Shares of Philip Morris International Inc. (NYSE: PM) were down over 7% on Tuesday after the company delivered mixed results for the second quarter of 2025. Revenue and earnings saw growth compared to the previous year but while the bottom line beat expectations, the top line fell short of estimates. Here are the main takeaways from the earnings report:
Mixed results
In Q2 2025, PM generated revenues of $10.1 billion, which were up 7.1% from the year-ago quarter, but below expectations of $10.3 billion. Organic revenue growth was 6.8%. GAAP earnings per share grew 26.6% year-over-year to $1.95. Adjusted EPS rose 20.1% to $1.91, surpassing estimates of $1.86.
Business performance
PM’s smoke-free business continued its momentum in the second quarter with double-digit growth in shipments, revenue and gross profit. Shipments grew 11.8%, revenue was up 15.2%, and gross profit rose 23.3%. The company’s smoke-free products are available in 97 markets and the business accounted for 41% of net revenues in Q2.
The smoke-free portfolio is led by IQOS, which exceeded $3 billion in revenues in Q2. IQOS continued its strong growth in Japan and Europe and also gained share in markets like Jakarta, Mexico City and Seoul. Within the oral smoke-free product category, shipment volume increased by 23.8% in Q2, led by nicotine pouches. Nicotine pouches volumes grew over 40% in the US and more than doubled internationally.
Within combustibles, net revenue grew 2.1%, helped by strong pricing. Cigarettes volume dropped 1.5% in the quarter. The Marlboro brand continues to gain market share and the company’s overall cigarette category share remained broadly stable.
Outlook
For the full year of 2025, PM expects organic revenue growth of 6-8%. Reported EPS is expected to be $7.24-7.37 while adjusted EPS is expected to be $7.43-7.56.
Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.
Most Popular
Infographic: How Lennar (LEN) performed in Q4 2025
Lennar Corporation (NYSE: LEN) reported total revenues of $9.4 billion for the fourth quarter of 2025, compared to $9.9 billion reported in the same period a year ago. Net earnings
Paychex expected to report higher revenue and earnings for Q2 FY26
Paychex, Inc. (NASDAQ: PAYX), a leading provider of human capital management solutions, is undergoing an AI-driven transformation that enhances both its internal operations and client-facing services. Entering fiscal 2026, the
Signet Jewelers (SIG): A look at the progress made on Grow Brand Love
Shares of Signet Jewelers Limited (NYSE: SIG) fell over 3% on Tuesday. The stock has gained 3% year-to-date. The jewelry retailer delivered strong results for the third quarter of 2026,
