Philip Morris International (PM) Q4 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of volume growth, with net revenues surpassing $40 billion and smoke-free products contributing 41.5% of total net revenues for 2025, available in 106 markets and representing over 50% of net revenues in 27 markets and 3 of 4 regions.

• Adjusted diluted EPS grew 14.8% year-over-year to $7.54, the strongest since 2011 (excluding 2021), with operating income margin above 40%.

• Smoke-free shipment volumes rose 12.8%, with over 43 million adult consumers globally.

• Consistent, best-in-class growth and commitment to rewarding shareholders, with confidence in outlook for 2026 and beyond.

• Strong international performance, with ZYN shipments in the U.S. up 37% and robust growth in wellness and combustibles despite supply constraints.

Financial highlights

• Full-year 2025 net revenues reached $40.6 billion, up 7.3% reported and 6.5% organically; Q4 organic net revenues grew 3.7% to $10.4 billion.

• Gross profit was $27.3 billion, up 11.1% reported and 10.1% organically; operating income was $14.9 billion, up 11.1% reported and 10.6% organically.

• Adjusted operating income margin for 2025 was 40.4%, up 1.6pp from 2024, with gross margin improved by 140 basis points.

• Adjusted diluted EPS for 2025 was $7.54, up 14.8% year-over-year and 14.2% on a currency-neutral basis.

• Operating cash flow for 2025 was $12.2 billion, matching the prior year.

Outlook and guidance

• 2026 organic net revenue growth forecast at 5%–7%, with organic operating income growth of 7%–9%.

• 2026 adjusted diluted EPS forecasted at $8.38–$8.53, representing 11.1%–13.1% growth over 2025, with currency-neutral growth of 7.5%–9.5%.

• Operating cash flow for 2026 projected at approximately $13.5 billion, with net debt to adjusted EBITDA targeted near 2.0x by year-end.

• 2026–2028 guidance targets 6%–8% net revenue CAGR, 8%–10% operating income CAGR, and 9%–11% adjusted diluted EPS CAGR (currency-neutral).

• Capital expenditures projected at $1.4–$1.6 billion in 2026.