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Saturday 17 October 2026 Export PM’s income statement to Excel — free account

Philip Morris International Inc.

PM Consumer Defensive Tobacco

Philip Morris International Inc.’s revenue for fiscal 2025 (year ended December 2025) was $40.6 billion, up 7.31% from fiscal 2024. In the quarter to June 2026, revenue grew 10.4%, EPS fell 7.69%, free cash flow grew 67.3% and total debt fell 4.56%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for ten consecutive years, revenue growth for five.

205.20 5.30 +2.65%
Market cap
$311.6B
P/E
29.5×
Fwd P/E
22.6×
Dividend yield
2.93%
F-score
7/9
Altman Z
3.94
Beneish M
−2.33
Dividend safety
47/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Philip Morris International Inc. (PM) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Philip Morris International recorded $40.6 billion of revenue, $14.9 billion of operating income and $11.8 billion of net income in FY2025. Revenue in FY2025 grew 7.31% against FY2024, while diluted EPS in FY2025 was $7.26.

The latest reported quarter, Q2 FY2026, produced $11.2 billion of revenue, $7.7 billion of gross profit, $4.5 billion of operating income and $3.0 billion of net income. Diluted EPS was $1.80 in Q2 FY2026, and free cash flow was $5.1 billion in Q2 FY2026. Revenue over the TTM to Q2 FY2026 was $42.5 billion.

Growth

Revenue reached $40.6 billion in FY2025, with growth of 7.31% in FY2025 against FY2024. Revenue compound annual growth was 8.57% over FY2022–FY2025 and 7.21% over FY2020–FY2025. Diluted EPS was $7.26 in FY2025, up 60.6% in FY2025 against FY2024; its compound annual growth was 7.71% over FY2022–FY2025 and 7.07% over FY2020–FY2025.

Free cash flow was $10.7 billion in FY2025, down −1.01% in FY2025 against FY2024. Free cash flow compound annual growth was 3.12% over FY2022–FY2025 and 2.98% over FY2020–FY2025. Revenue rose 10.4% in Q2 FY2026 against Q2 FY2025, while diluted EPS declined −7.69% in Q2 FY2026 against Q2 FY2025 and free cash flow grew 67.3% in Q2 FY2026 against Q2 FY2025.

Profitability

Gross margin was 67.1% in FY2025, increasing by 2.3 percentage points over FY2024–FY2025 and by 0.5 percentage points over FY2020–FY2025. Operating margin was 36.6% in FY2025, increasing by 1.3 percentage points over FY2024–FY2025 but declining over FY2020–FY2025. Pre-tax margin was 34.1% in FY2025, while net margin was 29.1% in FY2025.

Return on assets was 17.3% in FY2025, compared with 11.1% in FY2024. Return on invested capital was 25.9% in FY2025, compared with 26.5% in FY2024. Return on equity was −126.5% in FY2025, alongside shareholders’ equity of −$8.0 billion in FY2025. Gross margin was 68.4% and operating margin was 40.5% in Q2 FY2026.

Balance sheet

Total debt was $48.8 billion in FY2025, compared with $45.7 billion in FY2024. Net debt was $44.0 billion in FY2025, and cash and short-term investments were $4.9 billion in FY2025. Shareholders’ equity was −$8.0 billion in FY2025, while working capital was −$1.1 billion in FY2025.

At Q2 FY2026, net debt was $43.1 billion and the current ratio was 1.0×. Debt to equity was −7.4× in Q2 FY2026, reflecting negative equity. Net debt was lower by −$3.4 billion in Q2 FY2026 against Q1 FY2026 and lower by −$4.2 billion in Q2 FY2026 against Q2 FY2025.

Cash flow & capital return

Operating cash flow was $12.2 billion in FY2025, essentially unchanged from $12.2 billion in FY2024, with growth of 0.13% in FY2025 against FY2024. Capital expenditure was $1.6 billion in FY2025, and free cash flow was $10.7 billion in FY2025. Free cash flow represented 90.0% of net income in FY2025.

Dividends paid were $8.6 billion in FY2025, compared with $8.2 billion in FY2024. Net share repurchases were $209.0 million in FY2022; no later annual net share repurchase figure is reported. Weighted average shares were 1.6 billion shares in FY2025, with a change of −0.06% over FY2020–FY2025. Operating cash flow was $14.3 billion and free cash flow was $12.7 billion over the TTM to Q2 FY2026.

Valuation

Market capitalisation was $298.5 billion as of September 24, 2026. The P/E was 27.5× as of September 24, 2026, higher than the five-year median of 19.0× and the ten-year median of 18.7×. The P/S was 7.0× as of September 24, 2026, higher than the five-year median of 4.9× and the ten-year median of 4.8×.

EV/Sales was 8.0× as of September 24, 2026, higher than the five-year median of 6.0× and the ten-year median of 5.8×. EV/Cash flow was 26.9× as of September 24, 2026, higher than the five-year median of 21.2× and the ten-year median of 20.7×. P/B was not meaningful as of September 24, 2026 because earnings or book value are negative. Industry-median valuation comparisons are not reported.

What changed since last quarter

Revenue increased 10.3% in Q2 FY2026 against Q1 FY2026 to $11.2 billion in Q2 FY2026. Diluted EPS increased 15.4% in Q2 FY2026 against Q1 FY2026 to $1.80 in Q2 FY2026. Gross margin increased by 0.4 percentage points in Q2 FY2026 against Q1 FY2026, and operating margin increased by 2.1 percentage points in Q2 FY2026 against Q1 FY2026.

Against Q2 FY2025, revenue increased 10.4% in Q2 FY2026, gross margin increased by 0.7 percentage points in Q2 FY2026, and operating margin increased by 3.9 percentage points in Q2 FY2026. Diluted EPS declined −7.69% in Q2 FY2026 against Q2 FY2025. Free cash flow grew 67.3% in Q2 FY2026 against Q2 FY2025, while net debt declined by −$4.2 billion in Q2 FY2026 against Q2 FY2025.

Open questions

  • What factors explain the difference between quarterly revenue growth and diluted EPS growth?
  • What components of working capital contribute to the negative balance?
  • What is driving the movement in debt and net debt between reporting periods?
  • What explains the absence of later annual net share repurchase figures?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.