Philip Morris: Growth At An Expensive Price (Rating Upgrade)

Philip Morris International delivered strong Q1'26 results on Wednesday, with alternative products now comprising 43% of total revenues. I see PM as a reliable income vehicle, with the tobacco and alternative products company on track to pay out ~73% of adjusted EPS this year. PM confirmed its adjusted EPS guidance (excluding currency impact) for FY 2026, reflecting momentum in non-traditional tobacco products and robust emerging markets exposure.