Company file · PM
Philip Morris International
Smoke-free products made up 41% of Philip Morris International's revenue in 2025
Smoke-free products such as IQOS and ZYN brought in $16.9B, up 15.0%, out of $40.6B in net revenues. Cigarettes and other combustibles grew 2.5%.
Key facts
In fiscal 2025, which ended Dec 31, 2025, Philip Morris International (NYSE: PM) took in $40.6B of net revenues (up 7.3% on fiscal 2024); net earnings to PMI was $11.3B (up 60.8%). The most recent quarter, ended Sep 30, 2026, brought net revenues of $11.4B, up 5.5% year over year, with net income of $3.3B. Combustible tobacco was the biggest single line by product type: 59% of fiscal 2025 net revenues. Sources: 10-K for fiscal 2025 (filed Feb 6, 2026) and 10-Q for the quarter ended Sep 30, 2026 (filed Oct 23, 2026).
Source: 10-K FY2025, filed Feb 6, 2026
Source: 10-Q filed Apr 24, 2026 · 10-Q filed Jul 24, 2026 · 10-Q filed Oct 23, 2026
How it makes money
By product type, FY2025
Source: 10-K FY2025, XBRL breakdown
Combustible tobacco was 59% of 2025 net revenues and smoke-free 41%. By the 2025 segments, Europe was the largest at 42%, followed by SSEA, CIS & MEA at 30%.
Source: 10-K FY2025
By segment, FY2025
Share is of the FY2025 total; the last column is the change from FY2024.
What changed last quarter
Comparing Q3 2026 (Jul to Sep 2026) compared with Q3 2025 (Jul to Sep 2025)
Each pair of bars shows the dollar amount for both quarters. Longer bar, more money. Bars in a group share one scale.
Q3 2026Q3 2025
Company
Source: Philip Morris International 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026
By product type
Source: Philip Morris International 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026
The bull case and the bear case
The bull case
- Smoke-free net revenues grew 15.0% in 2025 to $16.9B. 10-K, FY2025
- Net earnings rose 60.8% in 2025 to $11.3B. 10-K, FY2025
- Net revenues in the quarter ended Sep 30, 2026 were $11.4B, up 5.5% on a year earlier. 10-Q, quarter ended Sep 30, 2026
- Operating cash flow was $10.4B in the first 9 months of 2026, against $7.5B a year earlier. 10-Q, quarter ended Sep 30, 2026
The bear case
- Total debt was $48.8B at the end of 2025, more than its net revenues of $40.6B. 10-K, FY2025
- Net earnings in the quarter ended Sep 30, 2026 were $3.3B, down 4.7% on a year earlier. 10-Q, quarter ended Sep 30, 2026
- Smoke-free revenue grew 4.0% in the quarter ended Sep 30, 2026, slower than combustibles at 6.4%. 10-Q, quarter ended Sep 30, 2026
- The 10-K lists tobacco regulation and taxes, illicit trade, and the risk that smoke-free products don't succeed among its risks. 10-K, Item 1A
What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.
What the company does
Philip Morris International sells cigarettes, led by Marlboro, and smoke-free products including IQOS heated tobacco, ZYN nicotine pouches and e-vapor products, outside and inside the US.
PMI sells combustible tobacco products (mainly cigarettes) in markets outside the US, and smoke-free products, which it calls its Smoke-Free Business: heat-not-burn devices and consumables such as IQOS and TEREA, ZYN and other nicotine pouches, and e-vapor products. ZYN is its main product in the US.
In 2025 it reported four geographic segments. From January 1, 2026 it reorganized into three segments: International Smoke-Free, International Combustibles, and the US. Its fiscal year is the calendar year.
Source: 10-K, Item 1 Business
Main risks the company lists
Our plain-English paraphrase of the risk factors in Philip Morris International's latest 10-K. Read the original for the full list.
- Regulation and taxesTobacco and nicotine products face heavy regulation and excise taxes that can cut demand or margins.
- Smoke-free transitionIts strategy depends on adult smokers switching to its smoke-free products, and on approvals for them.
- Competition and illicit tradeRivals, counterfeit and smuggled products can take sales.
- InternationalMost sales are outside the US, so currency moves and local politics affect results.
- LitigationSmoking and health lawsuits and other legal proceedings can be costly.
- Supply and costsTobacco leaf, device components and electronics supply can be disrupted.
- Cyber and dataCyberattacks and data-privacy rules are listed risks.
Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)
Three years of key numbers
Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.
| US$ | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Net revenues | $35.2B | $37.9B | $40.6B |
| Net earnings to PMI | $7.8B | $7.1B | $11.3B |
| Operating cash flow | $9.2B | $12.2B | $12.2B |
| Cash & equivalents (year end) | $3.1B | $4.2B | $4.9B |
| Total debt (year end) | $47.9B | $45.7B | $48.8B |
| Diluted shares | 1.55B | 1.56B | 1.56B |
- Net revenues: Revenue after excise taxes collected for governments are taken out.
- Net earnings to PMI: Net earnings attributable to PMI, after the share belonging to minority owners of some subsidiaries.
- Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
- Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
- Total debt: Short-term borrowings plus long-term debt including current maturities, at carrying value.
- Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.
About these numbers
- Net revenues exclude excise taxes. The segment chart uses the four geographic segments PMI reported for 2025; it changed its segments from January 2026.
- Net earnings are those attributable to PMI, after noncontrolling interests.
- Total debt is short-term borrowings plus long-term debt, including the current portion and finance leases, at carrying value.
Recent filings
Latest filings
- Oct 217:04 AM ET
8-K
Philip Morris International files an 8-K on quarterly results
Philip Morris International filed a Form 8-K on Oct 21, 2026 at 7:04 AM ET under Item 2.02 (Results of Operations and Financial Condition).
Common questions about Philip Morris International
How does Philip Morris International make money?
In fiscal 2025, net revenues totaled $40.6B. Combustible tobacco was 59% of 2025 net revenues and smoke-free 41%. By the 2025 segments, Europe was the largest at 42%, followed by SSEA, CIS & MEA at 30%. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
What was Philip Morris International's revenue in fiscal 2025?
Net revenues came to $40.6B in the year ended Dec 31, 2025. Going back two years, it was $35.2B in fiscal 2023 and $37.9B in fiscal 2024, so the latest year was up 7.3%. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
Is Philip Morris International profitable?
Yes, by US accounting rules (GAAP): net earnings to PMI was $11.3B in fiscal 2025, up 60.8% from $7.1B a year earlier. For the quarter ended Sep 30, 2026, net income was $3.3B. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2025, filed Feb 6, 2026.
What did Philip Morris International report in its latest quarterly filing?
The 10-Q for the quarter ended Sep 30, 2026 shows net revenues of $11.4B, against $10.8B in the same quarter a year before (up 5.5%), and net income of $3.3B, against $3.5B (down 4.7%). Source: 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026.
How much cash and debt does Philip Morris International have?
On Sep 30, 2026, cash and cash equivalents stood at $6.7B and total debt at $47.6B. Total debt here is short-term borrowings plus long-term debt including current maturities, at carrying value. Source: 10-Q filed Oct 23, 2026.
What are the main risks Philip Morris International lists?
Item 1A of the fiscal 2025 10-K (filed Feb 6, 2026) sets out the risks. Grouped, they fall into 7 areas: Regulation and taxes; smoke-free transition; competition and illicit trade; international; litigation; supply and costs; cyber and data. To start with the first: Tobacco and nicotine products face heavy regulation and excise taxes that can cut demand or margins. Source: 10-K, Item 1A Risk Factors.
Where do these Philip Morris International numbers come from?
Two filings Philip Morris International made with the SEC: its fiscal 2025 10-K, filed Feb 6, 2026, and its 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026. The figures are taken from the XBRL data the SEC publishes, and every one links back to its source. Methodology explains how fiscal years and missing numbers are handled.
Disclosures
- Editor holdings in PM
- The editor holds no position in Philip Morris International (PM). As of Oct 25, 2026.
- Trading rule
- The editor does not buy or sell PM from 3 days before to 3 days after this page is published or substantively updated.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- The company's SEC filings, linked next to each number or, for charts, in the source line under them.
- Last updated
- Oct 25, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold PM, and it doesn't consider your situation.
Compare with peers
| Company | Fiscal year | Revenue | Revenue growth | Net income |
|---|---|---|---|---|
| Philip Morris InternationalPM | FY2025 | $40.6B | +7.3% | $11.3B |
| AltriaMO | FY2025 | $23.3B | −3.1% | $6.9B |
| Coca-ColaKO | FY2025 | $47.9B | +1.9% | $13.1B |
| Procter & GamblePG | FY2026 | $87.0B | +3.3% | $16.0B |
Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.
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New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.