Philip Morris International Inc.

PM
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$10.1B
Q1 2026 · +9.1% YoY
TTM ROIC
28.5%
FY2025 · NOPAT / Invested Capital (Total Debt + Total Equity, including goodwill); NOPAT at ~22% tax rate · WACC ~6.8% · Moat spread +20.5pp

Financial Snapshot


ticker: PM step: 04 generated: 2026-05-12 source: quick-research

Philip Morris International Inc. (PM) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue $35.2B $37.9B $40.4B +6.5% organic
Smoke-Free Revenue $12.5B $14.8B ~$17.0B +15% organic
Smoke-Free Revenue Mix 36% 39% 41.5% +250 bps
Operating Margin 38% 38% 40.4% +240 bps
GAAP EPS $5.02 $4.52 $7.26 +60%
Adjusted EPS $6.01 $6.60 $7.54 +14.2% (ex-currency)

Smoke-Free Detail (FY2025)

Product / Metric FY2025
Smoke-Free Net Revenue ~$17B
Smoke-Free Volume Growth +12.8%
Smoke-Free Gross Profit Growth +20.3% (+18.7% organic)
IQOS Adult Consumers 43M+
IQOS Markets 106
ZYN US Shipments 794M cans (+37%)
ZYN US Pouch Market Share ~70%
Markets >50% smoke-free 27 (full-year basis)

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow $12.2B (matched 2024 record)
Free Cash Flow ~$11B
Dividends Paid ~$7.5B
Dividend (Quarterly) $1.35 (~$5.40 annual)
Dividend Yield ~3.8%
Total Debt ~$45B (post-Swedish Match)
Net Debt / EBITDA ~2x targeted by 2026
Credit Rating A- / A

FY2026 Guidance

Metric 2026 Guide
Organic Net Revenue Growth +5–7%
Organic Operating Income Growth +7–9%
Currency-Neutral Adjusted EPS Growth +7.5–9.5%
Reported Adjusted EPS $8.09–8.54 (+11.3–13.3% incl. ~28% currency benefit)
Operating Cash Flow ~$13.5B

Multi-Year Targets (2026–2028 CAGR)

Metric Target
Net Revenue (organic) 6–8%
Operating Income (organic) 8–10%
Adjusted Diluted EPS (ex-currency) 9–11%
Smoke-Free Revenue Mix by 2030 >66%

Key Ratios (approximate)

  • P/E: ~22x (FY26 adjusted EPS midpoint) | EV/EBITDA: ~17x | FCF Yield: ~3.9%
  • Revenue Growth (FY25): +6.5% organic | Operating Margin: 40.4%
  • Dividend Yield: ~3.8% | Payout Ratio: ~68% of FCF
  • Net Debt / EBITDA: ~2.0x by YE 2026

Growth Profile

2025 was a breakout year — smoke-free crossed 40% of revenue mix, operating margin expanded 240 bps to 40.4%, EPS grew 14.2% (ex-currency). The strategic narrative is confirmed: PMI is transforming from a declining-volume combustibles company into a growth platform driven by smoke-free with structurally better margins. FY26 guide of +5–7% organic revenue + 7.5–9.5% ex-currency EPS growth + 28% currency benefit yields reported EPS growth of +11–13%, an unusually strong setup for a tobacco company.

Forward Estimates

2026 Guide (raised in Q1):

  • Reported Adjusted EPS: $8.09–8.54
  • Organic Revenue Growth: +5–7%
  • Operating Cash Flow: ~$13.5B
  • Smoke-free trajectory: continuing volume/revenue/margin expansion

Bull case: Zyn US growth sustains 30%+ through 2027; IQOS US launch successful; smoke-free reaches 50% of revenue mix by 2027 vs. management 2030 target; multiple expands as transformation completes. Bear case: FDA delays Zyn Ultra approval; FDA forces lower-strength caps; combustibles volume declines accelerate beyond pricing offset; multiple compresses on regulatory uncertainty.

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PM.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/pm/financials/md · → thesis · → memo