How does Philip Morris International (PM) make money?

Philip Morris International (PM) generates revenue primarily from Combustible Products, which accounted for 58.1% of total revenue in TTM through Q2 2026. The company reported $42.5B in revenue and converted 25.6% of it into net profit, equivalent to roughly $10.9B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

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

Philip Morris International (PM) reported a gross profit margin of 67.5% in TTM through Q2 2026, equivalent to $28.7B in gross profit on $42.5B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

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

Philip Morris International (PM) reported an operating profit margin of 37.7% in TTM through Q2 2026, equivalent to $16.1B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

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

Philip Morris International (PM) reported a net profit margin of 25.6% in TTM through Q2 2026, equivalent to $10.9B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Philip Morris International (PM) profitable?

Yes. Philip Morris International (PM) reported $10.9B in net income for TTM through Q2 2026, with a net profit margin of 25.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

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

Philip Morris International (PM) spent $1.54B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Philip Morris International (PM) generate?

Philip Morris International (PM) generated $12.7B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 29.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

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

Philip Morris International (PM) had an effective tax rate of 20.6% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Philip Morris International (PM)?

Philip Morris International (PM) reports revenue across 2 reportable product segments, led by Combustible Products at 58.1% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Philip Morris International Makes Money: 2026 Visual Revenue Map

Philip Morris International (PM) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 24, 2026).

Philip Morris International discloses geographic revenue only in annual filings. to view the full breakdown.

Philip Morris International (PM) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Philip Morris International (PM), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Combustible Products	$24.7B	58.1%
Reduced-Risk Products	$17.8B	41.9%
Total	$42.5B	100%

Combustible Products$24.7B
Reduced-Risk Products$17.8B
Total$42.5B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Philip Morris International (PM) reports revenue across 2 reportable product segments; the largest segment was Combustible Products at 58.1%, followed by Reduced-Risk Products (41.9%).

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