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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).

Net revenues$40.6BFY2025 · +7.3% vs FY2024
Net earnings to PMI$11.3BFY2025 · +60.8% vs FY2024
Operating cash flow$12.2BFY2025 · +0.1% vs FY2024
Cash & equivalents$6.7Bat Sep 30, 2026 · +37.2% vs FY2025 end
Total debt$47.6Bat Sep 30, 2026 · −2.6% vs FY2025 end
Diluted shares1.56BFY2025 avg · +0.1% vs FY2024
Net revenues and net earnings to PMI, three fiscal yearsBy fiscal year, $bn
Net revenuesNet earnings to PMI
Net revenues and net earnings to PMI by fiscal yearNet revenues FY2023: $35.2B35.2Net earnings to PMI FY2023: $7.8B7.8FY2023Net revenues FY2024: $37.9B37.9Net earnings to PMI FY2024: $7.1B7.1FY2024Net revenues FY2025: $40.6B40.6Net earnings to PMI FY2025: $11.3B11.3FY2025

Source: 10-K FY2025, filed Feb 6, 2026

Quarterly net revenues: fiscal 2026 vs a year earlierFiscal Q1–Q3, $bn (each quarter from that quarter's 10-Q)
FY2025FY2026
Quarterly net revenues, fiscal 2026 vs 2025FY2025 Q1: $9.3B9.3FY2026 Q1: $10.1B10.1Q1FY2025 Q2: $10.1B10.1FY2026 Q2: $11.2B11.2Q2FY2025 Q3: $10.8B10.8FY2026 Q3: $11.4B11.4Q3

Source: 10-Q filed Apr 24, 2026 · 10-Q filed Jul 24, 2026 · 10-Q filed Oct 23, 2026

How it makes money

FY2025 total by categoryCombustible tobacco: $23.8B (59%)Smoke-free: $16.9B (41%)$40.6BFY2025 total

By product type, FY2025

  • LineAmountSharevs FY2024
  • Combustible tobacco$23.8B59%+2.5%
  • Smoke-free$16.9B41%+15.0%

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%.

By product type: three-year mixShare of the total each fiscal year
Combustible tobaccoSmoke-free

Source: 10-K FY2025

By segment, FY2025

Europe$17.1B42%+9.1%
SSEA, CIS & MEA$12.1B30%+7.0%
EA, AU & PMI GTR$6.6B16%+3.7%
Americas$4.9B12%+7.1%

Share is of the FY2025 total; the last column is the change from FY2024.

What changed last quarter

How the quarter compared with a year earlier

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

Net revenues
$11.4B Q3 2026
$10.8B Q3 2025
5.5% increase
Net income
$3.3B Q3 2026
$3.5B Q3 2025
4.7% decrease

Source: Philip Morris International 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026

By product type

Combustible tobacco
$6.8B Q3 2026
$6.4B Q3 2025
6.4% increase
Smoke-free
$4.6B Q3 2026
$4.4B Q3 2025
4.0% increase

Source: Philip Morris International 10-Q for the quarter ended Sep 30, 2026, filed Oct 23, 2026

  • Cash & equivalents $6.7B at Sep 30, 2026, vs $4.9B at FY2025 end.
  • Total debt $47.6B at Sep 30, 2026, vs $48.8B at FY2025 end.
  • Operating cash flow, first 9 months of fiscal 2026: $10.4B vs $7.5B a year earlier.

The bull case and the bear case

The bull case

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.

  1. Regulation and taxesTobacco and nicotine products face heavy regulation and excise taxes that can cut demand or margins.
  2. Smoke-free transitionIts strategy depends on adult smokers switching to its smoke-free products, and on approvals for them.
  3. Competition and illicit tradeRivals, counterfeit and smuggled products can take sales.
  4. InternationalMost sales are outside the US, so currency moves and local politics affect results.
  5. LitigationSmoking and health lawsuits and other legal proceedings can be costly.
  6. Supply and costsTobacco leaf, device components and electronics supply can be disrupted.
  7. 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$FY2023FY2024FY2025
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 shares1.55B1.56B1.56B
  • 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

FormFiledPeriod
10-QOct 23, 2026Sep 30, 2026
10-QJul 24, 2026Jun 30, 2026
10-QApr 24, 2026Mar 31, 2026
DEF 14AMar 26, 2026May 6, 2026
10-KFeb 6, 2026Dec 31, 2025

Latest filings

  1. 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).

All Philip Morris International filings notes →

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

CompanyFiscal yearRevenueRevenue growthNet income
Philip Morris InternationalPMFY2025$40.6B+7.3%$11.3B
AltriaMOFY2025$23.3B−3.1%$6.9B
Coca-ColaKOFY2025$47.9B+1.9%$13.1B
Procter & GamblePGFY2026$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.

More company files

New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.