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Sep 30
Philip Morris Q3 2025 Earnings Report
Philip Morris reported record smoke-free profits and raised full-year guidance.
Key Takeaways
Philip Morris delivered strong Q3 2025 results, driven by growth in its smoke-free product portfolio, which accounted for over 42% of total gross profit. The company raised its full-year adjusted EPS forecast.
Adjusted EPS rose to $2.24, a 17.3% increase from the previous year
Smoke-free products accounted for 41% of net revenue and over 42% of gross profit
Total revenue increased to $10.8 billion, driven by strong smoke-free performance
Net income reached $2.23 billion, supported by a 16.7% increase in operating income
Philip Morris
Philip Morris
Philip Morris Revenue by Segment
Philip Morris Revenue by Geographic Location
Revenue by Segment
Smoke-Free Products Revenue
CapyFin.comCombustible Products Revenue
CapyFin.comRevenue by Geographic Location
European Union Revenue
CapyFin.comSouth & Southeast Asia Revenue
CapyFin.comEast Asia & Australia Revenue
CapyFin.comLatin America & Canada Revenue
CapyFin.com Forward Guidance
Philip Morris raised its 2025 full-year adjusted EPS guidance, reflecting confidence in its smoke-free transformation and continued strong performance.
Positive Outlook
- Raised full-year adjusted EPS guidance to $7.46–$7.56
- Strong growth expected in smoke-free product volumes (12%–14%)
- Organic net revenue growth projected at 6%–8%
- Operating cash flow expected to exceed $11.5 billion
- Further margin expansion expected in core markets
Challenges Ahead
- No share repurchases planned for 2025
- Continued investment pressure from U.S. expansion
- Unfavorable price variance in U.S. due to ZYN promotions
- Cigarette volumes expected to decline by ~2%
- Impact from restructuring and amortization charges expected
Revenue & Expenses
Visualization of income flow from segment revenue to net income