PM · 10-Q · 2026Q3 · Full report

Operating Expense Trends

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

Marketing, administration and research costs increased 4.2% to $8.831 billion for the nine months ended September 30, 2026, while the currency-neutral increase was 0.9%. The company attributed higher costs as a partial offset to operating-income growth, and reported higher marketing, administration and research costs among the factors reducing operations-driven EPS growth. For the third quarter, these costs were $2.993 billion, compared with $3.058 billion in 2025, a reported decrease of 2.1%; excluding currency and acquisitions/divestitures, costs increased 1.3%.

Key facts

• For the nine months ended September 30, 2025 and 2026, Philip Morris International Inc. recorded amortization of intangibles expense of $746 million and $750 million, respectively. source
• In the third quarter of 2026, Philip Morris International Inc. recorded a $74 million pre-tax settlement loss, $65 million net of tax or $0.04 per share, related to buying out its Dutch defined benefit pension plan by transferring plan obligations to a third-party insurer. source
• The Middle East conflict had an immaterial impact on PMI's business in the first nine months of 2026; energy-related inflation drove incremental cost pressures in the third quarter, and PMI anticipates a slightly higher impact in the fourth quarter of 2026. source
• PMI says inflation has increased and may continue to increase direct-material, wage, energy, transportation, and logistics expenses. source
• PMI says sustained elevated inflation across major markets could increase costs while weakening consumer purchasing power and product demand. source