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Philip Morris International (PM) FY2025 results: revenue $40.6 billion, up 7.3% on the year

Philip Morris International Inc. (PM) reported revenue of $40.6 billion for fiscal 2025, the year ended 31 December 2025, up 7.3% on the year before. Net income was $11.3 billion, up 60.8%, and diluted earnings per share $7.26. The figures are the company's own, from the 10-K it filed with the SEC on 6 February 2026.

Revenue
$40.6 billion
+7.3% on the year
FY2018FY2025
Operating margin
36.6%
35.4% a year earlier
FY2018FY2025
Net income
$11.3 billion
+60.8% on the year
FY2018FY2025
Diluted EPS
$7.26
+60.6% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 15 new, 1 kept.

  • Full-year EPS and growth: Full-year reported diluted EPS was $7.26, against $4.52 in 2024; adjusted diluted EPS was $7.54, up 14.8% (14.2% on a currency-neutral basis).
  • Fourth-quarter growth slowed: Fourth-quarter adjusted operating income rose 5.8% reported and 4.5% organically, against 11.8% reported growth for the full year.
  • Segments reset to three: From January 1, 2026, the four geographic segments are replaced by International Smoke-Free, International Combustibles and U.S. segments, reported from Q1 2026.
  • Americas profit fell in fourth quarter: Fourth-quarter Americas adjusted operating income fell 43.4% organically; management said U.S. nicotine pouch gross margins remained above international SFP margins.
  • Smoke-free share of revenue: Smoke-free business was 41.5% of full-year net revenues and nearly 43% of gross profit, up 2.8 and 3.2 points against 2024.
Read the Q4 FY2025 earnings call summary

From this 10-K

Philip Morris International sells cigarettes and smoke-free nicotine products internationally. It is a Virginia holding company incorporated in 1987 that became a United States public company listed on the New York Stock Exchange in March 2008. Its stated direction is a smoke-free future, and it says it has invested over $16 billion since 2008 to develop, scientifically substantiate and commercialise smoke-free products for adults who would otherwise keep smoking, with the goal of ending cigarette sales entirely. Total shipment volume in 2025 was 786.5 billion equivalent units, up 1.4% on 2024: 607.4 billion cigarettes, down 1.5%, and 179.1 billion smoke-free units, up 12.8%.

Philip Morris International Inc., the 10-K for 2025

Philip Morris International sells cigarettes and smoke-free nicotine products internationally. It is a Virginia holding company incorporated in 1987 that became a United States public company listed on the New York Stock Exchange in March 2008. Its stated direction is a smoke-free future, and it says it has invested over $16 billion since 2008 to develop, scientifically substantiate and commercialise smoke-free products for adults who would otherwise keep smoking, with the goal of ending cigarette sales entirely. Total shipment volume in 2025 was 786.5 billion equivalent units, up 1.4% on 2024: 607.4 billion cigarettes, down 1.5%, and 179.1 billion smoke-free units, up 12.8%.

Smoke-free products

The term covers products that deliver nicotine without burning tobacco, including heat-not-burn, e-vapor and oral smokeless. IQOS is the heated tobacco brand, a controlled heating device into which a proprietary tobacco unit is inserted and heated to make an aerosol; the consumables are sold as BLENDS, DELIA, HEETS, SENTIA, TEREA and its variants, along with the licensed Fiit and Miix brands and the zero-tobacco LEVIA. IQOS was first introduced in Nagoya, Japan in 2014. The filing states that IQOS, ZYN and VEEV are the leading brands in the smoke-free portfolio. Smoke-free products were on sale in 106 markets at 31 December 2025, and modern oral pouches in 56 markets. Heated tobacco units were 155.1 billion equivalent units in 2025, oral smoke-free products 20.7 billion and e-vapor 3.3 billion.

Cigarettes

Cigarettes are sold in approximately 170 markets and hold the number one or number two share in many of them, across premium, mid-price and low-price brands. Marlboro, described in the filing as the world's best-selling international cigarette, was approximately 43% of 2025 cigarette shipment volume. Parliament sits alongside it in the premium category, and the filing states that Chesterfield, L&M and Philip Morris are the other leading international brands; together those five were 81% of cigarette shipment volume in 2025. Local brands include Dji Sam Soe and Sampoerna A in Indonesia and Fortune and Jackpot in the Philippines.

Swedish Match and the United States

In November 2022 the company acquired Swedish Match AB, a maker of oral nicotine products, bringing the ZYN brand alongside IQOS. Since 30 April 2024 it has held the full rights to commercialise IQOS in the United States, following a 2022 agreement ending its United States commercial relationship on IQOS with Altria Group. The Food and Drug Administration has authorised the marketing of Swedish Match's General snus and ZYN nicotine pouches and of versions of IQOS devices and consumables, and versions of IQOS and General snus also hold Modified Risk Tobacco Product authorisations.

Wellness

The company states a long-term ambition to expand into wellness, and its wellness unit, Aspeya, currently focuses on developing and commercialising mainly oral consumer wellness products, including medical and non-recreational cannabinoid products within applicable regulation, though it expects any cannabinoid income to be negligible in the near to medium term. Its smoke-free business grouping also takes in wellness products and consumer accessories such as lighters and matches.

Structure and people

In the fourth quarter of 2025 the company moved to an organisational model with two primary business units, International and U.S., effective 1 January 2026, and replaced its four geographic reportable segments with three: International Smoke-Free, International Combustibles and U.S. Reporting on that basis starts with the first quarter of 2026. As a holding company, its principal source of funds is dividends and debt repayment from subsidiaries. It employed approximately 84,900 people worldwide at 31 December 2025, including full-time, temporary and part-time staff, representing more than 130 nationalities, with collective bargaining agreements in several countries and a European Works Council established under European Union requirements.

From Philip Morris International's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 6 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue40,64837,87835,174+7.3%
Cost of revenue13,36613,32912,893+0.3%
Gross profit27,28224,54922,281+11.1%
Gross margin67.1%64.8%63.3%
Research and development756759709-0.4%
Operating income14,89213,40211,556+11.1%
Operating margin36.6%35.4%32.9%
Interest expense1,5871,7631,526-10.0%
Pre-tax income13,88012,19910,450+13.8%
Income tax2,7373,0172,339-9.3%
Effective tax rate19.7%24.7%22.4%
Net income11,3487,0577,813+60.8%
Net margin27.9%18.6%22.2%
Diluted EPS$7.26$4.52$5.02+60.6%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow12,23312,2179,204+0.1%
Capital expenditure1,5691,4441,321+8.7%
Free cash flow10,66410,7737,883-1.0%
Free cash flow margin26.2%28.4%22.4%
Cash from investing-3,967-1,092-3,598
Cash from financing-8,132-9,481-5,582
Depreciation and amortisation1,9961,7871,398+11.7%
Buybacksn/a0.00.0
Dividends paid8,6248,1977,964+5.2%
Dividend per share$5.64$5.30$5.14+6.4%
Diluted shares, weighted1,558m1,556m1,553m+0.1%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity-9,994-11,750-11,225
Non-controlling interest1,9661,8801,779+4.6%
Debt48,83545,69547,909+6.9%
Operating lease liabilities526427456+23.2%
Finance lease liabilities49.030.023.0+63.3%
Other liabilities27,80325,50226,362+9.0%
Total liabilities and equity69,18561,78465,304+12.0%
Goodwill17,26416,60016,779+4.0%
Intangible assets10,88411,3279,864-3.9%
Investments2,8912,6544,929+8.9%
Cash and equivalents4,8724,2163,060+15.6%
Receivables4,5723,7893,461+20.7%
Inventory11,4789,45310,774+21.4%
Other assets17,22413,74516,437+25.3%
Total assets69,18561,78465,304+12.0%

10-K for the year ended 31 December 2025, filed 6 February 2026: the filing.