PM

Philip Morris International Inc. stock research

Jun 30, 2025

FY2025 Q2

Philip Morris International (PM) Gross Margin — Quarter Ended Jun 30, 2025

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose more than proportionally, leading to an improved gross margin, while cost of revenue was stable year-over-year but higher sequentially.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose more than proportionally, leading to an improved gross margin, while cost of revenue was stable year-over-year but higher sequentially.

  • The filing context highlights the company's emphasis on protecting or enhancing margins, a factor consistent with the observed gross margin improvement.
  • Compared to the prior quarter, gross margin was slightly higher. Compared to the same quarter last year, gross margin improved more notably.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

67.7%

Gross profit

$6.9B

Revenue

$10.1B

Cost of revenue

$3.3B

Quarter-over-quarter change

+0.3 pts

Year-over-year change

+3.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$9.9B$6.5B$3.4B66.0%
Dec 31, 2024$9.7B$6.3B$3.4B64.7%
Mar 31, 2025$9.3B$6.3B$3.0B67.4%
Jun 30, 2025$10.1B$6.9B$3.3B67.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+0.3 pts

Year-over-year change

Jun 30, 2024

+3.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The filing context highlights the company's emphasis on protecting or enhancing margins, a factor consistent with the observed gross margin improvement.

Compared to the prior quarter, gross margin was slightly higher. Compared to the same quarter last year, gross margin improved more notably.

Monitor adult consumer preferences and product quality standards, as they are critical to the company's success according to the filing.