Philip Morris (PM) stock slipped on Tuesday after the tobacco company released its Q2 2025 earnings report. The report began with adjusted earnings per share of $1.91, which beat Wall Street’s estimate of $1.86 for the quarter. Adjusted EPS was also up 20.1% year-over-year, compared to $1.59.
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Revenue reported by Philip Morris in Q2 2025 was $10.1 billion. Unfortunately for PM investors, that missed Wall Street’s estimate of $10.32 billion. This is despite a 7.1% increase in reported revenue from the $9.41 billion reported in Q2 2024. Its smoke-free business made up 41% of its net revenue, while combustibles grew 2.1% year-over-year on strong pricing but were offset by negative mix dynamics.
PM stock was down 2.82% during pre-market trading on Tuesday, following a 0.98% rally yesterday. The shares have increased 52.43% year-to-date and were also up 64.73% over the past 12 months.
Philip Morris Guidance
Jacek Olczak, CEO of Philip Morris, said, “Our business delivered very strong results in the second quarter, with record net revenues and exceptional growth in operating income and adjusted diluted EPS. Given our strong year-to-date performance, we are raising our full-year guidance.”
Philip Morris now expects adjusted EPS for the year to range from $7.43 to $7.56. For comparison, Wall Street’s full-year 2025 adjusted EPS estimate is $7.47. With PM’s guidance at a midpoint of $7.50 per share, the tobacco producer is likely to beat this estimate.
Is Philip Morris Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Philip Morris is Strong Buy, based on 10 Buy and one Hold rating over the past three months. With that comes an average PM stock price target of $197.11, representing a potential 9.21% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
