How does Philip Morris International (PM) make money?

Philip Morris International (PM) primarily makes money through Combustible Products, which accounts for 58.2% of total revenue. For TTM through Q1 2026, Philip Morris International generated $41.49B in total revenue with a net profit margin of 26.7%.

What is Philip Morris International (PM) gross profit margin?

Philip Morris International (PM) reported a gross profit margin of 67.3% for TTM through Q1 2026, equivalent to $27.93B in gross profit. This means Philip Morris International retains 67.3% of each revenue unit after direct costs of production.

What is Philip Morris International (PM) operating profit margin?

Philip Morris International (PM) reported an operating profit margin of 36.8% for TTM through Q1 2026, equivalent to $15.28B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Philip Morris International (PM) net profit margin?

Philip Morris International (PM) reported a net profit margin of 26.7% for TTM through Q1 2026, equivalent to $11.10B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Philip Morris International (PM) spend on capital expenditures?

Philip Morris International (PM) spent $1.52B on capital expenditures in TTM through Q1 2026 (3.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Philip Morris International (PM) free cash flow?

Philip Morris International (PM) generated $10.67B in free cash flow for TTM through Q1 2026 (25.7% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Philip Morris International (PM) effective tax rate?

Philip Morris International (PM) had an effective tax rate of 19.2% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Philip Morris International (PM) Makes Money: A Visual Guide

Philip Morris International (PM) generated $41.49B in revenue, earning $11.10B in net profit (26.7% margin). Its largest revenue source is Combustible Products (58.2% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Philip Morris International (PM) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 24, 2026).

Frequently asked questions

How does Philip Morris International (PM) make money?: Philip Morris International (PM) primarily makes money through Combustible Products, which accounts for 58.2% of total revenue. For TTM through Q1 2026, Philip Morris International generated $41.49B in total revenue with a net profit margin of 26.7%.
What is Philip Morris International (PM) gross profit margin?: Philip Morris International (PM) reported a gross profit margin of 67.3% for TTM through Q1 2026, equivalent to $27.93B in gross profit. This means Philip Morris International retains 67.3% of each revenue unit after direct costs of production.
What is Philip Morris International (PM) operating profit margin?: Philip Morris International (PM) reported an operating profit margin of 36.8% for TTM through Q1 2026, equivalent to $15.28B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Philip Morris International (PM) net profit margin?: Philip Morris International (PM) reported a net profit margin of 26.7% for TTM through Q1 2026, equivalent to $11.10B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Philip Morris International (PM) spend on capital expenditures?: Philip Morris International (PM) spent $1.52B on capital expenditures in TTM through Q1 2026 (3.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Philip Morris International (PM) free cash flow?: Philip Morris International (PM) generated $10.67B in free cash flow for TTM through Q1 2026 (25.7% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Philip Morris International (PM) effective tax rate?: Philip Morris International (PM) had an effective tax rate of 19.2% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.