Key Highlights
Net Revenues: $10.85 billion (+9.4%)
Adjusted Diluted EPS: $2.24 (+17.3%)
Smoke-Free Business: +17.7% net revenue, +19.5% gross profit
Combustibles: +4.3% net revenue despite -3.2% shipment decline
Full-Year Outlook: Adjusted EPS $7.46–$7.56, up 13.5–15.1%
Dividend: Raised to $1.47/share (annualized $5.88)
2Firsts – October 21, 2025 – Philip Morris International Inc. (PMI) (NYSE: PM) reported strong third-quarter 2025 results, driven by continued momentum in its smoke-free products and robust pricing in combustibles. Net revenues reached $10.85 billion, up 9.4% year-over-year. Adjusted diluted EPS rose 17.3% to $2.24, prompting an upward revision to full-year earnings guidance.PMI stated that its new tobacco product business contributed 41% of total revenue and over 42% of gross profit, setting a new record high.
Key Financial Highlights
Net Revenues: $10.85 billion, up 9.4% year-over-year (organic growth 5.9%).
Reported Diluted EPS: $2.23, up 13.2%.
Adjusted Diluted EPS: $2.24, up 17.3%; up 13.1% excluding currency.
Gross Profit: $7.4 billion, up 12.4%.
Operating Income: $4.3 billion, up 16.7%.
Quarterly Dividend: $1.47 per share, up 8.9% year-over-year, representing an annualized $5.88 per share.
Business Segment Performance
Smoke-Free Business
Accounted for 41% of total net revenues and over 42% of total gross profit.
Net Revenues: $4.4 billion, up 17.7% (13.9% organic).
Shipment Volume: Up 16.6%.
IQOS:expanded to 100 markets and maintained its position as the second largest nicotine brand globally, with 9.1% total nicotine share and 76% of the heated tobacco category.
VEEV:shipment volumes surged 91%, reaching 46 markets, holding a Top 3 position in 15 markets and #1 in 8.
Oral SFP:shipments grew 16.9%, with ZYN sales in the U.S. up 39%, fueling over 40% category growth.
Combustibles
Net revenues up 4.3% (1.0% organic) despite a 3.2% decline in shipment volumes.
Gross profit up 7.7%.
Marlboro’s category share reached 10.9%, its highest level since 2008.
Regional Highlights
Europe: Organic net revenue growth of 6.4%, driven by higher pricing and strong HTU sales.
SSEA, CIS & MEA: Organic growth of 7.8%, supported by higher pricing and smoke-free volume.
East Asia, Australia & GTR: Organic growth of 8.9%, led by smoke-free products.
Americas: Net revenues down 5.0%, due to temporary U.S. promotions for ZYN, but shipment volumes up 0.6%.
Full-Year Outlook
PMI raised its 2025 full-year adjusted diluted EPS forecast to a range of $7.46–$7.56, representing a 13.5%–15.1% increase versus 2024.
Organic net revenue growth: 6%–8%.
Smoke-free shipment volume growth: 12%–14%.
Organic operating income growth: 10%–11.5%.
PMI also announced a forthcoming new segment reporting structure effective January 1, 2026, dividing operations into International Smoke-Free, International Combustibles, and U.S. segments.
PMI’s Q3 2025 performance underscores the company’s strategic pivot toward a smoke-free future. Despite competitive pressures and regulatory challenges, the company continues to deliver industry-leading growth and profitability through innovation and disciplined execution.
