Shares of Philip Morris Worldwide Inc. (NYSE: PM) had been down over 1% on Monday. The inventory has gained 31% year-to-date. The cigarette producer is scheduled to report its earnings outcomes for the third quarter of 2025 on Tuesday, October 21, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $10.66 billion for Philip Morris within the third quarter of 2025, which means a progress of over 7% from the identical interval a 12 months in the past. Within the second quarter of 2025, web revenues elevated 7% year-over-year to $10.1 billion.
Earnings
Philip Morris has guided for adjusted earnings per share to vary between $2.08-2.13 in Q3 2025. Analysts are predicting EPS of $2.10 for the quarter, which factors to a rise of practically 10% from the earlier 12 months. In Q2 2025, adjusted EPS rose 20% YoY to $1.91.
Factors to notice
Philip Morris is anticipated to profit from continued power in its smoke-free enterprise, which has seen constant progress in volumes, revenues and gross income. This multi-category enterprise is anticipated to profit from the rising recognition of smoke-free options and continued demand for smoke-free merchandise.
In Q2, PM’s smoke-free enterprise noticed income progress of 15%, cargo quantity progress of practically 12%, and gross revenue progress of 23%. The enterprise accounted for 41% of whole revenues and its smoke-free merchandise are at present accessible in 97 markets.
The smoke-free enterprise is led by IQOS, VEEV, and Zyn, all of that are seeing robust momentum. In its Q2 report, PM acknowledged that IQOS exceeded $3 billion in quarterly web revenues. It continues to see robust progress in areas like Japan and Europe. Within the e-vapor class, VEEV, which is at present accessible in 42 markets, continues to see worthwhile progress. In Q2, its cargo volumes greater than doubled, pushed by Europe.
Oral smoke-free merchandise noticed cargo quantity enhance by practically 24% in Q2. Nicotine pouches noticed volumes develop by 40% within the US. Zyn, which is out there in 44 markets, noticed Q2 can shipments develop by 43% globally. Philip Morris anticipates continued double-digit quantity progress for its smoke-free merchandise within the second half of the 12 months, which bodes nicely for Q3.
PM is anticipated to profit from resilience in its combustibles enterprise. In Q2, regardless of declines in quantity, combustibles noticed revenues develop by over 2%, helped by robust pricing. Cigarettes quantity dropped 1.5% final quarter. In the meantime, Marlboro continues to realize market share. The combustibles enterprise continues to see gross revenue progress, which is anticipated to proceed within the again half of the 12 months, thereby benefiting Q3.
