PM · 10-Q · 2026Q3 · Full report
Operating Income and Margins
Philip Morris International Inc. · 2026-10-23 · Importance 54 · Surprise 40 · In source text
Nine-month operating income increased 15.4% to $13.289 billion, or 12.1% excluding currency and acquisitions/divestitures. The increase reflected gross-profit growth, lower restructuring charges in 2026, and the absence of the $176 million Germany excise-tax litigation charge recorded in 2025, partly offset by higher marketing, administration and research costs. Third-quarter operating income increased 14.1% to $4.866 billion and rose 15.1% excluding currency and acquisitions/divestitures, primarily reflecting gross-profit factors and the 2025 litigation charge. Nine-month operating income included $8.831 billion of marketing, administration and research costs and $298 million of corporate expenses and other.
Key facts
- For the nine months ended September 30, 2026, Philip Morris International Inc.'s net earnings attributable to PMI were $8.6 billion, down $0.6 billion or 6.9%. source
- For the three months ended September 30, 2026, Philip Morris International Inc.'s net earnings attributable to PMI were $3.3 billion, down $0.2 billion or 4.7%. source
- Effective January 1, 2026, Philip Morris International Inc. implemented an evolved organizational model with International and U.S. business units and realigned its reportable segments. source
- Philip Morris International Inc.'s operating income for the nine months ended September 30, 2026 increased 15.4%, or 12.1% excluding currency and acquisitions/divestitures, mainly reflecting gross-profit factors and lower restructuring charges, partly offset by higher marketing, administration and research costs. source
- For the nine months ended September 30, 2026, Philip Morris International Inc.'s interest expense, net, was $679 million, down $69 million or 9.2%, primarily due to higher interest income on investments. source
- PMI says profitability growth may be materially adversely affected if it cannot meet product demand with increased production capacity, raise prices, or improve its sales mix toward higher-margin products and geographies. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -5.3% | For the nine months ended September 30, 2026, Philip Morris International Inc.'s net earnings attributable to PMI were $8.6 billion, down… |
| net_income | negative | realized | -1.8% | For the three months ended September 30, 2026, Philip Morris International Inc.'s net earnings attributable to PMI were $3.3 billion, down… |