At a glance
Philip Morris International Inc is worth $324.65B, about 29 times its fiscal 2025 earnings. Revenue grew 7.3% to $40.65B in fiscal 2025, with 27.9% kept as profit; over 5 years it has grown 7.2% a year. It pays a 2.89% dividend yield, raised every year for at least 9 years, and returned $41.16B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +49.4% over the past year with dividends reinvested and +22.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 31.8% in the 2020 crash (S&P 500: 33.7%) and 22.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 19 months after the lows.
The business in plain English
Philip Morris International sells cigarettes and smoke-free nicotine products to adult consumers around the world. Its cigarettes are sold in about 170 markets. The lineup is led by Marlboro, which the company calls the world's top-selling international cigarette. Marlboro made up about 43% of its 2025 cigarette shipment volume. Other major brands include Parliament, Chesterfield, L&M and Philip Morris.
Smoke-free products deliver nicotine without burning tobacco. The main brands are IQOS, a device that heats a specially made tobacco stick instead of burning it; ZYN nicotine pouches, which came with the November 2022 purchase of Swedish Match; and VEEV e-vapor products. As of December 31, 2025, smoke-free products were sold in 106 markets. The company sells through retailers, wholesalers, independent distributors and its own online and retail stores.
Revenue for the year ended December 31, 2025 was $40.6 billion. Combustible tobacco brought in 58.5% and smoke-free products 41.5%. Europe was the largest region at 42.1% of revenue. Next came South and Southeast Asia, Russia and Central Asia, the Middle East and Africa at 29.6%; East Asia, Australia and global travel retail (duty-free shops) at 16.3%; and the Americas at 11.9%. Effective January 1, 2026, the company replaced these four regions with three reporting segments: International Smoke-Free, International Combustibles and U.S.
Price history
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PM +49.4% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Combustible Tobacco Products | $23.79B | 58.5% |
| Smoke-Free Products | $16.85B | 41.5% |
By business segment
| Europe | $17.11B | 42.1% |
| SSEA, CIS & MEA | $12.05B | 29.6% |
| EA, AU & PMI GTR | $6.63B | 16.3% |
| Americas | $4.85B | 11.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $11.44B, up 5.5% from a year earlier, and net income was $3.31B (-4.7%).
- For fiscal 2025, revenue was $40.65B (+7.3% year over year; +7.2% a year from FY2020 to FY2025) with a 27.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.2% good |
|---|---|
| Operating margin | 36.6% good |
| Free cash flow margin | 26.2% good |
| Return on assets (FY2025) | 16.4% good |
| Net cash (cash minus debt) | $-36.38B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $28.69B | $8.06B | $9.21B |
| FY2021 | $31.41B | $9.11B | $11.22B |
| FY2022 | $31.76B | $9.05B | $9.73B |
| FY2023 | $35.17B | $7.81B | $7.88B |
| FY2024 | $37.88B | $7.06B | $10.77B |
| FY2025 | $40.65B | $11.35B | $10.66B |
Valuation snapshot
| Market value | $324.65B |
|---|---|
| P/E ratio | 28.7 |
| Dividend yield | 2.89% |
Rank among 1514 US companies
Market value at each year end
Philip Morris International’s market value went from $141.93B at the end of 2016 to $324.65B on Nov 2, 2026, about 2.3 times as much; since the end of 2025 it is up 30%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $324.65B | +30.0% |
| 2025 | $249.68B | +33.4% |
| 2024 | $187.12B | +28.1% |
| 2023 | $146.05B | -6.9% |
| 2022 | $156.90B | +6.1% |
| 2021 | $147.90B | +14.7% |
| 2020 | $128.93B | -2.6% |
| 2019 | $132.39B | +27.6% |
| 2018 | $103.78B | -36.8% |
| 2017 | $164.10B | +15.6% |
| 2016 | $141.93B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PM price data to Nov 2, 2026 | +33.2% | +49.4% | +37.4% | +22.8% | +13.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +33.2% |
| 2025 | +38.0% |
| 2024 | +34.3% |
| 2023 | -1.8% |
| 2022 | +12.4% |
| 2021 | +20.8% |
| 2020 | +3.9% |
| 2019 | +35.0% |
| 2018 | -33.2% |
| 2017 | +19.9% |
| 2016 | +8.6% |
| 2015 | +13.4% |
| 2014 | -2.1% |
| 2013 | +8.5% |
| 2012 | +10.7% |
| 2011 | +39.8% |
| 2010 | +27.2% |
| 2009 | +16.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.4% over that stretch · deepest drop along the way 31.8%, back to its old high 8.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6.8% over that stretch · deepest drop along the way 22.7%, back to its old high 19.3 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (24 read): 0 open-market purchases and 7 sales ($28.8M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 19, 2026 | Jacek Olczak Group CEO PMI, Director | sell | $14.6M |
| Feb 19, 2026 | Emmanuel Babeau Group Chief Financial Officer | sell | $6.1M |
| Feb 19, 2026 | Wilde Frederic De CEO PMI International | sell | $3.7M |
| Feb 20, 2026 | Stacey Kennedy CEO PMI U.S. | sell | $2.6M |
| Feb 20, 2026 | Reginaldo Dobrowolski Group Controller | sell | $917K |
Who owns it
Large shareholders (13G filings)
| Capital World Investors | 8.3% | Mar 31, 2025 |
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
| Capital Research Global Investors | 5.1% | Mar 31, 2026 |
| Capital International Investors | 4.8% | Mar 31, 2026 |
ETFs with the most weight in PM
| IYK iShares U.S. Consumer Staples ETF | 9.76% |
| FDL First Trust Morningstar Dividend Leaders Index Fund | 6.46% |
| DHS WisdomTree US High Dividend Fund | 5.69% |
| DIVZ Opal Dividend Income ETF | 5.64% |
| XLP Consumer Staples Select Sector SPDR Fund | 5.61% |
| FSTA Fidelity MSCI Consumer Staples Index ETF | 4.83% |
| EQTY Kovitz Core Equity ETF | 4.74% |
| VDC Vanguard Consumer Staples ETF | 4.63% |
What could go wrong
- Smoke-free push could stall or be restricted. Smoke-free products such as IQOS and ZYN made up 41.5% of 2025 revenue and drive PMI's growth. Regulators could ban or limit them or their health claims, and youth use could tighten rules.
- Cigarette sales keep shrinking. Combustible tobacco, mainly cigarettes, still made up 58.5% of 2025 revenue. Tax-paid cigarette use keeps falling in many markets because of higher taxes, health concerns and illicit products. Cigarette shipments fell 1.5% in 2025.
- Rising tobacco taxes could squeeze profits. Cigarettes carry heavy excise taxes (per-unit government levies), and more increases are likely. Hikes can hurt PMI more than some rivals, and PMI may fail to win lower tax rates for smoke-free products.
- U.S. growth hinges on evolving FDA rules. PMI's U.S. expansion relies on Food and Drug Administration authorizations for ZYN and IQOS. PMI gained full U.S. rights to IQOS in April 2024. These rules keep evolving, and changes could slow growth.
- Tobacco lawsuits could be costly. PMI faces lawsuits related to tobacco and nicotine products. The company warns these cases could substantially cut profits and severely impair its liquidity, meaning its ready access to cash.
- Currency swings and conflicts hit results. PMI sells cigarettes in about 170 markets but reports in U.S. dollars. A stronger dollar, devaluations, limits on moving cash out of countries, or conflicts such as the war in Ukraine can cut results.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Other company announcement
- Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Investor presentation or announcement
For income and retirement investors
Philip Morris International has raised its dividend at least 9 years in a row through fiscal 2025, and the true streak may be longer. Dividends per share grew from $4.74 in 2020 to $5.64 in 2025, about 3.5% a year. In 2025 the dividend took 76% of earnings and 80.9% of free cash flow (cash left after running and investing in the business). In 2024, the $5.30 dividend was more than diluted earnings of $4.52 per share. Buybacks were small: $984 million over fiscal 2021–2025, against $40.2 billion in dividends. The yield was 2.88% as of October 30, 2026.
The shares have still fallen hard in downturns. In the 2020 COVID crash they dropped 31.8% in about a month and took 8.8 months to recover. In 2022 they lost 6.8% while the market fell, but slid 22.7% from their own peak and needed 19.3 months to recover. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Philip Morris International make money?
Mostly by selling cigarettes, with smoke-free products providing the rest. For the year ended December 31, 2025, revenue was $40.6 billion. Combustible tobacco, led by Marlboro, brought in 58.5%. Smoke-free products such as IQOS heated tobacco, ZYN nicotine pouches and VEEV e-vapor brought in 41.5%. Europe was the largest region, at 42.1% of revenue. The company sells through retailers, wholesalers, independent distributors and its own online and retail stores.
Does Philip Morris raise its dividend every year?
Yes, in every fiscal year covered by its SEC filings. Its regular dividend per share rose each year from FY2016 through FY2025, so the streak is at least nine increases and may be longer. Growth has been modest: from $4.74 in FY2020 to $5.64 in FY2025, or about 3.5% a year. The payout is high. Dividends took 76% of FY2025 earnings and about 81% of free cash flow, which is the cash left after running and investing in the business. The yield was 2.97% as of October 27, 2026.
Does Philip Morris own ZYN and IQOS?
Yes, it owns both. ZYN came with the November 2022 purchase of Swedish Match, a leader in nicotine pouches and snus. IQOS is a device that heats a tobacco stick instead of burning it, and it first launched in Japan in 2014. PMI agreed to end its U.S. IQOS arrangement with Altria and has held full U.S. rights to IQOS since April 30, 2024. The U.S. Food and Drug Administration (FDA) has authorized ZYN and versions of IQOS for sale. These were the first such authorizations in their categories.
Can Philip Morris keep growing as fewer people smoke?
Revenue has kept rising so far, but cigarettes are still the larger business. Revenue grew from $28.7 billion in FY2020 to $40.6 billion in FY2025, or about 7.2% a year. Smoke-free products made up 41.5% of FY2025 revenue. The company's annual report (10-K) warns that people are buying fewer tax-paid cigarettes in many of its markets. It also says smoke-free results are harder to predict than cigarette results. In the quarter ended September 30, 2026, revenue rose 5.5% from a year earlier, while net income fell 4.7%.
What are the biggest risks of owning Philip Morris stock?
The biggest risks are tighter regulation, falling cigarette sales in many markets and heavy debt. The 10-K also names higher cigarette taxes, currency swings, lawsuits and the war in Ukraine. As of September 30, 2026, total debt was $45.0 billion, against $8.7 billion of cash and investments. Shareholders' equity was negative $7.9 billion, which means the company's recorded liabilities were larger than its recorded assets. Insiders, including CEO Jacek Olczak, sold about $28.8 million of stock and bought none in the year to October 27, 2026.