PM · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Philip Morris International Inc. · 2026-10-23 · Importance 42 · Surprise 14

For the nine months ended September 30, 2026, gross profit increased 9.4% to $22.418 billion, and increased 7.1% excluding currency and acquisitions/divestitures. The nine-month increase reflected the same favorable pricing and International Smoke-Free volume factors as revenue, partly offset by higher manufacturing costs. International Smoke-Free nine-month gross profit rose 14.3% to $8.105 billion, or 11.8% excluding currency and acquisitions/divestitures, supported by favorable manufacturing efficiencies. In the third quarter, consolidated gross profit rose 6.7% to $7.854 billion and increased 8.3% excluding currency and acquisitions/divestitures, with higher manufacturing costs partly offsetting favorable pricing.

Key facts

• International Combustibles quarterly gross profit increased 8.6%; excluding currency and acquisitions/divestitures, it increased 9.8%. source
• For the nine months ended September 30, 2026, International Combustibles gross profit increased 9.9%; excluding currency and acquisitions/divestitures, it increased 7.4%. source
• International Combustibles quarterly gross profit growth was partly offset by higher costs from increases in energy-related input prices. source
• For the nine months ended September 30, 2026, International Combustibles gross profit growth was slightly offset by increases in energy-related input prices. source