JPMorgan reinstates Philip Morris stock coverage with neutral rating

The FDA authorized 20 ZYN nicotine pouch variants by Philip Morris International (PMI) as Modified Risk Tobacco Products, allowing claims of lower risk of certain diseases compared to cigarettes. The approval is based on PMI's submitted evidence, showing reduced cigarette use among users. The FDA emphasizes these products are not risk-free.

JPMorgan analysts highlighted the defensive nature of the European tobacco sector, with British American Tobacco (BTI) as their top pick due to its next-generation product growth and strong share in the U.S. and Europe. Philip Morris (PM) and Imperial Brands (IMBBY) were rated Neutral. The sector is noted for its resilience and shareholder returns.

Philip Morris International (PMI) reported third-quarter 2026 net revenue of $11.4B, with smoke-free products making up over 40%. Zyn shipments grew 4.2% to 3.2B pouches. The FDA authorized 11 more Zyn Ultra variants, totaling 31. PMI plans to invest more in Zyn and transition to 20-pouch cans.

Philip Morris International reported Q3 2026 adjusted EPS of $2.36, up 5.4%, on net revenues of $11.4B, up 5.5%. The company raised its quarterly dividend by 8.8% to $1.60. Reported EPS was $2.12, down 4.9% due to a non-cash adjustment.

Philip Morris International reported Q3 2026 revenue of $11.44B, up 5.5% YoY, but net income and EPS declined 4.7% and 4.9% respectively. Nine-month revenue rose 8.2% to $32.8B. Smoke-free shipments increased 6.4%, while cigarette shipments fell 1.2%.

Philip Morris International (PM) reported Q3 2026 results with organic net revenue growth of 7.1% and adjusted operating income growth of 10.5%, exceeding $5 billion. Smoke-free products drove growth, with IQOS and Veev shipments up. The company faces cost pressures from geopolitical conflicts, impacting full-year EPS growth. Guidance was lowered to the midpoint or lower half of the range. Operating cash flow is expected to reach approximately $13.5 billion.