Revenue growth remains resilient at 9.1% year-over-year as of 2026Q1, supported by structural pricing power that pushed gross margins to a peak of 68.1%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'03 |
|---|
| Sales/Revenue | 41.49B | 40.65B | 37.88B | 35.17B | 31.76B | 31.41B | 28.69B | 29.8B | 29.63B | 28.75B | 26.68B | 26.79B | 29.77B | 31.22B | 31.38B | 31.1B | 27.21B | 25.04B | 25.7B | 22.8B | 20.77B | 45.29B | 33.39B |
| Revenue Growth % | 8.09% | 7.31% | 7.69% | 10.74% | 1.14% | 9.45% | -3.73% | 0.61% | 3.05% | 7.73% | -0.41% | -9.99% | -4.64% | -0.51% | 0.9% | 14.29% | 8.68% | -2.61% | 12.75% | 9.77% | -54.14% | 35.64% | - |
| Cost of Goods Sold | 13.57B | 13.37B | 13.33B | 12.89B | 11.4B | 10.03B | 9.57B | 10.51B | 10.76B | 10.43B | 9.39B | 9.37B | 10.44B | 10.41B | 10.37B | 10.68B | 9.71B | 9.02B | 9.33B | 8.72B | 8.15B | 32.92B | 23.82B |
| COGS % of Revenue | - | 32.88% | 35.19% | 36.65% | 35.9% | 31.94% | 33.35% | 35.27% | 36.31% | 36.29% | 35.19% | 34.95% | 35.06% | 33.35% | 33.06% | 34.34% | 35.7% | 36.04% | 36.29% | 38.25% | 39.22% | 72.69% | 71.34% |
| Gross Profit | 27.93B | 27.28B | 24.55B | 22.28B | 20.36B | 21.38B | 19.13B | 19.29B | 18.87B | 18.32B | 17.29B | 17.43B | 19.33B | 20.81B | 21B | 20.42B | 17.5B | 16.01B | 16.38B | 14.08B | 12.64B | 12.37B | 9.57B |
| Gross Margin % | 67.3% | 67.12% | 64.81% | 63.35% | 64.1% | 68.06% | 66.65% | 64.73% | 63.69% | 63.71% | 64.81% | 65.05% | 64.94% | 66.65% | 66.94% | 65.66% | 64.3% | 63.96% | 63.71% | 61.75% | 60.86% | 27.31% | 28.66% |
| Gross Profit Growth % | - | 11.13% | 10.18% | 9.44% | -4.75% | 11.76% | -0.87% | 2.25% | 3.01% | 5.91% | -0.77% | -9.84% | -7.09% | -0.94% | 2.86% | 16.71% | 9.25% | -2.22% | 16.33% | 11.37% | 2.21% | 29.26% | - |
| Operating Expenses | 12.64B | 12.35B | 11.15B | 10.72B | 8.11B | 8.4B | 7.46B | 8.76B | 7.47B | 6.75B | 6.38B | 6.81B | 7.63B | 7.31B | 7.16B | 7.08B | 6.25B | 5.94B | 6.13B | 5.21B | 4.64B | 4.63B | 3.37B |
| OpEx % of Revenue | - | 30.38% | 29.43% | 30.49% | 25.55% | 26.75% | 25.99% | 29.39% | 25.22% | 23.49% | 23.93% | 25.4% | 25.63% | 23.43% | 22.81% | 22.76% | 22.96% | 23.74% | 23.84% | 22.83% | 22.32% | 10.23% | 10.1% |
| Selling, General & Admin | 12.49B | 12.35B | 11.15B | 10.06B | 8.11B | 8.4B | 7.48B | 8.78B | 7.45B | 6.72B | 6.41B | 6.66B | 7B | 6.89B | 6.96B | 6.88B | 6.16B | 5.87B | 5.43B | 4.78B | 4.33B | 4.54B | 3.37B |
| SG&A % of Revenue | - | 30.38% | 29.43% | 28.6% | 25.55% | 26.75% | 26.07% | 29.47% | 25.14% | 23.39% | 24% | 24.84% | 23.52% | 22.07% | 22.18% | 22.12% | 22.64% | 23.45% | 21.12% | 20.95% | 20.86% | 10.03% | 10.1% |
| Research & Development | 0 | 0 | 759M | 0 | 0 | 617M | 495M | 465M | 383M | 453M | 429M | 423M | 433M | 449M | 415M | 413M | 0 | 0 | 334M | 362M | 304M | 0 | 0 |
| R&D % of Revenue | - | - | 2% | - | - | 1.96% | 1.73% | 1.56% | 1.29% | 1.58% | 1.61% | 1.58% | 1.45% | 1.44% | 1.32% | 1.33% | - | - | 1.3% | 1.59% | 1.46% | - | - |
| Other Operating Expenses | 1000K | 0 | -759M | 665M | 0 | -651M | -519M | -488M | -361M | -424M | -449M | -273M | 195M | -25M | -218M | -216M | 88M | 74M | 367M | 67M | 0 | 90M | 0 |
| Operating Income | 15.28B | 14.93B | 13.4B | 11.56B | 12.25B | 12.97B | 11.72B | 10.53B | 11.34B | 11.58B | 10.9B | 10.62B | 11.7B | 13.7B | 13.95B | 13.53B | 11.2B | 10.21B | 10.57B | 8.87B | 8.01B | 7.74B | 6.2B |
| Operating Margin % | 36.83% | 36.74% | 35.38% | 32.85% | 38.56% | 41.31% | 40.84% | 35.33% | 38.27% | 40.27% | 40.86% | 39.65% | 39.31% | 43.89% | 44.45% | 43.52% | 41.16% | 40.79% | 41.12% | 38.92% | 38.54% | 17.08% | 18.56% |
| Operating Income Growth % | - | 11.42% | 15.97% | -5.63% | -5.6% | 10.68% | 11.29% | -7.1% | -2.07% | 6.17% | 2.64% | -9.22% | -14.6% | -1.75% | 3.04% | 20.84% | 9.66% | -3.39% | 19.14% | 10.84% | 3.49% | 24.84% | - |
| EBITDA | 17.2B | 16.93B | 15.19B | 12.95B | 13.32B | 13.97B | 12.7B | 11.49B | 12.32B | 12.45B | 11.65B | 11.38B | 12.59B | 14.58B | 14.84B | 14.53B | 12.13B | 11.07B | 11.41B | 9.62B | 8.66B | 8.26B | 6.57B |
| EBITDA Margin % | 41.44% | 41.65% | 40.1% | 36.83% | 41.95% | 44.48% | 44.26% | 38.57% | 41.6% | 43.31% | 43.64% | 42.46% | 42.3% | 46.72% | 47.31% | 46.72% | 44.59% | 44.2% | 44.4% | 42.2% | 41.71% | 18.24% | 19.67% |
| EBITDA Growth % | 8.83% | 11.46% | 17.25% | -2.77% | -4.63% | 9.99% | 10.49% | -6.73% | -1.01% | 6.91% | 2.36% | -9.64% | -13.67% | -1.75% | 2.18% | 19.74% | 9.63% | -3.04% | 18.63% | 11.06% | 4.85% | 25.83% | - |
| D&A (Non-Cash Add-back) | 1.52B | 2B | 1.79B | 1.4B | 1.08B | 998M | 981M | 964M | 989M | 875M | 743M | 754M | 889M | 882M | 898M | 993M | 932M | 853M | 842M | 748M | 658M | 527M | 370M |
| EBIT | 16.23B | 15.47B | 13.96B | 11.98B | 12.4B | 12.97B | 11.68B | 10.67B | 11.53B | 11.58B | 10.99B | 10.75B | 11.82B | 13.65B | 14.01B | 13.48B | 11.3B | 10.09B | 10.46B | 8.89B | 8.6B | 7.83B | 6.2B |
| Net Interest Income | -1.58B | -966M | -1.14B | -1.06B | -588M | -628M | -618M | -570M | -665M | -914M | -891M | -1.01B | -1.05B | -973M | -859M | -819M | -876M | -735M | -311M | -10M | -142M | -94M | 0 |
| Interest Income | 0 | 621M | 620M | 465M | 180M | 109M | 110M | 226M | 190M | 182M | 178M | 124M | 118M | 131M | 148M | 134M | 98M | 108M | 217M | 0 | 229M | 0 | 0 |
| Interest Expense | 1.58B | 1.59B | 1.76B | 1.53B | 768M | 737M | 728M | 796M | 855M | 1.1B | 1.07B | 1.13B | 1.17B | 1.1B | 1.01B | 953M | 974M | 843M | 528M | 10M | 371M | 94M | 0 |
| Other Income/Expense | -935M | -348M | -1.2B | -949M | -475M | -591M | -751M | -510M | -605M | -928M | -885M | -903M | -947M | -1.18B | -959M | -1B | -876M | -970M | -634M | -10M | 221M | -94M | 17M |
| Pretax Income | 14.35B | 14.59B | 12.2B | 10.61B | 11.77B | 12.38B | 10.97B | 10.02B | 10.73B | 10.65B | 10.02B | 9.72B | 10.76B | 12.52B | 12.99B | 12.53B | 10.32B | 9.24B | 9.94B | 8.86B | 8.23B | 7.64B | 6.21B |
| Pretax Margin % | 34.58% | 35.88% | 32.21% | 30.16% | 37.06% | 39.42% | 38.23% | 33.62% | 36.22% | 37.04% | 37.54% | 36.28% | 36.13% | 40.11% | 41.39% | 40.3% | 37.94% | 36.92% | 38.66% | 38.88% | 39.61% | 16.87% | 18.61% |
| Income Tax | 2.75B | 2.74B | 2.38B | 2.34B | 2.24B | 2.67B | 2.38B | 2.29B | 2.44B | 4.31B | 2.77B | 2.69B | 3.1B | 3.67B | 3.83B | 3.65B | 2.83B | 2.69B | 2.79B | 2.56B | 1.83B | 1.83B | 2.09B |
| Effective Tax Rate % | 19.2% | 18.77% | 19.51% | 22.05% | 19.06% | 21.57% | 21.67% | 22.88% | 22.78% | 40.45% | 27.63% | 27.65% | 28.8% | 29.31% | 29.51% | 29.15% | 27.37% | 29.11% | 28.05% | 28.93% | 22.23% | 24.02% | 33.64% |
| Net Income | 11.1B | 11.35B | 7.03B | 7.79B | 9.05B | 9.11B | 8.06B | 7.18B | 7.91B | 6.04B | 6.97B | 6.87B | 7.49B | 8.58B | 8.8B | 8.59B | 7.26B | 6.34B | 6.89B | 6.03B | 6.15B | 5.62B | 3.98B |
| Net Margin % | 26.74% | 27.92% | 18.57% | 22.15% | 28.49% | 29% | 28.08% | 24.11% | 26.7% | 20.99% | 26.11% | 25.65% | 25.17% | 27.47% | 28.05% | 27.63% | 26.68% | 25.33% | 26.8% | 26.43% | 29.59% | 12.41% | 11.91% |
| Net Income Growth % | 46.02% | 61.33% | -9.72% | -13.89% | -0.67% | 13.07% | 12.12% | -9.18% | 31.09% | -13.38% | 1.37% | -8.27% | -12.63% | -2.55% | 2.43% | 18.35% | 14.46% | -7.95% | 14.34% | -1.95% | 9.36% | 41.38% | - |
| Net Income (Continuing) | 11.59B | 11.85B | 9.82B | 8.27B | 9.53B | 9.71B | 8.59B | 7.73B | 8.29B | 6.34B | 7.25B | 7.03B | 7.66B | 8.85B | 9.15B | 8.88B | 7.5B | 6.55B | 7.15B | 6.3B | 6.4B | 5.81B | 4.12B |
| Discontinued Operations | 0 | 0 | -23M | -157M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.98B | 1.97B | 1.88B | 1.78B | 2.65B | 1.9B | 1.94B | 1.98B | 1.72B | 1.86B | 1.79B | 1.77B | 1.43B | 1.49B | 1.62B | 1.53B | 1.61B | 429M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.10 | 7.26 | 4.52 | 5.02 | 5.81 | 5.83 | 5.16 | 4.61 | 5.09 | 3.88 | 4.48 | 4.42 | 4.76 | 5.26 | 5.17 | 4.98 | 3.92 | 3.24 | 3.32 | 2.86 | 2.91 | 2.69 | 1.95 |
| EPS Growth % | 46.3% | 60.62% | -9.96% | -13.6% | -0.34% | 12.98% | 11.93% | -9.43% | 31.19% | -13.39% | 1.36% | -7.14% | -9.51% | 1.74% | 3.82% | 27.04% | 20.99% | -2.41% | 16.08% | -1.72% | 8.18% | 37.95% | - |
| EPS (Basic) | - | 7.27 | 4.53 | 5.02 | 5.82 | 5.83 | 5.16 | 4.61 | 5.09 | 3.88 | 4.48 | 4.42 | 4.76 | 5.26 | 5.17 | 4.98 | 3.93 | 3.25 | 3.33 | 2.86 | 2.91 | 2.71 | 1.96 |
| Diluted Shares Outstanding | 1.56B | 1.56B | 1.56B | 1.55B | 1.55B | 1.56B | 1.56B | 1.56B | 1.55B | 1.55B | 1.55B | 1.55B | 1.57B | 1.62B | 1.69B | 1.73B | 1.84B | 1.95B | 2.08B | 2.11B | 2.11B | 2.09B | 2.04B |
| Basic Shares Outstanding | 1.56B | 1.56B | 1.55B | 1.55B | 1.55B | 1.56B | 1.56B | 1.55B | 1.55B | 1.55B | 1.55B | 1.55B | 1.57B | 1.62B | 1.69B | 1.73B | 1.84B | 1.94B | 2.07B | 2.11B | 2.11B | 2.07B | 2.03B |
| Dividend Payout Ratio | - | 76% | 116.53% | 102.22% | 86.34% | 83.21% | 91.41% | 99.67% | 87.03% | 108.04% | 91.55% | 90.94% | 80.54% | 66.7% | 61.41% | 55.73% | 60.93% | 68.23% | 73.72% | 108.86% | 45.23% | 136.69% | - |
Regulatory and geopolitical volatility
According to reported financial statements, Philip Morris International has maintained a consistent revenue growth trajectory, with quarterly figures reaching $10.1 billion in 2026Q1, reflecting a 9.1% year-over-year increase that underscores the successful integration of smoke-free product lines and the expansion of the ZYN oral nicotine portfolio.
The company's ability to sustain mid-to-high single-digit revenue growth suggests that its transition away from traditional combustibles is effectively offsetting secular volume declines. Investors should monitor whether this growth remains durable as the company faces increased saturation in its primary heat-not-burn markets.
Based on the provided income statement data, PM has demonstrated robust pricing power, with gross margins consistently hovering near 67% and peaking at 68.1% in 2026Q1, indicating that the company successfully passes through excise tax increases and inflationary pressures to its global consumer base.
The stability of these margins appears to be a direct result of the premium positioning of the IQOS platform and the high-margin nature of the ZYN brand. This structural advantage suggests that the company maintains a superior competitive position compared to peers who remain more heavily reliant on legacy combustible products.
As reported in recent filings, operating income has shown significant resilience, scaling to $3.9 billion in 2026Q1, which implies that management is successfully managing the overhead costs associated with the ongoing global rollout of smoke-free alternatives and the integration of the Swedish Match business unit.
The fluctuation in operating margins, which reached a high of 39.3% in 2025Q3, suggests that the company is balancing aggressive marketing spend with operational efficiencies. Further investigation is warranted to determine if these operating margins can remain elevated as the company continues to invest in new market penetration.
Based on the income statement history, net income has experienced notable volatility, including a significant loss in 2024Q4, which appears to be an outlier driven by non-operating items rather than a fundamental deterioration in the company's core nicotine-based business model or its recurring revenue streams.
The sharp recovery in EPS following the 2024Q4 anomaly suggests that the underlying earnings power remains intact. Analysts should distinguish between these periodic accounting adjustments and the company's actual cash-generating capacity, which appears to be supported by strong demand for its smoke-free product ecosystem.
While the company's growth appears strong, the potential for increased regulatory scrutiny of nicotine pouches and heated tobacco units in key markets like the US and EU represents a significant risk that could compress future margins and disrupt the current upward trajectory of the smoke-free portfolio.
Short-term investors should remain cautious, as any legislative action that treats smoke-free products with the same severity as traditional cigarettes could undermine the company's primary growth engine. The reliance on a few high-growth categories makes the firm particularly sensitive to sudden shifts in public health policy.
Quick answers to the most common questions about buying PM stock.
For fiscal year 2025, Philip Morris International Inc. (PM) reported total revenue of $40.65B. This represents a 21.7% increase compared to $33.39B in 2003.
Philip Morris International Inc. (PM) is profitable, generating $11.35B in net income for the fiscal year ending 2025 with a net profit margin of 27.9%.
Philip Morris International Inc. (PM) reported an operating income of $14.93B, resulting in an operating profit margin of 36.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Philip Morris International Inc. (PM) generated $27.28B in gross profit for the year, representing a gross profit margin of 67.1%. This demonstrates the company's core pricing power and production efficiency.