Philip Morris International Inc. stock research
FY2026 Q1
Philip Morris International (PM) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased sequentially while gross profit increased, yielding a higher gross margin. Compared to the same quarter last year, both revenue and gross profit grew, with gross margin also improving.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased sequentially while gross profit increased, yielding a higher gross margin. Compared to the same quarter last year, both revenue and gross profit grew, with gross margin also improving.
- Cost of revenue declined more than revenue on a sequential basis, driving the gross margin expansion. Year-over-year, cost of revenue grew at a slower pace than revenue, supporting margin improvement.
- Sequentially, gross margin improved from the preceding quarter. Compared to the same quarter a year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.1%
Gross profit
$6.9B
Revenue
$10.1B
Cost of revenue
$3.2B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+0.6 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, 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% |
| Mar 31, 2026 | $10.1B | $6.9B | $3.2B | 68.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.4 pts
Year-over-year change
Mar 31, 2025
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue declined more than revenue on a sequential basis, driving the gross margin expansion. Year-over-year, cost of revenue grew at a slower pace than revenue, supporting margin improvement.
Sequentially, gross margin improved from the preceding quarter. Compared to the same quarter a year earlier, gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as a slower cost decline could pressure margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Philip Morris International Inc. (PM) | 68.1% |