Philip Morris (PM) | News Based Sentiment Analysis

• On September 19, 2025, Philip Morris International (PMI) announced an 8.9% increase to its quarterly dividend, raising it to $1.47 per share, resulting in an annualized dividend of $5.88 and a current yield of 3.34%. This marks the company’s consecutive annual dividend increase since 2008, with a total increase of 219.6% over that period – a strong signal of financial health and commitment to returning value to shareholders.
• The company launched IQOS, an electrically heated tobacco system, in the U.S. market on September 16, 2025, through an exclusive licensing agreement with Altria Group, Inc. This is a significant milestone as it’s the first electrically heated tobacco technology authorized for sale by the FDA, and PMI has submitted evidence for it to be authorized as a modified risk tobacco product.
• The FDA initiated a fast-track review process for nicotine pouches on September 17, 2025, which is viewed positively by PMI, particularly given the robust U.S. shipment growth of ZYN, ranging from 40% to 80% each quarter since January 2023. This expedited review process is expected to be completed by December 2025.
• European President Massimo Andolina predicted that several European countries will cease cigarette sales within ten years, as 40% of Philip Morris' turnover already comes from “smoke-free” products, with a future ambition to increase this to 80%, as stated on September 17, 2025.
• PMI reported Q2 2025 adjusted diluted EPS exceeding expectations at $1.91 (versus an estimate of $1.86) on September 23, 2025, but Q2 revenue came in at $10.14 billion, falling short of the $10.33 billion consensus. Full-year 2025 EPS guidance was updated to $7.430-$7.560, slightly below the $7.520 consensus estimate.
• A PMI-sponsored report by EY-Parthenon detailed the company's economic impact in the EU from 2019 to 2023, stating a contribution of approximately €289 billion to the EU economy, including €65.8 billion to the EU's GDP in 2023 alone, supporting one million jobs and contributing €38 billion in taxes.
• Analysts maintain a positive outlook on Philip Morris, with a “Buy” consensus rating from 23 analysts and an average price target of $184.91 as of September 24, 2025. Bank of America increased its price target from $182.00 to $200.00, while Needham & Company reiterated a “buy” rating with a $195.00 price target.

The Investment Story: September was a month of strategic expansion for Philip Morris, marked by the U.S. launch of IQOS and continued investment in smoke-free products, alongside a generous dividend increase. While earnings guidance was slightly lowered, the overall picture remains positive as the company navigates the transition away from traditional cigarettes.

What It Means for Investors: The dividend increase provides a solid return, and the positive analyst ratings suggest continued confidence in the company’s long-term prospects. The launch of IQOS in the U.S. is a key growth driver, but investors should monitor revenue performance and the impact of the slightly lowered earnings guidance.

Looking Ahead: Investors should closely watch Q3 2025 earnings results, the FDA’s progress on nicotine pouch reviews, and the performance of IQOS in the U.S. market. Tracking institutional investor activity and monitoring the evolving regulatory landscape in Europe will also be important.

The Bottom Line: Philip Morris continues to demonstrate its commitment to innovation and shareholder returns as it transforms into a smoke-free company. Despite some short-term challenges, the company’s strategic moves and positive analyst sentiment make it a compelling investment for those focused on the long-term.