Philip Morris Stock Slides to 57th in Trading Volume Amid Smoke-Free Push

Philip Morris International (PMI) closed 2025-09-03 with a 2.50% decline, trading at $178.73 with a volume of $1.2 billion, ranking 57th in the market. The stock faces mixed momentum amid strategic shifts and operational updates.

PMI launched SmokeFreeTravel.com, a digital platform to promote its smoke-free products like IQOS and ZYN in travel hubs, aiming to enhance consumer accessibility. The company reaffirmed its FY25 guidance, targeting adjusted diluted EPS of $7.36–$7.49 (12–14% growth) and organic revenue growth of 6–8%, driven by smoke-free product margins 500 bps higher than combustible offerings. IQOS and ZYN remain key growth engines, with ZYN achieving 50%+ growth in the U.S. Q1 and triple-digit expansion in markets like Austria and South Africa.

PMI’s $2.5 billion bond issuance in July 2025 underscores its capital allocation strategy, with proceeds earmarked for debt refinancing and operational flexibility. However, the sale of Vectura, its inhaled-medicine unit, is expected to result in a $220 million loss, reflecting ongoing challenges in non-core ventures. Regulatory hurdles persist, particularly in markets with restrictive policies, though the U.S., Italy, and the Philippines are cited as science-driven adopters of harm reduction.

The backtest results indicate PMI’s smoke-free transition is on track, with IQOS revenue surpassing $11 billion in 2024 and ZYN capturing 42% of the U.S. nicotine pouch market. Despite short-term headwinds like supply constraints for ZYN and flavor bans in Europe, PMI’s focus on high-margin smoke-free categories and disciplined cost management positions it for long-term growth. The company aims for two-thirds of revenue from smoke-free products by 2030, contingent on regulatory approvals in key markets.