Philip Morris International Inc. stock research
FY2025 Q3
Philip Morris International (PM) Gross Margin — Quarter Ended Sep 30, 2025
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue rose slightly from the prior quarter but was nearly flat year over year, allowing gross margin to expand.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue rose slightly from the prior quarter but was nearly flat year over year, allowing gross margin to expand.
- The primary driver of the gross margin improvement was revenue growth outpacing the increase in cost of revenue, particularly when compared to the prior year.
- Compared to the immediately preceding quarter, gross margin was marginally higher. Versus the same quarter one year earlier, gross margin improved more notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.8%
Gross profit
$7.4B
Revenue
$10.8B
Cost of revenue
$3.5B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $9.7B | $6.3B | $3.4B | 64.7% |
| Mar 31, 2025 | $9.3B | $6.3B | $3.0B | 67.4% |
| Jun 30, 2025 | $10.1B | $6.9B | $3.3B | 67.7% |
| Sep 30, 2025 | $10.8B | $7.4B | $3.5B | 67.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.2 pts
Year-over-year change
Sep 30, 2024
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was revenue growth outpacing the increase in cost of revenue, particularly when compared to the prior year.
Compared to the immediately preceding quarter, gross margin was marginally higher. Versus the same quarter one year earlier, gross margin improved more notably.
Monitor the trajectory of cost of revenue relative to revenue, as the filing context highlights the company's focus on protecting margins through price increases.