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How Philip Morris International (PM) makes money
Philip Morris International (PM) made $11.4B of revenue in the third quarter 2026 (Q3 2026), +5% from a year earlier. International Combustibles brought in $6.7B (59%); International Smoke-Free brought in $3.9B (34%); U.S. brought in $845M (7%). Of every dollar of revenue, 69¢ was left as gross profit, 43¢ was left as operating profit, 29¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| International Combustibles | $6.7B | 58.8% | +4% | +6% |
| International Smoke-Free | $3.9B | 33.8% | -0.3% | +0.7% |
| U.S. | $845M | 7.4% | -1% | +23% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $11.4B | 100.0% |
| Cost of revenue | $3.6B | 31.3% |
| Gross profit | $7.9B | 68.7% |
| Operating expenses | $3.0B | 26.1% |
| Operating profit | $4.9B | 42.5% |
| Income tax | $986M | 8.6% |
| Net earnings | $3.3B | 29.0% |
| Operating cash flow | $5.4B | 46.8% |
| Free cash flow | $5.0B | 43.5% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $11.4B | +6% |
| Q2 2026 | $11.2B | +10% |
| Q1 2026 | $10.1B | +9% |
| Q4 2025 | $10.4B | +7% |
| Q3 2025 | $10.8B | +9% |
| Q2 2025 | $10.1B | +7% |
| Q1 2025 | $9.3B | +6% |
From Philip Morris International's 10-Q filed Oct 23, 2026 (on EDGAR).
Questions
How does Philip Morris International make money?
Philip Morris International (PM) made $11.4B of revenue in the third quarter 2026 (Q3 2026), +5% from a year earlier. International Combustibles brought in $6.7B (59%); International Smoke-Free brought in $3.9B (34%); U.S. brought in $845M (7%). Of every dollar of revenue, 69¢ was left as gross profit, 43¢ was left as operating profit, 29¢ was left as net earnings.
What is Philip Morris International's biggest business?
International Combustibles: $6.7B in the third quarter 2026, 59% of revenue, +6% from a year earlier.
What is Philip Morris International's profit margin?
Net earnings were $3.3B, 29.0% of revenue, in the third quarter 2026; the operating margin was 42.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.