Achieved fifth consecutive year of positive volume growth, with net revenues surpassing $40 billion and smoke-free products contributing 41.5% of total net revenues in 2025, driven by strong performance in smoke-free and combustibles despite industry declines and supply chain issues.
Smoke-free product volumes grew 12.8% year-over-year, with IQOS as the main driver, significant contributions from ZYN and VEEV, and over 43 million adult consumers globally; smoke-free products now available in 106 markets.
Adjusted diluted EPS grew 15% in dollar terms, reaching $7.54, the strongest since 2011 (excluding 2021), with currency-neutral growth of 14% and reported diluted EPS at $7.26.
Smoke-free products accounted for over 50% of net revenues in 27 markets and in 3 of 4 regions in Q4 2025.
Provided 2026–2028 growth targets, aiming for continued strong performance and sustainable shareholder value.
Full-year 2025 net revenues reached $40.6 billion, up 7.3% reported and 6.5% organically from 2024, with organic net revenue growth at 7.9% excluding Indonesia impact.
Adjusted operating income margin reached 40.4%, with adjusted operating income at $16.4 billion and gross profit at $27.3 billion, up 11.1% year-over-year.
Adjusted diluted EPS of $7.54, up 14.8% from 2024, at the high end of guidance, despite a $0.04 currency tailwind shortfall.
Operating cash flow matched the prior year at $12.2 billion.
Q4 2025 net revenues were $10.4 billion, up 6.8% reported and 3.7% organically year-over-year.
2026 organic net revenue growth forecast at 5%-7%; organic operating income growth at 7%-9%; adjusted diluted EPS forecasted at $8.38–$8.53, representing 11.1%–13.1% growth over 2025.
Currency-neutral adjusted diluted EPS growth projected at 7.5%-9.5%; including currency, EPS expected to grow 11.3%-13.3%.
Operating cash flow for 2026 projected at approximately $13.5 billion.
Medium-term (2026-2028) targets: 6%-8% CAGR in organic net revenues, 8%-10% in operating income, 9%-11% in adjusted diluted EPS.
Capital expenditures projected at $1.4–$1.6 billion in 2026, with net debt to adjusted EBITDA targeted near 2.0x by year-end.
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Philip Morris first saw the light of day when Mr. Philip Morris, in 1847, opened a shop on London’s Bond Street, selling tobacco and ready-made cigarettes.
Philip Morris is the leader in manufacturing and selling cigarettes, tobacco, and nicotine-containing products. They are the makers of Marlboro, the world’s best-selling cigarette. Despite operating in an industry plagued by scandal, health concerns, regulations, and taxation, Philip Morris has continuously posted record-breaking profits and sales year after year.
As this industry is highly controversial, Philip Morris, early on, diversified their interests and expanded into international markets. By acquiring Miller Brewing in 1970, General Foods in 1985, and Kraft Inc. in 1988, Philip Morris became the world’s largest food corporation and beverage company in North America by revenue. Philip Morris is, on their behalf, owned by Altria.
Further reading: The Rise of ZYN: Redefining Nicotine Consumption
Today’s Philip Morris expects a bright future for heat-not-burn (HNB) tobacco products sold under its “I Quit Original Smoking” (IQOS) brand. In 2021, the number of adults who have stopped smoking and switched to IQOS reached 15.3 million across 71 markets.
"We are investing behind innovation and delivering sustainable growth from our leading smoke-free products, which are a much better choice than continued smoking." – James Bushnell, Vice President, Investor Relations & Financial Communications
Other companies within the business are British American Tabacco, Japan Tabacco Inc, and Imperial Brands.
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