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Philip Morris International Inc. (NYSE:PM)

Common-Size Income Statement
Quarterly Data

Philip Morris International Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -31.33 -31.57 -31.94 -34.36 -32.15 -32.34 -32.68 -35.27 -33.96 -35.33 -36.34 -38.27 -34.62 -36.00 -37.89 -39.39 -36.54 -33.81 -33.67 -34.64 -31.96 -30.98 -29.98
Gross profit 68.67% 68.43% 68.06% 65.64% 67.85% 67.66% 67.32% 64.73% 66.04% 64.67% 63.66% 61.73% 65.38% 64.00% 62.11% 60.61% 63.46% 66.19% 66.33% 65.36% 68.04% 69.02% 70.02%
Marketing, administration and research costs -26.17 -26.64 -28.16 -33.09 -28.54 -30.65 -29.21 -31.16 -29.17 -28.30 -29.03 -29.80 -28.51 -27.97 -28.06 -24.74 -26.51 -27.17 -23.75 -29.00 -25.50 -27.81 -24.61
Impairment of goodwill 0.00 0.00 0.00 0.00 0.00 -0.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate expenses and other 0.04 -1.32 -1.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating income 42.54% 40.48% 38.37% 32.55% 39.31% 36.61% 38.10% 33.58% 36.87% 36.38% 34.63% 31.93% 36.87% 28.62% 34.06% 35.87% 36.95% 39.02% 42.58% 36.36% 42.54% 41.20% 45.41%
Interest expense, net -1.74 -2.17 -2.34 -2.10 -2.12 -2.73 -2.59 -3.36 -1.91 -3.47 -3.40 -3.02 -2.86 -3.31 -2.87 -2.09 -1.72 -1.61 -1.99 -1.80 -1.90 -2.12 -2.20
Pension and other employee benefit income (costs) -0.64 0.04 0.05 -0.09 -0.13 -0.11 -0.13 -0.16 -0.15 -0.15 -0.17 -0.10 -0.09 -0.07 -0.27 -0.10 -0.09 -0.06 -0.05 -0.41 -0.33 -0.36 -0.37
Earnings before income taxes 40.16% 38.35% 36.08% 30.36% 37.06% 33.77% 35.38% 30.05% 34.81% 32.75% 31.06% 28.82% 33.92% 25.24% 30.91% 33.68% 35.15% 37.35% 40.54% 34.16% 40.31% 38.73% 42.83%
Provision for income taxes -8.62 -8.53 -6.66 -6.51 -6.92 -6.43 -7.09 -8.98 -7.42 -7.75 -7.69 -3.54 -11.28 -6.25 -5.34 -5.02 -7.74 -7.58 -7.99 -7.32 -9.05 -8.51 -9.19
Impairment related to the RBH equity investment 0.00 -4.57 0.00 0.00 0.00 0.00 0.00 -23.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Equity investments and securities income (loss), net -0.75 1.42 -3.97 -2.13 3.18 3.71 2.20 -2.22 5.04 1.70 2.17 0.29 1.10 -0.23 0.64 1.93 0.26 0.19 -0.72 0.67 0.60 0.04 0.57
Net earnings 30.79% 26.67% 25.45% 21.71% 33.31% 31.05% 30.50% -5.01% 32.44% 26.70% 25.54% 25.57% 23.75% 18.76% 26.21% 30.59% 27.66% 29.95% 31.82% 27.50% 31.86% 30.26% 34.21%
Net earnings attributable to noncontrolling interests -1.83 -1.50 -1.42 -1.05 -1.24 -1.07 -1.58 -0.96 -1.34 -1.29 -1.11 -1.29 -1.28 -1.27 -1.33 -1.19 -1.68 -1.44 -1.73 -1.68 -1.99 -1.66 -2.33
Net earnings attributable to PMI 28.96% 25.17% 24.03% 20.66% 32.07% 29.97% 28.92% -5.97% 31.10% 25.41% 24.43% 24.27% 22.47% 17.49% 24.88% 29.40% 25.98% 28.51% 30.09% 25.83% 29.87% 28.60% 31.88%

Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The financial performance exhibits significant fluctuations in profitability margins, characterized by a cyclical decline and subsequent recovery in gross margins, punctuated by substantial non-recurring impairment charges that heavily impacted net earnings during specific quarters.

Gross Profitability and Cost Structure
Gross profit margins showed a downward trend from a peak of 70.02% in early 2021 to a low of 60.61% by the end of 2022. This compression was driven by an increase in the cost of sales, which peaked at 39.39% of net revenues in December 2022. However, a recovery phase is evident from 2023 onwards, with gross margins returning to the 67-68% range by late 2025 and 2026, indicating improved cost management or pricing power.
Operating Efficiency and Expenses
Marketing, administration, and research costs remained relatively consistent, generally fluctuating between 24% and 31% of net revenues. Operating income margins mirrored the volatility of gross profits but were further affected by one-time events, such as a 7.42% impairment of goodwill in June 2023, which contributed to a temporary dip in operating margin to 28.62%. By September 2026, operating income recovered to 42.54%, reflecting a return to historical efficiency levels.
Financial Costs and Tax Obligations
Interest expenses, net, remained stable throughout the period, typically ranging between 1.6% and 3.4% of net revenues, suggesting a consistent debt service burden relative to revenue. Provision for income taxes exhibited high variability, with a notable low of 3.54% in December 2023 and a peak of 11.28% in September 2023, impacting the transition from earnings before taxes to net earnings.
Non-Recurring Impairments and Net Earnings
The most significant volatility in net earnings was caused by the impairment related to the RBH equity investment. In December 2024, this impairment represented 23.86% of net revenues, resulting in a net loss of 5.01% for the quarter. A secondary, smaller impairment of 4.57% occurred in June 2026. Excluding these anomalies, net earnings attributable to PMI generally fluctuated between 20% and 32% of net revenues.
Net Profitability Trends
Net earnings attributable to PMI began the period at 31.88% and experienced a general decline through 2023, hitting a low of 17.49% in June 2023. Following the extreme volatility of late 2024, profitability rebounded strongly in 2025, reaching 32.07% by September 2025, before stabilizing around 28.96% by the end of the analyzed period in September 2026.

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