A future without cigarettes is possible and we’re doing our part to get there as soon as possible.
Led by science and innovation, Philip Morris International has disrupted its business and industry with the goal of completely ending the sale of cigarettes.
We are delivering smoke-free products that are a better choice for adults who would otherwise continue to smoke cigarettes. Our smoke-free products are now available in 106 markets, as of Q4 2025. Our ambition is to become substantially smoke-free by 2030, with our smoke-free business generating over two-thirds of total global net revenues.
Our progress toward a smoke-free future as of 2025 Q4
-
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.**
-
106 markets
where our smoke-free products are available, providing better alternatives for legal-age smokers.*
-
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..
*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.
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.