Track market-moving stories before they get noisy

Q3 Net Revenue: $11.4 billion, up 5.5% in dollar terms and 7.1% organically.Q3 Gross Profit: Grew organically by more than 8%.Q3 Adjusted Operating Income: Exce

Philip Morris (PM) delivered a solid Q3, with EPS and revenue beats, and raised its dividend by 8.8% to $1.60 per share. Smoke-free revenue now exceeds 40%, but growth in IQOS slowed due to regulatory headwinds; cigarette pricing continues to drive top-line gains. U.S. revenue rose 22.7%, but profit growth lagged due to higher marketing spend defending ZYN amid intensifying competition and price wars.

On its third quarter of 2026 earnings call, held on Oct. 21, 2026, Philip Morris (PM -1.22%) announced 7% organic net revenue growth driven by momentum in its smoke-free platforms. The company is shifting revenue toward smoke-free alternatives while traditional cigarettes supply steady cash flow. It is investing heavily in the U.S. market to expand nicotine pouch category share and protect long-term dominance. Three things management said stand out.

Philip Morris is expanding its oral nicotine pouch brand, ZYN, by adding five pouches to each can at no additional charge. That 25% price reduction per pouch hurts fourth-quarter margins in the U.S. market, but management is making the trade-off to win market share from rivals.

We are moving our flagship portfolio to an optimized premium price positioning, which de facto means a better value proposition for the consumers, and in practical terms, it means a 25% price reduction on a per pouch basis.
-- Massimo Andolina, Group Chief Financial Officer2. Cigarette Pricing Power Continues to Fund the Smoke-Free PivotWhile volume growth in smoke-free products accelerates, traditional combustibles like Marlboro remain a reliable source of profits. High single-digit price increases in traditional cigarettes offset volume headwinds, generating robust cash flow that management reallocates toward new product platforms.

Our combustible business delivered a standout Q3 performance, exceeding our expectations through a combination of stable volumes, high single-digit pricing, and a specific benefit from the restructuring of distribution terms in certain markets.
-- Massimo Andolina, Group Chief Financial Officer3. Overhead Reductions Hit Efficiency Targets EarlyManagement reached its three-year cost reduction target early, cutting expenditures across cost of goods sold and selling, general, and administrative expenses (SG&A). These savings allow the company to absorb geopolitical inflation pressures while increasing commercial investments behind key growth initiatives.

We have now generated more than $2 billion of cumulative gross cost savings across both cost of goods sold and SG&A since 2024, achieving our three-year objective ahead of schedule.
-- Massimo Andolina, Group Chief Financial OfficerLooking AheadOrganic shipment growth across global markets is tracking toward a sixth straight year of gains. Brand loyalty for Marlboro, expanding commercial infrastructure, and category-leading market share in heated tobacco position the business for sustained cash flow as management monitors pricing discipline and shipping inflation.

We continue to expect another year of high-quality, best-in-class volume, sales, and profit growth as we continue to invest behind our leading smoke-free platforms to drive long-term value.
-- Massimo Andolina, Group Chief Financial OfficerLong-term value creation rests on expanding the smoke-free product lineup while using cost savings and strong pricing power to offset temporary cost shocks.

Our leading global position and strong growth profile reflects continuous investment for mid and long-term growth, and we are excited to be implementing the significant improvements to our ZYN consumer offer.
-- Massimo Andolina, Group Chief Financial OfficerThe Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.

CNBC's “Squawk on the Street” team is joined by Philip Morris Group CEO Jacek Olczak to discuss the company's latest earnings results and why it is warning of an "increasing effect" on business from the Iran war.

On October 21, 2026, Philip Morris International Inc PM released its 8-K filing, detailing its financial results for the third quarter of 2026. The company's reported diluted earnings per share (EPS) stood at $2.12, reflecting a decline of 4.9% year-over-year. However, the adjusted diluted EPS grew by 5.4% to reach $2.36, surpassing analyst estimates of $2.19.

Philip Morris International Inc is a leading international consumer goods company dedicated to delivering a smoke-free future while remaining one of the world's largest tobacco companies. PM's cigarette portfolio, led by Marlboro, the best-selling international cigarette brand, is marketed in approximately 170 countries. Over the past decade, PMI has invested over $16 billion in smoke-free products such as the IQOS heat-not-burn system and ZYN nicotine pouches, with ambitions to transition away from traditional combustible products.

The performance of Philip Morris International during the third quarter underscores both achievements and challenges. Key highlights of this quarter include increased net revenues of $11.4 billion, a growth of 5.5%, driven principally by an expansion in smoke-free products and resilient combustible business. The company achieved an operating income of $4.9 billion, marking a 14.1% increase compared to the prior year. However, the decline in reported diluted EPS indicates volatility, particularly attributable to non-cash fluctuations in equity investments.

Financial Achievements and MetricsPM's efforts to innovate and expand its smoke-free product range continue to pay dividends. Smoke-free products accounted for over 40% of total net revenues in Q3 2026. The segment's revenue boasted a growth of 4.1%, reflective of high single-digit growth in in-market sales for these products. The gross profit also saw a rise of 6.7%, demonstrating strong margins that are bolstered by a favorable product mix and increased pricing power.

Key financial metrics are essential in evaluating PM's overall performance:

MetricQ3 2026Q3 2025Year-over-Year ChangeNet Revenues$11.4 billion$10.8 billion+5.5%Gross Profit$7.9 billion$7.4 billion+6.7%Operating Income$4.9 billion$4.3 billion+14.1%Reported Diluted EPS$2.12$2.23-4.9%Adjusted Diluted EPS$2.36$2.24+5.4%As highlighted by Jacek Olczak, Group CEO, “We delivered another excellent quarter, with growing total volumes, double-digit organic operating income growth and robust margin expansion.” This sentiment emphasizes the company's capacity to navigate a competitive landscape and generate consistent bottom-line growth, despite some external pressures.

However, the company faces challenges including geopolitical tensions and inflationary pressures, particularly in energy costs. These factors may impact operational efficiency and profitability moving forward. Additionally, regional disruptions due to the ongoing conflict in the Middle East and market volatility in Ukraine could complicate future growth initiatives.

GuruFocus Valuation CheckAccording to GuruFocus's proprietary data, Philip Morris International Inc PM has a GF Score of 81/100, indicating a strong overall rating for the company. The GF Value stands at $159.69, suggesting the current stock price of $199.90 is approximately 25.2% overvalued. This misalignment could prompt investors to consider the potential for price corrections in the near future.

PM's Profitability Rank of 9/10 reinforces its capacity to generate strong profits relative to its peers, while the Growth Rank of 8/10 indicates solid prospects for revenue and EPS growth. However, the 2.5-star Predictability rating suggests that while PM has a history of delivering consistent results, some uncertainty remains regarding future earnings stability.

Investors may also note that insider activity has seen insiders sell $28.8 million in shares over the past year, which can be interpreted as a cautious signal regarding the company's near-term outlook. For a deeper dive, visit the Philip Morris International Inc stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from Philip Morris International Inc for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $159.69 (25.2% overvalued); its GF Score™ is 81/100; 22 gurus currently hold the stock, with 7 adding and 11 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Philip Morris International Inc PM research.

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].

Philip Morris International reported higher revenue in the latest quarter, though profit fell as the company faced inflationary pressures and stepped up its investments.

Banque Pictet & Cie SA lifted its holdings in shares of Philip Morris International Inc. (NYSE:PM – Free Report) by 3.0% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 483,447 shares of the company’s stock after purchasing an additional 14,014 shares during the period. Philip Morris International accounts for about 0.6% of Banque Pictet & Cie SA’s portfolio, making the stock its 25th biggest position. Banque Pictet & Cie SA’s holdings in Philip Morris International were worth $92,251,000 at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in the business. BlackRock Inc. raised its holdings in shares of Philip Morris International by 0.4% during the second quarter. BlackRock Inc. now owns 108,039,522 shares of the company’s stock valued at $19,545,430,000 after purchasing an additional 444,449 shares during the period. State Street Corp increased its position in shares of Philip Morris International by 1.0% during the second quarter. State Street Corp now owns 55,569,994 shares of the company’s stock worth $10,134,454,000 after acquiring an additional 536,968 shares in the last quarter. GQG Partners LLC bought a new stake in shares of Philip Morris International during the second quarter worth about $8,220,008,000. Wellington Management Group LLP raised its holdings in shares of Philip Morris International by 3.9% in the 2nd quarter. Wellington Management Group LLP now owns 17,506,171 shares of the company’s stock worth $3,167,041,000 after acquiring an additional 650,587 shares during the last quarter. Finally, Bank of America Corp DE acquired a new stake in shares of Philip Morris International in the 2nd quarter worth about $3,075,267,000. Institutional investors and hedge funds own 78.63% of the company’s stock.

Philip Morris International Trading Up 2.4% PM stock opened at $204.74 on Friday. The firm has a 50 day moving average of $191.17 and a 200-day moving average of $182.51. The firm has a market capitalization of $319.11 billion, a P/E ratio of 24.68, a price-to-earnings-growth ratio of 2.56 and a beta of 0.34. Philip Morris International Inc. has a 12 month low of $142.11 and a 12 month high of $210.45.

Philip Morris International (NYSE:PM – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.15. Philip Morris International had a net margin of 11.06% and a negative return on equity of 163.41%. The business had revenue of $11.19 billion during the quarter, compared to analyst estimates of $10.60 billion. During the same period in the previous year, the business posted $1.89 earnings per share. Philip Morris International’s revenue for the quarter was up 10.4% on a year-over-year basis. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS. Sell-side analysts predict that Philip Morris International Inc. will post 8.38 EPS for the current year. Philip Morris International Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Friday, October 2nd will be given a $1.60 dividend. The ex-dividend date is Friday, October 2nd. This represents a $6.40 dividend on an annualized basis and a dividend yield of 3.1%. This is an increase from Philip Morris International’s previous quarterly dividend of $1.47. Philip Morris International’s dividend payout ratio is 91.95%.

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

Positive Sentiment: Philip Morris raised its dividend by 8.8%, its largest increase in several years. The move reinforces the income appeal of PM and signals management’s confidence in cash generation, although the stock’s rally has reduced its dividend yield. Philip Morris Just Raised Its Dividend 8.8%. Can It Afford Another Increase? Positive Sentiment: Smoke-free products, pricing and ongoing innovation are expected to support third-quarter performance. Recent results showed strong execution, with quarterly revenue up 10.4% year over year and earnings exceeding consensus estimates, providing a favorable operating backdrop. Philip Morris Q3 Earnings on Deck: Key Factors You Should Understand Neutral Sentiment: Analysts are focused on whether smoke-free growth can justify PM’s premium valuation as third-quarter earnings approach. Combustible tobacco cash flow continues to fund expansion, while investors will be watching management’s outlook and progress in reducing leverage. Philip Morris Q3 Earnings Preview: Competition Heating Up Neutral Sentiment: Philip Morris published an EY-Parthenon study highlighting its economic contribution and transformation across the European Union from 2021 through 2025. The announcement supports the company’s public-policy and regional positioning but is unlikely to materially change near-term earnings expectations. Philip Morris International Announces EU Economic Footprint Study Negative Sentiment: PM faces roughly $43 billion of debt, making further dividend growth less certain while interest rates remain elevated. Competition is also intensifying in the U.S. nicotine market, with ZYN’s competitive position a key concern for the upcoming quarters. Dividend Sustainability and Debt Concerns Negative Sentiment: Recent reports of a sharp selloff and net ETF selling indicate that some investors have taken profits, adding technical pressure despite the subsequent recovery. ETFs Are Net Sellers of Philip Morris Analysts Set New Price Targets Several analysts have recently commented on the company. BTIG Research set a $221.00 price objective on Philip Morris International and gave the stock a “buy” rating in a research note on Friday, July 24th. Needham & Company LLC lifted their target price on Philip Morris International from $200.00 to $215.00 and gave the company a “buy” rating in a research report on Thursday, July 23rd. UBS Group lifted their target price on Philip Morris International from $182.00 to $192.00 and gave the company a “neutral” rating in a research report on Wednesday, September 23rd. Morgan Stanley upped their price target on Philip Morris International from $200.00 to $215.00 and gave the stock an “overweight” rating in a report on Thursday, July 23rd. Finally, Barclays increased their price target on Philip Morris International from $205.00 to $225.00 and gave the company an “overweight” rating in a research report on Wednesday, July 29th. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $207.00.

Check Out Our Latest Analysis on PM

Philip Morris International Company Profile (Free Report)

Philip Morris International Inc is a global tobacco and nicotine company headquartered in Stamford, Connecticut. The company operates in markets outside the United States and sells products across more than 180 countries. Its portfolio includes cigarettes, heated tobacco products, nicotine pouches, e-cigarettes and other smoke-free alternatives.

Philip Morris International’s traditional cigarette brands include Marlboro, Parliament, L&M, Chesterfield and Bond Street. The company has increasingly focused on developing and commercializing smoke-free products, including IQOS heated tobacco devices and consumables, ZYN nicotine pouches and VEEV e-cigarettes.

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Philip Morris International remains a resilient long-term holding, with strong cash flows from combustibles funding growth in smoke-free products. PM's recent 8.8% dividend increase signals management confidence, but I would prefer a focus on deleveraging with rates being where they are. ZYN's competitive position in the U.S. is under pressure; Q3 and Q4 results will be critical for assessing its contribution to PM's premium valuation.

One of the trio just became a Dividend King.

STAMFORD, CT--(BUSINESS WIRE)--Regulatory News: Philip Morris International Inc. (PMI) (NYSE: PM) will host a live audio webcast on Wednesday, October 21, 2026, at 9:00 a.m. ET, to discuss its 2026 third-quarter and first nine-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 Massimo Andolina, Group Chief Financial Officer, and will include discussion of PMI's financial results and a Q&A.

A $100,000 dividend portfolio spread across five names generates thousands in annual income, but the account type you choose determines how much of that income you actually keep rather than hand over to the IRS every April.

At the 24% federal bracket, a $100,000 portfolio spread across five high-yield dividend payers makes $5,364 a year in gross income. Held in a taxable brokerage account, about $1,018 of that goes to the IRS every year. Held in a Roth IRA, the investor keeps the full amount.

Roth Versus Taxable on a $100,000 Dividend Portfolio
The model puts $20,000 into each of five stocks at its current yield. The two REITs pay ordinary dividends taxed at the full 24% marginal rate before any Section 199A deduction. The tobacco and telecom names pay qualified dividends that face a 0%, 15%, or 20% rate depending on income. A 24% bracket filer generally pays 15%. The 24% bracket applies to single filers with income over $105,700 ($211,400 for married couples filing jointly) in 2026.

Stock
Yield
Income on $20,000
Taxable-Account Tax

Altria Group (NYSE:MO | MO Price Prediction)
5.94%
$1,188
$178

Philip Morris International (NYSE:PM)
2.93%
$586
$88

Verizon Communications (NYSE:VZ)
6.12%
$1,224
$184

Realty Income (NYSE:O)
5.97%
$1,194
$287

W. P. Carey (NYSE:WPC)
5.86%
$1,172
$281

Inside a Roth, the portfolio returns $5,364 with no tax. In a taxable account, it clears about $4,346. Without any growth, that gap adds up to about $10,175 over 10 years. The two REITs alone account for about $568 of the tax bill, which is more than the three qualified payers combined ($450).

Why Each Name Fits a Roth

Realty Income: Its ordinary dividends are taxed at the full bracket rate, so Roth location removes the largest drag. Realty Income raised its 2026 AFFO guidance to $4.44 to $4.45 per share, against an annualized dividend of $3.258.
W. P. Carey: It also pays ordinary dividends, with a payout ratio management called “just over 70%”. It raised its dividend to $0.95 per quarter.
Altria: Its dividends are qualified, but the yield is high enough to create a large taxable stream. Debt-to-EBITDA stood at 1.9 times, and the quarterly payout rose to $1.11.
Verizon: It has the highest yield in the group. Management called the dividend “ironclad” and guided to free cash flow of $21.5 billion or more.
Philip Morris: With the lowest yield and qualified treatment, it is the lowest Roth priority here. Expected operating cash flow of around $13.5 billion supports its progressive dividend policy.

How Much More Your Bracket Costs You

Bracket
Taxable Net Income
Annual Roth Advantage

22%
$4,394
$970

24%
$4,346
$1,018

32%
$4,157
$1,207

37%
$3,889
$1,475

The 37% row applies the 20% qualified rate. State taxes and the net investment income tax would increase every gap.

Compounding Turns a Yearly Gap Into a Permanent Cost
Each dollar kept from the IRS stays invested and keeps makes income, and qualified Roth withdrawals in retirement are tax-free. Reinvesting the 24% bracket delta at a conservative 4% grows it to about $12,217 after 10 years and $30,300 after 20 years. At 37%, the 20-year figure reaches about $43,923. No price appreciation is assumed in these figures. They measure the income lost by holding these stocks outside a Roth.

Plug your own bracket’s annual tax drag into the compounding engine to see how the gap scales:

Limits That Restrict Moving Everything Into a Roth
Annual contribution limits control how fast new money can enter a Roth, and income phase-outs block high earners from contributing directly. Converting traditional IRA assets adds the converted amount to gross income for the year of conversion. That is why asset location matters. Ordinary-dividend REITs gain the most from limited Roth space. Qualified payers and low-yield growth holdings lose less in taxable accounts.

Investors in higher brackets who have traditional IRA balances to convert gain the most. High earners without IRA assets, who are limited by the phase-out, have the least room to act. For a sense of what a mid six-figure balance can realistically throw off once the tax drag is removed, we outlined a full income plan in a free report.

Steps to Take Before Your Next Tax Filing

Calculate this year’s tax cost at your bracket for any REIT in a taxable account.
Model a phased Roth conversion that starts with ordinary-dividend payers, and compare the conversion tax with the 20-year income delta.
If Roth space is full, check whether lower-yield holdings are taking up room that higher-yield REITs could use.

Contact [email protected] for any questions or corrections.

Philip Morris International (PM) is positioned as a flight-to-safety stock, offering a rising income stream and resilience in a higher-rate environment. PM's Q2 and H1 2026 results exceeded expectations, with adjusted EPS up 15.6% YoY and smoke-free products now 42% of revenue with expanding margins. The recent 8.8% dividend increase, strong free cash flow coverage, and guidance for 10.7–12.7% adjusted EPS growth underpin the bullish outlook.

Both BTI and PM fund generous dividends from a shrinking cigarette business, but one company's smoke-free pivot has already changed what its payout is built on, and that gap matters far more than the headline yield difference.

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British American Tobacco (NYSE:BTI | BTI Price Prediction) or Philip Morris International (NYSE:PM): which Big Tobacco dividend should an investor planning for retirement own right now? Both fund their payouts from cigarettes in structural decline, and both are spending heavily to replace them with smoke-free products. The better pick is the company whose transition already pays the bills. On that test, Philip Morris wins, even though BAT carries the higher headline yield and cheaper valuation.

The market agrees. Philip Morris shares are up 21.91% year to date, while BAT is down 0.71%. Over 10 years on an adjusted basis, Philip Morris gained 221.75% against 67.32% for BAT. Morningstar noted today that BAT’s Capital Markets Day reaffirmed its midterm growth algorithm, but the market expects far worse.

Dividend Track Record: Philip Morris Raises Faster and Pays in Dollars Philip Morris just lifted its quarterly dividend from $1.47 to $1.60, payable October 26, 2026, for an annualized forward rate of $6.40. That follows an 8.9% increase in 2025, and its record shows steady quarterly payments stretching back to June 2008. The trailing yield is 3.03%.

BAT declared 245.04p per share for FY2025, paid in four payments of 61.26p, a 2.0% raise. Structure matters here. BAT is a UK-based foreign private issuer whose U.S. shares trade as American depositary receipts, and it commits to dividend growth in sterling terms. The dollar check a U.S. holder receives therefore moves with the exchange rate: the quarterly payment was $0.746191 in 2021, dipped to $0.700605 in 2023 and now stands at $0.834851. Philip Morris, a U.S.-domiciled corporation, declares and pays in dollars. Winner: Philip Morris.

Cash Coverage and Leverage: Philip Morris Has More Room Philip Morris expects roughly $13.5 billion of operating cash flow in 2026, and Q2 operating cash flow rose 61% to $5.492 billion. Raised 2026 guidance calls for adjusted diluted EPS of $8.26 to $8.41, well above the $6.40 annualized dividend. With no share repurchases planned, cash goes toward deleveraging: net debt to adjusted EBITDA is 2.35x, targeted near 2.0x by year-end. The CFO cited “an unwavering commitment to our progressive dividend policy”.

BAT’s operating cash flow fell 37% to $6.342 billion in FY2025, yet it is committing £1.3 billion to buybacks in 2026 while targeting leverage of 2.0-2.5x. Dutch tax assessments totaling £1,082 million, Canadian litigation payments and higher refinancing costs add pressure. Winner: Philip Morris.

Smoke-Free Progress: Philip Morris Is Years Ahead Smoke-free products generated 41.5% of Philip Morris’s FY2025 net revenue. In Q2, international smoke-free revenue rose 14.2% to $3.877 billion, VEEV shipments jumped 55.1%, and first-half smoke-free gross margin reached 70%. The FDA granted modified-risk authorization to 20 ZYN variants on June 30, 2026.

BAT’s combustibles still produced $20.2 billion of its $25.61 billion FY2025 revenue. Velo is a real bright spot, with Modern Oral up 47.4%, but Vapour fell 10.4% under pressure from illegal disposables and Heated Products slid 0.7%. Winner: Philip Morris.

Verdict: Philip Morris Owns the Retirement Income Slot Philip Morris is the better fit for investors seeking retirement income. Its dividend arrives in dollars, grows faster and rests on a smoke-free business that already drives growth. Management targets 9-11% annual adjusted EPS growth ex-currency through 2028. The price is a premium multiple: about 27x trailing and 21x forward earnings.

BAT does one thing better: it delivers more current income per dollar invested at a cheaper valuation. That suits a retiree who prioritizes maximum cash today and can stand slow sterling raises and currency swings (if the goal is building a paycheck out of dividends without ever selling shares, we walked through the full ladder in a free guide).

The assessment flips if BAT hits its 2026 target of 5-8% adjusted diluted EPS growth while Vuse returns to growth, proving the algorithm the market questions. On the other side, keep an eye on U.S. ZYN, where Q2 shipments grew just 2%. A stall there would erode the growth premium Philip Morris commands.

Contact [email protected] for any questions or corrections.

STAMFORD, CT--(BUSINESS WIRE)--Philip Morris International Inc. (PMI) (NYSE: PM) today published its inaugural Taskforce on Nature-related Financial Disclosures (TNFD) Report, providing shareholders and other stakeholders with its most comprehensive assessment to date of nature-related dependencies, impacts, risks, and opportunities (DIROs) across the company's global value chain. As an early adopter of the TNFD recommendations, PMI's TNFD Report supports the company's efforts to sharpen its un.

Tobacco companies spend almost nothing on new equipment yet generate billions in cash, and a handful of US-listed names funnel that surplus straight into shareholder pockets through yields that most sectors cannot touch.

Tobacco is the rare defensive corner of the market where recurring cash flow still funds premium dividends. The four US-listed names below combine long payment histories with wide operating margins and shareholder-return programs that dwarf capex. As one anchor for the theme, Altria Group (NYSE:MO | MO Price Prediction) generated $9.29 billion of operating cash flow in fiscal 2025 against $216 million of capital expenditures, leaving plenty of room for a dividend that yields 6.07% today. That is the shape of the trade across this roster: modest reinvestment needs, heavy cash returns, and slow-motion volume declines offset by pricing and next-generation nicotine.

Altria Group (MO) Altria is the US domestic tobacco anchor and the highest-quality ultra-high-yield name in the group by coverage. Shares trade at $69.51, up 26.4% year to date, with a current dividend yield of 6.07% on an annualized forward payout of $4.44 per share after the recent step up from $1.06 to $1.11 per quarter.

Dividend safety reads well against cash flow. Fiscal 2025 operating cash flow of $9.29 billion comfortably covered $6.96 billion in dividends and a token $216 million of capex, and management still returned buybacks on top. The prior fourth-quarter release flagged the 60th dividend increase in the past 56 years, a 3.9% raise in 2025. Q1 2026 adjusted diluted EPS came in at $1.32, beating the $1.25 consensus, and management reaffirmed FY2026 adjusted diluted EPS guidance of $5.56 to $5.72. Trailing EPS of $4.77 against the $4.24 declared dividend per share puts payout coverage inside the historical band.

Bull case: income investors get an ultra-high yield backed by 65%-plus smokeable segment margins, an in-place $2 billion buyback with $720 million remaining, and a management team that treats the dividend as sacred. Risk: US cigarette volumes are shrinking fast, with Q1 declines near 5% and FY25 near 10%, and Marlboro retail share slipped 1.4 points to 39.7%. Coverage is fine today, but the top line has to keep bending without breaking.

Philip Morris International (PM) Philip Morris International (NYSE:PM) is the growth-tilted member of the bundle and, by yield, the lowest of the four. Shares at $192.83 yield 3.07% on an annualized forward payout of $5.88, after the quarterly moved from $1.35 to $1.47. The stock is up 22.3% year to date and 139.49% over five years, so investors are paying for smoke-free growth rather than pure yield.

Dividend safety is anchored by prolific cash generation. FY2025 operating cash flow reached $12.23 billion versus $8.62 billion in dividends and $1.57 billion in capex. Q2 2026 operating cash flow alone was $5.49 billion, up 61% year over year. Management raised FY2026 guidance to adjusted diluted EPS of $8.26 to $8.41, with full-year operating cash flow near $13.5 billion. Trailing EPS of $7.24 against the $5.88 per-share dividend keeps the payout inside management’s target zone even as the company runs net debt to adjusted EBITDA of 2.35x, targeting closer to 2.0x by year end.

Bull case: IQOS is now in 109 markets, ZYN just received FDA MRTP authorization on 20 nicotine pouch variants, and international smoke-free revenue grew 14.2% on 8.0% volume growth. That is real dividend fuel. Risk: at 26x trailing earnings, the stock now trades like a staples grower, so any hiccup in ZYN inventory normalization or FX would compress the multiple faster than the dividend can bail investors out.

British American Tobacco (BTI) British American Tobacco (NYSE:BTI), the UK-based global peer, trades in New York as an ADR at $56.24, with a high-yield of 5.95%. The annualized forward dividend is $3.34 per ADR, with quarterly instalments recently stepping up to $0.834851 from $0.749068 in 2025. The FY2025 declaration of 245.04p per share, a 2.0% increase over 2024, keeps the dividend growing modestly in sterling terms.

Coverage is solid on an annual basis. FY2025 operating cash flow was $6.34 billion against $5.12 billion in dividends and $551 million in capex. On top of that, BAT has committed a £1.3 billion share buyback for 2026, up from £1.1 billion in 2025. Trailing EPS of $3.92 against the $2.45 per-ADR dividend gives a comfortable earnings cushion, and management is guiding to leverage of 2.0x to 2.5x adjusted net debt/EBITDA by year-end 2026.

Bull case: smokeless is finally scaling. FY2025 saw 34.1 million smokeless consumers, up 4.7 million, and Velo Modern Oral grew 48% at constant currency globally, with Velo Plus US revenue up 310%. US combustibles held up on 12.3% price/mix, and the ADR still trades at 11x forward earnings. Risk: unresolved litigation and tax exposures, including Dutch tax assessments of ~£1.08 billion and ongoing Canadian tobacco litigation payments, could pressure the pace of capital returns.

Universal Corporation (UVV) Universal Corporation (NYSE:UVV) is the small-cap tobacco-leaf merchant and the highest-yielding, highest-risk name in the group. Shares at $44.37 yield 7.38%, an ultra-high-yield built on a forward annualized payout of $3.32. The quarterly rose to $0.83 from $0.82, with the next payment scheduled for November 2, 2026. The Q4 FY2026 release confirmed this was the 56th consecutive annual increase, putting Universal squarely in Dividend King territory.

Dividend safety is the real concern here. FY2026 operating cash flow of $129.1 million covered the $81.3 million dividend payout and $48.8 million of capex, but only narrowly, and it was well below the prior year’s $326.97 million. Trailing earnings paint a tighter picture: EPS of $0.75 against a $3.29 dividend puts the trailing PE at 59, though the forward PE compresses to 12 if guidance normalizes. FY2026 adjusted EPS came in at $2.64 versus a $4.17 estimate, and Q1 FY2027 adjusted diluted EPS was negative $0.20 versus a $0.25 consensus.

Bull case: an entrenched leaf-processing franchise with a Dividend King streak and a management team clearly willing to defend the payout through a leaf oversupply cycle. Uncommitted tobacco inventory sat at 27%, above the target range but expected to normalize in FY2027. Risk: earnings and cash generation have deteriorated sharply, with Tobacco Operations operating income collapsing 90% to $3.47 million in Q1 FY2027 and the Ingredients segment in outright operating loss. If the FY2027 normalization does not materialize, the payout goes from covered to strained.

Tying the Roster Together Across these four tobacco names, income investors are choosing between reliability, growth, value, and stretch. Altria and Universal deliver ultra-high yields above 6%, with Altria offering the safer coverage and Universal the longer streak but the tighter cushion. Philip Morris trades the lowest headline yield for the strongest smoke-free growth engine, and British American Tobacco pairs a 5.95% yield with a 11x forward multiple and a fast-growing modern oral franchise. Own the industry through more than one of them and the payout stream is remarkably resilient, because that is exactly what tobacco has been engineered to do.

Contact [email protected] for any questions or corrections.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM, BTI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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STAMFORD, CT--(BUSINESS WIRE)--Philip Morris International (PMI) (NYSE: PM) and WSJ Intelligence, the in-house thought leadership consultancy for The Wall Street Journal's commercial sales organization, today unveiled The Cognition Index Research Report, a comprehensive study exploring the evolving role of human cognition in an AI-driven workplace. Surveying more than 2,500 business professionals across the United States, United Kingdom, Italy, South Africa, and Brazil, the report reveals that.

The expansion is part of Philip Morris' push to scale up the brand following substantial manufacturing investments and a key regulatory win this summer.

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

Philip Morris International Inc.’s (PMI) (NYSE: PM) Group CEO PMI, Jacek Olczak, will address investors today at the 2026 Barclays Global Consumer Conference in Boston at 9:45 a.m. ET.

The live webcast will be available here. The webcast replay will be available at the same link for six months after the event. The webcast may also be accessed on mobile devices by downloading PMI’s Investor Relations App at www.pmi.com/irapp.

2026 Full-Year Forecast

PMI raises its 2026 full-year reported diluted EPS forecast to a range of $7.28 to $7.43 to reflect currency only. Excluding a total 2026 adjustment of $1.07 per share, the forecast range for adjusted diluted EPS of $8.35 to $8.50 represents a projected increase of 10.7% to 12.7% versus $7.54 in 2025. Excluding a favorable currency impact, at prevailing exchange rates, of $0.24 per share (previously $0.15), this represents growth of 7.5% to 9.5%. We also update our Q3 adjusted diluted EPS forecast for currency only to a range of $2.29 to $2.34, now including an estimated 1 cent favorable currency impact (previously unfavorable 8 cents).

All other forecast assumptions remain unchanged from those communicated on July 22, 2026.

Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.

Full-Year

2026
Forecast

2025

Growth

Reported Diluted EPS

$7.28

-

$7.43

$ 7.26

Adjustments

Amortization of intangibles

0.50

0.50

Fair value adjustment for equity investments

0.16

(0.18)

Restructuring charges

0.03

0.14

Income tax impact associated with Swedish Match AB financing

0.06

(0.25)

Non-cash impairment of RBH equity investment

0.33

—

Egypt sales tax settlement adjustment

(0.01)

—

Other 2025 Adjustments (1)

—

0.07

Total Adjustments

1.07

0.28

Adjusted Diluted EPS

$8.35

-

$8.50

$ 7.54

10.7%

-

12.7%

Less: Currency

0.24

Adjusted Diluted EPS, excluding currency

$8.11

-

$8.26

$ 7.54

7.5%

-

9.5%

(1) Includes: $0.10 Germany excise tax classification litigation charge; ($0.10) RBH (Canada) Plan Implementation, including dividend income, net; $0.09 Impairment of Wellness business related equity investment; $0.06 Loss on expected sale of consumer accessories and other businesses; $0.03 Impairment of goodwill; ($0.11) Tax items

Forward-Looking & Cautionary Statements
This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; 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; the impact and consequences of Russia's invasion of Ukraine; changes in legal-age 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 its 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, and 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 the Quarterly Report on Form 10-Q for the second quarter ended June 30, 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.

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 approximately 42% of PMI’s second-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for legal age adults who would otherwise smoke or use other nicotine-containing consumer products, 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, 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 20 ZYN nicotine pouch variants also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA in their respective categories. 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.

Non-GAAP Measures, Glossary and Explanatory Notes
Reconciliations of non-GAAP measures in this release to the most directly comparable U.S. GAAP measures can be found in Exhibit 99.2 to the Form 8-K dated July 22, 2026, and here. A glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on the same webpage, where additional financial schedules, as well as adjustments and other calculations have also been made available.
Management reviews earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, divestitures, restructuring costs, tax items and other adjusting items. Additionally, starting in 2022 and on a comparative basis, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any. While amortization expense on acquisition related intangible assets is excluded, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. Currency-neutral rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.
Non-GAAP measures used in this release should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP.

The campaign centers on the "click" as a signature brand cue, rolling out across digital, out-of-home, and live cultural moments in 2026

, /PRNewswire/ -- Philip Morris International's U.S. businesses (PMI U.S.) today announced the national rollout of "When It Clicks," ZYN's new brand campaign inspired by the universal moment when effort, timing, and confidence align. The platform centers on the instantly recognizable sound of "the ZYN click" — the sensory cue that signals momentum and marks the point when everything comes together. The campaign taps into a simple insight: adults increasingly value being present for the moments that matter. In a world filled with constant distractions, competing priorities, and the pull of always being connected, ZYN keeps busy legal-aged nicotine users fully present without having to step away.

ZYN "When It Clicks"

ZYN "When It Clicks"

ZYN "When It Clicks" Inspired by the role ZYN can play in helping adult nicotine users stay engaged in those moments, "When It Clicks" celebrates the feeling of being in sync, when effort, timing, and confidence come together. The campaign, which aligns with PMI U.S.'s approach to responsible marketing, spans point of sale, digital, out-of-home, and live cultural events, connecting ZYN to everyday scenes where adult nicotine users want to be more present.

"At its core, 'When It Clicks' is built on both a product and an emotional truth," said Seth Kaufman, Chief Commercial Officer at PMI U.S. "For adult nicotine consumers, it's about having a way to stay engaged in the moment without missing what's happening around them. This campaign shines a light on those moments when everything clicks into place and adults can fully immerse themselves in the experiences that matter most."

A key visual device in the campaign is the use of brackets ("( )") to highlight moments when things 'click.' Together with the distinctive sound and the "When It Clicks" tagline, these elements create a flexible creative system for storytelling, experiences, and culture.

Following a soft launch this summer, PMI U.S. will bring "When It Clicks" to full national scale in the fourth quarter of 2026 through trade and consumer programming designed for legal-age adult nicotine consumers. Grounded in insights that these consumers are navigating attention overload, social friction, and a constant pull to be everywhere at once, the platform speaks to moments when they want to be more present without stepping away from the experiences around them. The platform will debut to retail trade partners and distributors at the National Association of Convenience Stores (NACS) Show in early October, followed by consumer-facing engagements that bring the "click" to life in culture, from music and entertainment to sport and art.

ZYN will also release limited-edition metal ZYN cases showcasing original artwork from a curated group of American and U.S.-based artists with each design capturing the spirit of creativity. Available for purchase beginning in Q4, these cases are accessories only and do not contain nicotine pouches. The American Art Series extends the "When It Clicks" platform beyond traditional advertising, connecting ZYN's signature idea to moments of inspiration, artistry, and national celebration.

PMI U.S. will continue to expand the platform in 2027 with activations for adult nicotine consumers across multiple channels. The campaign aims to connect the "click" to the sounds, experiences, and passions shaping modern culture, reaching new adult nicotine consumer communities and occasions as it evolves.

Editor's Note
At PMI U.S., we are deeply committed to preventing access to nicotine products by individuals under the age of 21. No one below the legal age should use nicotine in any form. Nicotine products are addictive and not risk-free. ZYN products are intended for adults 21+ who currently use nicotine products. PMI U.S.'s responsible marketing practices include, but are not limited to, publishing advertising that features only individuals aged 35 or older, requiring third-party age verification (21+) on branded websites, limiting our owned social media presence to platforms with age-gated controls, not engaging in product placement in movies or television, and investing in technologies to further restrict access to nicotine products by those under 21.

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.

References to "PMI" mean the Philip Morris International family of companies. "PMI U.S.," "we," "our," and "us" refer to one or more PMI U.S. businesses.

SOURCE PMI US Corporate Services, Inc.

STAMFORD, CT--(BUSINESS WIRE)--Regulatory News: Philip Morris International Inc. (PMI) (NYSE: PM) will host a live webcast of a fireside chat session with Jacek Olczak, Group CEO PMI, at the 2026 Barclays Global Consumer Conference on Tuesday, September 8, 2026, at approximately 9:45 a.m. ET. The webcast can be accessed here. An archived copy of the webcast will be available for six months post-event on the same page. The webcast can also be accessed on mobile devices by downloading PMI's IR Ap.

Ausdal Financial Partners Inc. purchased a new stake in shares of Philip Morris International Inc. (NYSE:PM – Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 17,510 shares of the company’s stock, valued at approximately $3,168,000.

Other hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC increased its position in Philip Morris International by 31.1% during the fourth quarter. Brighton Jones LLC now owns 8,531 shares of the company’s stock valued at $1,027,000 after acquiring an additional 2,023 shares during the last quarter. Revolve Wealth Partners LLC boosted its position in Philip Morris International by 4.5% in the fourth quarter. Revolve Wealth Partners LLC now owns 2,097 shares of the company’s stock worth $252,000 after purchasing an additional 91 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Philip Morris International by 53.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,636 shares of the company’s stock valued at $1,027,000 after purchasing an additional 1,970 shares during the period. Jump Financial LLC bought a new stake in shares of Philip Morris International during the 2nd quarter valued at about $2,454,000. Finally, Osterweis Capital Management Inc. increased its position in shares of Philip Morris International by 2,280.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 357 shares of the company’s stock valued at $65,000 after purchasing an additional 342 shares during the last quarter. 78.63% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets Several equities analysts have recently weighed in on PM shares. Morgan Stanley increased their price objective on shares of Philip Morris International from $200.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday, July 23rd. Weiss Ratings restated a “buy (b)” rating on shares of Philip Morris International in a research report on Monday, August 17th. Citigroup upped their target price on shares of Philip Morris International from $210.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Barclays increased their price target on shares of Philip Morris International from $205.00 to $225.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Finally, Stifel Nicolaus lifted their price target on shares of Philip Morris International from $195.00 to $205.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Ten analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $205.89.

Get Our Latest Research Report on Philip Morris International Philip Morris International Price Performance PM stock opened at $193.94 on Thursday. Philip Morris International Inc. has a 1-year low of $142.11 and a 1-year high of $207.76. The business has a 50 day simple moving average of $186.71 and a two-hundred day simple moving average of $178.64. The company has a market capitalization of $302.28 billion, a price-to-earnings ratio of 27.86, a PEG ratio of 2.34 and a beta of 0.38.

Philip Morris International (NYSE:PM – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.15. The firm had revenue of $11.19 billion for the quarter, compared to analysts’ expectations of $10.60 billion. Philip Morris International had a net margin of 11.06% and a negative return on equity of 163.41%. The company’s revenue for the quarter was up 10.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.89 earnings per share. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS. Sell-side analysts anticipate that Philip Morris International Inc. will post 8.33 EPS for the current fiscal year.

Philip Morris International Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Thursday, June 25th were issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Thursday, June 25th. Philip Morris International’s dividend payout ratio is 84.48%.

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.

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Key Takeaways Philip Morris won FDA marketing authorization for 11 ZYN ULTRA nicotine pouch products in the United States.ZYN ULTRA approvals cover all 9mg variants and one 11mg Smooth variant, with more 11mg products under review.PM's smoke-free products span 109 markets and generated roughly 42% of second-quarter 2026 net revenues. Philip Morris International Inc. PM continues to advance its smoke-free transformation, with regulatory progress in the United States adding another potential growth lever. The FDA has authorized Swedish Match USA, Inc., a U.S. affiliate of Philip Morris International, to market 11 ZYN ULTRA moist oral nicotine pouch products following scientific review, broadening the company’s presence in the U.S. nicotine pouch category.

The authorizations cover all 9mg ZYN ULTRA variants and one 11mg Smooth variant, while additional 11mg products remain under FDA review. ZYN ULTRA, which has higher moisture content than the flagship ZYN range, is free of tobacco leaf. The latest action builds on earlier FDA authorizations for ZYN’s 3mg and 6mg variants and broadens Philip Morris’ portfolio of smoke-free alternatives for legal-age nicotine consumers.

The development broadens Philip Morris’ ability to serve legal-age nicotine consumers with a wider range of smoke-free alternatives. ZYN ULTRA also extends the brand into higher-strength offerings, potentially improving its reach across different consumer preferences. Philip Morris began commercializing ZYN ULTRA in June 2026 under recent FDA guidance, making the latest authorization an important regulatory step for the expanded range.

The decision adds to a series of FDA actions involving Philip Morris’ smoke-free portfolio. Earlier, 20 ZYN nicotine pouch variants received Modified Risk Tobacco Product authorizations. Versions of IQOS devices and consumables, along with General snus, have also received FDA marketing authorizations, highlighting the company’s growing regulatory footprint across smoke-free categories.

Overall, the ZYN ULTRA authorization reinforces Philip Morris’ long-term push to shift its portfolio toward smoke-free products. With the smoke-free products available across 109 markets and its smoke-free business accounting for roughly 42% of second-quarter 2026 net revenues, continued regulatory progress in the United States could support broader portfolio expansion and strengthen the company’s position in the smoke-free category.

Philip Morris’ Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have fallen 2.5% over the past month against the broader Consumer Staples sector and the S&P 500 index’s growth of 2.2% and 3.8%, respectively. PM has outperformed the industry’s decline of 5.2% in the same period.

PM Stock's Past Month Performance
Image Source: Zacks Investment Research

Is PM a Value Play Stock?Philip Morris currently trades at a forward 12-month P/E ratio of 21.22, which is up from the industry average of 15.16 and the sector average of 17.32. This valuation positions the stock at a premium relative to both its direct peers and the broader consumer staples sector.

PM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the year-ago reported numbers.

Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients holds a Zacks Rank of 2 (Buy). DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 11.5% and 926.5%, respectively, from the year-ago figures.

Blue Capital Inc. bought a new position in shares of Philip Morris International Inc. (NYSE:PM – Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 16,339 shares of the company’s stock, valued at approximately $2,956,000. Philip Morris International comprises 1.9% of Blue Capital Inc.’s portfolio, making the stock its 11th largest holding.

Other large investors have also modified their holdings of the company. Bank of New York Mellon Corp boosted its stake in shares of Philip Morris International by 30.9% during the 2nd quarter. Bank of New York Mellon Corp now owns 11,669,878 shares of the company’s stock worth $2,111,198,000 after purchasing an additional 2,755,662 shares during the last quarter. Global Retirement Partners LLC raised its position in shares of Philip Morris International by 40.3% in the fourth quarter. Global Retirement Partners LLC now owns 67,177 shares of the company’s stock valued at $10,775,000 after buying an additional 19,309 shares during the last quarter. New York Life Investment Management LLC raised its position in shares of Philip Morris International by 3.6% in the fourth quarter. New York Life Investment Management LLC now owns 216,613 shares of the company’s stock valued at $34,745,000 after buying an additional 7,600 shares during the last quarter. Addison Capital Co boosted its position in Philip Morris International by 32.5% during the first quarter. Addison Capital Co now owns 31,779 shares of the company’s stock worth $5,254,000 after acquiring an additional 7,793 shares during the last quarter. Finally, Brighton Jones LLC boosted its position in Philip Morris International by 31.1% during the fourth quarter. Brighton Jones LLC now owns 8,531 shares of the company’s stock worth $1,027,000 after acquiring an additional 2,023 shares during the last quarter. 78.63% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades PM has been the subject of several analyst reports. Citigroup boosted their price target on Philip Morris International from $210.00 to $225.00 and gave the company a “buy” rating in a report on Thursday, July 30th. BTIG Research set a $221.00 price objective on Philip Morris International and gave the company a “buy” rating in a research report on Friday, July 24th. Bank of America reiterated a “buy” rating on shares of Philip Morris International in a research note on Thursday, May 21st. Needham & Company LLC increased their target price on Philip Morris International from $200.00 to $215.00 and gave the stock a “buy” rating in a research report on Thursday, July 23rd. Finally, Barclays raised their price target on Philip Morris International from $205.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Ten equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $205.89.

View Our Latest Stock Analysis on PM Philip Morris International Stock Performance Philip Morris International stock opened at $188.14 on Friday. The stock’s 50 day moving average price is $186.03 and its 200 day moving average price is $178.36. The firm has a market capitalization of $293.24 billion, a PE ratio of 27.03, a price-to-earnings-growth ratio of 2.31 and a beta of 0.38. Philip Morris International Inc. has a one year low of $142.11 and a one year high of $207.76.

Philip Morris International (NYSE:PM – Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.15. The company had revenue of $11.19 billion during the quarter, compared to the consensus estimate of $10.60 billion. Philip Morris International had a net margin of 11.06% and a negative return on equity of 163.41%. Philip Morris International’s revenue for the quarter was up 10.4% on a year-over-year basis. During the same quarter last year, the company earned $1.89 earnings per share. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS. On average, analysts forecast that Philip Morris International Inc. will post 8.33 earnings per share for the current fiscal year.

Philip Morris International Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Monday, July 20th. Investors of record on Thursday, June 25th were issued a $1.47 dividend. The ex-dividend date of this dividend was Thursday, June 25th. This represents a $5.88 annualized dividend and a yield of 3.1%. Philip Morris International’s dividend payout ratio is currently 84.48%.

(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.

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The U.S. Food and Drug Administration said on Friday it had authorized ​11 nicotine pouch products recently launched ‌by Philip Morris (PM.N), citing lower levels of harmful constituents compared with other oral and smokeless ​tobacco products.

Philip Morris unveiled its ​higher-strength Zyn Ultra nicotine pouches in ⁠June, at prices lower than its ​flagship Zyn brand, to fend off competition ​from British American Tobacco's (BATS.L) Velo.

Here are more details:

The latest authorization follows the agency's June approval of ​20 variants of the company's Zyn ​pouches as less harmful than cigarettes.

These pouches, placed under ‌the ⁠lip to deliver nicotine, are the fastest-growing nicotine category in the United States.

The newly authorized products include 9 mg ​Zyn Ultra ​Citrus, ⁠Menthol, and Wintergreen variants made by Philip Morris subsidiary Swedish ​Match USA.

Last month, Philip Morris ​reported ⁠better-than-expected quarterly earnings and said it would increase investment in Zyn as competition intensifies. ⁠However, ​the tobacco company lowered ​its annual forecast amid currency headwinds.