With a Solid 2026 Outlook, Is It Time to Buy Philip Morris International?

Philip Morris International's (NYSE: PM) banal has started 2026 strong, trading up much than 13% twelvemonth to date, arsenic of this writing. While the banal didn't marque immoderate large gains pursuing its fourth-quarter net report, it showed wherefore this is simply a apical user staples banal to own.

Let's instrumentality a person look astatine the baccy company's Q4 results and prospects moving forward.

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Philip Morris' smoke-free portfolio continued to assistance thrust its results successful Q4. Its fashionable nicotine pouch marque Zyn saw shipments ascent 18% twelvemonth implicit twelvemonth successful Q4, with U.S. shipments up 20%. Meanwhile, the income volumes of its heated baccy units (HTUs), including its Iqos system, roseate 7.5% to 39.4 cardinal units. The merchandise continues to spot beardown maturation some successful Japan and Europe, and is starting to spot beardown uptake successful large cities extracurricular these areas. Traditional cigaret volumes, meanwhile, dropped by 2.2% to 149.4 cardinal units.

Overall, integrated revenue, which excludes currency effects, acquisitions, and dispositions, roseate 3.7% twelvemonth implicit twelvemonth to $10.4 billion, portion wide gross climbed 6.8%. Adjusted net per stock (EPS) accrued 9.4% to $1.70.

Looking ahead, Philip Morris forecasted integrated gross to emergence by 5% to 7%. It expects full manufacture cigaret and HTU volumes, excluding China and the U.S., wherever it does not operate, to autumn astir 2%. Meanwhile, it expects its cigaret volumes to diminution by 3%, wounded by weakness successful Mexico and India owed to accrued excise taxes, but a betterment successful Turkey. It expects smoke-free portfolio volumes to emergence by precocious azygous digits.

On the net front, it is projecting adjusted EPS of betwixt $8.38 and $8.53, bully for maturation of 11% to 13%. Excluding currency impacts, it is looking for adjusted EPS to emergence by 7.5% to 9.5% to a scope of $8.11 to $8.26.

The institution projected it would nutrient $45 cardinal successful operating currency travel implicit the adjacent 3 years successful aggregate. It expects maturation to accelerate successful 2027, helped by the extremity of taxation equalization successful Japan for HTUs, which had been a headwind, and the instauration of Iqos successful the U.S. pending regulatory support connected its Iluma transportation device. It is besides looking to motorboat Zyn Ultra, which has higher spot and much flavors, arsenic soon arsenic it gets FDA approval.