Philip Morris Gains as Smoke-Free Surge Prompts Strong Q1

Philip Morris International (NYSE:PM) delivered better-than-expected results and raised its full-year earnings outlook, sending shares more than 2% higher in pre-market trading.

The company posted adjusted earnings of $1.69 per share, ahead of analyst expectations of $1.60. Revenue climbed 5.8% year-over-year to $9.3 billion, also topping estimates. Margin expansion and volume gains helped drive the strong performance.

A major growth driver continues to be the company’s smoke-free portfolio, which includes heated tobacco products and oral nicotine pouches. Organic revenue from this segment surged 20.4% and now makes up 42% of total net sales. Heated tobacco shipments rose nearly 12% to 37.1 billion units, while in the U.S., ZYN pouch shipments jumped 53% year-over-year to more than 200 million cans. The company now expects full-year ZYN volumes between 800 and 840 million cans, significantly above earlier projections.

Boosted by favorable currency trends and product momentum, Philip Morris raised its adjusted EPS forecast for 2025 to between $7.36 and $7.49, up from the prior range of $7.04 to $7.17. The company reaffirmed its expectations for organic revenue growth of 6% to 8% and operating income growth of 10.5% to 12.5%.

With a fast-expanding presence in the smoke-free category and rising global demand, Philip Morris is positioning itself for another year of solid growth and profitability.