Philip Morris Q3 revenue and adj EPS beat on smoke-free products growth

Overview

• Tobacco and nicotine products maker's Q3 revenue rose, beating analyst expectations

• Adjusted EPS for Q3 grew 5.4% to $2.36, beating analyst expectations

• Reported EPS declined 4.9% due to non-cash equity security adjustment

Outlook

• Philip Morris sees 2026 adj diluted EPS at $8.29-$8.44, up 9.9%-11.9% vs 2025

Result Drivers

• SMOKE-FREE GROWTH - Co said smoke-free product volumes rose 2.7% in Q3, with broad-based growth across all categories and markets

• COMBUSTIBLE PRICING - Co said strong pricing in combustibles segment contributed to net revenue and margin expansion

• ZYN PORTFOLIO - Co said US net revenues rose 22.7% in Q3, driven by ZYN nicotine pouch shipments and favorable price comparisons against prior year promotions

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for Philip Morris International Inc. is $210.00, about 5.1% above its October 20 closing price of $199.90

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)