Philip Morris International Inc. (NYSE:PM) is included among the 14 Best Low Volatility Dividend Stocks to Invest in.
On February 10, Citi analyst Simon Hales raised his price recommendation on Philip Morris International Inc. (NYSE:PM) to $210 from $200. The analyst reiterated a Buy rating on the stock. The analyst’s update reflects continued confidence in the company’s growth outlook, particularly as its smoke-free products gain momentum.
During the Q4 2025 earnings call, Group CEO Jacek Olczak said 2025 marked another strong year for PMI. He pointed to the company’s progress in expanding its smoke-free business and strengthening its overall position. Smoke-free product volumes increased by 12.8% during the year, while organic smoke-free gross profit rose even faster, up 18.7%. This showed that the segment was not only growing but also becoming more profitable.
Olczak said IQOS remained the company’s biggest growth driver. Shipments and adjusted IMS both increased by about 11%, and PMI expanded its smoke-free footprint to 106 markets. This steady expansion continues to push smoke-free products deeper into its global business. He also highlighted the company’s multi-category strategy. ZYN, excluding the Nordics, and VEEV both more than doubled their shipment volumes in international markets. Olczak said ZYN was gaining meaningful traction outside its traditional regions, while VEEV had become the fastest-growing closed pod brand globally.
Financially, the company reached an important milestone. PMI’s total net revenue surpassed $40 billion in 2025. Smoke-free products accounted for 41.5% of that total, or nearly $17 billion. At the same time, the company’s adjusted operating margin recovered to above 40%, showing improved efficiency and profitability. Olczak also noted that 27 markets had reached a key tipping point, where more than half of total net revenue now comes from smoke-free products. This reflects the company’s ongoing shift away from traditional cigarettes toward reduced-risk alternatives.
He added that PMI reaffirmed its three-year CAGR targets for organic operating income and currency-neutral EPS. The company is also working to strengthen its balance sheet, with plans to bring its leverage ratio down to around 2x by the end of 2026.
Philip Morris International Inc. (NYSE:PM) is a global tobacco company. Its portfolio includes traditional cigarettes as well as a growing range of smoke-free products. The smoke-free segment also includes wellness and healthcare products, along with consumer accessories such as lighters and matches.
While we acknowledge the potential of PM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Best NASDAQ Dividend Stocks to Buy Now and 14 Best Warren Buffett Dividend Stocks to Buy
Disclosure: None.
Hedge Fund Resource Center