What to look for when Philip Morris (PM) reports its Q2 2025 earnings results

Shares of Philip Morris International Inc. (NYSE: PM) stayed green on Monday. The stock has gained 14% over the past three months. The tobacco company is scheduled to report its earnings results for the second quarter of 2025 on Tuesday, July 22, before market opens. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $10.3 billion for Philip Morris in the second quarter of 2025, which indicates a growth of 9% from the same period last year. In the first quarter of 2025, revenue increased nearly 6% year-over-year to $9.3 billion.

Earnings

Philip Morris has guided for adjusted earnings per share of $1.80-1.85 for Q2 2025. Analysts are predicting EPS of $1.86. This compares to adjusted EPS of $1.59 reported in Q2 2024. In Q1 2025, adjusted EPS rose nearly 13% YoY to $1.69.

Points to note

Philip Morris’ smoke-free business, led by IQOS and Zyn, is expected to keep up its momentum in the second quarter. The company’s smoke-free products are available in 95 markets, with 46 markets having a multi-category portfolio. In Q1, the smoke-free business saw double-digit growth in volumes, revenues and gross profit.

IQOS is expected to hold its leading position as it continues to perform well in markets such as Japan and Europe, with double-digit growth in regions like Spain, Germany and Greece. The product is also gaining share in places like Jakarta, Seoul and Mexico City.

Zyn is expected to strengthen its position in the oral nicotine pouch category. Last quarter, Zyn volumes grew 53% and it is gaining traction in emerging markets like South Africa. Recent launches in regions like UK, Poland and Italy are showing promising results.

PM’s combustibles business is expected to stay resilient in a declining market helped by volume growth and strong pricing. The Marlboro brand continues to gain market share. Last quarter, the company’s share of the overall cigarette category increased to 24.8%.