Overview

• Tobacco company's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's smoke-free business net revenue grew 12% in Q4

Outlook

• Philip Morris forecasts 2026 reported diluted EPS of $7.87 to $8.02

• Company expects 2026 adjusted diluted EPS growth of 11.1% to 13.1%

• Philip Morris targets 6% to 8% organic net revenue growth for 2026-2028

Result Drivers

• SMOKE-FREE BUSINESS - Full-year shipment volumes up 12.8%, net revenues growing by 15.0%, contributing 41.5% of total net revenues

• IQOS MARKET SHARE - IQOS holds 76% volume share in heat-not-burn category, with notable growth in Japan and Europe

• NICOTINE POUCHES - U.S. nicotine pouches grew nearly 37%, leading the category with ZYN holding around two-thirds value share

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for Philip Morris International Inc is $180.00, about 1.1% below its February 5 closing price of $182.00

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw7kq7Xca

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