Philip Morris International Inc.
For the period ended Jun 30, 2026. Filed Jul 24, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 24, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements (Unaudited)
Item 1. Financial Statements.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
| For the Six Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Net revenues 1 & 2 (Note 13) | $21,338 | $19,441 |
| Cost of sales (Note 1) | 6,774 | 6,305 |
| Gross profit | 14,564 | 13,136 |
| Marketing, administration and research costs (Notes 1 & 15) | 5,838 | 5,416 |
| Impairment of goodwill (Note 5) | — | 41 |
| Corporate expenses and other (Note 1) | 303 | 423 |
| Operating income | 8,423 | 7,256 |
| Interest expense, net | 480 | 518 |
| Pension and other employee benefit (income) costs (Note 4) | (10) | 23 |
| Earnings before income taxes | 7,953 | 6,715 |
| Provision for income taxes | 1,631 | 1,311 |
| Impairment related to the RBH equity investment (Note 13) | 511 | — |
| Equity investments and securities (income)/loss, net (Note 13) | 244 | (581) |
| Net earnings | $5,567 | $5,985 |
| Net earnings attributable to noncontrolling interests | 312 | 256 |
| Net earnings attributable to PMI | $5,255 | $5,729 |
| Per share data (Note 7): | ||
| Basic earnings per share | $3.36 | $3.67 |
| Diluted earnings per share | $3.36 | $3.67 |
(1) Includes net revenues from related parties of $2,440 million and $2,080 million for the six months ended June 30, 2026 and 2025, respectively.
(2) Net revenues are shown net of excise tax on products. For the six months ended June 30, 2026 and 2025, excise tax on products was $27,826 million and $25,274 million, respectively.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
| For the Three Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Net revenues 1 & 2 (Note 13) | $11,192 | $10,140 |
| Cost of sales (Note 1) | 3,533 | 3,274 |
| Gross profit | 7,659 | 6,866 |
| Marketing, administration and research costs (Notes 1 & 15) | 2,981 | 2,988 |
| Impairment of goodwill (Note 5) | — | 41 |
| Corporate expenses and other (Note 1) | 148 | 125 |
| Operating income | 4,530 | 3,712 |
| Interest expense, net | 243 | 277 |
| Pension and other employee benefit (income) costs (Note 4) | (5) | 11 |
| Earnings before income taxes | 4,292 | 3,424 |
| Provision for income taxes | 955 | 652 |
| Impairment related to the RBH equity investment (Note 13) | 511 | — |
| Equity investments and securities (income)/loss, net (Note 13) | (159) | (376) |
| Net earnings | 2,985 | 3,148 |
| Net earnings attributable to noncontrolling interests | 168 | 109 |
| Net earnings attributable to PMI | $2,817 | $3,039 |
| Per share data (Note 7): | ||
| Basic earnings per share | $1.80 | $1.95 |
| Diluted earnings per share | $1.80 | $1.95 |
(1) Includes net revenues from related parties of $1,255 million and $1,143 million for the three months ended June 30, 2026 and 2025, respectively.
(2) Net revenues are shown net of excise tax on products. For the three months ended June 30, 2026 and 2025, excise tax on products was $14,973 million and $13,272 million, respectively.
Condensed Consolidated Statements of Comprehensive Earnings
| For the Six Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Net earnings | $5,567 | $5,985 |
| Other comprehensive earnings (losses), net of income taxes: | ||
| Change in currency translation adjustments: | ||
| Unrealized gains (losses), net of income taxes of $(139) in 2026 and $433 in 2025 | 491 | (1,626) |
| (Gains)/losses transferred to earnings, net of income taxes of $0 in 2026 and $0 in 2025 | (19) | — |
| Change in net loss and prior service cost: | ||
| Net gains (losses) and prior service costs, net of income taxes of $0 in 2026 and $(7) in 2025 | — | 12 |
| Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(14) in 2026 and $(25) in 2025 | 50 | 93 |
| Change in fair value of derivatives accounted for as hedges: | ||
| Gains (losses) recognized, net of income taxes of $(26) in 2026 and $43 in 2025 | 135 | (235) |
| (Gains) losses transferred to earnings, net of income taxes of $16 in 2026 and $9 in 2025 | (73) | (50) |
| Total other comprehensive earnings (losses) | 584 | (1,806) |
| Total comprehensive earnings | 6,151 | 4,179 |
| Less comprehensive earnings (losses) attributable to: | ||
| Noncontrolling interests | 256 | 289 |
| Comprehensive earnings attributable to PMI | $5,895 | $3,890 |
Condensed Consolidated Statements of Comprehensive Earnings
| For the Three Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Net earnings | $2,985 | $3,148 |
| Other comprehensive earnings (losses), net of income taxes: | ||
| Change in currency translation adjustments: | ||
| Unrealized gains (losses), net of income taxes of $(17) in 2026 and $339 in 2025 | 81 | (1,922) |
| (Gains)/losses transferred to earnings, net of income taxes of $0 in 2026 and $0 in 2025 | 3 | — |
| Change in net loss and prior service cost: | ||
| Net gains (losses) and prior service costs, net of income taxes of $0 in 2026 and $(7) in 2025 | — | 12 |
| Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(7) in 2026 and $(11) in 2025 | 25 | 47 |
| Change in fair value of derivatives accounted for as hedges: | ||
| Gains (losses) recognized, net of income taxes of $(8) in 2026 and $19 in 2025 | 41 | (113) |
| (Gains) losses transferred to earnings, net of income taxes of $9 in 2026 and $7 in 2025 | (41) | (29) |
| Total other comprehensive earnings (losses) | 109 | (2,005) |
| Total comprehensive earnings | 3,094 | 1,143 |
| Less comprehensive earnings (losses) attributable to: | ||
| Noncontrolling interests | 145 | 140 |
| Comprehensive earnings attributable to PMI | $2,949 | $1,003 |
Condensed Consolidated Balance Sheets
| June 30,2026 | December 31,2025 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $5,999 | $4,872 |
| Trade receivables (less allowances of $64 in 2026 and $23 in 2025) (1) | 5,179 | 4,572 |
| Other receivables (less allowances of $24 in 2026 and $24 in 2025) | 1,295 | 1,238 |
| Inventories: | ||
| Leaf tobacco | 2,639 | 2,425 |
| Other raw materials | 2,629 | 2,223 |
| Finished product | 6,168 | 6,830 |
| 11,436 | 11,478 | |
| Other current assets | 2,097 | 2,203 |
| Total current assets | 26,006 | 24,363 |
| Property, plant and equipment, at cost | 19,556 | 19,616 |
| Less: accumulated depreciation | 11,243 | 11,219 |
| 8,313 | 8,397 | |
| Goodwill (Note 5) | 16,917 | 17,264 |
| Other intangible assets, net (Note 5) | 10,178 | 10,884 |
| Equity investments (Note 13) | 2,130 | 2,891 |
| Deferred income taxes | 1,137 | 1,247 |
| Other assets (less allowances of $11 in 2026 and $12 in 2025) | 3,590 | 4,139 |
| TOTAL ASSETS | $68,271 | $69,185 |
(1) Includes trade receivables from related parties of $1,043 million and $839 million as of June 30, 2026, and December 31, 2025, respectively. For further details, see Note 13. Related Parties - Equity Investments and Other.
Continued
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share data)
| June 30,2026 | December 31,2025 | |
|---|---|---|
| LIABILITIES | ||
| Short-term borrowings (Note 11) | $3,341 | $168 |
| Current portion of long-term debt (Note 11) | 3,406 | 3,533 |
| Accounts payable | 3,919 | 4,407 |
| Accrued liabilities: | ||
| Marketing and selling | 1,348 | 1,354 |
| Taxes, except income taxes | 6,572 | 7,555 |
| Employment costs | 1,293 | 1,545 |
| Dividends payable | 2,314 | 2,312 |
| Other | 3,273 | 3,298 |
| Income taxes | 1,076 | 1,255 |
| Total current liabilities | 26,542 | 25,427 |
| Long-term debt (Note 11) | 42,366 | 45,134 |
| Deferred income taxes | 2,057 | 2,065 |
| Employment costs | 2,249 | 2,406 |
| Other liabilities | 1,714 | 2,181 |
| Total liabilities | 74,928 | 77,213 |
| Contingencies (Note 9) | ||
| STOCKHOLDERS’ (DEFICIT) EQUITY | ||
| Common stock, no par value (2,109,316,331 shares issued in 2026 and 2025) | — | — |
| Additional paid-in capital | 2,477 | 2,453 |
| Earnings reinvested in the business | 36,055 | 35,400 |
| Accumulated other comprehensive losses (Note 12) | (11,656) | (12,296) |
| 26,876 | 25,557 | |
| Less: cost of repurchased stock (550,713,450 and 552,659,642 shares in 2026 and 2025, respectively) | 35,459 | 35,551 |
| Total PMI stockholders’ deficit | (8,583) | (9,994) |
| Noncontrolling interests | 1,926 | 1,966 |
| Total stockholders’ deficit | (6,657) | (8,028) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $68,271 | $69,185 |
Condensed Consolidated Statements of Cash Flows
| For the Six Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
| Net earnings | $5,567 | $5,985 |
| Adjustments to reconcile net earnings to operating cash flows: | ||
| Depreciation and amortization expense | 1,023 | 970 |
| Impairment of goodwill (Note 5) | — | 41 |
| Impairment related to the RBH equity investment (Note 13) | 511 | — |
| Deferred income tax (benefit) provision | (10) | (274) |
| Restructuring charges, net of cash paid (Note 15) | (15) | 239 |
| Cash effects of changes, net of the effects from acquired and divested companies: | ||
| Receivables, net | (690) | (780) |
| Inventories | (80) | (419) |
| Accounts payable | (284) | (161) |
| Accrued liabilities and other current assets | (1,081) | (1,972) |
| Income taxes | (200) | (611) |
| Pension plan contributions (Note 4) | (67) | (62) |
| Other | 419 | 106 |
| Net cash provided by (used in) operating activities | 5,093 | 3,062 |
| CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||
| Capital expenditures | (733) | (760) |
| Proceeds from sale of businesses, net of cash disposed (Note 2) | 87 | 32 |
| Purchases of debt securities | (5) | (105) |
| Sales and maturities of debt securities | 193 | 25 |
| Equity investments | (45) | (35) |
| Collateral posted/settlements for derivatives, (paid)/returned (Note 6) | 543 | (1,953) |
| Other | (17) | 46 |
| Net cash provided by (used in) investing activities | 23 | (2,750) |
Continued
Condensed Consolidated Statements of Cash Flows (Continued)
| For the Six Months Ended June 30, | ||
|---|---|---|
| 2026 | 2025 | |
| CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | ||
| Short-term borrowing activity by original maturity: | ||
| Net issuances (repayments) - maturities of 90 days or less | $2,525 | $2,294 |
| Issuances - maturities longer than 90 days | 1,659 | 170 |
| Repayments - maturities longer than 90 days | (994) | (70) |
| Long-term debt proceeds | 1,478 | 3,596 |
| Long-term debt repaid | (4,021) | (1,566) |
| Dividends paid | (4,604) | (4,222) |
| Collateral received/settlements for derivatives, received/(returned) | 404 | (824) |
| Noncontrolling interests activity and Other | (326) | (268) |
| Net cash provided by (used in) financing activities | (3,879) | (890) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (105) | 500 |
| Cash, cash equivalents and restricted cash (1): | ||
| Increase (Decrease) | 1,132 | (78) |
| Balance at beginning of period | 4,892 | 4,254 |
| Balance at end of period | $6,024 | $4,176 |
(1)The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $25 million and $38 million as of June 30, 2026 and 2025, respectively, and $20 million and $38 million as of December 31, 2025 and 2024, respectively, which were included in other current assets in the condensed consolidated balance sheets.
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Six Months Ended June 30, 2026 and 2025
(in millions of dollars, except per share amounts)
| PMI Stockholders’ (Deficit) Equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CommonStock · AdditionalPaid-inCapital · EarningsReinvested intheBusiness · AccumulatedOtherComprehensive Losses · Cost ofRepurchasedStock · NoncontrollingInterests · Total | |||||||||||||
| Balances, January 1, 2025 | $— | $2,335 | $32,869 | $(11,314) | $(35,640) | $1,880 | $(9,870) | ||||||
| Net earnings | 5,729 | 256 | 5,985 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (1,839) | 33 | (1,806) | ||||||||||
| Issuance of stock awards | 29 | 87 | 116 | ||||||||||
| Dividends declared ($2.70 per share) | (4,222) | (4,222) | |||||||||||
| Dividends paid to noncontrolling interests | (215) | (215) | |||||||||||
| Balances, June 30, 2025 | $— | $2,364 | $34,376 | $(13,153) | $(35,553) | $1,954 | $(10,012) | ||||||
| Balances, January 1, 2026 | $— | $2,453 | $35,400 | $(12,296) | $(35,551) | $1,966 | $(8,028) | ||||||
| Net earnings | 5,255 | 312 | 5,567 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | 640 | (56) | 584 | ||||||||||
| Issuance of stock awards | 24 | 92 | 116 | ||||||||||
| Dividends declared ($2.94 per share) | (4,600) | (4,600) | |||||||||||
| Dividends paid to noncontrolling interests | (296) | (296) | |||||||||||
| Balances, June 30, 2026 | $— | $2,477 | $36,055 | $(11,656) | $(35,459) | $1,926 | $(6,657) | ||||||
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Three Months Ended June 30, 2026 and 2025
(in millions of dollars, except per share amounts)
| PMI Stockholders’ (Deficit) Equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CommonStock · AdditionalPaid-inCapital · EarningsReinvested intheBusiness · AccumulatedOtherComprehensive Losses · Cost ofRepurchasedStock · NoncontrollingInterests · Total | |||||||||||||
| Balances, April 1, 2025 | $— | $2,326 | $33,447 | $(11,117) | $(35,557) | $1,975 | $(8,926) | ||||||
| Net earnings | 3,039 | 109 | 3,148 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (2,036) | 31 | (2,005) | ||||||||||
| Issuance of stock awards | 38 | 4 | 42 | ||||||||||
| Dividends declared ($1.35 per share) | (2,110) | (2,110) | |||||||||||
| Dividends paid to noncontrolling interests | (161) | (161) | |||||||||||
| Balances, June 30, 2025 | $— | $2,364 | $34,376 | $(13,153) | $(35,553) | $1,954 | $(10,012) | ||||||
| Balances, April 1, 2026 | $— | $2,433 | $35,538 | $(11,788) | $(35,462) | $1,979 | $(7,300) | ||||||
| Net earnings | 2,817 | 168 | 2,985 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | 132 | (23) | 109 | ||||||||||
| Issuance of stock awards | 44 | 3 | 47 | ||||||||||
| Dividends declared ($1.47 per share) | (2,300) | (2,300) | |||||||||||
| Dividends paid to noncontrolling interests | (198) | (198) | |||||||||||
| Balances, June 30, 2026 | $— | $2,477 | $36,055 | $(11,656) | $(35,459) | $1,926 | $(6,657) | ||||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.