PM · 10-Q · 2026Q2 · Full report

Operating Cash Flow Trends

Philip Morris International Inc. · 2026-07-24 · Importance 63 · Surprise 64 · From source text

Net cash provided by operating activities increased to $5.1 billion in the first six months of 2026 from $3.1 billion in the first six months of 2025, a $2.0 billion increase. Excluding favorable currency movements, the $1.9 billion improvement was primarily driven by $1.5 billion of lower working-capital requirements and higher currency-neutral net earnings. Lower working-capital usage reflected reduced cash invested in inventories, accrued liabilities, and other current assets, while 2025 included an approximately $0.8 billion payment for Germany’s disputed heated-tobacco supplemental tax surcharge.

Key facts

• Net cash provided by operating activities for the six months ended June 30, 2026 was $5,093 million compared to $3,062 million for the six months ended June 30, 2025. source
• Excluding favorable currency movements, the favorable variance of $1.9 billion in operating cash flow was primarily due to lower working capital requirements of $1.5 billion and higher currency-neutral net earnings excluding certain non-cash items. source
• For the six months ended June 30, 2026, net earnings attributable to PMI were $5.3 billion, a decrease of $0.5 billion or 8.3% versus prior year, and basic and diluted EPS of $3.36 both decreased by 8.4%. source

Impact estimates