Philip Morris International (PM) — Company Research

Last Updated: 7 November 2026

Philip Morris International Inc. (NYSE: PM) sells cigarettes such as Marlboro outside the United States and is building a large smoke-free business around IQOS heated tobacco, ZYN nicotine pouches and VEEV e-vapour products. In 2025 net revenues rose 7.3% to $40,648m, reported diluted EPS was $7.26 and adjusted diluted EPS was $7.54. In the first nine months of 2026 net revenues rose 8.2% to $32,776m and smoke-free products made up about 42% of the total. On 21 Oct 2026 management set 2026 adjusted EPS guidance at $8.29–$8.44 (reported $7.11–$7.26), slightly below the range given in September. Every figure here comes from PMI's own releases and SEC filings.

1. Company Snapshot

Field	Value
Company	Philip Morris International Inc.
Ticker / Exchange	PM / NYSE
Sector	Consumer staples (tobacco and nicotine products)
CEO / Leadership	Jacek Olczak (Group CEO); Massimo Andolina (Group CFO since 01 Aug 2026); André Calantzopoulos (Chairman)
Employees	About 84,900 at 31 Dec 2025 (FY2025 10-K)
Headquarters	Stamford, Connecticut; incorporated in Virginia, with a major operations centre in Lausanne, Switzerland
Fiscal year end	31 December
Revenue (FY2025)	$40,648m net revenues (+7.3%); trailing four quarters to 30 Sep 2026 $43,138m
Net income (FY2025)	$11,348m net earnings attributable to PMI; reported diluted EPS $7.26, adjusted $7.54
Market cap	~$308.4bn ($197.84 close on 06 Nov 2026 × 1,558.7m shares outstanding at 16 Oct 2026)
Dividend	$1.60 per quarter ($6.40 annualised), raised 8.8% on 18 Sep 2026

2. Investment Thesis: Bull vs Bear

Bull Case

• Smoke-free scale: Smoke-free products brought in $13,649m, or about 42% of net revenues, in the first nine months of 2026 and are now sold in 110 markets; VEEV shipments rose 61.6% in Q3 2026.
• Record adjusted earnings: Q3 2026 adjusted diluted EPS of $2.36 was a quarterly record, up 5.4%, on organic net revenue growth of 7.1% and operating income up 14.1% to $4,866m.
• ZYN regulatory position: The FDA gave modified-risk authorisation to 20 ZYN variants in Jun 2026 and authorised 11 ZYN ULTRA variants on 21 Aug 2026, and the new Aurora, Colorado plant began commercial production in Jul 2026.
• Dividend record: PMI has raised its dividend every year since 2008, most recently by 8.8% to $1.60 a quarter, and expects about $13.5bn of operating cash flow in 2026.

Bear Case

• Guidance drift: 2026 adjusted EPS guidance has moved from $8.38–$8.53 in Feb to $8.29–$8.44, and reported EPS guidance from $7.87–$8.02 to $7.11–$7.26, partly because of a $511m impairment of its Canadian business RBH.
• Heavy debt, negative equity: Total debt was about $47.6bn at 30 Sep 2026 and shareholders' equity was −$7,937m; PMI is not buying back shares and targets net debt of close to 2.0x adjusted EBITDA.
• US IQOS still waiting: The FDA application for IQOS ILUMA, filed on 20 Oct 2023, is still pending, so US IQOS sales remain a limited roll-out of an older device that started in Austin, Texas in Mar 2025.
• Insider selling: CEO Jacek Olczak sold 80,000 shares for about $14.6m on 19 Feb 2026, and five other executives sold the same week; there were no open-market purchases in 2026.

3. Business Segments

From 1 Jan 2026 PMI reports three segments instead of four geographic regions. Figures below are FY2025 net revenues recast to the new segments (PMI recast schedules). By product category, smoke-free products were $16,854m (41.5%) and combustibles $23,794m (58.5%) in 2025.

Segment	% of revenue	What it is
International Combustibles	57.7% ($23,436m)	Cigarettes and other combustible tobacco sold outside the US, led by Marlboro. Q3 2026 net revenues $6,725m, +6.5%.
International Smoke-Free	34.4% ($13,996m)	IQOS heated tobacco devices and consumables, VEEV e-vapour and international ZYN and other oral products outside the US. Q3 2026 net revenues $3,867m, +0.7% (+3.4% organic).
U.S.	7.9% ($3,216m)	Mainly ZYN nicotine pouches (3.2bn US pouches shipped in Q3 2026, +4.2%) plus a limited IQOS roll-out. Q3 2026 net revenues $845m, +22.7%.

4. Business Model & Moat

How it makes money. PMI makes and sells cigarettes, heated tobacco units for IQOS devices, nicotine pouches and e-vapour products; smoke-free products alone are sold in 110 markets. Combustibles still provide most of the cash, which funds the dividend and investment in smoke-free products. FY2025 operating income was $14,892m on $40,648m of net revenues.

Brands and pricing power. Marlboro is the core cigarette brand, and IQOS took a 9.9% share of combined cigarette and heated tobacco volume in its markets in Q3 2026, up 1.0 point. Q3 2026 cigarette shipments were flat at 158.0bn units while International Combustibles net revenues rose 6.5%.

Regulatory barriers. New nicotine products need marketing authorisation in many countries. In the US, ZYN holds FDA authorisation for 31 variants, including 20 with modified-risk orders, and the FDA renewed IQOS 2.4 and 3.0 modified-risk orders on 17 Apr 2026 until Apr 2031.

Where the moat is tested. Excise taxes, illicit trade and litigation all weigh on the business, and US authorisation for the newer ILUMA device has not yet arrived.

5. Financial Health

Annual figures come from PMI's fourth-quarter earnings releases and 10-K filings, cross-checked against SEC XBRL data. Long-term debt is the non-current balance at year end. Adjusted EPS is as first reported each year.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$31,405m	+9.4%	$5.83	$6.08†	$4.90	$24,783m
FY2022	$31,762m	+1.1%	$5.81	$5.98	$5.04	$34,875m
FY2023	$35,174m	+10.7%	$5.02	$6.01	$5.14	$41,243m
FY2024	$37,878m	+7.7%	$4.52	$6.57	$5.30	$42,166m
FY2025	$40,648m	+7.3%	$7.26	$7.54	$5.64	$45,134m

† FY2021 adjusted EPS of $6.08 is as reported in Feb 2022; PMI later restated it to $6.13 after it began adding back amortisation of intangibles in 2022. FY2024 GAAP EPS includes a $1.49 a share charge for the impairment of its Canadian subsidiary RBH.

Quarterly results, most recent first.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q3 2026 (to 30 Sep 2026)	$11,438m	$2.36	$2.12
Q2 2026 (to 30 Jun 2026)	$11,192m	$2.20	$1.80
Q1 2026 (to 31 Mar 2026)	$10,146m	$1.96	$1.56
Q4 2025 (to 31 Dec 2025)	$10,362m	$1.70	$1.37
Trailing four quarters total (to 30 Sep 2026)	$43,138m	$8.22	$6.85

Q3 2026 GAAP EPS fell 4.9% mainly because of a non-cash fair value adjustment on equity securities; Q2 2026 GAAP EPS includes the $511m ($0.33 a share) RBH impairment.

Cash flow and balance sheet. 2025 operating cash flow was $12,233m and capital expenditure $1,569m, giving free cash flow of $10,664m. Depreciation and amortisation was $1,996m. In the first nine months of 2026 operating cash flow was $10,445m (9M 2025: $7,524m) and capex $1,115m. At 30 Sep 2026 PMI had cash of $6,683m against short-term borrowings of $2,525m, current long-term debt of $3,328m and non-current long-term debt of $41,709m. On 29 Jun 2026 it prepaid €1.0bn of a term loan, leaving €1.5bn due on 23 Jun 2027. Shareholders' equity was −$7,937m, the result of years of buybacks and dividends above earnings. Follow the shares on ChartsView Live Charts.

6. Valuation

Raw metrics, November 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$308.4bn ($197.84 close on 06 Nov 2026 × 1,558.7m shares outstanding)
Trailing P/E (GAAP)	~28.9x ($197.84 / GAAP EPS of $6.85 over the four quarters to 30 Sep 2026). On trailing adjusted EPS of $8.22 the multiple is ~24.1x.
P/E (forward)	~23.7x ($197.84 / $8.365, the midpoint of 2026 adjusted EPS guidance); ~27.5x on the $7.185 reported EPS guidance midpoint
P/S (TTM)	~7.1x (~$308.4bn / net revenues of $43,138m over four quarters to 30 Sep 2026)
Enterprise value	~$349.2bn (market cap ~$308.4bn + total debt ~$47.6bn − cash $6.7bn; total debt = short-term borrowings $2,525m + current long-term debt $3,328m + non-current long-term debt $41,709m, per 30 Sep 2026 balance sheet)
EV/EBITDA (TTM)	~18.7x (EV ~$349.2bn / EBITDA ~$18.7bn; EBITDA = operating income $16,662m + D&A $2,055m over four quarters to 30 Sep 2026). On FY2025 EBITDA of $16,888m ($14,892m + $1,996m) it is ~20.7x.
P/FCF	~28.9x (~$308.4bn / FCF ~$10.7bn; FCF = operating CF $12,233m − capex $1,569m per FY2025 cash flow statement)
Dividend yield	~3.2% ($6.40 annualised / $197.84)
52-week high	$214.35 (30 Oct 2026, intraday)
52-week low	$146.35 (04 Dec 2025, intraday)
Short interest (% of float)	1.11% (17.30m shares, settlement 15 Oct 2026, Yahoo Finance and Finviz)
Days to cover	3.7 (Yahoo Finance; Finviz shows 3.8)

7. What Are They Building

US ZYN capacity. The Aurora, Colorado campus started commercial ZYN production in Jul 2026, with planned investment of about $1.2bn over 2024–2028 and around 500 jobs. Until now the Owensboro, Kentucky plant has supplied substantially all US ZYN.

ZYN range. ZYN ULTRA launched in Jun 2026 and 11 variants were authorised by the FDA on 21 Aug 2026. From Q4 2026 most flagship ZYN cans move from 15 to 20 pouches, backed by higher US marketing spend. International modern oral shipments rose 20.6% in Q3 2026, and ZYN is sold in 62 markets outside the US.

IQOS and VEEV. PMI is waiting for FDA authorisation of IQOS ILUMA before a wider US launch. VEEV is now in 51 markets and launched in South Korea in Aug 2026.

Wellness reset. In Oct 2026 PMI began restructuring its Aspeya wellness and healthcare unit, moving some product lines to an asset-light partnership or joint-venture model. Costs will fall in Q4 2026 and H1 2027, and a goodwill impairment is possible (wellness goodwill was $337m at 30 Sep 2026).

8. Competitive Landscape

Peer	Market cap (November 2026)	Key 2025 metric
Altria (MO)	~$126.6bn (Yahoo Finance, 06 Nov 2026 close)	FY2025 net revenues $23,279m; diluted EPS $4.12 (10-K)
British American Tobacco (BTI, NYSE ADR)	~$130.8bn (Yahoo Finance, 06 Nov 2026 close of the ADR)	FY2025 revenue £25,610m; diluted EPS 349.1p (20-F)
Japan Tobacco (2914, Tokyo)	~$70.3bn (¥11.13tn, Yahoo Finance, 06 Nov 2026)	FY2025 revenue ¥3,467.7bn, +13.4%; adjusted operating profit ¥902.2bn (results summary via Tobacco Insider)

PMI's market value is more than twice that of Altria or BAT, and its FY2025 net revenues of $40,648m were well above Altria's $23,279m. Discuss the sector on the ChartsView Forum.

9. Leadership & Insider Activity

Jacek Olczak is Group CEO and André Calantzopoulos is Chairman. Massimo Andolina, previously President of the Europe region, became Group CFO on 01 Aug 2026, replacing Emmanuel Babeau, who stays as strategic adviser until 31 Mar 2027. None of the 2026 Form 4 filings ticked the 10b5-1 box, and there have been no Form 4 filings since 08 May 2026. Olczak's and Babeau's February sales are footnoted as being to cover annual Swiss tax. Recent transactions from SEC Form 4 filings:

Name	Date	Type	Shares	Price	Value	Plan Type
Nine non-employee directors (each)	06 May 2026	Annual stock award	1,119 each	$169.93	~$0.19m each	Not 10b5-1
Stacey Kennedy (CEO, PMI U.S.)	20 Feb 2026	Sell	14,350	~$183.13 (weighted)	~$2.63m	Not 10b5-1
Reginaldo Dobrowolski (Group Controller)	20 Feb 2026	Sell	6,000	$183.46–$183.58	~$1.10m	Not 10b5-1
Jacek Olczak (Group CEO)	19 Feb 2026	Sell	80,000	$182.18	~$14.57m	Not 10b5-1
Emmanuel Babeau (then Group CFO)	19 Feb 2026	Sell	33,800	$181.61	~$6.14m	Not 10b5-1
Frederic de Wilde (CEO, PMI International)	19 Feb 2026	Sell	20,000	$182.58	~$3.65m	Not 10b5-1
Yann Guerin (Group Chief Legal Officer)	19 Feb 2026	Sell	4,000	$181.69	~$0.73m	Not 10b5-1

10. Key Risks

• FDA dependence (Regulatory): US sales of ZYN and IQOS rely on FDA authorisations that carry strict conditions and could be withdrawn, for example if youth use rises, and newer products such as ILUMA may not be authorised.
• Excise taxes (Regulatory): Cigarette taxes are high and rising, price-based tax regimes hurt PMI's premium-weighted portfolio, and governments may stop taxing smoke-free products more lightly than cigarettes.
• Russia and Ukraine (Geopolitical): Russia was about 9% of 2025 cigarette and heated tobacco volume and about 6% of net revenues, and Ukraine about 2% and 1%, with risks of nationalisation, deconsolidation or impairment.
• Supply concentration (Operational): A long disruption at the Kentucky plant, which supplies substantially all US ZYN, would hit US results until Aurora ramps up.
• Litigation (Legal): Smoking and health cases, health-care cost recovery claims in Brazil, Korea and Nigeria and ZYN addiction lawsuits are pending; the 10-K says litigation could severely impair liquidity.
• Currency and costs (Macro): Most revenue is earned outside the US, so a stronger dollar, capital controls and devaluations reduce reported results; the Q3 release also flagged higher energy costs and Ukraine supply disruption.

11. Recent Developments

• 05 Nov 2026 — Shares fall 4.6%. The stock closed at $201.50 in a broad market sell-off, a week after reaching a 52-week high of $214.35; no company announcement was made that day.
• 23 Oct 2026 — Wellness restructuring. The Q3 10-Q disclosed that PMI started restructuring its Aspeya wellness unit in Oct 2026, with costs in Q4 2026 and H1 2027 and a possible goodwill impairment.
• 21 Oct 2026 — Q3 results and guidance trimmed. Net revenues rose 5.5% to $11,438m (+7.1% organic) and adjusted EPS rose 5.4% to a record $2.36, but 2026 adjusted EPS guidance was lowered to $8.29–$8.44 from $8.35–$8.50, with higher US ZYN investment planned for Q4.
• 18 Sep 2026 — Dividend raised. The quarterly dividend rose 8.8% to $1.60, paid on 26 Oct 2026.
• 01 Sep 2026 — ZYN class action dismissed. The Florida class action over ZYN was dismissed with prejudice, cancelling a trial that had been set for 07 Dec 2026; other ZYN suits remain pending.
• 21 Aug 2026 — ZYN ULTRA authorised. The FDA authorised 11 ZYN ULTRA variants for sale in the US.

For the US and global data that move consumer staples shares, see the ChartsView Economic Calendar.

12. Key Dates

• Expected Dec 2026 — Declaration of the next quarterly dividend (last year's was declared on 12 Dec 2025).
• Expected Jan 2027 — Payment of that dividend (last year's was paid on 14 Jan 2026).
• Expected Feb 2027 — Q4 and full-year 2026 results with 2027 guidance; date not yet confirmed by PMI (last year's results were on 06 Feb 2026).
• Expected early 2027 — First shipments under the contract-manufacturing agreement with Altria's Philip Morris USA announced on 24 Aug 2026.
• 31 Mar 2027 — Emmanuel Babeau's role as strategic adviser ends.
• 23 Jun 2027 — Remaining €1.5bn term loan falls due.

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