Philip Morris International beat second-quarter profit forecasts and lifted its full-year guidance, yet the stock fell as much as 7% after a revenue shortfall and slower growth in its Zyn nicotine pouches rattled investors. Adjusted earnings rose 20% to $1.91 a share, topping the $1.86 consensus, while reported diluted EPS climbed to $1.95. Net revenue increased 7.1% to $10.14 billion but lagged the roughly $10.3 billion analysts expected. Smoke-free products, led by IQOS heated-tobacco sticks and Zyn pouches, accounted for 41% of sales; smoke-free shipment volumes advanced 11.8%. The company raised its 2025 adjusted earnings outlook to $7.43–$7.56 a share and projected third-quarter adjusted EPS of $2.08–$2.13. It maintained an organic revenue growth target of about 8% for the year and declared a quarterly dividend of $1.35. Chief Executive Officer Jacek Olczak said the business delivered “record net revenues and exceptional growth” in the quarter. Investors focused on Zyn, where U.S. shipments of 190 million cans missed expectations of about 203 million and declined sequentially for the first time in nearly five years. The disappointment, coupled with the revenue miss, put the shares on track for their steepest earnings-day slide since 2018 despite the stronger profit outlook.
Philip Morris International crossed $10 billion in total revenue this quarter, up 7% compared to last year. 41% of that revenue now comes from Smoke-Free products. $PM https://t.co/rrynjhFdA0
Phillip Morris, the maker of Zyns, said shipment volumes for smoke-free products rose 12% in Q2 These products represented 41% of its overall revenue https://t.co/1ruTynHBgM
If today's 7%+ decline holds, this will be Philip Morris International's $PM second biggest one-day drop on earnings in its history behind a 15% drop back in April 2018. https://t.co/02ozo7d3Am