Philip Morris International Inc. stock research
FY2025 Q4
Philip Morris International (PM) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin followed a similar pattern, with the margin weakening sequentially but improving year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin followed a similar pattern, with the margin weakening sequentially but improving year-over-year.
- The sequential decline in gross margin was driven by a decrease in revenue while cost of revenue increased slightly. Year-over-year, revenue growth outpaced the increase in cost of revenue, leading to margin expansion.
- Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$6.8B
Revenue
$10.4B
Cost of revenue
$3.6B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $10.4B | $6.8B | $3.6B | 65.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.2 pts
Year-over-year change
Dec 31, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a decrease in revenue while cost of revenue increased slightly. Year-over-year, revenue growth outpaced the increase in cost of revenue, leading to margin expansion.
Compared to the prior quarter, gross margin weakened as revenue fell and cost of revenue rose. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Monitor foreign currency devaluation risks, as noted in the filing, which may impact cost of revenue and gross margin.