Philip Morris Seeks MRTP Status for ZYN, Reports 14% Sales Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Source: seekingalpha
- MRTP Application: Philip Morris has submitted a request to the FDA to classify its smokeless tobacco pouch ZYN as a Modified Risk Tobacco Product (MRTP), which, if approved, would allow advertising it as a lower-risk alternative, encouraging smokers to switch to nicotine pouches.
- Scientific Support: The FDA stated that evidence suggests the proposed modified risk claim is scientifically accurate, noting that current nicotine pouch use among U.S. adults and youth is relatively low, primarily among those who have recently quit other tobacco products.
- Significant Sales Growth: In 2024, Philip Morris reported a 14% increase in sales of smoke-free products, exceeding $15 billion, with gross margins reportedly six times higher than those of cigarette sales, highlighting the company's strong performance in the smokeless market.
- Optimistic Financial Outlook: The company's latest quarterly results showed record gross profit from smoke-free products, leading to an increase in its adjusted gross profit outlook for FY25, further solidifying its market position in the tobacco industry.
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Analyst Views on PM
Wall Street analysts forecast PM stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 182.950
Low
175.00
Averages
191.95
High
210.00
Current: 182.950
Low
175.00
Averages
191.95
High
210.00
About PM
Philip Morris International Inc. is an international tobacco company. The Company’s product portfolio primarily consists of cigarettes and smoke-free products. Its smoke-free business (SFB) also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR), and Americas Region. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN. Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its international cigarette brands are Chesterfield, L&M, and Philip Morris. It also owns a number of local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Philip Morris Declares Quarterly Dividend
- Quarterly Dividend Declaration: Philip Morris International's Board of Directors declared a quarterly dividend of $1.47 per common share, payable on July 20, 2026, reflecting the company's stable cash flow and commitment to shareholders.
- Dividend Payment Dates: The record date for the dividend is June 25, 2026, with the ex-dividend date also set for June 25, which will influence investors' holding decisions and may attract more long-term investors.
- Smoke-Free Product Market: As of December 31, 2025, Philip Morris's smoke-free products are sold in over 105 markets, with 43 million legal-age consumers using them, indicating significant progress in the company's transformation efforts.
- R&D Investment: Since 2008, Philip Morris has invested over $16 billion in developing smoke-free products, demonstrating the company's commitment to reducing cigarette sales and promoting the commercialization of healthier alternatives.
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- Dividend Payment Schedule: The dividend is payable on July 20, with a record date of June 25 and an ex-dividend date also on June 25, ensuring shareholders receive timely returns and bolstering investor confidence.
- Consistent Dividend Performance: The company has announced a dividend of $1.47 for four consecutive quarters, indicating its ability to uphold a stable dividend policy amid market challenges, reflecting management's confidence in future cash flows.
- Market Impact Analysis: Despite facing pressures from a $500 million impairment in Canada and ruble depreciation, the stable dividend policy may alleviate investor concerns regarding the company's long-term profitability, enhancing its appeal in the consumer staples sector.
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- Market Impact Analysis: Across 38 European countries, illicit consumption amounts to 55.3 billion cigarettes, leading to approximately €22.4 billion in state budget revenue losses, indicating the severe impact of illicit trade on the entire tobacco and nicotine value chain.
- Surge in Counterfeits: The consumption of counterfeit cigarettes is expected to hit 18.3 billion in 2025, accounting for 44% of illicit consumption and reflecting a year-on-year increase of over 20%, which not only exacerbates market chaos but also poses a direct threat to legitimate businesses.
- Characteristics of the French Market: France has emerged as the largest illicit cigarette market in Europe, with an illicit share of 41.4%, equating to 20.5 billion cigarettes, of which counterfeits account for nearly 9.7 billion, illustrating the negative effects of excessive taxation and product bans on market dynamics.
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- Price Target Set: Analysts have set an average price target of $194.4 for the company, reflecting the market's potential for stock appreciation, which could drive the stock price higher.
- Market Reaction Anticipation: The rating upgrade and price target increase may enhance investor confidence, thereby improving the liquidity and market performance of the company's stock, further solidifying its leadership position in the tobacco industry.
- Long-Term Growth Potential: With the company's ongoing investments in new products and market expansion, the analysts' positive rating may signal Philip Morris International's future growth potential and profitability.
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- Goldman's Robust Growth: Goldman Sachs shares have increased by 28.3% in the past six months, significantly outperforming the industry's 2.7% growth, with earnings exceeding estimates for four consecutive quarters, as management focuses on sustainable revenue streams and diversifies through private equity market expansion.
- Philip Morris's Successful Transition: Philip Morris's stock has gained 16% over the last six months, surpassing the tobacco industry's 11.8% growth, with Q1 net revenues up 9.1% year-over-year, driven by smoke-free products contributing 43% of total revenues, indicating strong growth potential in this segment.
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- Illicit Market Scale: In 2025, illicit cigarette consumption in the EU reached 41.8 billion cigarettes, accounting for 10.3% of total consumption, resulting in an estimated €16.7 billion in lost tax revenues, highlighting the severity of the issue and its impact on public finances.
- Counterfeit Dominance: Counterfeit cigarettes now represent 44% of the illicit market, totaling 18.3 billion cigarettes, with a year-on-year increase exceeding 20%, indicating organized crime's rapid adaptation in production and distribution, exacerbating regulatory challenges.
- Western Europe Pressure: France, Belgium, and the Netherlands are the most affected countries, with France's illicit share at 41.4%, significantly increasing enforcement difficulties and imposing substantial fiscal pressures on the state.
- Policy Response Recommendations: Philip Morris International calls for evidence-based coordinated responses to strengthen law enforcement and public-private cooperation, aiming to mitigate the impact of illicit trade through balanced regulation.
See More
Philip Morris Declares Quarterly Dividend
- Quarterly Dividend Declaration: Philip Morris International's Board of Directors declared a quarterly dividend of $1.47 per common share, payable on July 20, 2026, reflecting the company's stable cash flow and commitment to shareholders.
- Dividend Payment Dates: The record date for the dividend is June 25, 2026, with the ex-dividend date also set for June 25, which will influence investors' holding decisions and may attract more long-term investors.
- Smoke-Free Product Market: As of December 31, 2025, Philip Morris's smoke-free products are sold in over 105 markets, with 43 million legal-age consumers using them, indicating significant progress in the company's transformation efforts.
- R&D Investment: Since 2008, Philip Morris has invested over $16 billion in developing smoke-free products, demonstrating the company's commitment to reducing cigarette sales and promoting the commercialization of healthier alternatives.
See More
Philip Morris Declares $1.47 Quarterly Dividend, Consistent Yield
- Stable Quarterly Dividend: Philip Morris has declared a quarterly dividend of $1.47 per share, consistent with previous quarters, demonstrating the company's ongoing ability to maintain cash flow and shareholder returns, which is likely to attract income-seeking investors.
- Dividend Payment Schedule: The dividend is payable on July 20, with a record date of June 25 and an ex-dividend date also on June 25, ensuring shareholders receive timely returns and bolstering investor confidence.
- Consistent Dividend Performance: The company has announced a dividend of $1.47 for four consecutive quarters, indicating its ability to uphold a stable dividend policy amid market challenges, reflecting management's confidence in future cash flows.
- Market Impact Analysis: Despite facing pressures from a $500 million impairment in Canada and ruble depreciation, the stable dividend policy may alleviate investor concerns regarding the company's long-term profitability, enhancing its appeal in the consumer staples sector.
See More
EU Illicit Cigarette Consumption Leads to €16.7 Billion Tax Revenue Loss
- Current Illicit Consumption: A recent KPMG study reveals that illicit cigarette consumption in the EU is projected to reach 10.3% of total consumption by 2025, resulting in an estimated €16.7 billion tax revenue loss, highlighting significant challenges in combating illicit trade in the region.
- Market Impact Analysis: Across 38 European countries, illicit consumption amounts to 55.3 billion cigarettes, leading to approximately €22.4 billion in state budget revenue losses, indicating the severe impact of illicit trade on the entire tobacco and nicotine value chain.
- Surge in Counterfeits: The consumption of counterfeit cigarettes is expected to hit 18.3 billion in 2025, accounting for 44% of illicit consumption and reflecting a year-on-year increase of over 20%, which not only exacerbates market chaos but also poses a direct threat to legitimate businesses.
- Characteristics of the French Market: France has emerged as the largest illicit cigarette market in Europe, with an illicit share of 41.4%, equating to 20.5 billion cigarettes, of which counterfeits account for nearly 9.7 billion, illustrating the negative effects of excessive taxation and product bans on market dynamics.
See More
Philip Morris International Rating Upgrade
- Rating Upgrade: Philip Morris International (PM) has received an 'overweight' rating, indicating analysts' optimistic outlook on its future performance, which may attract more investor interest.
- Price Target Set: Analysts have set an average price target of $194.4 for the company, reflecting the market's potential for stock appreciation, which could drive the stock price higher.
- Market Reaction Anticipation: The rating upgrade and price target increase may enhance investor confidence, thereby improving the liquidity and market performance of the company's stock, further solidifying its leadership position in the tobacco industry.
- Long-Term Growth Potential: With the company's ongoing investments in new products and market expansion, the analysts' positive rating may signal Philip Morris International's future growth potential and profitability.
See More
Zacks Analyst Blog Stock Updates
- Chevron's Strong Performance: Chevron's stock has risen 25.6% over the past six months, slightly below the industry's 27.1% gain, benefiting from higher oil prices and quality assets from the Hess acquisition, with production growth guidance of 7%-10% enhancing cash flow and market competitiveness.
- Goldman's Robust Growth: Goldman Sachs shares have increased by 28.3% in the past six months, significantly outperforming the industry's 2.7% growth, with earnings exceeding estimates for four consecutive quarters, as management focuses on sustainable revenue streams and diversifies through private equity market expansion.
- Philip Morris's Successful Transition: Philip Morris's stock has gained 16% over the last six months, surpassing the tobacco industry's 11.8% growth, with Q1 net revenues up 9.1% year-over-year, driven by smoke-free products contributing 43% of total revenues, indicating strong growth potential in this segment.
- Optimistic Market Outlook: Zacks' stock-picking strategies have outperformed the S&P's average gain of 7.7% annually since 2000, with the latest recommendations of seven stocks expected to provide early price pop opportunities, reflecting Zacks' strong analytical capabilities and investment confidence.
See More
Illicit Cigarette Consumption Hits 10.3% in EU by 2025
- Illicit Market Scale: In 2025, illicit cigarette consumption in the EU reached 41.8 billion cigarettes, accounting for 10.3% of total consumption, resulting in an estimated €16.7 billion in lost tax revenues, highlighting the severity of the issue and its impact on public finances.
- Counterfeit Dominance: Counterfeit cigarettes now represent 44% of the illicit market, totaling 18.3 billion cigarettes, with a year-on-year increase exceeding 20%, indicating organized crime's rapid adaptation in production and distribution, exacerbating regulatory challenges.
- Western Europe Pressure: France, Belgium, and the Netherlands are the most affected countries, with France's illicit share at 41.4%, significantly increasing enforcement difficulties and imposing substantial fiscal pressures on the state.
- Policy Response Recommendations: Philip Morris International calls for evidence-based coordinated responses to strengthen law enforcement and public-private cooperation, aiming to mitigate the impact of illicit trade through balanced regulation.
See More
