), Komerční banka (+1,12 %), Colt (+1,08 %), Moneta (+0,8 %) a Kofola (+0,1 %). V červených číslech zakončily po ex-dividend date akcie Doosan Power (-4,72 %), CSG (-0,48 %), Gevorkyan (-1,03 %), Philip Morris (-0,22 %) a Erste (-0,04 %). Index PX dnes připsal 1,06 % na 2615,58 b.

Martin Singer, Fio banka, a.s.

-

FDA’s decision makes ZYN the first nicotine pouch product to receive MRTP orders authorizing reduced-risk claims versus cigarettes

STAMFORD, CT--(BUSINESS WIRE)--Philip Morris International Inc. (PMI) (NYSE: PM) today announced that the U.S. Food and Drug Administration (FDA) issued Modified Risk Tobacco Product (MRTP) orders for 20 variants of ZYN nicotine pouch products. These are the first MRTP orders granted for nicotine pouches, allowing PMI U.S. to market the following claim for the authorized ZYN products: “Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”

“FDA’s decision is an important moment for the more than 45 million legal-age nicotine consumers in America,” said Stacey Kennedy, PMI U.S. CEO. “Today’s news ensures these adults have access to accurate, science-based information, including FDA-authorized evidence that switching from cigarettes to ZYN reduces the risk of smoking-related diseases like heart disease and lung cancer,” she added. “More broadly, it reinforces the agency’s science-based approach to evaluating products across the continuum of risk and communicating those findings transparently.”

The FDA’s action highlights a stark contrast: in the U.S., nicotine products undergo detailed scientific review before being authorized, while in many countries policymakers opt for bans rather than careful evaluation.

Products covered by the FDA’s MRTP orders include:

ZYN Cool Mint 3 mg

ZYN Cool Mint 6 mg

ZYN Peppermint 3 mg

ZYN Peppermint 6 mg

ZYN Spearmint 3 mg

ZYN Spearmint 6 mg

ZYN Wintergreen 3 mg

ZYN Wintergreen 6 mg

ZYN Citrus 3 mg

ZYN Citrus 6 mg

ZYN Coffee 3 mg

ZYN Coffee 6 mg

ZYN Cinnamon 3 mg

ZYN Cinnamon 6 mg

ZYN Smooth 3 mg

ZYN Smooth 6 mg

ZYN Chill 3 mg

ZYN Chill 6 mg

ZYN Menthol 3 mg

ZYN Menthol 6 mg

In January 2025, ZYN was the first nicotine pouch authorized for sale in the United States following rigorous scientific review. With today’s decision, PMI holds MRTP authorizations for ZYN, the first nicotine pouch authorized by the FDA, versions of IQOS devices and consumables and eight General snus products, underscoring the company’s position as an industry leader and innovator.

EDITOR’S NOTE

FDA has authorized the ZYN MRTP claim, effective immediately. From the FDA Modified Risk Granted Order: “Based on our review of your MRTPAs, we determined that the proposed modified risk tobacco products, as described in your applications and specified in Appendix A, have satisfied the requirements of section 911(g)(1)(A) and (B), including that they, as actually used by consumers, would significantly reduce harm and the risk of tobacco-related disease to individual tobacco users and benefit the health of the population as a whole, taking into account both users of tobacco products and persons who do not currently use tobacco products. Therefore, we authorize marketing of the tobacco products as modified risk tobacco products with the following modified risk information: ‘Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.’” Nicotine pouches, like ZYN, deliver nicotine through oral absorption and do not require the burning of tobacco, or inhaling of smoke. This significantly reduces exposure to harmful and potentially harmful chemicals compared to the use of combustible tobacco, such as cigarettes. In authorizing ZYN through the premarket tobacco product application (PMTA) pathway in January 2025, the FDA noted: “the agency’s evaluation showed that, due to substantially lower amounts of harmful constituents than cigarettes and most smokeless tobacco products, such as moist snuff and snus, the authorized products [ZYN] pose lower risk of cancer and other serious health conditions than such products. The applicant also provided evidence from a study showing that a substantial proportion of adults who use cigarette and/or smokeless tobacco products completely switched to the newly authorized nicotine pouch products.” When reviewing the ZYN applications, FDA considered extensive data showing that some adults who smoke and have started using ZYN products have reduced their cigarette use over time, with over half of those surveyed reporting no cigarette consumption in the past 30 days. Of those who continue to smoke cigarettes after starting to use ZYN products, the majority (80.7%) reduced their cigarette consumption, and over half (57.2%) reduced their cigarettes per day by more than 50%. Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables, General snus and ZYN also obtained the first-ever Modified Risk Tobacco Product authorizations in their respective categories from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas.

References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

About PMI U.S.: Invested In America

Philip Morris International Inc.’s U.S. businesses are invested in America’s future and advancing a smoke-free nation. The businesses are committed to providing the approximately 25 million legal-age consumers who smoke cigarettes with better, smoke-free alternatives and to ensuring the products are marketed responsibly. From PMI’s global headquarters in Stamford, Connecticut, and other locations nationwide, PMI U.S. contributes leadership, jobs, investment, and innovation in the U.S. The U.S. businesses employ more than 3,000 people across America and operate product manufacturing facilities, including in Aurora, Colorado, Owensboro, Kentucky, and Wilson, North Carolina. For more information, please visit www.uspmi.com.

More News From Philip Morris International

Back to Newsroom

Choosing between the dominant domestic player and the global leader in the nicotine market requires balancing yield against growth. You are likely deciding whether Altria Group (MO 0.77%) or Philip Morris International (PM 0.95%) fits your 2026 portfolio.

Altria focuses on the U.S. market, leaning heavily on the legendary Marlboro brand while transitioning toward smoke-free alternatives. Philip Morris International operates globally, having separated years ago to pursue international markets and leading the charge in heated tobacco technology. Both companies are major players in the nicotine industry as they pivot away from traditional cigarettes.

The case for AltriaAltria primarily sells combustible cigarettes, oral tobacco, and e-vapor products to adult consumers in the United States through wholesalers and large retailers. Its core brands include Marlboro, Copenhagen, and NJOY, making it a prominent name among tobacco stocks as it shifts toward a smoke-free future. A certified antitrust lawsuit regarding e-cigarette sales recently emerged, which may create future liabilities for the company.

In FY 2025, revenue reached nearly $20.1 billion, representing a slight decline of roughly 1.5% compared to the previous year. Despite the dip in top-line sales, the company reported a net income of close to $6.9 billion. This resulted in a net margin of approximately 34%, which measures how much of every dollar in revenue becomes actual profit.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly -7.3x. This negative value indicates that total liabilities exceed the value of shareholder equity. The current ratio, which measures a company's ability to pay short-term obligations with short-term assets, was approximately 0.6x. Free cash flow for the year reached nearly $9.1 billion, representing the cash a company generates after accounting for capital expenditures.

Philip Morris International sells smoke-free and combustible products across 170 global markets, driven by its Iqos and ZYN brands. The company relies on a network of distributors, with two specific partners each accounting for more than 10% of revenue. Customer concentration like this adds a layer of risk to the business if either of these major distribution relationships falters.

For FY 2025, the company reported revenue of approximately $40.6 billion, a growth rate of nearly 7.3% over the prior year. Net income for the period was roughly $11.3 billion. The net margin reached approximately 27.9%, showcasing the profitability of its international operations and its aggressive smoke-free expansion.

Based on the December 2025 balance sheet, the debt-to-equity ratio was close to -4.9x, meaning total liabilities are higher than shareholder equity. The current ratio stands at approximately 1.0x, suggesting the company has enough short-term assets to cover its immediate debts. Free cash flow for the year was nearly $10.7 billion, which provides the capital needed for dividends and further innovation.

Risk profile comparisonAltria faces significant regulatory hurdles as the FDA continues its lengthy review process for smoke-free products. Litigation is a persistent threat, specifically the ongoing antitrust class action and patent disputes involving its NJOY devices. Additionally, challenging economic conditions are pushing consumers to trade down from premium Marlboro products to cheaper discount brands.

Philip Morris International recently recognized a $500 million impairment loss related to its Canadian affiliate, which lowered its earnings expectations. The company also deals with geopolitical instability in Ukraine that threatens its global assets and supply chain. Strict regulatory requirements for its ZYN and Iqos products in the U.S. and evolving global tax regimes remain constant pressures.

Valuation comparisonAltria trades at a lower Forward P/E and P/S ratio than its international counterpart, while Philip Morris International commands a premium for its global growth.

MetricAltriaPhilip Morris InternationalSector BenchmarkForward P/E13.0x21.6x292.1xP/S ratio6.1x6.9xN/ASector benchmark uses the SPDR XLP sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?There are some investors who would choose to pass on both Altria and Philip Morris International because they don’t support the products they sell. And in fact, even if you’re still interested in these stocks, it’s something to remember: While tobacco is a resilient business, it’s also a controversial product, and changing attitudes around tobacco and nicotine are important to consider when investing in tobacco stocks. Yet investing in tobacco stocks has its financial merits. Philip Morris pays a 3.22% dividend, for example, while Altria’s is a whopping 5.73%. That alone may be enough for some investors to find space for a tobacco stock in a balanced income-generating portfolio.

Despite its lower payout, Philip Morris is my pick for a long-term investment. Its international reach may make it more resilient than Altria in the long run as smoking rates decline in the U.S., and its focus on alternative nicotine products is gaining traction both abroad and domestically. I wouldn’t recommend making either stock a core holding in your portfolio, and both companies’ debt profiles warrant attention. But given tobacco’s enduring legacy and the consistent and attractive dividend payouts, both companies should remain durable for years to come.

Philip Morris International Inc. (PMI) (NYSE: PM) has been named in the WSJ Leadership Institute's inaugural “Best Companies for the Future” ranking, which

Philip Morris International (PMI) (NYSE: PM) announced a series of regional leadership appointments that support its ongoing shift toward a smoke‑free future.

Effective August 1, 2026, Marco Hannappel has been appointed President, Europe Region, and Can Kuterdem has been appointed President, Latin America & Canada Region. These appointments build on PMI’s evolved organizational model announced in late 2025, under which Gijs de Best serves as President, South Asia, Indochina, CIS & Middle East & Africa Region, and Vassilis Gkatzelis continues as President East & Southeast Asia, Pacific and PMI Global Travel Retail Region. The four regional presidents report to Frederic de Wilde - CEO of the International Business Unit of PMI and are the key operational leaders for the unit that generates the large majority of total PMI net revenues.

Marco Hannappel takes over the role of President, Europe Region, succeeding Massimo Andolina, who was recently announced as PMI’s Group Chief Financial Officer, both effective August 1, 2026.

Hannappel brings extensive international experience and a strong track record in leading business growth across complex and highly regulated markets. Since joining the company in 2019 as President and Managing Director Italy, he has held several senior leadership roles of increasing responsibility. He later served as Area Vice President Southwest Europe, managing Italy and Iberia, and most recently, as President of the Latin America & Canada Region.

Can Kuterdem is appointed President, Latin America & Canada Region, effective August 1, 2026, succeeding Marco Hannappel.

Kuterdem is a seasoned business leader with strong general management experience and a people-centric leadership approach. Most recently, as Managing Director, Poland, he transformed one of Philip Morris International’s largest European markets into a multi-category business, driving growth and strengthening organizational engagement. Previously, he served as Vice President Strategy & Program Delivery, Europe Region, where he played a central role in shaping the regional strategy and leading a more integrated approach to execution of business-critical initiatives across markets.

Before joining the company in 2020, he built an international career in consulting and technology, including The Boston Consulting Group and Samsung, where he held senior leadership roles across multiple regions.

Gijs de Best was appointed President, South Asia, Indochina, CIS & Middle East & Africa Region in January 2026. He brings more than 20 years of leadership experience at the company, with a strong track record of driving business performance through consumer-centricity and a passion for developing teams. He began his career at PMI in 2004 as a financial analyst in the Netherlands and has since held a range of increasingly senior roles across multiple markets and regions, most recently as President, Philippines, and Vice President Strategy & Program Delivery.

Vassilis Gkatzelis continues as President, East & Southeast Asia, Pacific and PMI Global Travel Retail Region, a role he assumed in 2024, with expanded accountabilities for Southeast Asia as of 2026. He oversees a diverse set of markets spanning developed and developing economies, alongside the Global Travel Retail business.

Since joining the company in 2003, Gkatzelis has held a wide range of strategic and operational leadership roles across Europe, the Middle East & Africa, Asia Pacific and the Global Operations Center in Switzerland. He brings a strong track record leading business transformation at scale, and building high-performing organizations, with a focus on external engagement and talent development. Prior to his current role, he served as President Director of PT HM Sampoerna Tbk., PMI’s affiliate listed on the Indonesia Stock Exchange, as well as Managing Director of Egypt & Levant Cluster, where he led the build-up and scaling of the smoke-free business.

These appointments reflect Philip Morris International’s continued focus on strengthening leadership capabilities as a leading global consumer goods company. Earlier in 2026 Philip Morris International evolved its organizational model and implemented two new primary business units in addition to its wellness unit Aspeya, reporting to Group CEO PMI Jacek Olczak - PMI International under the leadership of Frederic de Wilde, CEO PMI International, and PMI U.S. – under the leadership of Stacey Kennedy, CEO PMI U.S.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch, and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumablesand General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260618517768/en/

© brizmaker / Shutterstock.com

Philip Morris International (NYSE:PM | PM Price Prediction) is a tobacco giant in the middle of a profitable pivot, with smoke-free products now accounting for over 43% of net revenues through IQOS heat-not-burn devices and ZYN nicotine pouches. With markets nervous about a potentially hawkish Federal Reserve under Kevin Warsh, retirees want to know if this 3% yielder can keep delivering. I dug into the payout math to find out.

Dividend Snapshot Metric Value Annual Dividend $5.88 per share Dividend Yield 3.13% Consecutive Years of Increases 17 years Most Recent Increase 8.9% (September 2025) Dividend Aristocrat Status No (since 2008 spin-off) Payout Ratios Are Elevated but Covered by Smoke-Free Cash PM paid roughly $9.1 billion in dividends against $12.233 billion of operating cash flow in FY2025. On 2026 guidance for $13.5 billion in OCF and $1.4 to $1.6 billion of capex, free cash flow should land near $12 billion, comfortably above the payout.

Metric TTM Value Assessment Earnings Payout Ratio (FY25 EPS $7.54) ~78% Elevated Forward Payout (2026 guide $8.36 to $8.51) ~70% Improving FCF Payout Ratio ~76% Healthy Operating Cash Flow Coverage 1.34x Adequate Negative Equity Looks Scary, but Leverage Is on the Way Down The Swedish Match acquisition left shareholders’ equity at negative $7.3 billion, making debt-to-equity less informative here. Leverage is the key metric: management is targeting net debt to adjusted EBITDA near 2.0x by year-end 2026, supported by $5.45 billion in cash and EBITDA of $18.6 billion. Interest coverage remains comfortable given FY2025 operating income of $14.892 billion.

17 Straight Hikes and No Buybacks Competing for Cash Year Annual Dividend 2026 (run-rate) $5.88 2025 $5.64 2024 $5.20 2023 $5.14 2021 $4.90 PM has raised every year since spinning off in 2008, and importantly, no share repurchases are planned in 2025 or 2026. The dividend gets first call on cash.

Management Calls It a Progressive Dividend Policy On the Q1 2026 call, CEO Jacek Olczak stated, “We remain firmly committed to our progressive dividend policy and to returning value to shareholders as our transformation delivers sustainable long-term growth.” CFO Emmanuel added that the business is “supported by remarkable cash generation and a strong balance sheet.” Nine directors also bought stock at $169.93 on May 6, 2026.

The Verdict: Safe, With Smoke-Free Doing the Heavy Lifting Dividend Safety Rating: Safe. The payout ratio is elevated near 78% on trailing earnings, but 2026 guidance of 10.9% to 12.9% EPS growth rapidly relieves that pressure, and FCF coverage is solid. The income case holds if IQOS and ZYN keep compounding at current rates and management hits the 2.0x leverage target. I would grow cautious if combustible volume declines accelerate beyond the guided 3% or FDA action restricts ZYN. For now, the cigarette dividend is still lit.

STAMFORD, CT--(BUSINESS WIRE)--Regulatory News:

Philip Morris International Inc. (PMI) (NYSE: PM) announced today that Massimo Andolina has been appointed Group Chief Financial Officer, effective August 1, 2026, reporting to Jacek Olczak, Group CEO PMI. Massimo succeeds Emmanuel Babeau, who will remain with the Company until March 31, 2027 as Strategic Advisor to the Group CEO PMI, to ensure a smooth CFO transition.

“Massimo is a highly respected leader with a deep knowledge of PMI and a strong track record of driving innovation, business growth, and people development,” said Jacek Olczak, Group CEO PMI. “I am confident that his experience, business judgment, and leadership will serve him extremely well in his new role as we continue to deliver best-in-class growth and sustainable performance for shareholders.

I would like to warmly thank Emmanuel for his leadership and strong delivery over the past 6 years, a period of remarkable success for our smoke-free business, with strong financial performance and excellent shareholder returns.”

Mr. Andolina joined PMI in 2008, and over the course of his journey, he has made significant contributions across the organization in a number of senior operational and strategic roles.

Since being appointed President, Europe Region in 2023, Mr. Andolina’s responsibilities have included the execution of strategic and operational priorities, as well as the financial performance of the largest region and most advanced smoke-free geography in the group. Under Mr. Andolina’s leadership the Europe Region delivered robust top and bottom-line growth, underpinned by excellent smoke-free progress at-scale and resilient combustibles performance. He led significant regional organizational changes to strengthen management depth, improve financial discipline, and accelerate sustainable growth, while remaining a visible advocate for innovation, people development and constructive engagement with external stakeholders across Europe.

From 2018 to 2023, Mr. Andolina served as PMI’s Senior Vice President, Global Operations, where he led a supply chain and manufacturing organization of over 30,000 people in an increasingly complex environment with significant external volatility. Mr. Andolina implemented a number of enterprise-wide transformation initiatives and operational efficiencies, many of which continue to benefit the company today, contributing to sustained improvements in PMI’s gross margin while enhancing resilience. Earlier, from 2016 to 2017, he served as Vice President, PMI Transformation, playing an important role at a pivotal moment in the company’s evolution.

Prior to joining PMI, Mr. Andolina held a number of strategic and business development roles at other large multinational corporations. He holds a Master of Science in Mechanical and Industrial Engineering from the University of Palermo, and an MBA from IMD in Lausanne.

Mr. Babeau was appointed Chief Financial Officer in May 2020 and joined PMI with extensive experience of transformation and Finance leadership across several industries, including at Schneider Electric and Pernod Ricard. Over the past six years, Mr. Babeau has made a significant contribution to both PMI’s strong financial performance and its evolution into a recognized growth company, including through the acquisition of Swedish Match in 2022 and a substantial increase in the share of net revenues derived from our smoke‑free business, which reached 43% in Q1 2026.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability affecting international trade; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2025 and Quarterly Report on Form 10-Q for the first quarter ended March 31, 2026. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

When it comes to finding the top dividend stocks to buy and hold, many investors take one of two routes. Either they focus on high-yield dividend stocks or on stocks with long, established dividend growth records.

While both strategies are valid, they each have flaws. For instance, an overemphasis on yield could lead you to own many stocks that turn out to be "yield traps" or "value traps," weighing down your portfolio's long-term total returns.

In the case of long-standing dividend growth stocks, you could be paying too high a valuation premium, and/or focusing too much on mature businesses that are more limited in their future dividend growth potential.

With this in mind, you may want to consider a third route: Focus on stocks that could be dividend royalty in the making. These stocks are prime examples: Mastercard (MA +0.53%), Microsoft (MSFT +0.11%), and Philip Morris International (PM +1.95%).

Image source: Getty Images.

Mastercard: A financial tollbooth on a dividend growth streak Mastercard, along with competitors like Visa, operates under a tollbooth-style business model. Rather than being the bank issuing the credit cards and taking on the credit risk, payment processing network operators like this one generate fees from the trillions of personal and business transactions completed using credit and debit cards.

Today's Change

(

0.53

%) $

2.59

Current Price

$

489.10

This not only creates a steady, high-margin revenue stream. It also opens the door for elevated growth, as payment transactions around the globe shift from cash-based to card- and digitally based. With this, it's not surprising that Mastercard shares have handily outperformed the S&P 500 in the last decade.  

Mastercard has experienced 14 years of consecutive dividend growth. Quarterly dividends have gone from less than $0.01 per share in 2006 to $0.87 per share today.

In recent years, annual dividend growth has averaged 10% to 15%. If this trend continues, Mastercard, with a forward yield of 0.7%, could produce a tremendous yield on your long-term position in the stock.

Don't sleep on Microsoft's dividend growth potential When you think of Microsoft, the tech giant's generative artificial intelligence (GenAI) tailwinds may be what first come to mind. However, even if Microsoft's AI-related growth slows down in the years ahead, the company's strength as a dividend growth stock could persist.

Today's Change

(

0.11

%) $

0.42

Current Price

$

390.76

With 24 years of dividend growth under its belt, Microsoft is nearly halfway to becoming a Dividend King. Dividend Kings are stocks with at least 50 years of consecutive dividend growth. Microsoft's forward dividend yield may be 0.9%, but if Microsoft's current rate of dividend growth persists, its quarterly payouts could become a greater contributor to overall returns.

In recent years, annual dividend growth has averaged over 10%. Relatively high levels of dividend growth may be sustainable, even if earnings growth starts slowing down from current levels exceeding 20%.

With its payout ratio currently at around 21%, Microsoft has plenty of room to allocate even more of its free cash flow to dividends, especially as AI growth slows down, and the company starts taking its foot off the gas in terms of AI-related capital expenditures.

Philip Morris International -- from smokeless leader to Dividend King? Philip Morris International is another stock that debuted in the 2000s and has since become one of the blue chip dividend stocks. When former parent company Altria Group spun off Philip Morris International, or PMI for short, the Swiss-based tobacco company focused primarily on selling Marlboro and other cigarette brands outside the United States.

Today's Change

(

1.95

%) $

3.53

Current Price

$

184.30

Since going public, however, PMI has diversified heavily into "smokeless" tobacco and nicotine products. First, the company launched its IQOS heated tobacco product. Then, after acquiring Swedish Match, PMI became the company behind the popular Zyn line of nicotine pouches. Last year, smoke-free products produced net revenues of $16.9 billion, representing 41.5% of total net sales.

Currently, Philip Morris International shares sport a moderately high 3.1% forward dividend yield. The stock has 18 years of consecutive dividend growth under its belt. I wouldn't rule out its potential to become one of the Dividend Kings, as smokers continue to transition from cigarettes to smoke-free cigarettes and nicotine product alternatives.

Annual dividend growth came in at 6.4% last year. Further mid-single-digit growth could persist, especially as earnings continue to grow at a double-digit clip.

Recognition reinforces the growing consumer relevance of IQOS and the strength of Philip Morris International’s smoke-free vision

STAMFORD, Conn.--(BUSINESS WIRE)--Philip Morris International’s (PMI) (NYSE: PM) IQOS, the #1 tobacco heating system1, has been listed for the first time as one of the top 100 most valuable brands in the world in Kantar’s BrandZ 2026 Most Valuable Global Brands. This ranking solidifies IQOS’s global momentum and its emergence as a culturally relevant, iconic brand for adult nicotine users seeking better alternatives to cigarettes.

According to the BrandZ 2026 Most Valuable Global Brands, IQOS achieved a ranking of #74 globally.

With more than 35 million IQOS users worldwide—most of whom have fully switched away from cigarettes2—the brand continues to lead from the front and champion in a smoke-free era through science-backed innovation and consumer-centric design. Within 10 years of inception, IQOS surpassed $10 billion in annual net revenues, reaching this milestone faster than some of the world’s most recognized technology companies—and making up the large majority of Philip Morris International’s smoke-free business which reached close to $17 billion in net revenues in 2025.

“This milestone is a powerful validation of the journey we are on,” said Oggie Kapetanovic, President Heat-Not-Burn Products at Philip Morris International. “IQOS is not only the world’s leading smoke-free brand - it is becoming a truly iconic brand, built on science, innovation, and consumer trust. This recognition reaffirms IQOS’s continued growth and its pivotal role in transforming the industry. It inspires us to go further, faster, in delivering better alternatives for adults who would otherwise smoke.”

BrandZ charts the way in which global brands have continued to evolve and innovate. Now in its 21st edition, it spotlights the importance of building meaningful difference where a brand meets consumer needs, stands out from competitors and remains top-of-mind in its sector for a prolonged period.

“The brand era has changed. People now interact with brands in thousands of different ways. Many of these are shaped by AI, like personalized feeds or LLMs that influence what we see. Machines are increasingly surfacing and prioritizing content. That means brands need to work harder than ever to stand out as meaningful and different,” said Martin Guerrieria, Head of Kantar BrandZ.

IQOS’s inclusion in the Kantar Top 100 for the first time underscores its growing role beyond product innovation — positioning the brand at the intersection of technology, design, and culture, aiming to meet the preferences of adult nicotine users. This recognition marks another important step toward achieving a future where cigarettes can become obsolete.

Other notable brands featured in this year’s BrandZ 2026 global rankings include Google, Claude and Chinese-based companies like Alibaba and Xiaomi, highlighting industry leaders driving global brand value. Kantar BrandZ is a global ranking that assesses brand value by combining financial data and extensive brand equity research, offering an in-depth view of over 22,000 brands in 54 markets.

IQOS is not risk-free and provides nicotine, which is addictive. Only for use by adults who would otherwise smoke or use nicotine products.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI’s business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco and/or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia’s invasion of Ukraine; changes in adult smoker behavior; the impact of natural disasters and pandemics on PMI’s business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI’s future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products’ performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the second quarter ended June 30, 2025. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

About Kantar

Kantar is the world’s leading marketing data and analytics business. We deliver the intelligence needed to power brand growth.

We provide the signals that help organizations act quickly and confidently. We empower brands to make effective marketing decisions based on predictive evidence. And we help them craft powerful growth strategies rooted in the connection between consumers, brands and enterprise value. All this is powered by our uniquely robust human and synthetic data, our unrivalled IP, our AI-native platform and the team of global brand experts that bring this all together.

About Kantar BrandZ

Kantar BrandZ is the global currency when assessing brand value, quantifying the contribution of brands to business’ financial performance. Kantar’s annual global and local brand valuation rankings combine rigorously analyzed financial data, with extensive brand equity research. Since 1998, BrandZ has shared brand-building insights with business leaders based on interviews with 4.6 million consumers, for over 22,000 brands in 54 markets. Discover more about Kantar BrandZ here.

During the depths of the Great Recession in 2009, Warren Buffett said: "Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it's imperative that we rush outdoors carrying washtubs, not teaspoons."

In other words, market crashes should be seen as great opportunities to buy the best stocks at discounted prices. If that happens, I'd scoop up more shares of Walmart (WMT +0.44%), Realty Income (O +1.31%), and Philip Morris International (PM +1.95%) without any hesitation.

Image source: Getty Images.

Walmart is an evergreen retailer Walmart, the world's largest brick-and-mortar retailer with over 10,800 stores and clubs across 19 countries, has raised its dividend for 53 consecutive years. Its forward yield of 0.8% might seem low today, partly because its stock has soared 155% over the past five years, but it has consistently raised its payout through wars, recessions, and other economic downturns.

Today's Change

(

0.44

%) $

0.54

Current Price

$

121.03

Over the years, Walmart upgraded its e-commerce marketplace, used its stores to fulfill online orders, rolled out more curbside and same-day delivery options, matched Amazon's prices, and launched its own Walmart+ service to challenge Amazon Prime.

Walmart also expanded overseas, opened more Sam's Club stores to compete against Costco, and even launched its own advertising business across its physical stores, mobile app, and connected TVs. All of those efforts kept Walmart relevant as the retail sector faced seismic shifts in consumer spending and other existential challenges.

From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect Walmart's revenue and EPS to grow at CAGRs of 5% and 9%, respectively. Those growth rates are steady, but its stock doesn't look cheap at 37 times next year's earnings. If a market crash finally compresses those valuations, I'd gladly buy some shares of this evergreen retail stock.

Realty Income is a top-notch REIT Realty Income -- which owns more than 15,500 commercial properties across the U.S., the U.K., and Europe -- is one of the world's largest real estate investment trusts (REITs). As an REIT, it leases its properties to businesses and must pay out more than 90% of its taxable income to its investors as dividends to maintain a lower tax rate.

Today's Change

(

1.31

%) $

0.81

Current Price

$

62.72

Ever since its 1994 IPO, Realty Income's occupancy rate has stayed above 96%. That's because it primarily leases its properties to recession-resistant businesses such as convenience stores, drugstores, and discount retailers. In 2025, its occupancy rate rose 20 basis points to 98.9%, even as macro headwinds drove many of its top tenants to close some stores.

Realty Income is also one of the few REITs that pays monthly dividends. It's raised its payout 134 times since its IPO, and it currently pays an attractive forward yield of 5.2%. It expects its adjusted funds from operations (AFFO) per share, which rose 2% in 2025, to grow another 3%-4% to $4.41-$4.44 in 2026. That will easily cover its forward dividend rate of $3.25.

Realty's stock already looks cheap at 14 times this year's AFFO per share, but a market crash could make its stock even cheaper while significantly boosting its yield. Therefore, I'd definitely accumulate more shares of this top-notch REIT if its stock stumbles.

PMI is an evolving tobacco company Philip Morris International, one of the world's largest tobacco companies, was spun off from Altria in 2008. After that split, PMI generated nearly all of its revenue overseas, while Altria remained in the U.S. market.

Today's Change

(

1.95

%) $

3.53

Current Price

$

184.30

PMI might seem like a risky stock to buy as adult smoking rates decline worldwide. Still, it constantly raises its cigarette prices, cuts costs, and sells smoke-free products (including its iQOS heated tobacco products, e-cigarettes, and nicotine pouches) to offset that pressure.

In 2025, PMI's smoke-free revenue grew 14% organically and accounted for almost 43% of its top line. From 2025 to 2028, analysts expect its revenue and EPS to grow at CAGRs of 7% and 10%, respectively, as it continues to expand its smoke-free portfolio.

PMI's stock looks reasonably valued at 25 times this year's earnings, and it pays an attractive forward yield of 3.1%. However, a market crash could reduce its valuations and make its dividend even more attractive for income-oriented investors. Therefore, I'd buy more shares of this defensive blue chip dividend stock if the broader market cools off.

On June 01, 2026, we delve into the DCF analysis for Philip Morris International Inc PM , a company that has shown varied price performance recently. The stock has experienced a 1-week decline of 6.1%, a 1-month increase of 9.0%, a year-to-date rise of 11.6%, and a modest 3.3% gain over the past year.

DCF Earnings-based intrinsic value of $88.40 vs current price of $177.38 (margin of safety: -96.8%) DCF FCF-based intrinsic value of $79.01 vs current price (second opinion: -124.5% margin of safety) GF Score™ of 84/100 indicates a high reliability of the DCF inputs What Is PM Worth? DCF Earnings-Based Model The DCF earnings-based model for Philip Morris International Inc utilizes a two-stage growth approach. The first stage anticipates earnings growth for the next ten years, followed by a terminal phase that reflects a more stable growth rate. Below are the key assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $7.81 10-Year Growth Rate 4.7% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that EPS will grow at a rate of 4.7% per year for the next ten years, discounted at a rate of 11%. The value derived from this growth stage is $57.44 per share. Following this, in the terminal phase (years 11-20), we assume a slower growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $30.96 per share.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 4.7%, discounted at 11% $57.44 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $30.96 Intrinsic Value Growth + Terminal $88.40 The calculated intrinsic value of $88.40 is significantly lower than the current market price of $177.38, indicating that the stock is modestly overvalued with a margin of safety of -96.8%. It is important to note that GuruFocus utilizes EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the PM DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also consider the free cash flow (FCF) DCF model. The intrinsic value derived from the FCF-based model is $79.01 per share. When comparing this to the earnings-based intrinsic value of $88.40, we find that both models indicate that the stock is significantly overvalued, with a margin of safety of -124.5% for the FCF model.

How Does GF Value™ Compare to the DCF Models? The GF Value™ of Philip Morris International Inc is calculated at $142.38, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings-based, DCF FCF-based, and GF Value™—concur that the stock is overvalued at its current price. For more details, visit the GF Value™ page.

What Does PM's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006-2021). Below is a summary of PM's GF Score™ metrics:

Metric Rating GF Score™ 84/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 6/10 Momentum 4/10 With a predictability rank of 0/5 stars, the reliability of the DCF model for PM is low, suggesting that caution should be exercised when interpreting these valuations. For more information, visit the PM stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as PM, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not fully capture future performance.

What This Means for Investors In summary, all three valuation models—DCF earnings-based, DCF FCF-based, and GF Value™—indicate that Philip Morris International Inc is overvalued at its current price of $177.38. The intrinsic values derived from the DCF models are significantly lower, suggesting that investors should approach this stock with caution. For the full DCF analysis, visit the PM DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is PM's intrinsic value based on DCF?

Answer: earnings-based $90.13, FCF-based $79.01

Is PM overvalued or undervalued?

Answer: Both DCF models and GF Value™ consensus indicate PM is overvalued.

How reliable is the DCF model for PM?

Answer: The predictability rank of 0/5 suggests low reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Regulatory News: Philip Morris International Inc.'s (PMI) (NYSE: PM) Group CEO PMI, Jacek Olczak, will address investors today at the 2026 dbAccess Global Co

Packages of Marlboro cigarettes produced by Philip Morris International are seen at the grocery store in Warsaw, Poland May 29, 2024. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights, opens new tab

CompaniesJune 2 (Reuters) - Philip Morris International (PM.N), opens new tab cut its annual profit forecast on Tuesday citing ​currency swings, though CEO Jacek Olczak said other risks to ‌achieving its outlook such as rising energy prices were manageable.

Olczak, speaking at the Deutsche Bank global consumer conference, said recent U.S. FDA moves to relax enforcement ​on unauthorized vaping and nicotine pouches was a "net positive," and ​reduces regulatory uncertainty for Zyn and should support category ⁠growth.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

Shares of the tobacco giant were up about 1% in morning ​trading.

Philip Morris now expects 2026 adjusted earnings per share of $8.31 to $8.46, ​a growth of 10.2% to 12.2% from 2025 levels, and lower than a prior forecast range of $8.36 to $8.51. Analysts were expecting a profit of $8.41 per share.

CEO ​Olczak said the company has more flexibility than initially expected ​this year to offset certain headwinds.

Company said the newly released Zyn Ultra will be priced ‌at ⁠a lower cost per pouch than its flagship range, in a move aimed at reducing its steep price premium and improving competitiveness.

PMI expects a non-cash impairment charge of about $500 million owing to the ​value of its ​investment in ⁠a Canadian affiliate RBH in the second quarter of 2026.

In April, the company lowered its 2026 adjusted profit ​forecast amid regulatory uncertainty over its Zyn nicotine pouches ​and ⁠rising competition in tobacco products.

Philip Morris has been expanding across smoke-free products including heated tobacco device IQOS, vapes and oral nicotine pouches.

It said ⁠recent price ​increases in Japan, driven by excise ​tax changes, have weighed on category growth but so far have not materially hurt ​its market share.

Reporting by Savyata Mishra in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles., opens new tab

A new study detailing the scale of the illicit cigarette trade in the European Union (EU) shows that consumption of black-market cigarettes rose more than 7% year-on-year in 2025, reaching levels not seen in over a decade, with counterfeit cigarettes playing an increasingly significant role across member states. Philip Morris International (PMI) (NYSE: PM) reiterates its call for a coordinated response to illicit trade in Europe, built on evidence-based regulation and strengthened cooperation.

According to the 20th edition of the study “Illicit cigarette and heated tobacco consumption, and oral nicotine share in Europe”, which was conducted by KPMG LLP on behalf of Philip Morris Products S.A., illicit cigarettes in the EU accounted for more than one in ten cigarettes for the first time since 2014. In 2025, illicit volumes reached 41.8 billion in the EU—representing 10.3% of total consumption—resulting in an estimated €16.7 billion in lost tax revenues.

Across the 38 European countries included in the study, illicit consumption reached 55.3 billion cigarettes, corresponding to an estimated €22.4 billion in state budget revenue losses.

A structural shift: from contraband flows to “closer-to-market” counterfeits

The illicit market is undergoing a fundamental transformation: “Made in EU” counterfeit cigarettes are increasingly displacing traditional East-to-West contraband flows. Supply chains are becoming faster and harder to trace, and operations are moving closer to end consumers - especially in Western European countries such as France, Belgium, and the Netherlands, which are becoming central hubs for illicit tobacco and nicotine products.

Counterfeits have become the largest source of illicit cigarettes in the EU, reaching 18.3 billion and accounting for 44% of total illicit consumption in 2025. Counterfeit volumes increased more than 20% year-on-year, highlighting organized crime’s ability to rapidly adapt production and distribution models to reduce detection risks.

“The data is clear: counterfeits have become the primary engine of the illicit cigarette market in the EU, supported by criminal supply chains designed to bring fake products to consumers in high-value markets, undermining the European economy and fueling broader illicit activity,” said Christos Harpantidis, Group Chief Corporate Affairs Officer, Philip Morris International. “It also underscores persistent structural vulnerabilities across regulation, enforcement, and judicial follow-through that create space for illicit trade to grow - at a time when many EU member states are under broader security and economic pressure, from inflation and competitiveness challenges to rising budget demands on security and defense due to geopolitical fragmentation. Closing these gaps in Europe requires coordinated action: stronger law enforcement, public-private cooperation and a focus on regulation that is balanced, evidence-based, and enforceable in practice,” Harpantidis added.

Estimates show that Europe’s tobacco and nicotine value chain supports over 2.1 million jobs and generates €224 billion in value - comparable to the EU’s 17th largest economy. With nearly €24 billion in annual exports, it is a significant industrial ecosystem, yet increasingly affected by illicit trade amid economic uncertainty and need for competitiveness in Europe. Addressing this requires pragmatic, evidence-based regulation and stronger cooperation, while supporting investment and innovation in Europe.

“Illicit trade is becoming more sophisticated, localized, and increasingly industrialized. It not only erodes legitimate business activity but also fuels criminal networks that operate with speed, scale, and impunity, discouraging investment, innovation and governments’ ability to deliver on public health and fiscal objectives,” said Yann Guérin, Group Chief Legal Officer, Philip Morris International.

Western Europe at the forefront of this trend

Illicit consumption is increasingly concentrated in major Western European countries—most notably France, Belgium, and the Netherlands—amplifying fiscal pressures and enforcement challenges as illicit penetration rises.

France remains Europe’s largest illicit market, at a 41.4% illicit share (20.5 billion cigarettes). Counterfeits alone accounted for almost 9.7 billion cigarettes (around 19% of total consumption). France saw the largest increase in illicit cigarette consumption across Europe in 2025. Belgium recorded an illicit share of nearly 25% (more than 2 billion cigarettes). The Netherlands rose above 22% illicit share (2.1 billion cigarettes), returning to levels last observed around 2006. More broadly, six EU member states now record illicit shares above 20%, underscoring the scale and concentration of the issue. Outside the EU, the United Kingdom remains the second-largest illicit cigarette country in the study, with volumes now surpassing 7 billion, including 3.5 billion counterfeit cigarettes.

What works: evidence-based policy, not extremes

Not all markets move in the same direction. Some countries have achieved sustained declines through a balanced policy mix combining predictable fiscal approaches, proportionate regulation, and consistent enforcement.

Greece (14.1% illicit share; 1.9 billion cigarettes) recorded one of the largest year‑on‑year declines - 3.4 percentage points. This marks a significant shift from previous years, when illicit levels consistently remained above 20%, highlighting a notable improvement in recent performance. Ukraine (15.9% illicit share; 5.1 billion cigarettes) saw illicit volumes decline by nearly 1 billion cigarettes year‑on‑year. This reduction is particularly notable given the highly challenging operating and security environment, pointing to sustained enforcement efforts and market resilience. “The lesson we derive from the situation in Europe is that not one single lever solves the problem of illicit trade; it is that a well-coordinated set of measures does,” said Massimo Andolina, President, Europe Region, Philip Morris International. “Countries that coordinate a proportionate, evidence-based approach to regulatory and tax frameworks with a disciplined effort of enforcement demonstrate that illicit trade of nicotine products can be reduced to the benefit of consumers, public finances, and the fight against crime. On the contrary, countries that promote excessive tax increases, or, even worse, product bans, such as France and the Netherlands, see illicit trends worsening, public tax collection suffers, consumers gain access to uncontrolled products, and crime thrives. It is not the evidence that is now missing, but rather the desire to act rationally and decisively,” he added.

“Sustained public-private collaboration, combining effective law enforcement with robust data, expertise, information sharing, and operational capabilities, is essential to help identify, investigate, and dismantle counterfeit networks and enable authorities to stay ahead of illicit operators, moving beyond reactive measures toward a more proactive, intelligence-led approach,” added Guérin.

Heated tobacco and oral nicotine products

For the second consecutive year, the report also covered illicit consumption of heated tobacco products in selected European markets. It found contraband represented 1.2% of total heated tobacco consumption—significantly lower than in cigarettes—with Germany, Austria, and the Netherlands among the most impacted countries. No counterfeit heated tobacco flows were identified. However, the presence of contraband underscores that, while the scale remains limited, no product category is immune to illicit trade.

While electronic heating devices are not within the scope of the study, available PMI internal analyses and third‑party research similarly indicate no meaningful presence of contraband or counterfeit activity in this category to date.

For the first time, the study also assessed oral nicotine products in selected countries. It found that in markets where nicotine pouches are banned or highly restricted, survey data indicate significant availability—often involving counterfeit, non-compliant or non-domestic products—suggesting widespread consumer access despite legal restrictions. The highest shares of products not eligible for sale—with the potential to reach a substantial number of consumers—were observed in the Netherlands, Germany, and Belgium.

“Philip Morris International believes policymakers in Europe should apply evidence-based, risk-proportionate regulatory approaches across all nicotine product categories - designing rules that protect consumers, support law enforcement, and avoid unintended consequences that shift demand toward the black market,” Christos Harpantidis added. “This is particularly important as evidence from other nicotine categories, including pouches and e‑cigarettes, indicates the emergence of widespread illicit activity in some parts of Europe - reinforcing the need for regulatory approaches that are both effective and grounded in real-world conditions.”

As Philip Morris International advances towards a smoke-free future, it continues to strengthen supply chain controls and cooperate with law enforcement and other stakeholders to combat counterfeiting and smuggling of tobacco and nicotine products.

The full study results, country profiles, detailed study methodology, and country-level findings are available here.

For more information about PMI’s illicit trade prevention efforts, visit PMI.com.

Note to editors

Definitions of illicit cigarette categories, as detailed in the KPMG report:

Counterfeit: “Cigarettes that are illegally manufactured and sold by a party other than the original trademark owner.” Illicit whites: “Cigarettes that are usually manufactured legally in one country/market but which the evidence suggests have been smuggled across-borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax.” C&C: “Counterfeit and contraband, including illicit whites. Contraband refers to genuine products that have been either bought in a lower-tax country and which exceed legal border limits or acquired without taxes for export purposes to be illegally re-sold (for financial profit) in a higher priced market.” Other C&C: “Other C&C comprises contraband which does not fall within the Illicit Whites definition. It is often Duty Paid product from both EU27 and non-EU27 countries. There may also be counterfeit of brands that are not trademark-owned by participant manufacturers.” Not eligible for sale products: Products that are not eligible for sale in the market in which the product is consumed. This encompasses Non-Domestically labelled products, domestically labelled products which do not comply with regulations in the market of study, and Counterfeit products. Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumablesand General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260603799047/en/

Philip Morris International delivered strong FQ1 2026 results, with EPS of $1.96 and 9% YoY revenue growth, mostly driven by smoke-free products. But growth potential from smoke-free offerings, notably IQOS and ZYN, is tempered by declining combustible product sales. Despite the mixed dynamics, PM trades at a significant P/E premium to the sector and historical averages.

PM's leadership in smoke-free products, profitable growth trends, and secure dividend prospects justify a Buy on pullbacks, especially for swing traders within the $150s–$180s range. Smoke-free revenues now comprise 43% of sales, with IQOS/ZYN/VEEV delivering double-digit volume growth in select regions, supporting the management's adj EPS growth target at 3Y CAGR of +10%. These may very well temper the risks from the declining cigarette volumes amid price sensitivity, attributed to the likely to remain higher inflationary pressure in the intermediate term.