01—Abstract
Summary
Summary of the 10-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Philip Morris International Inc. (PMI) reported strong financial performance for the fiscal year ended December 31, 2025.
Net revenues increased by 7.3% to $40.6 billiona, driven by a favorable pricing variance in combustible tobacco and significant growth in smoke-free product (SFP) volumes, which more than offset a decline in cigarette volumes. Diluted Earnings Per Share (EPS) saw a substantial increase of 60.6% to $7.26, benefiting from higher operating income, favorable currency movements, and improved income from equity investments. The company's strategic focus on its smoke-free portfolio continues to yield positive results, with SFPs driving overall volume growth.
PMI also demonstrated a commitment to shareholder returns through significant dividend payments and share repurchases. The company provided guidance for 2026, expecting broadly stable total cigarette and SFP shipment volume, with high-single digit SFP shipment volume growth and a cigarette shipment volume decline of around 3%b. PMI's ongoing transformation towards a smoke-free future remains a key strategic priority, supported by continued investment in R&D and commercialization of its innovative products.
02—Key points
Key Highlights
- Net revenues increased by 7.3% to $40.6 billion, driven by favorable pricing and strong smoke-free product volume growth.
- Diluted EPS grew by a significant 60.6% to $7.26, reflecting improved operating income and other financial factors.
- Smoke-free products (SFPs) continue to be a key growth driver, with SFP volumes up 12.8%.
- The company paid $8.6 billion in dividends in 2025, demonstrating a commitment to shareholder returns.
- PMI is on track with its smoke-free transformation, with SFPs available in 106 markets as of year-end 2025.
- Significant investments in R&D and commercialization of smoke-free products continue, with over $16 billion invested since 2008.
- ZYN nicotine pouches received FDA marketing authorization for 20 varieties, reinforcing the strength of PMI's oral nicotine portfolio in the U.S.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Philip Morris International Inc. kept $0.28.
- Revenue$40.65B100.0%
- Cost of revenue−$13.37B32.9%
- Gross profit$27.28B67.1%
- Operating costs−$12.39B30.5%
- Operating income$14.89B36.6%
- Interest, other & tax−$3.54B8.7%
- Net income$11.35B27.9%
Where FY2025 revenue went
$40.65B- Cost of revenue: $13.37B, 33% of revenue
- Other operating costs: $11.63B, 29% of revenue
- Net income: $11.35B, 28% of revenue
- R&D: $756.0M, 1.9% of revenue
- Interest, other & tax: $3.54B, 8.7% of revenue
Kept 28% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 6, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $40.65B$37.88B | +7.3% |
| Cost of Revenue | $13.37B$13.33B | +0.3% |
| Gross Profit | $27.28B$24.55B | +11.1% |
| R&D Expenses | $756.00M$759.00M | −0.4% |
| Operating Income | $14.89B$13.40B | +11.1% |
| Net Income | $11.35B$7.06B | +60.8% |
| EPS (Basic) | $7.27$4.53 | +60.5% |
| EPS (Diluted) | $7.26$4.52 | +60.6% |
| Shares Outstanding (Basic) | 1.56B1.55B | +0.1% |
| Shares Outstanding (Diluted) | 1.56B1.56B | +0.1% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Philip Morris International in 2025?
Philip Morris International (PMI) reported a strong financial performance in 2025, with net revenues increasing by 7.3% to $40.6 billion and diluted EPS rising by 60.6% to $7.26. This growth was driven by favorable pricing and robust volume increases in smoke-free products, which more than offset a decline in cigarette volumes.
How is the company progressing with its smoke-free transition?
The company continues to make significant progress in its transition to a smoke-free future. As of December 31, 2025, PMI's smoke-free products were available in 106 markets. Smoke-free product volumes increased by 12.8% year-over-year, highlighting the growing adoption of its innovative portfolio, which includes IQOS, ZYN, and VEEV brands.
What are the key risks and challenges highlighted in the filing?
Key risks and challenges include the ongoing decline in cigarette consumption, stringent and evolving government regulations impacting tobacco and nicotine products, intense competition, potential supply chain disruptions, and litigation related to tobacco and nicotine products. The company also faces risks associated with cybersecurity and the potential for adverse legal and regulatory developments concerning its smoke-free products.
How did the acquisition of Swedish Match impact the company's performance?
The acquisition of Swedish Match AB in November 2022 has significantly strengthened PMI's smoke-free portfolio, particularly with the leading ZYN brand in the oral nicotine category. This integration has contributed to the growth in SFPs and helped PMI achieve a global smoke-free combination, as evidenced by the increased SFP volumes and market presence.
06—Continue