Philip Morris Reports Strong Growth Amid Market Shifts

With a market cap of around $271 billion, Philip Morris International Inc. (PM) stands as a leading global tobacco firm that aims to shift towards a smoke-free future. The company’s offerings include not just traditional cigarettes but also smoke-free alternatives such as the IQOS heat-not-burn system and ZYN oral nicotine pouches, in addition to wellness and healthcare products.

In the past 52 weeks, shares of this Stamford, Connecticut-based company have greatly outperformed the broader market. Notably, PM has surged 78.1% during this period, compared to a mere 8.2% increase in the S&P 500 Index ($SPX). Year-to-date, Philip Morris shares are up 44.3%, in stark contrast to SPX’s decline of 4.7%.

Zooming in further, Philip Morris has also exceeded the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.2% rise over the last 52 weeks, as well as its YTD return of 3.7%.

On April 23, shares of Philip Morris rose by 2.4% following the release of robust Q1 2025 results, where adjusted EPS reached $1.69, exceeding consensus estimates. Net revenues climbed by 5.8% to $9.3 billion, driven by pricing strategies and increased volumes of smoke-free products. Notably, revenues from smoke-free products spiked by 15%, accounting for 42% of total revenues, with significant growth in IQOS and ZYN sales. Additionally, the company has revised its full-year adjusted EPS guidance upward to a range of $7.36 – $7.49.

For the fiscal year ending in December 2025, analysts anticipate PM’s EPS will grow by 13.7% year-over-year, reaching $7.47. The company has a consistent history of earnings surprises, having surpassed consensus estimates in the last four quarters.

Among the twelve analysts assessing the Stock, the overall consensus rating is a “Strong Buy,” based on eight “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.” This marks a more bullish outlook than three months prior, when there were seven “Strong Buy” ratings on the stock.

On April 8, UBS analyst Faham Baig increased the price target for Philip Morris to $130 while maintaining a “Sell” rating.

As of this writing, PM is currently trading below the average price target of $182.45. The highest price target from analysts, set at $205, suggests a potential upside of 17.6% from the current price.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the perspectives of Nasdaq, Inc.