Philip Morris International

PM Q2 2025 Earnings

Reported Jul 22, 2025 at 7:03 AM ET · SEC Source

Q2 25 EPS

$1.91

BEAT +2.80%

Est. $1.86

Q2 25 Revenue

$10.14B

MISS 1.80%

Est. $10.33B

vs S&P Since Q2 25

-12.9%

TRAILING MARKET

PM +1.7% vs S&P +14.6%

Market Reaction

Did PM Beat Earnings? Q2 2025 Results

Philip Morris International posted a mixed but largely encouraging second quarter, delivering an earnings beat while falling short on the top line as illicit cigarette markets in regions like Indonesia and Europe weighed on volumes. Adjusted diluted … Read more Philip Morris International posted a mixed but largely encouraging second quarter, delivering an earnings beat while falling short on the top line as illicit cigarette markets in regions like Indonesia and Europe weighed on volumes. Adjusted diluted EPS came in at $1.91, clearing the $1.86 consensus estimate by 2.80%, while revenue of $10.14 billion grew 7.10% year-over-year but missed the $10.33 billion consensus by 1.80%. The standout driver was the company's accelerating smoke-free transformation, with IQOS crossing $3.00 billion in quarterly net revenues for the first time and U.S. ZYN shipments surging over 40% to 190 million cans. That momentum was enough to prompt management to raise its full-year adjusted diluted EPS guidance to a range of $7.43 to $7.56, representing 13% to 15% growth over 2024's $6.57 base, with third-quarter adjusted EPS guided to $2.08 to $2.13. Operating cash flow for the full year is projected at approximately $11.50 billion.

Key Takeaways

  • IQOS exceeded $3 billion in quarterly net revenues with HTU adjusted IMS growth reaccelerating to 11.4%
  • ZYN U.S. offtake growth reaccelerated to approximately 36% in June
  • Strong combustible tobacco pricing driving revenue and gross profit growth
  • Smoke-free business accounted for 41% of net revenues, up 2.9pp YoY
  • Marlboro achieved highest quarterly market share since 2008 spin-off
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PM YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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PM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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PM Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Our business delivered very strong results in the second quarter, with record net revenues and exceptional growth in operating income and adjusted diluted EPS.”

— Jacek Olczak, Q2 2025 Earnings Press Release