Philip Morris International Inc. stock research
FY2025 Q1
Philip Morris International (PM) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit was stable compared to the prior quarter and higher than a year ago, while cost of revenue declined from both periods, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit was stable compared to the prior quarter and higher than a year ago, while cost of revenue declined from both periods, resulting in an improved gross margin.
- The gross margin improvement reflects a lower cost of revenue relative to revenue: cost of revenue decreased while revenue increased year-over-year, and declined more sharply than revenue sequentially.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined more sharply than revenue. Versus the same quarter one year earlier, gross margin also improved, driven by higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.4%
Gross profit
$6.3B
Revenue
$9.3B
Cost of revenue
$3.0B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+3.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $9.5B | $6.1B | $3.3B | 64.7% |
| Sep 30, 2024 | $9.9B | $6.5B | $3.4B | 66.0% |
| Dec 31, 2024 | $9.7B | $6.3B | $3.4B | 64.7% |
| Mar 31, 2025 | $9.3B | $6.3B | $3.0B | 67.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.7 pts
Year-over-year change
Mar 31, 2024
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement reflects a lower cost of revenue relative to revenue: cost of revenue decreased while revenue increased year-over-year, and declined more sharply than revenue sequentially.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue declined more sharply than revenue. Versus the same quarter one year earlier, gross margin also improved, driven by higher revenue and lower cost of revenue.
Monitor the trajectory of cost of revenue, as its reduction was the primary factor in margin expansion.