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Led by science and innovation, PMI’s goal is to end the sale of cigarettes.

We are delivering smoke-free products that are a better choice for adults than continued smoking.

Our ambition is to become substantially smoke-free by 2030, with our smoke-free business generating over two-thirds of our total global net revenues.

Our progress toward a smoke-free future as of 2025 Q4

  • graph-up-C24002_Spotlight_150x150_process-age_icon

    42 percent

    of PMI’s total global net revenues came from our smoke-free business.*

  • >43 million

    estimated legal-age consumers of PMI’s smoke-free products.**

  • world-C24002_Spotlight_icons_150x150_progress-page

    106 markets

    where our smoke-free products are available, providing better alternatives for legal-age smokers.*

  • world-C24002_Spotlight_icons_150x150_progress-page

    USD >16 billion

    invested to develop, scientifically substantiate, and commercialize smoke-free products since 2008.**


*As of Q4 2025. **As of December 31, 2025. Important note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated February 6, 2026, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations page. “PMI,” “We,” “Our,” and “Us” refers to the entire Philip Morris International family of companies..

 

 

We’re accelerating toward our smoke-free ambitions

 *As of Q3 2014. **As of Q4 2025.Important note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated February 6, 2026, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations pages. “PMI,” “We,” “Our,” and “Us” refers to the entire Philip Morris International family of companies.

Highlights of PMI's Q4 2025 & Full-Year results

Emmanuel Babeau, Chief Financial Officer for Philip Morris International, discusses the highlights of the Q4 2025 & Full-Year earnings reports.

02:50

Emmanuel Babeau shares his highlights from our Q4 & Full-Year Results

Emmanuel Babeau, Group Chief Financial Officer for Philip Morris International, speaks to camera:

Our Fourth‑Quarter and Full‑Year results are out.  

’25 was another outstanding year for PMI.  

The shift of adult smokers to better alternatives is a lasting structural movement, one that we continue to lead and from which we are generating strong, sustained growth.  

We delivered our fifth consecutive year of positive volumes with rapid top‑line progress and significant margin expansion, generating strong value for our shareholders, including the largest dividend increase in over a decade.

The numbers show our progress.  

Our total net revenue reached over $40 billion in 2025, with 41.5%, or close to $17 billion, generated by our smoke‑free business.  

27 markets exceeded the 50% net revenue milestone in ’25, and in Q4 2025, the Europe region also surpassed 50%, making three of our four regional segments majority smoke‑free.

Even more impressive is the smoke‑free adjusted gross profit contribution, which has essentially doubled in five years to 43% of total PMI.  

Our adjusted operating margin also returned to above 40% in 2025, as our transformation becomes increasingly profitable.  

This enabled us to deliver +15% adjusted diluted earnings per share growth in dollar terms, which is the strongest growth since 2011, excluding the pandemic‑recovery year of 2021.

We continue to scale our global smoke‑free presence, reaching 106 markets at the end of 2025, with our performance fueled by the international business, which generated the vast majority of total PMI organic net revenue growth,led by smoke‑free products, with IQOS the core driver.

This includes an impressive acceleration in the fourth quarter, with a return to strong double‑digit growth in Italy and a very promising start in Taiwan, being just two examples of broad growth across geographies.

This performance also reflects the success of our multicategory strategy, with both ZYN, excluding Nordics, and VEEV more than doubling shipment volumes in international markets.  

In the U.S., ZYN shipments grew strongly by +37%.

Our strong brand offering, which includes high‑quality science‑backed products in all three smoke‑free product categories, allows us to better serve legal‑age consumers and enhance our financial performance.

Combustibles delivered robust top‑ and bottom‑line performance. 

We accomplished this through strong pricing, portfolio resilience, and disciplined execution.  

Managing this business responsibly enables us to invest boldly in better alternatives and sustain our smoke‑free momentum.

While we are proud of what we have accomplished so far, our focus remains on the future. 

We have an exciting pipeline of initiatives and innovations over the next three years, supported by increasing digitalization and our new organizational model. 

With this strong foundation, we look forward with confidence to 2026 and beyond.

Music starts.

Philip Morris International's logo is seen on screen alongside the words Global Smoke-free Champion.

Financial disclaimer appears on screen.

Music ends.

Celebrating 10 years of smoke-free progress

Our “PMI: A Story of Innovation” video series takes a fascinating deep dive into the early days of our transformation, the successes we’ve achieved, and the problems we’ve overcome since launching our leading heated tobacco product a decade ago.

 

1:30

PMI: A story of innovation


André Calantzopoulos, Chairman of the Board, Philip Morris International (PMI), sitting in an office, speaking to camera:
It was a very interesting journey, a very exciting journey with frustrations
from time to time, with setbacks. But I think we did the right thing.
Music rises and graphics appear showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text shows title of video: PMI - A Story of Innovation - #05: Never Stop
Moira Gilchrist, Chief Communications Officer, PMI, sat in an office, speaking to camera:
Being there from the very, very beginning,
since it was just an idea that was sketched out on a flip chart to where we are now.
And that's, a sense of enormous pride at what we've done.
Shea Lih Goh, President, PMI Japan, speaks to camera:
Every function within the company has undergone some sort of transformation.
Lisa Hook, Member of the Board of Directors, PMI, speaks to camera:
It is extraordinary to get to be on this ride.
Video cuts to the PMI office building in Lausanne, Switzerland
André Calantzopoulos speaks:
I have never regretted for a second that we went into this product.
What I regret is we didn't have the knowledge and the understanding,
I can blame myself for that, to avoid certain of the difficulties and the problems we had in the initial years.
Jacek Olczak, CEO of PMI, sat in an office speaking to camera:
Knowledge of anything today and you go back in time, you could do things differently.
But the knowledge today is the result of
experiences you build over the last period.
Graphic shows human brain which changes to stacked cubes with text: Knowledge is the result of experiences you build.
Lisa Hook speaks:
There has never been a moment where the board or the management team
has hesitated to keep pushing forward.
Urs Bringold, VP Content & Owned Media, PMI, speaks:
There was once sort of a visual just to illustrate what one day we would have.
The illustration was: you saw a tobacconist shop and you had a side
that was like ‘cigarettes’ and on the other hand, you had ‘IQOS’ and all that.
And I swear it, a lot of people internally before it launched were like,
'It will never happen' and all that. And now it is, you know.
Graphic shows tobacconist shop and text to the left 'Cigarettes' and to the right 'Smoke-free products'.
Stefano Volpetti, President Smoke-free Inhalable Products & Chief Commercial Officer, PMI, speaks:
The only gift here would be the gift of all the learnings that we had in the last ten years,
have it as of day one. Because that would have accelerated this journey.
André Calantzopoulos speaks:
As executive of a company, you always say, 'If I knew when I started what I know when I finished,
that would be a very different company.'
Video cuts to the PMI office building in Lausanne.
Moira Gilchrist speaks:
So, where do we go from here?
I think now it's about continuing to build on the science.
It's about continuing to listen adults who smoke.
Serge Maeder, Global Head of RRP System Innovation, PMI, sat in open-plan office, speaking to camera:
We have just opened a small door, but I think we have a lot of options to make this product better.
But yes, you're talking to the wrong guy,
you’re to talking to the guy whose job is to improve the product going forward.
Mimi Kurniawan, Chief Diversity Officer, PMI, speaks:
What is the next product, what next innovation? What else?
Graphic shows early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text reads: What is the next product/innovation?
Karlygash Bismeldinova, AGC, Commercial Development Law, PMI, speaks to camera:
Never stop. And this is what I really like about PMI. We're always in the process of progress.
Emmanuel Babeau, CFO of PMI, speaking to camera:
Ten years ago, the level of skepticism, cynicism sometimes, on our ambition to unsmoke the world
and become a smoke-free company was very high.
Ten years after, I believe that nobody today can seriously challenge how genuine we are in delivering this ambition.
Graphic shows a cigarette broken in half and text: 10 years ago/after cynicism of our ambition
Graphic changes to a parcel box and text reads: Nobody today can challenge how genuine we are.
Serge Maeder speaks:
We have a chance, in the next 10 years to go full smoke-free products in PMI.
Stefano Volpetti speaks:
If you take Tokyo, more than 50% of the volume is in smoke-free products.
The direction is set.
Shea Lih Goh speaks:
I think today, as we said, we have many things to be proud of in Japan.
But we are not resting on our laurels. Obviously, we want to do more.
So, I'm very, very sure in the next 10 years, there will be a lot of significant achievements.
Jean-Claude Schneider, Global Head, New Business Opportunities, PMI, sat in open plan office, speaks to the camera:
Innovation is coming. I don't know what we're going to have maybe in three, four, five years.
But I know something is going to be available, that we're going to have a constant evolution.
Moira Gilchrist speaks:
We've made incredible progress, but there's a world still of a billion smokers.
So, we're kind of one smoker at a time.
Stefano Volpetti speaks:
We are sitting on something that can change the trajectory of public health.
Graphic appears showing a speedometer and text reads: Get there faster, help from stakeholders, health regulators
Stefano Volpetti voice over graphic:
We're going to get there faster if society, antis, stakeholders, health regulators help us to go in that direction,
but not because they need to help PMI,
but because we have a responsibility to consumers out there to provide them with better alternatives.
Video cuts to the PMI office building in Lausanne
Bin Li, Chief Product Officer, speaks:
Ten, 15 years ago, we said that, 'We may be able to do it, to replace cigarettes.
To give smokers a better alternative.'
Graphic appears showing a cigarette and an IQOS device.
Text reads: We may be able to replace cigarettes. Better alternative
Scott Coutts, Senior Vice President, Operations:
When we say we want to do something, we can change the industry as we're doing today.
Lisa Hook speaks:
I think it’s the most extraordinary achievement I've ever seen any corporation accomplish.
Mimi Kurniawan speaks:
This is showing that we are achieving the bold vision and the bold milestone that we set for ourselves.
Shea Lih Goh speaks:
I'm just proud to be part of this journey and this beautiful history.
Jacek Olczak speaks:
I have no regrets. There were a lot of hard days. But I have no regrets.
André Calantzopoulos speaks:
All these things have taken lot of time. But are important milestones in your filmography.
It's many happy endings, but still it's many episodes to come.
Jacek Olczak speaks:
This is a great movie. You don't want this movie to finish, I want to see more of this, more of this.
Video cuts to Moira Gilchrist sitting in a chair, filmed by a camera, writing on a notepad.
André Calantzopoulos sitting in a chair, being filmed by a camera crew member, asks:
Female voice behind camera:
Everyone happy? Yeah. Go.
André Calantzopoulos sitting in a chair, being filmed by camera crew members, asks:
What was your question?
Female voice behind camera:
Your proudest moment?
Bin Li sitting in a chair, being filmed by camera crew members, speaks:
Two words come to my mind.
Video shows Jean-Claude Schneider's notepad
Female voice behind camera speaks:
Lowest moment?
Jacek Olczak speaks:
Oh, lowest?
Female voice behind camera speaks:
Yeah.
Jacek Olczak speaks:
You know me very well, I am a born optimist, okay.
Mimi Kurniawan speaks:
Sorry. I changed.
Video shows Karlygash Bismeldinova's notepad.
Karlygash Bismeldinova speaks:
Future is always difficult.
André Calantzopoulos speaks:
What was the toughest moment?
Video shows Lisa Hook's notepad.
Lisa Hook speaks:
Can you give me some ideas?
Jean-Claude Schneider speaks:
That was simple.
Video shows Scott Coutts's notepad.
Scott Coutts speaks:
Our hope for the future.
Shea Lih Goh speaks:
Full name?
Video shows Stefano Volpetti's notepad. Male voice behind camera speaks:
That's wonderful handwriting.
Stefano Volpetti speaks:
Wonderful or terrible?
Urs Bringold speaks:
Oh, no. I have to take a new...
Bin Li speaks:
Do I sign?
Jacek Olczak speaks:
You ready?
Video shows graphics of everyone's notes from their notepads alongside a short video of them writing in their notepads in the following order:
Jacek Olczak, Mimi Kurniawan, Moira Gilchrist, André Calantzopoulos, Jean-Claude Schneider, Shea Lih Goh, Bin Li, Serge Maeder.
Graphic appears: PMI A story of innovation
Jacek Olczak speaks:
I think we did the right thing.
Philip Morris International logo appears with text underneath reading: The End!

 

We're making progress across our business

 

Philip Morris International celebrates a decade of progress with 2024 Integrated Report

The release showcases our smoke-free journey, business transformation, and key sustainability achievements—giving CEO Jacek Olczak “profound optimism” for the future.

Philip Morris International’s heated tobacco product IQOS replaces Marlboro as its leading brand

3 min read

The company’s flagship smoke-free innovation has surpassed our best-selling cigarette brand to become the premium nicotine brand globally, less than a decade since its launch, demonstrating the progress we’re making as we move away from cigarettes.

Culture & Diversity at PMI

Fostering a collaborative, high-performing workplace is crucial, enabling us to attract and retain a rich community of innovators who can help deliver our smoke-free vision.