Key Stats for PM Stock
- Price change for PM stock: +0.45%
- $PM Share Price as of February 06: $182.81
- 52-Week High: $183
- $PM Stock Price Target: $220.39
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What Happened?
Philip Morris International (PM) shares were modestly higher after the company reported Q4 2025 earnings.
Revenue came in at $10.36 billion, but it slightly missed analyst estimates.
Adjusted EPS was $1.70, which matched expectations, so earnings were in line overall.
However, EBIT declined sequentially, and margins compressed compared to the prior quarter.
Revenue grew 6.8% year over year, but it fell 4.5% quarter over quarter.
EBIT margins were 35.9%, down sharply from 43.1% in Q3, because of higher operating costs.
Net income still rose nearly 10% year over year, showing underlying profitability remained solid.
According to Reuters, management forecast higher profits and downplayed competitive threats, which helped stabilize the stock.
Revenue missed estimates by 0.4%, and EBIT missed by about 2.4%.
Adjusted EPS met expectations, but GAAP EPS fell short because of one-time items.
Year-over-year growth stayed positive, but quarter-over-quarter trends weakened.
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What the Market Is Telling Us About PM Stock
The muted stock reaction suggests investors focused on margins rather than headline growth. PM continues transitioning toward smoke-free products, including IQOS and ZYN, which supports the long-term strategy.
However, near-term margin pressure and volume variability appear to be limiting upside enthusiasm. Recent news also shows management stated that 2026–2028 growth targets are not heavily dependent on the U.S. IQOS Iluma launch.
That comment reduced expectations for a single-product-driven reacceleration, and sentiment stayed cautious.
Based on the guided valuation model, PM’s fair value is estimated at $220.39 per share.
This implies a total return of 20.6% through 2028, or about 6.7% annually.
The model assumes 7.3% revenue growth, 40.6% operating margins, and a 19.5x exit P/E. At current levels, the expected annual return is below 10%, so valuation appears reasonable but not compelling.
The stock continues to offer stability and cash flow, but forward returns may be more moderate.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
