# Philip Morris International Inc. (PM) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PM/thesis · /stocks/PM/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PM/fundamental

## Navigation

- Overview: /stocks/PM
- Financials (this page): /stocks/PM/financials
- Thesis: /stocks/PM/thesis
- Investment Memo: /stocks/PM/memo
- Coverage universe: /stocks