Philip Morris International Inc. (PM)
NYSE · Consumer Staples · analysed October 12, 2026
Philip Morris International Inc. is a global tobacco and nicotine company whose origins date back to 1847, though it established its current structure following its spin-off from Altria Group in 2008. Historically known for manufacturing and selling combustible cigarette brands such as Marlboro outside the United States, the company is currently focused on shifting its business model toward a smoke-free future. Its primary strategic priorities involve expanding reduced-risk alternatives, centered around its IQOS heated tobacco system and ZYN oral nicotine pouches, with the goal of generating the majority of its net revenues from smoke-free products.
Executive summary
Philip Morris International has transformed into the undisputed leader in smoke-free nicotine, with reduced-risk products generating over 40% of net revenues through market-leading franchises IQOS and ZYN11,16. The core combustible business continues to deliver resilient cash flows via consistent mid-single-digit price realization, supporting an 8.8% dividend hike and $10.664 billion in free cash flow2,13,16. However, after a 44% share price rally over the trailing twelve months that pushed the trailing price-to-earnings multiple to 27.27, current valuation levels leave modest immediate upside relative to consensus Wall Street targets2,12.
Sources cited here, 5 of 26
- 2marketcaplens.com
- 11pmi.com
- 12marketbeat.com
- 13businesswire.com
- 16tobaccoinsider.com
Key figures
- Market cap
- $313.6B
- P/E, trailing
- 27.3
- P/E, next 12 months
- 22.9
- Revenue growth, last fiscal year
- 7.3%
- Net margin, last fiscal year
- 27.9%
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