Philip Morris Q1 2025 Beats Wall Street Estimates, Investors Cheer Improved 2025 Outlook

The company raised its 2025 earnings per share guidance to $7.36 to $7.49 compared to a previous forecast of $7.04 to $7.17.

Philip Morris International shares drew investor cheer on Wednesday after the company reported strong first-quarter earnings and also improved its guidance.

Revenue rose 5.8% year-over-year (YoY) to $9.3 billion during the quarter, beating an analyst estimate of $9.14 billion. Adjusted earnings per share (EPS) stood at $1.69, marginally surpassing a Street estimate of $1.6.

The company also raised its 2025 EPS guidance to $7.36 to $7.49 compared to a previous forecast of $7.04 to $7.17. This compares with an analyst estimate of $7.13, as per FinChat data.

For the second quarter, the company has guided for an adjusted diluted EPS of $1.80 to $1.85.

CEO Jacek Olczak highlighted that the company’s smoke-free business delivered organic growth of over 20% in net revenues and over 33% in gross profit.

"We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year,” he said.

The company’s total shipments increased 3.9% YoY to 187.8 billion units during the quarter.

Philip Morris’ Smoke-free business delivered a 15% growth in net revenues and 27.7% growth in gross profit. At the same time, Combustibles revenue stayed flat at $5.4 billion.

CFO Emmanuel Babeau told Barron’s that the firm is well on track to deliver a strong year.

“It’s always the same drivers, but it shows that our transformation is working, and that our journey to becoming a smoke-free company delivers great results.”

Following the earnings release, Philip Morris stock traded nearly 3% higher on Wednesday afternoon. The stock has risen over 39% in 2025 and over 72% in the past 12 months.

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