Philip Morris’ Pivot Pays off with Massive Growth in 2025

Philip Morris has changed their business direction in order to accommodate the market and keep their stock value high.

Written by: Timothy St. John • Monday, June 2, 2025 • 2 min read

• Last updated: Monday, June 2, 2025

Philip Morris has done very well this year, greatly increasing its stock value.

Quick overview

Philip Morris (PM) stock rose from $173 to $181 per share in May, outperforming many other stocks.
The company has gained 48% in value since the start of 2025, reaching its highest value for the year despite trade war concerns.
Key drivers of PM's growth include the depreciating U.S. dollar and the expansion of the alternative nicotine market.
Philip Morris has successfully pivoted to cigarette alternatives, with brands like Iqos and Zyn contributing significantly to its revenue.

One of the top performing stocks for May was Philip Morris (PM), and even though traditional cigarette sales are down, the company has changed direction to keep pulling in customers.

PM stock is on the rise this year thanks to smart business moves.

Philip Morris stock climbed from $173 to $181 per share in May, and even though they dipped early on in the month, they pulled out of that depression quickly and strongly. Overall, they have performed better than the majority of stocks throughout the month of May.

The company has done phenomenally well in 2025 so far, while other stocks have floundered or broken even. Philip Morris started the year off at $122 per share, and they have gained 48% in value since the start of 2025. They are currently at their highest value for the year, despite new tariff fears as the trade war between China and the United States heats up again.

How Is Philip Morris Growing So Fast?

There are two factors that are driving PM’s stock climb. They are the depreciating U.S. dollar and the growth of the alternative nicotine market. Philip Morris also receives a lot of revenue from its traditional cigarette sales, but those sales are very low compared to the kind of business the company was doing two decades ago.

The company has pivoted to cigarette alternatives like vapes, and they own the largest non-smoking tobacco brand on the market. That would be Iqos, which makes up 77% of the vape and non-smoker tobacco market. They also own Zyn, which produces nicotine patches.

In the last quarter, these two brands accounted for 44% of Philip Morris’ revenue. This is how in a changing tobacco market the company has managed to come out on top and stay extremely profitable.

PM stock should continue to climb this year, especially since most of the proposed tariffs simply do not apply to their industry. They are only marginally affected by the trade war, and this stock is likely a good investment through 2025.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.