Philip Morris International Inc. (PM) AI Stock Analysis

Philip Morris International Inc. operates as a global tobacco company expanding its portfolio toward smoke-free alternatives and traditional nicotine products across 71 markets outside the United States. Its smoke-free portfolio includes heat-not-burn, vapor, and oral nicotine offerings marketed under brand names such as HEETS, Marlboro HeatSticks, Parliament HeatSticks, and TEREA, alongside licensed brands Fiit and Miix. The company also sells traditional cigarette brands including Marlboro, Parliament, Bond Street, and L&M. Headquartered in New York City, the company employs 84,900 people and focuses on developing reduced-risk alternatives through advanced research and technology.

Between FY2021 and FY2025, annual revenue increased from $31.41B to $40.65B, reflecting a 5-year revenue CAGR of 7.2%. Gross margin improved from 16.9% in FY2021 to 67.1% in FY2025, while operating margin expanded from 9.4% to 36.6%. Annual net income reached $11.35B in FY2025, up from $2.23B in FY2021, with diluted earnings per share growing from $6.07 to $7.54 over the same period. For the trailing twelve months ended June 30, 2026, revenue stood at $42.55B with a net profit margin of 25.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.4% year-over-year, while quarterly earnings declined 7.5%.

As of June 30, 2026, Philip Morris held $6.00B in cash and short-term investments against total debt of $49.11B, resulting in net debt of $43.11B. Shareholders' equity was -$8.58B on total assets of $68.27B, and the current ratio was 0.98. In FY2025, the company generated $12.23B in operating cash flow and $10.66B in free cash flow. Capital expenditures totaled $1.57B, while dividends paid consumed $8.62B. Over the last five years, the company's share count rose by 0.4%.

Philip Morris trades at a trailing P/E of 29.5x and a forward P/E of 20.9x, both at a premium to the median of its S&P 500 Consumer Defensive peers of 23.3x and 15.2x, respectively. Its enterprise value stands at $340.56B with an EV-to-EBITDA multiple of 18.2x, compared to the peer median of 13.3x. Over the past year, PM stock gained 36.2%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock returned 162.5% compared to 83.0% for the benchmark index.

Philip Morris has paid consecutive dividends for 19 years and delivers an annualized forward dividend of $6.40 per share, yielding 3.12%. Dividends are distributed quarterly with a payout ratio of 74.2%. Over the past five years, dividend growth averaged an annualized rate of 3.5%. The most recent ex-dividend date occurred on October 2, 2026.

Wall Street coverage includes 9 Strong Buy, 3 Buy, and 4 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $208.80, representing an upside of 1.8% over the last close of $205.20. For FY2026 ending December 31, 2026, consensus estimates project EPS of $8.41 on revenue of $43.55B. Over the last four quarters, the company topped EPS expectations 3 times. The next earnings release is scheduled for October 21, 2026.

This page is an AI-written research summary of Philip Morris International Inc. (PM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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