Philip Morris Q1 Revenue Jumps 9% to $10.1B but Profit Falls 9%
Philip Morris International Inc. (NYSE: PM), a global tobacco and smoke-free products company, reported net revenue of $10.15 billion for the first quarter of 2026, up from $9.30 billion in the year-ago period. Net income declined to $2.44 billion from $2.69 billion.
Philip Morris International Inc. (NYSE: PM), a global tobacco and smoke-free products company, reported net revenue of $10.15 billion for the three months ending March 31, 2026, a 9.1% increase from $9.30 billion in the first quarter of 2025. Despite the top-line growth, net income fell 9.4% to $2.44 billion from $2.69 billion in the prior-year period. Read more earnings reports.
Operating income rose to $3.89 billion from $3.54 billion, a gain of 9.8% year-over-year. Gross profit climbed to $6.91 billion from $6.27 billion, while cost of goods sold increased to $3.24 billion from $3.03 billion.
Diluted earnings per share came in at $1.56, down from $1.72 in the first quarter of 2025. The weighted average diluted share count stood at 1.56 billion shares, roughly flat with 1.56 billion a year earlier.
Cash Flow and Balance Sheet
Cash from operations was a negative $399 million for the quarter, compared to a negative $350 million in the year-ago period. Cash from investing totaled negative $3 million, a sharp improvement from negative $434 million in Q1 2025. Cash from financing activities generated $1.10 billion, up from $671 million.
The company ended the quarter with cash and cash equivalents of $5.45 billion, up from $4.87 billion at year-end 2025. Total assets stood at $68.91 billion as of March 31, 2026, down slightly from $69.19 billion at the end of December 2025.
Total liabilities declined to $76.21 billion from $77.21 billion. Stockholders' equity remained in deficit at negative $9.28 billion, an improvement from negative $9.99 billion at the prior quarter-end. Retained earnings edged up to $35.54 billion from $35.40 billion.
Financial Summary
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net Revenue | $10.15 billion | $9.30 billion | +9.1% |
| Gross Profit | $6.91 billion | $6.27 billion | +10.1% |
| Operating Income | $3.89 billion | $3.54 billion | +9.8% |
| Net Income | $2.44 billion | $2.69 billion | -9.4% |
| Diluted EPS | $1.56 | $1.72 | -9.3% |
| Cash from Operations | -$399 million | -$350 million | N/A |
The company reported tax expense of $676 million for the quarter, up from $659 million in the first quarter of 2025. Current assets totaled $25.60 billion, compared to $24.36 billion at the end of 2025. Inventory stood at $11.39 billion, down slightly from $11.48 billion.
Goodwill declined to $17.07 billion from $17.26 billion at year-end, while intangible assets fell to $10.51 billion from $10.88 billion. Accounts receivable climbed to $5.12 billion from $4.57 billion at the prior quarter-end.