This page shows Philip Morris (PM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Philip Morris has an operating margin of 36.6%, meaning the company retains $37 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 35.4% the prior year.
Philip Morris's revenue grew 7.3% year-over-year to $40.6B, a solid pace of expansion. This earns a growth score of 46/100.
Philip Morris's current ratio of 0.96 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 14/100, which could limit financial flexibility.
Philip Morris converts 26.2% of revenue into free cash flow ($10.7B). This strong cash generation earns a score of 91/100.
Philip Morris scores 3.91, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Philip Morris passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Philip Morris generates $1.08 in operating cash flow ($12.2B OCF vs $11.3B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Philip Morris earns $9.4 in operating income for every $1 of interest expense ($14.9B vs $1.6B). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Philip Morris generated $40.6B in revenue in fiscal year 2025. This represents an increase of 7.3% from the prior year.
Philip Morris's EBITDA was $16.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 11.2% from the prior year.
Philip Morris reported $11.3B in net income in fiscal year 2025. This represents an increase of 60.8% from the prior year.
Philip Morris earned $7.26 per diluted share (EPS) in fiscal year 2025. This represents an increase of 60.6% from the prior year.
Cash & Balance Sheet
Philip Morris generated $10.7B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 1.0% from the prior year.
Philip Morris held $4.9B in cash against $45.1B in long-term debt as of fiscal year 2025.
Philip Morris paid $5.64 per share in dividends in fiscal year 2025. This represents an increase of 6.4% from the prior year.
Philip Morris had 1.56B shares outstanding in fiscal year 2025. This represents an increase of 0.1% from the prior year.
Margins & Returns
Philip Morris's gross margin was 67.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.3 percentage points from the prior year.
Philip Morris's operating margin was 36.6% in fiscal year 2025, reflecting core business profitability. This is up 1.3 percentage points from the prior year.
Philip Morris's net profit margin was 27.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 9.3 percentage points from the prior year.
Capital Allocation
Philip Morris invested $756.0M in research and development in fiscal year 2025. This represents a decrease of 0.4% from the prior year.
Philip Morris invested $1.6B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 8.7% from the prior year.
PM Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $10.4B-4.5% | $10.8B+7.0% | $10.1B+9.0% | $9.3B-4.2% | $9.7B-2.1% | $9.9B+4.7% | $9.5B+7.7% | $8.8B |
| Cost of Revenue | $3.6B+2.1% | $3.5B+6.3% | $3.3B+7.9% | $3.0B-11.2% | $3.4B+1.7% | $3.4B+0.6% | $3.3B+4.7% | $3.2B |
| Gross Profit | $6.8B-7.6% | $7.4B+7.2% | $6.9B+9.6% | $6.3B-0.4% | $6.3B-4.0% | $6.5B+6.9% | $6.1B+9.4% | $5.6B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $3.4B-20.9% | $4.3B+14.8% | $3.7B+4.7% | $3.5B+8.7% | $3.3B-10.8% | $3.7B+6.1% | $3.4B+13.1% | $3.0B |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -$299.0M |
| Income Tax | $675.0M-10.1% | $751.0M+15.2% | $652.0M-1.1% | $659.0M-24.4% | $872.0M+18.6% | $735.0M+0.1% | $734.0M+8.6% | $676.0M |
| Net Income | $2.1B-38.4% | $3.5B+14.4% | $3.0B+13.0% | $2.7B+564.6% | -$579.0M-118.8% | $3.1B+28.1% | $2.4B+12.0% | $2.1B |
| EPS (Diluted) | N/A | $2.23+14.4% | $1.95+13.4% | $1.72 | N/A | $1.97+27.9% | $1.54+11.6% | $1.38 |
PM Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $69.2B+3.2% | $67.1B-2.1% | $68.5B+5.3% | $65.1B+5.3% | $61.8B-7.6% | $66.9B+1.7% | $65.8B+0.7% | $65.3B |
| Current Assets | $24.4B+7.5% | $22.7B-3.0% | $23.4B+5.3% | $22.2B+10.0% | $20.2B-3.0% | $20.8B-1.1% | $21.0B+0.7% | $20.9B |
| Cash & Equivalents | $4.9B+20.7% | $4.0B-2.4% | $4.1B-6.9% | $4.4B+5.4% | $4.2B-1.0% | $4.3B-11.4% | $4.8B+21.1% | $4.0B |
| Inventory | $11.5B+11.8% | $10.3B-4.3% | $10.7B+5.9% | $10.1B+7.1% | $9.5B+1.0% | $9.4B-0.3% | $9.4B-5.9% | $10.0B |
| Accounts Receivable | $4.6B-4.7% | $4.8B-4.0% | $5.0B+2.3% | $4.9B+28.8% | $3.8B-10.6% | $4.2B0.0% | $4.2B+1.2% | $4.2B |
| Goodwill | $17.3B+0.5% | $17.2B-0.3% | $17.2B+2.1% | $16.9B+1.6% | $16.6B-3.2% | $17.1B+1.9% | $16.8B+2.2% | $16.5B |
| Total Liabilities | $77.2B+1.5% | $76.0B-3.1% | $78.5B+6.1% | $74.0B+3.3% | $71.7B-4.0% | $74.6B+1.2% | $73.7B-0.2% | $73.9B |
| Current Liabilities | $25.4B-4.8% | $26.7B-5.1% | $28.1B+0.2% | $28.1B+22.6% | $22.9B-1.9% | $23.4B+4.2% | $22.4B+1.1% | $22.2B |
| Long-Term Debt | $45.1B+7.8% | $41.9B-1.3% | $42.4B+9.4% | $38.8B-8.0% | $42.2B-4.7% | $44.2B-0.9% | $44.6B-0.1% | $44.7B |
| Total Equity | -$10.0B+8.4% | -$10.9B+8.8% | -$12.0B-9.8% | -$10.9B+7.2% | -$11.8B-21.2% | -$9.7B+0.5% | -$9.7B+5.5% | -$10.3B |
| Retained Earnings | $35.4B-0.4% | $35.6B+3.4% | $34.4B+2.8% | $33.4B+1.8% | $32.9B-7.6% | $35.6B+2.8% | $34.6B+1.1% | $34.2B |
PM Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $4.7B+5.5% | $4.5B+30.8% | $3.4B+1074.9% | -$350.0M-108.7% | $4.0B+19.7% | $3.3B-27.8% | $4.6B+1822.0% | $241.0M |
| Capital Expenditures | $444.0M+21.6% | $365.0M+2.5% | $356.0M-11.9% | $404.0M+45.3% | $278.0M-26.6% | $379.0M+2.4% | $370.0M-11.3% | $417.0M |
| Free Cash Flow | $4.3B+4.1% | $4.1B+34.1% | $3.1B+505.3% | -$754.0M-120.2% | $3.7B+25.7% | $3.0B-30.5% | $4.3B+2521.6% | -$176.0M |
| Investing Cash Flow | -$428.0M+45.8% | -$789.0M+65.9% | -$2.3B-433.6% | -$434.0M-198.4% | $441.0M+144.0% | -$1.0B-197.6% | -$337.0M-74.6% | -$193.0M |
| Financing Cash Flow | -$3.6B+2.2% | -$3.7B-134.5% | -$1.6B-332.6% | $671.0M+116.4% | -$4.1B-37.6% | -$3.0B+15.6% | -$3.5B-411.2% | $1.1B |
| Dividends Paid | $2.3B+8.9% | $2.1B0.0% | $2.1B-0.5% | $2.1B+0.5% | $2.1B+3.9% | $2.0B0.0% | $2.0B-0.5% | $2.0B |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
PM Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.6%-2.2pp | 67.8%+0.2pp | 67.7%+0.3pp | 67.3%+2.6pp | 64.7%-1.3pp | 66.0%+1.4pp | 64.7%+1.0pp | 63.7% |
| Operating Margin | 32.6%-6.8pp | 39.3%+2.7pp | 36.6%-1.5pp | 38.1%+4.5pp | 33.6%-3.3pp | 36.9%+0.5pp | 36.4%+1.8pp | 34.6% |
| Net Margin | 20.7%-11.4pp | 32.1%+2.1pp | 30.0%+1.1pp | 28.9%+34.9pp | -6.0%-37.1pp | 31.1%+5.7pp | 25.4%+1.0pp | 24.4% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 3.1%-2.1pp | 5.2%+0.8pp | 4.4%+0.3pp | 4.1%+5.1pp | -0.9%-5.5pp | 4.6%+1.0pp | 3.7%+0.4pp | 3.3% |
| Current Ratio | 0.96+0.1 | 0.85+0.0 | 0.83+0.0 | 0.79-0.1 | 0.880.0 | 0.89-0.0 | 0.940.0 | 0.94 |
| Debt-to-Equity | -4.52-0.7 | -3.84-0.3 | -3.55+0.0 | -3.56+0.0 | -3.59+1.0 | -4.56+0.0 | -4.58-0.2 | -4.33 |
| FCF Margin | 41.2%+3.4pp | 37.8%+7.6pp | 30.1%+38.3pp | -8.1%-46.5pp | 38.4%+8.5pp | 29.9%-15.1pp | 45.0%+47.0pp | -2.0% |
Note: Shareholder equity is negative (-$10.0B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.96), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Philip Morris's annual revenue?
Philip Morris (PM) reported $40.6B in total revenue for fiscal year 2025. This represents a 7.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Philip Morris's revenue growing?
Philip Morris (PM) revenue grew by 7.3% year-over-year, from $37.9B to $40.6B in fiscal year 2025.
Is Philip Morris profitable?
Yes, Philip Morris (PM) reported a net income of $11.3B in fiscal year 2025, with a net profit margin of 27.9%.
What is Philip Morris's EBITDA?
Philip Morris (PM) had EBITDA of $16.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Philip Morris have?
As of fiscal year 2025, Philip Morris (PM) had $4.9B in cash and equivalents against $45.1B in long-term debt.
What is Philip Morris's gross margin?
Philip Morris (PM) had a gross margin of 67.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Philip Morris's operating margin?
Philip Morris (PM) had an operating margin of 36.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Philip Morris's net profit margin?
Philip Morris (PM) had a net profit margin of 27.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Philip Morris pay dividends?
Yes, Philip Morris (PM) paid $5.64 per share in dividends during fiscal year 2025.
What is Philip Morris's free cash flow?
Philip Morris (PM) generated $10.7B in free cash flow during fiscal year 2025. This represents a -1.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Philip Morris's operating cash flow?
Philip Morris (PM) generated $12.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Philip Morris's total assets?
Philip Morris (PM) had $69.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Philip Morris's capital expenditures?
Philip Morris (PM) invested $1.6B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Philip Morris spend on research and development?
Philip Morris (PM) invested $756.0M in research and development during fiscal year 2025.
What is Philip Morris's current ratio?
Philip Morris (PM) had a current ratio of 0.96 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Philip Morris's debt-to-equity ratio?
Philip Morris (PM) had a debt-to-equity ratio of -4.52 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Philip Morris's return on assets (ROA)?
Philip Morris (PM) had a return on assets of 16.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Philip Morris's debt-to-equity ratio negative or unusual?
Philip Morris (PM) has negative shareholder equity of -$10.0B as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Philip Morris's Altman Z-Score?
Philip Morris (PM) has an Altman Z-Score of 3.91, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Philip Morris's Piotroski F-Score?
Philip Morris (PM) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Philip Morris's earnings high quality?
Philip Morris (PM) has an earnings quality ratio of 1.08x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Philip Morris cover its interest payments?
Philip Morris (PM) has an interest coverage ratio of 9.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Philip Morris?
Philip Morris (PM) scores 63 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.