Philip Morris drives growth with smoke-free products, upgrades to bullish on strong 2026 outlook and dividends.

Philip Morris International reported $40.6 billion revenue in 2025, up 7.3% year-over-year, fueled by a shift to smoke-free products which now make up 41.5% of net revenues. The company’s nicotine pouch brand ZYN leads the U.S. market, supporting high single-digit organic growth and expanding profit margins. The bullish rating upgrade reflects strong guidance for 2026, expected double-digit earnings growth, and a 3.67% dividend yield. Risks include regulatory challenges in the U.S., tax hikes in Japan, and rising competition, but the company’s valuation and growth prospects remain attractive for investors.